AmeriCredit Reports Record Third Quarter Operating Results
FORT WORTH, Texas--April 15, 2002--AMERICREDIT CORP. :| -- | 3rd Quarter Earnings Per Share Up 46% to $1.02 |
| -- | 3rd Quarter Net Income Up 52% to $91.6 Million |
| -- | Quarterly Loan Originations Up 47% to $2.4 Billion |
| -- | Managed Portfolio Up 50% to $13.6 Billion |
AMERICREDIT CORP. today announced record net income of $91.6 million, or $1.02 per share, for its third fiscal quarter ended March 31, 2002, versus earnings of $60.4 million, or $0.70 per share, for the same period a year earlier. On a comparative basis, net income increased 52% and earnings per share rose 46%.
For the nine months ended March 31, 2002, AmeriCredit reported net income of $251.0 million, or $2.81 per share, versus earnings of $151.1 million, or $1.78 per share, for the nine months ended March 31, 2001. On a comparative basis, net income increased 66% and earnings per share rose 58%.
Automobile loan purchases were $2.43 billion for the third quarter of fiscal 2002, an increase of 47% over loan purchases of $1.65 billion for the third quarter of fiscal 2001. AmeriCredit's managed auto receivables totaled $13.63 billion at March 31, 2002, an increase of 50% since March 31, 2001. The Company had 252 branch locations throughout the United States and Canada at March 31, 2002.
Annualized net charge-offs were 4.8% of average managed auto receivables for the third quarter of fiscal 2002. This compares to net charge-offs of 4.3% last quarter and 3.6% for the third quarter of fiscal 2001. Managed auto receivables more than sixty days delinquent were 3.1% of total managed auto receivables at March 31, 2002, compared to 3.8% at December 31, 2001 and 2.3% at March 31, 2001.
"The past nine months have been both challenging and very rewarding for AmeriCredit," says Michael Barrington, chief executive officer of AmeriCredit. "We have long believed our business model has the flexibility to withstand various economic conditions while delivering industry-leading growth and profitability. Our actual performance over the past few quarters has demonstrated this to be so."
REGULATION FD
AmeriCredit provides information to investors on its Web site at www.americredit.com including press releases, conference calls, SEC filings and other financial data.
Pursuant to Regulation FD, the Company provides its expectations regarding future business trends to the public via a press release or 8-K filing. Based on current business trends:
| -- | The Company projects it will originate $2.30 billion to $2.50 billion in auto loans during its fourth fiscal quarter ending June 30, 2002, and $9.40 billion to $10.00 billion in auto loans during the calendar year ending December 31, 2002. |
| -- | Earnings per share are projected in a range of $1.00 to $1.06 for the quarter ending June 30, 2002, and $4.16 to $4.28 for the calendar year ending December 31, 2002. |
| -- | Pro forma portfolio-based earnings per share are projected in a range between $0.92 to $0.98 for the quarter ending June 30, 2002, and $3.92 to $4.04 for the calendar year ending December 31, 2002. |
AmeriCredit will host a conference call for analysts and investors at 9:00 A.M. Eastern Daylight Time on Tuesday, April 16, 2002. For a live Internet broadcast of this conference call, please go to the Company's Web site to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
AmeriCredit Corp. is the largest independent middle-market auto finance company in North America. Using its branch network and strategic alliances with auto groups and banks, the company makes auto loans to consumers who are typically unable to obtain financing from traditional sources. AmeriCredit has over one million active loan customers throughout the United States and Canada and more than $13 billion in managed auto receivables. The company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information visit www.americredit.com.
Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties detailed from time to time in the Company's filings and reports with the Securities and Exchange Commission including the Company's annual report on Form 10-K for the period ended June 30, 2001. Such risks include -- but are not limited to -- deteriorating economic environment, adverse portfolio performance, reliance on capital markets, fluctuating interest rates, increased competition, regulatory changes and tightening labor markets. These forward-looking statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to Company management. Actual events or results may differ materially.
AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------- ---------------------
2002 2001 2002 2001
---------- ---------- ---------- ----------
Revenue:
Finance charge income $ 82,188 $ 61,017 $ 259,012 $ 158,512
Gain on sale of receivables 124,112 79,674 325,732 212,433
Servicing fee income 97,362 74,423 277,168 197,128
Other income 3,067 2,038 9,317 7,029
---------- ---------- ---------- ----------
306,729 217,152 871,229 575,102
---------- ---------- ---------- ----------
Costs and expenses:
Operating expenses 107,885 79,342 315,651 219,837
Provision for loan losses 16,739 8,635 48,248 21,960
Interest expense 33,123 30,915 99,270 87,541
---------- ---------- ---------- ----------
157,747 118,892 463,169 329,338
---------- ---------- ---------- ----------
Income before income taxes 148,982 98,260 408,060 245,764
Income tax provision 57,358 37,830 157,103 94,619
---------- ---------- ---------- ----------
Net income $ 91,624 $ 60,430 $250,957 $151,145
========== ========== ========== ==========
Earnings per share:
Basic $ 1.08 $ 0.75 $ 2.97 $ 1.92
========== ========== ========== ==========
Diluted $ 1.02 $ 0.70 $ 2.81 $ 1.78
========== ========== ========== ==========
Weighted average shares 84,988,165 80,079,906 84,470,535 78,520,489
========== ========== ========== ==========
Weighted average shares and
assumed incremental shares 89,509,209 86,709,986 89,334,924 84,817,718
========== ========== ========== ==========
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
March 31, December 31, June 30,
2002 2001 2001
------------ ------------ ------------
Cash and cash equivalents $ 118,641 $ 95,509 $ 77,053
Finance receivables, net 2,324,087 2,300,486 1,921,465
Interest-only
receivables from Trusts 510,021 412,352 387,895
Investments in Trust
receivables 603,340 549,319 493,022
Restricted cash 486,301 539,003 270,358
Other assets 344,590 373,643 235,114
------------ ------------ ------------
Total assets $ 4,386,980 $ 4,270,312 $ 3,384,907
============ ============ ============
Borrowings under
warehouse lines $ 1,889,188 $ 1,929,552 $ 1,502,879
Senior notes 375,000 375,000 375,000
Other notes payable 225,451 246,371 59,396
Other liabilities 547,124 484,101 387,436
------------ ------------ ------------
Total liabilities 3,036,763 3,035,024 2,324,711
Shareholders' equity 1,350,217 1,235,288 1,060,196
------------ ------------ ------------
Total liabilities and
shareholders' equity $ 4,386,980 $ 4,270,312 $ 3,384,907
============ ============ ============
Cash Flows From Operating Activities
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- ---------------------
2002 2001 2002 2001
--------- --------- ---------- ----------
Cash revenue:
Finance charge income $ 82,188 $ 61,017 $ 259,012 $ 158,512
Cash gain on sale 5,897 13,495 17,980 42,708
Servicing fee income 75,995 49,180 199,535 132,353
Other income 3,067 2,038 9,317 6,362
Securitization distributions 54,963 51,483 182,826 158,552(a)
Changes in working capital 47,573 1,303 58,520 16,232
--------- --------- ---------- ----------
269,683 178,516 727,190 514,719
--------- --------- ---------- ----------
Cash expenses:
Operating expenses (101,251) (74,446) (297,094) (204,277)
Interest expense (33,123) (30,915) (99,270) (87,541)
Income taxes (46,084) (10,741) (130,530) (57,913)
--------- --------- ---------- ----------
(180,458) (116,102) (526,894) (349,731)
--------- --------- ---------- ----------
Operating cash flow 89,225 62,414 200,296 164,988
Credit enhancement deposits (48,000) (26,001) (121,000) (93,001)
--------- --------- ---------- ----------
Net cash flow $ 41,225 $ 36,413 $ 79,296 $ 71,987
========= ========= ========== ==========
Total Cash Flow Generated by
Trusts:
Undistributed $ 51,096 $ 37,503 $ 112,301 $ 109,595
Distributed 54,963 51,483 182,826 158,552(a)
--------- --------- ---------- ----------
Total $106,059 $ 88,986 $ 295,127 $ 268,147
========= ========= ========== ==========
(a) Includes one-time cash distribution during the quarter ended
December 31, 2000 of $13 million released from several older
transactions as a result of a negotiated reduction in the
floor enhancement levels required for those transactions.
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
March 31,
-----------------------------------
2002 2001
--------------- ----------------
Auto lending operations:
Auto loan originations $ 2,432,361 $1,653,200
Auto loans sold 2,400,000 1,300,005
Gain on sale of auto loans 124,112 79,674
Gain on sale of auto loans 5.2% 6.1%
(% of loans sold)
Average owned receivables $ 1,697,140 $1,167,508
Average serviced receivables 11,293,534 7,451,125
--------------- ----------------
Average managed receivables $ 12,990,674 $ 8,618,633
=============== ================
Nine Months Ended
March 31,
-------------------------------------
2002 2001
--------------- ----------------
Auto lending operations:
Auto loan originations $ 6,503,273 $ 4,440,939
Auto loans sold 6,049,997 3,800,002
Gain on sale of auto loans 325,732 212,433
Gain on sale of auto loans 5.4% 5.6%
(% of loans sold)
Average owned receivables $ 1,771,980 $ 975,265
Average serviced receivables 10,098,419 6,857,243
----------------- ---------------
Average managed receivables $11,870,399 $ 7,832,508
================= ===============
Three Months Ended Nine Months Ended
March 31, March 31,
------------------ ------------------
2002 2001 2002 2001
--------- --------- --------- ---------
Auto lending operations
Net charge-offs:
Owned $ 16,579 $ 4,565 $ 38,387 $ 10,788
Serviced 138,356 72,477 350,673 203,027
--------- --------- --------- ---------
$154,935 $ 77,042 $ 389,060 $ 213,815
========= ========= ========= ==========
Net charge-offs as a
percentage of
average managed
receivables
outstanding 4.8% 3.6% 4.4% 3.6%
========= ========= ========= ==========
March 31, 2002
-----------------------------------------------
Auto loan portfolio: Owned Serviced Total Managed
------------ ------------- -------------
Principal $ 2,390,298 $ 11,237,512 $ 13,627,810
Allowance for losses (66,211) (1,245,962) (1,312,173)
------------ ------------- -------------
$ 2,324,087 $ 9,991,550 $ 12,315,637
============ ============= =============
Allowance for
losses (%) 2.8% 11.1% 9.6%
============ ============= =============
March 31, December 31, March 31,
2002 2001 2001
------------ ------------ ------------
Auto loan delinquency (%):
31 - 60 days 6.7% 8.5% 6.6%
> 60 days 3.1 3.8 2.3
------------ ------------ ------------
9.8 12.3 8.9
Repossessions 1.1 1.1 1.0
------------ ------------ ------------
10.9% 13.4% 9.9%
============ ============ ============
Pro Forma Portfolio-Based Earnings Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
----------------- -----------------
2002 2001 2002 2001
--------- --------- ----------- -----------
Finance charge, fee and
other income $589,677 $420,673 $1,655,182 $1,163,248
Funding costs (192,634) (165,019) (560,435) (461,117)
--------- --------- ----------- -----------
Net margin 397,043 255,654 1,094,747 702,131
Operating expenses (107,885) (79,342) (315,651) (219,837)
Credit losses (154,935) (77,042) (389,060) (213,815)
--------- --------- ----------- -----------
Pre-tax portfolio-based
income 134,223 99,270 390,036 268,479
Income taxes (51,676) (38,219) (150,164) (103,364)
--------- --------- ----------- -----------
Net portfolio-based
income $ 82,547 $ 61,051 $ 239,872 $ 165,115
========= ========= =========== ===========
Diluted portfolio-based
earnings per share $ 0.92 $ 0.70 $ 2.69 $ 1.95
========= ========= =========== ===========
Pro Forma Return on Managed Assets(1)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------ -----------------
2002 2001 2002 2001
------ ------ ------ ------
Finance charge, fee and
other income 18.4% 19.8% 18.6% 19.8%
Funding costs (6.0) (7.8) (6.3) (7.9)
------ ------ ------ ------
Net margin 12.4 12.0 12.3 11.9
Credit losses (4.8) (3.6) (4.4) (3.6)
------ ------ ------ ------
Risk adjusted margin 7.6 8.4 7.9 8.3
Operating expenses (3.4) (3.7) (3.5) (3.7)
------ ------ ------ ------
Pre-tax return on managed
assets 4.2 4.7 4.4 4.6
Income taxes (1.6) (1.8) (1.7) (1.8)
------ ------ ------ ------
Return on managed
assets 2.6% 2.9% 2.7% 2.8%
====== ====== ====== =======
1 The pro forma portfolio-based earnings data and return on
managed assets present the Company's operating results under
the assumption that securitization transactions are financings
and no gain on sale or servicing fee income is recognized.
Instead, finance charges and fees are recognized over the life
of the securitized receivables as accrued and interest and
other costs related to the asset-backed securities are also
recognized as accrued. Credit losses are recorded when the
Company repossesses and disposes of the collateral or the
account is otherwise deemed uncollectible. While this data
does not purport to present the Company's operating results in
accordance with generally accepted accounting principles, the
Company believes such presentation provides another measure
for assessing the Company's performance.