AmeriCredit Reports Record Fourth Quarter and Fiscal Year Operating Results
FORT WORTH, Texas--Aug. 6, 2002--AMERICREDIT CORP. today announced record net income of $96.5 million, or $1.06 per share, for its fourth fiscal quarter ended June 30, 2002, versus earnings of $71.7 million, or $0.81 per share, for the same period a year earlier. On a comparative basis, net income increased 35% and earnings per share rose 31%.
For the fiscal year ended June 30, 2002, AmeriCredit reported net income of $347.5 million, or $3.87 per share, versus earnings of $222.9 million, or $2.60 per share, for the fiscal year ended June 30, 2001. On a comparative basis, net income increased 56% and earnings per share rose 49%.
Automobile loan purchases were $2.43 billion for the fourth quarter of fiscal 2002, an increase of 25% over loan purchases of $1.94 billion for the fourth quarter of fiscal 2001. AmeriCredit's managed auto receivables totaled $14.76 billion at June 30, 2002, an increase of 45% since June 30, 2001.
Annualized net charge-offs were 5.2% of average managed auto receivables for the fourth quarter of fiscal 2002, consistent with previous guidance. This compares to net charge-offs of 4.8% last quarter and 3.6% for the fourth quarter of fiscal 2001. Managed auto receivables more than sixty days delinquent were 3.3% of total managed auto receivables at June 30, 2002, compared to 2.5% at June 30, 2001.
"The June quarter capped another successful fiscal year at AmeriCredit," said Michael R. Barrington, chief executive officer of AmeriCredit Corp. "Our plan for the quarter was to moderate our growth rate and maintain our solid financial results, and we met those goals. We grew loan volume by 25% and net income by 35%, and I couldn't be more pleased with these accomplishments."
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 $2.35 billion to $2.55 billion in auto loans during its first fiscal quarter ending September 30, 2002, and $10.25 billion to $11.05 billion in auto loans during the fiscal year ending June 30, 2003. |
| -- | Earnings per share are projected in a range of $1.06 to $1.09 for the quarter ending September 30, 2002, and $4.45 to $4.65 for the fiscal year ending June 30, 2003. |
AmeriCredit will host a conference call for analysts and investors at 9:00 A.M. Eastern Daylight Time on Wednesday, August 7, 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 purchases installment contracts made by auto dealers to consumers who are typically unable to obtain financing from traditional sources. AmeriCredit has more than one million customers throughout the United States and Canada and more than $14 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 Year Ended
June 30, June 30,
------------------ -------------
2002 2001 2002 2001
---- ---- ---- ----
Revenue:
Finance charge income $ 80,418 $ 66,698 $ 339,430 $ 225,210
Gain on sale of
receivables 122,812 89,335 448,544 301,768
Servicing fee income 112,203 84,111 389,371 281,239
Other income 3,570 2,978 12,887 10,007
-------- --------- --------- ---------
319,003 243,122 1,190,232 818,224
-------- --------- --------- ---------
Costs and expenses:
Operating expenses 108,480 88,616 424,131 308,453
Provision for loan losses 16,913 9,427 65,161 31,387
Interest expense 36,658 28,483 135,928 116,024
-------- --------- --------- ---------
162,051 126,526 625,220 455,864
-------- --------- --------- ---------
Income before income taxes 156,952 116,596 565,012 362,360
Income tax provision 60,426 44,889 217,529 139,508
-------- --------- --------- ---------
Net income $ 96,526 $ 71,707 $347,483 $222,852
======== ========= ========= =========
Earnings per share:
Basic $ 1.13 $ 0.87 $ 4.10 $ 2.80
======== ========= ========= =========
Diluted $ 1.06 $ 0.81 $ 3.87 $ 2.60
======== ========= ========= =========
Weighted average shares 85,583,576 82,699,603 84,748,033 79,562,495
========== ========== ========== ==========
Weighted average shares
and assumed incremental
shares 91,200,763 88,966,281 89,800,621 85,852,086
========== ========== ========== ==========
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
June 30, March 31, June 30,
2002 2002 2001
---------- ---------- -----------
Cash and cash equivalents $ 119,445 $ 118,641 $ 77,053
Finance receivables, net 2,198,391 2,324,087 1,921,465
Interest-only receivables
from Trusts 514,497 515,005 387,895
Investments in Trust
receivables 691,065 603,340 493,022
Restricted cash 343,570 486,301 270,358
Other assets 357,963 339,606 235,114
----------- ----------- -----------
Total assets $ 4,224,931 $ 4,386,980 $ 3,384,907
=========== =========== ===========
Borrowings under warehouse
lines $ 1,751,974 $ 1,889,188 $ 1,502,879
Senior notes 418,074 375,000 375,000
Other notes payable 66,811 225,451 59,396
Other liabilities 555,756 547,124 387,436
----------- ----------- -----------
Total liabilities 2,792,615 3,036,763 2,324,711
Shareholders' equity 1,432,316 1,350,217 1,060,196
----------- ----------- -----------
Total liabilities and
shareholders' equity $ 4,224,931 $ 4,386,980 $ 3,384,907
=========== =========== ===========
Cash Flow Data
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
------------------ -----------------
2002 2001 2002 2001
---- ---- ---- ----
Cash revenue:
Finance charge income $ 80,418 $ 66,698 $339,430 $225,210
Servicing fee income 82,940 55,437 277,491 187,790
Securitization
distributions 60,770 56,077 243,596 214,629(a)
Cash gain on sale 5,793 15,069 23,773 57,777
Other income 3,570 2,978 12,887 9,340
Changes in working
capital (26,999) 21,805 36,537 38,037
--------- -------- -------- --------
206,492 218,064 933,714 732,783
--------- -------- -------- --------
Cash expenses:
Operating expenses (101,712) (83,769) (398,806) (288,046)
Interest expense (36,658) (28,483) (135,928) (116,024)
Income taxes (25,499) 1,353 (156,156) (56,561)
--------- -------- -------- --------
(163,869) (110,899) (690,890) (460,631)
--------- -------- -------- --------
Operating cash flow,
excluding purchases,
principal collections
and sales of
receivables 42,623 107,165 242,824 272,152
Credit enhancement
deposits (64,995)(b) (30,008) (185,995)(b) (123,008)
----------- --------- ------------ --------
Net cash flow $(22,372) $77,157 $56,829 $149,144
========== ========= ============ ========
Total cash flow
generated by Trusts $120,978 $111,565 $418,242 $384,402
========== ======== ============ ========
(a) Includes one-time cash distribution during the quarter ended
December 31, 2000 of $13.0 million released from several older
transactions as a result of a negotiated reduction in the floor
enhancement levels required for those transactions.
(b) Includes $3.2 million of cash deposits and $13.8 million of
initial overcollateralization related to the $159 million delivery
into the 2002-A Canadian securitization transaction closed in May
2002.
Other Financial Data
(Unaudited, Dollars in Thousands)
June 30, March 31, June 30,
2002 2002 2001
-------- -------- ---------
Loan delinquency:
31 - 60 days 7.0% 6.7% 6.6%
> 60 days 3.3 3.1 2.5
-------- -------- --------
10.3 9.8 9.1
Repossessions 1.1 1.1 1.0
-------- -------- --------
11.4% 10.9% 10.1%
======== ======== ========
Three Months Ended Year Ended
June 30, June 30,
------------------ -----------------
2002 2001 2002 2001
---- ---- ---- ----
Net charge-offs:
Owned $ 16,033 $ 6,546 $ 54,420 $ 17,334
Serviced 168,725 81,330 519,398 284,357
---------- ---------- --------- ---------
$ 184,758 $ 87,876 $573,818 $ 301,691
========== ========== ========= =========
Net charge-offs as a
percent of average
managed receivables 5.2% 3.6% 4.6% 3.6%
========== ========== ========= =========
Loan originations $2,426,079 $1,937,713 $8,929,352 $6,378,652
Loans sold 2,558,912 1,500,002 8,608,909 5,300,004
Gain on sale of loans 122,812 89,335 448,544 301,768
Gain on sale of loans 4.8% 6.0% 5.2% 5.7%
(% of loans sold)
Average owned
receivables $1,696,581 $1,260,209 $1,753,182 $1,046,306
Average serviced
receivables 12,556,982 8,413,858 10,711,164 7,245,330
---------- ---------- ---------- ----------
Average managed
receivables $14,253,563 $9,674,067 $12,464,346 $8,291,636
=========== ========== =========== ==========
June 30, March 31, June 30,
2002 2002 2001
---------- ---------- ---------
Receivable balance:
Owned $ 2,261,718 $ 2,390,298 $ 1,973,828
Serviced 12,500,743 11,237,512 8,229,918
------------ ----------- -----------
Managed $14,762,461 $13,627,810 $10,203,746
============ =========== ===========
Managed Basis Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
------------------ ----------------
2002 2001 2002 2001
---- ---- ---- ----
Finance charge, fee and
other income $643,257 $465,235 $2,298,439 $1,628,483
Funding costs - managed
receivables (175,475) (154,569) (682,386) (567,931)
Funding costs - other (23,414) (15,296) (76,938) (63,051)
-------- -------- ---------- ----------
Net margin $444,368 $295,370 $1,539,115 $ 997,501
======== ======== ========== ==========
Three Months Ended Year Ended
June 30, June 30,
------------------ ----------------
2002 2001 2002 2001
---- ---- ---- ----
Finance charge, fee and
other income 18.1% 19.3% 18.4% 19.6%
Funding costs (5.6) (7.1) (6.1) (7.6)
-------- --------- ---------- ----------
Net margin as a percent
of average managed
receivables 12.5% 12.2% 12.3% 12.0%
======== ========= ========== ==========
Three Months Ended Year Ended
June 30, June 30,
------------------ ----------------
2002 2001 2002 2001
----- ---- ---- ----
Operating expenses $108,480 $88,616 $424,131 $ 308,453
Operating expenses as a
percent of average
managed receivables 3.1% 3.7% 3.4% 3.7%
Tax rate 38.5% 38.5% 38.5% 38.5%
(1) The Company evaluates the profitability of its lending activities
based upon the net margin related to its managed auto loan
portfolio, including receivables held for sale and serviced
receivables. The Company routinely securitizes its receivables
held for sale and records a gain on the sale of such receivables
in the income statement. The net margin on a managed basis
presented above assumes that securitized receivables have not been
sold and are still on the Company's consolidated balance sheet.
Accordingly, no gain on sale or servicing fee income would have
been recognized. Instead, finance charges and fees would be
recognized over the life of the securitized receivables as accrued
and interest and other costs related to the asset-backed
securities also would be recognized as incurred.