GM Financial Reports March Quarter Operating Results

FORT WORTH, Texas--GENERAL MOTORS FINANCIAL COMPANY, INC. announced net income of $77 million for the quarter ended March 31, 2011.

Loan originations were $1.1 billion for the quarter ended March 31, 2011, compared to $935 million for the quarter ended December 31, 2010 and $624 million for the quarter ended March 31, 2010. Lease originations were $311 million for the quarter ended March 31, 2011, compared to $11 million for the quarter ended December 31, 2010. Loan and lease financing for new GM vehicles accounted for 38.8% of total loan and lease originations for the quarter ended March 31, 2011, compared to 19.0% for the quarter ended December 31, 2010. Finance receivables totaled $8.7 billion at March 31, 2011.

Finance receivables 31-to-60 days delinquent were 3.8% of the portfolio at March 31, 2011, compared to 5.3% at March 31, 2010. Accounts more than 60 days delinquent were 1.5% of the portfolio at March 31, 2011, compared to 2.2% a year ago.

Annualized net charge-offs were 4.0% of average finance receivables for the quarter ended March 31, 2011, compared to 7.6% for the quarter ended March 31, 2010.

The Company had total available liquidity of $710 million at March 31, 2011, consisting of $333 million of unrestricted cash, approximately $77 million of borrowing capacity on unpledged eligible assets and $300 million on a line of credit from GM.

About GM Financial

General Motors Financial Company, Inc. provides auto finance solutions through auto dealers across the United States and Canada. GM Financial has approximately 3,000 employees, 800,000 customers and $9 billion in auto receivables and leases. The Company is a wholly-owned subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit Americredit .

On October 1, 2010, the Company was acquired by General Motors Holdings LLC, a wholly owned subsidiary of General Motors Company. The merger was accounted for under purchase accounting whereby the purchase price of the transaction was allocated to the assets acquired and liabilities assumed based upon fair market values. As a result of the purchase price allocation, the carrying value of GM Financial's net finance receivables, deferred tax assets, credit facilities, securitization notes payable and uncertain tax positions increased. Additionally, goodwill of approximately $1.1 billion was established on October 1, 2010. The consolidated financial statements as of and for the three months ended March 31, 2011 (labeled Successor) reflect the change in basis from the application of purchase accounting. The consolidated financial statements for the periods prior to the merger (labeled Predecessor), have been prepared on the same basis as the audited financial statements included in the annual report on Form 10-K for the year ended June 30, 2010.

General Motors Financial Company, Inc. Consolidated Statements of Income (Unaudited, Dollars in Thousands)
			Successor			Predecessor
			Three Months Ended			Three Months Ended
			March 31,			March 31,
			2011			2010
Revenue:
Finance charge income			$267,846			$339,892
Other income			27,321			21,213
			295,167			361,105
Costs and expenses:
Operating expenses			76,406			75,215
Leased vehicles expenses			8,484			8,688
Provision for loan losses			39,424			74,583
Interest expense			40,617			106,584
Restructuring charges, net						220
			164,931			265,290
Income before income taxes			130,236			95,815
Income tax provision			52,998			32,609
Net income			$ 77,238			$ 63,206

Consolidated Balance Sheets (Unaudited, Dollars in Thousands)
			Successor						Predecessor
			March 31,			December 31,			March 31,
			2011			2010			2010
Cash and cash equivalents			$ 333,183			$ 194,554			$ 497,329
Finance receivables, net			8,276,473			8,197,324			8,187,125
Restricted cash €“ securitization notes
payable			1,003,455			926,082			989,356
Restricted cash €“ credit facilities			151,131			131,438			153,244
Property and equipment, net			44,673			47,290			38,838
Leased vehicles, net			316,425			46,780			117,037
Deferred income taxes			161,886			140,523			83,249
Goodwill			1,112,284			1,112,284
Other assets			210,698			122,463			157,473
Total assets			$11,610,208			$10,918,738			$10,223,651
Credit facilities			$ 1,411,884			$ 831,802			$ 658,137
Securitization notes payable			6,061,281			6,128,217			6,462,494
Senior notes			69,962			70,054			70,620
Convertible senior notes			1,446			1,446			408,539
Accounts payable and accrued expenses			122,945			97,169			167,286
Taxes payable			177,823			160,712			59,356
Intercompany taxes payable			97,031			42,214
Interest rate swap agreements			33,767			46,797			83,946
Other liabilities			21,851			10,219			11,840
Total liabilities			7,997,990			7,388,630			7,922,218
			3,612,218			3,530,108
Shareholders€™ equity									2,301,433
Total liabilities and shareholders€™
equity			$11,610,208			$10,918,738			$10,223,651

Consolidated Statements of Cash Flows (Unaudited, Dollars in Thousands)
			Successor			Predecessor
			Three Months Ended			Three Months Ended
			March 31,			March 31,
			2011			2010
Cash flows from operating activities:
Net income			$ 77,238			$ 63,206
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization			17,868			18,351
Accretion and amortization of loan fees			(2,936)			717
Amortization of finance receivables premium			67,927
Amortization of debt discount			(23,117)
Provision for loan losses			39,424			74,583
Deferred income taxes			(21,789)			(68,794)
Stock-based compensation expense			2,925			4,604
Other			(8,844)			(2,950)
Changes in assets and liabilities:
Other assets			11,521			40,358
Accounts payable and accrued expenses			(12,765)			59,202
Taxes payable			17,117			2,301
Intercompany taxes payable			54,817
Net cash provided by operating activities			219,386			191,578
Cash flows from investing activities:
Purchases of receivables			(1,134,782)			(610,643)
Principal collections and recoveries on receivables			954,291			952,548
Net purchases of leased vehicles			(307,326)
Net change in restricted cash and other			(110,886)			(144,897)
Net cash (used) provided by investing activities			(598,703)			197,008
Cash flows from financing activities:
Net change in credit facilities			581,011			(51,790)
Net change in securitization notes payable			(45,058)			(129,064)
Retirement of debt						(20,425)
Other net changes			(17,809)			(9,646)
Net cash provided (used) by financing activities			518,144			(210,925)
Net increase in cash and
cash equivalents			138,827			177,661
Effect of Canadian exchange rate changes on
cash and cash equivalents			(198)			24
Cash and cash equivalents at beginning of period			194,554			319,644
Cash and cash equivalents at end of period			$ 333,183			$ 497,329

Other Financial Data (Unaudited, Dollars in Thousands)
				Three Months Ended			Three Months Ended						Three Months Ended
				March 31,			December 31,						March 31,
				2011			2010						2010
Loan origination volume				$1,137,921			$934,812						$623,855
Average finance receivables				$8,666,189			$8,679,506						$9,042,982
Loans securitized				$848,810			$742,708						$927,758
Lease origination volume				$310,947			$10,655
										Successor						Predecessor
										March 31,			December 31,			March 31,
										2011			2010			2010
Finance receivables:
Pre-acquisition finance receivables										$6,744,752			$7,724,188			$8,810,374
Post-acquisition finance receivables										2,004,813			923,713
										8,749,565			8,647,901			8,810,374
Add purchase accounting premium										355,629			423,556
Less non-accretable discount on:
Pre-acquisition finance receivables										(763,306)			(847,781)
Less allowance for loan losses on:
Post-acquisition finance receivables										(65,415)			(26,352)
Pre-acquisition finance receivables																(623,249)
										$8,276,473			$8,197,324			$8,187,125
Non-accretable discount as a percentage
of ending pre-acquisition finance receivables										11.3%			11.0%
Allowance for loan losses as a percentage
of ending post-acquisition finance receivables										3.3%			2.9%
Allowance for loan losses as a percentage
of ending pre-acquisition finance receivables																7.1%

		March 31,				March 31,
		2011				2010
Delinquency as a percent of
ending finance receivables:
31 - 60 days		3.8%				5.3%
Greater than 60 days		1.5				2.2
Total		5.3%				7.5%
		Three Months Ended				Three Months Ended
		March 31,				March 31,
		2011				2010
Contracts receiving a payment
deferral as an average quarterly
percentage of average finance
receivables		5.2%				7.1%
Net charge-offs		$ 84,836				$ 168,393
Annualized net charge-offs as a
percent of average finance
receivables		4.0%				7.6%
Net recoveries as a
percent of gross repossession
charge-offs		51.7%				44.9%
Components of net margin:
			Successor				Predecessor
			Three Months Ended				Three Months Ended
			March 31,				March 31,
			2011				2010
Finance charge income			$ 267,846				$ 339,892
Other income			27,321				21,213
Interest expense			(40,617)				(106,584)
Net margin			$ 254,550				$ 254,521

Annualized net margin as a percent of average finance receivables:
		Successor		Predecessor
		Three Months Ended		Three Months Ended
		March 31,		March 31,
		2011		2010
Finance charge income		12.5%		15.2%
Other income		1.3		0.9
Interest expense		(1.9)		(4.7)
Net margin		11.9%		11.4%
		Successor		Predecessor
		Three Months Ended		Three Months Ended
		March 31,		March 31,
		2011		2010
Operating expenses		$ 76,406		$ 75,215
Annualized operating expenses as a
percent of average finance
receivables		3.6%		3.4%