GM Financial Reports 2011 June Quarter Operating Results

FORT WORTH, Texas; GENERAL MOTORS FINANCIAL COMPANY, INC. announced net income of $96 million for the quarter ended June 30, 2011, and $173 million for the six months ended June 30, 2011.

Loan originations were $1.3 billion for the quarter ended June 30, 2011, compared to $1.1 billion for the quarter ended March 31, 2011, and $906 million for the quarter ended June 30, 2010. Lease originations of General Motors Company vehicles were $173 million for the quarter ended June 30, 2011, compared to $311 million for the quarter ended March 31, 2011. Loan and lease financing for new GM vehicles accounted for 38.0% of total loan and lease originations for the quarter ended June 30, 2011, compared to 38.8% for the quarter ended March 31, 2011. Originations for the six months ended June 30, 2011, were $2.5 billion, compared to $1.5 billion for the six months ended June 30, 2010. Finance receivables totaled $9.1 billion at June 30, 2011.

Finance receivables 31-to-60 days delinquent were 4.4% of the portfolio at June 30, 2011, compared to 6.2% at June 30, 2010. Accounts more than 60 days delinquent were 1.7% of the portfolio at June 30, 2011, compared to 2.7% a year ago.

Annualized net charge-offs were 2.4% of average finance receivables for the quarter ended June 30, 2011, compared to 4.5% for the quarter ended June 30, 2010. For the six months ended June 30, 2011, annualized net charge-offs were 3.2%, compared to 6.1% last year.

The Company had total available liquidity of $1.5 billion at June 30, 2011, consisting of $526 million of unrestricted cash, approximately $675 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 3,300 employees, 700,000 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 www.americredit.com.

General Motors Financial Company, Inc. Consolidated Statements of Income (Unaudited, Dollars in Thousands)
	Successor						Predecessor
	Three Months			Six Months			Three Months			Six Months
	Ended			Ended			Ended			Ended
	June 30, 2011			June 30, 2011			June 30, 2010			June 30, 2010
Revenue
Finance charge income	$	290,916		$	558,762		$	338,531		$	678,423
Other income		38,969			66,290			23,142			44,355
		329,885			625,052			361,673			722,778
Costs and expenses
Operating expenses		85,379			161,785			68,304			143,519
Leased vehicles expenses		13,098			21,582			5,620			14,308
Provision for loan losses		44,570			83,994			49,326			123,909
Interest expense		42,817			83,434			98,730			205,314
Restructuring charges, net								534			754
		185,864			350,795			222,514			487,804
Income before income taxes		144,021			274,257			139,159			234,974
Income tax provision		48,203			101,201			53,609			86,218
Net income	$	95,818		$	173,056		$	85,550		$	148,756

Consolidated Balance Sheets (Unaudited, Dollars in Thousands)
		Successor						Predecessor
		June 30,			December 31,			June 30,
			2011			2010			2010
Assets
Cash and cash equivalents		$	525,728		$	194,554		$	282,273
Finance receivables, net			8,587,015			8,197,324			8,160,208
Restricted cash – securitization notes payable			937,162			926,082			930,155
Restricted cash – credit facilities			109,386			131,438			142,725
Property and equipment, net			46,810			47,290			37,734
Leased vehicles, net			439,430			46,780			94,677
Deferred income taxes			119,975			157,884			81,836
Goodwill			1,108,696			1,094,923
Other assets			210,971			122,463			151,425
Total assets		$	12,085,173		$	10,918,738		$	9,881,033
Liabilities and Shareholder’s Equity
Liabilities
Credit facilities		$	422,756		$	831,802		$	598,946
Securitization notes payable			6,880,681			6,128,217			6,108,976
Senior notes			569,870			70,054			70,620
Convertible senior notes			1,447			1,446			414,068
Accounts payable and accrued expenses			203,361			97,169			141,052
Taxes payable			75,203			160,712			68,961
Intercompany taxes payable			186,155			42,214
Interest rate swap agreements			23,720			46,797			70,421
Other liabilities			11,486			10,219			7,565
Total liabilities			8,374,679			7,388,630			7,480,609
Shareholder’s equity			3,710,494			3,530,108			2,400,424
Total liabilities and shareholder’s equity		$	12,085,173		$	10,918,738		$	9,881,033

Consolidated Statements of Cash Flows (Unaudited, Dollars in Thousands)
		Successor								Predecessor
		Three Months				Six Months				Three Months				Six Months
		Ended				Ended				Ended				Ended
		June 30, 2011				June 30, 2011				June 30, 2010				June 30, 2010
Cash flows from operating activities:
Net income		$	95,818			$	173,056			$	85,550			$	148,756
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization			23,176				41,044				17,047				35,398
Amortization of debt discount			(21,574	)			(44,691	)
Amortization of finance receivables premium			58,995				126,922
Accretion and amortization of loan and leasing fees			(4,978	)			(7,914	)			62				779
Provision for loan losses			44,570				83,994				49,326				123,909
Deferred income taxes			59,645				37,856				(350	)			(69,144	)
Stock-based compensation expense			3,128				6,053				3,605				8,209
Other			(8,336	)			(17,180	)			5,968				3,018
Changes in assets and liabilities:
Other assets			(10,384	)			1,137				(6,918	)			33,440
Accounts payable and accrued expenses			3,544				(9,221	)			(31,755	)			27,447
Taxes payable			(104,430	)			(87,313	)			9,605				11,906
Intercompany taxes payable			89,124				143,941
Sale of leases held for sale			24,907				24,907
Net cash provided by operating activities			253,205				472,591				132,140				323,718
Cash flows from investing activities:
Purchases of receivables			(1,318,304	)			(2,453,086	)			(894,301	)			(1,504,944	)
Principal collections and recoveries on receivables			925,885				1,880,176				873,516				1,826,064
Purchases of leased vehicles			(97,542	)			(417,748	)
Proceeds from termination of leased vehicles			8,181				21,061
Net change in restricted cash and other			87,535				(23,351	)			87,325				(57,572	)
Net cash (used) provided by investing activities			(394,245	)			(992,948	)			66,540				263,548
Cash flows from financing activities:
Net change in credit facilities			(988,493	)			(407,482	)			(59,191	)			(110,981	)
Net change in securitization notes payable			840,205				795,147				(354,370	)			(483,434	)
Issuance of senior notes			500,000				500,000
Other net changes			(16,926	)			(34,735	)			(511	)			(30,582	)
Net cash provided (used) by financing activities			334,786				852,930				(414,072	)			(624,997	)
Net increase (decrease) in cash and cash equivalents			193,746				332,573				(215,392	)			(37,731	)
Effect of Canadian exchange rate changes on
cash and cash equivalents			(1,201	)			(1,399	)			336				360
Cash and cash equivalents at beginning of period			333,183				194,554				497,329				319,644
Cash and cash equivalents at end of period		$	525,728			$	525,728			$	282,273			$	282,273

Other Financial Data (Unaudited, Dollars in Thousands)
		Three Months			Six Months			Three Months			Six Months
		Ended			Ended			Ended			Ended
		June 30, 2011			June 30, 2011			June 30, 2010			June 30, 2010
Loan origination volume		$	1,349,222		$	2,487,143		$	906,097		$	1,529,952
Loans securitized			2,068,978			2,917,788			640,004			1,567,762
Average finance receivables			8,926,612			8,797,154			8,794,764			8,918,215
GM lease origination volume			172,764			483,711
Average leased vehicles, net		$	377,928		$	243,105		$	105,857		$	113,001

		Successor								Predecessor
		June 30,				December 31,				June 30,
			2011				2010				2010
Finance receivables:
Pre-acquisition finance receivables		$	5,886,828			$	7,724,188			$	8,733,518
Post-acquisition finance receivables			3,222,584				923,713
			9,109,412				8,647,901				8,733,518
Add purchase accounting premium			109,206				423,556
Less non-accretable discount on:
Pre-acquisition finance receivables			(524,077	)			(847,781	)
Less allowance for loan losses on:
Post-acquisition finance receivables			(107,526	)			(26,352	)
Pre-acquisition finance receivables											(573,310	)
		$	8,587,015			$	8,197,324			$	8,160,208
Non-accretable discount as a percentage
of ending pre-acquisition finance receivables			8.9	%			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											6.6	%

		June 30, 2011			December 31, 2010			June 30, 2010
Loan delinquency as a percent of
ending finance receivables:
31 - 60 days		4.4	%		6.2	%		6.2	%
Greater than 60 days		1.7			2.4			2.7
Total		6.1	%		8.6	%		8.9	%

		Three Months				Six Months				Three Months				Six Months
		Ended				Ended				Ended				Ended
		June 30, 2011				June 30, 2011				June 30, 2010				June 30, 2010
Contracts receiving a payment
deferral as an average quarterly
percentage of average finance
receivables			4.9	%			5.1	%			5.8	%			6.4	%
Net charge-offs		$	54,260			$	139,096			$	99,265			$	267,658
Annualized net charge-offs as a
percent of average finance			2.4	%			3.2	%			4.5	%			6.1	%
receivables
Net recoveries as a
percent of gross repossession
charge-offs			56.4	%			53.6	%			48.6	%			46.4	%

Components of net margin:
		Successor								Predecessor
		Three Months				Six Months				Three Months				Six Months
		Ended				Ended				Ended				Ended
		June 30, 2011				June 30, 2011				June 30, 2010				June 30, 2010
Finance charge income		$	290,916			$	558,762			$	338,531			$	678,423
Other income			38,969				66,290				23,142				44,355
Interest expense			(42,817	)			(83,434	)			(98,730	)			(205,314	)
Net margin		$	287,068			$	541,618			$	262,943			$	517,464

Annualized net margin as a percent of average finance receivables:
		Successor								Predecessor
		Three Months				Six Months				Three Months				Six Months
		Ended				Ended				Ended				Ended
		June 30, 2011				June 30, 2011				June 30, 2010				June 30, 2010
Finance charge income			13.1	%			12.8	%			15.4	%			15.3	%
Other income			1.7				1.5				1.1				1.0
Interest expense			(1.9	)			(1.9	)			(4.5	)			(4.6	)
Net margin			12.9	%			12.4	%			12.0	%			11.7	%
		Successor								Predecessor
		Three Months				Six Months				Three Months				Six Months
		Ended				Ended				Ended				Ended
		June 30, 2011				June 30, 2011				June 30, 2010				June 30, 2010
Operating expenses		$	85,379			$	161,785			$	68,304			$	143,519
Annualized operating expenses as a
percent of average finance
receivables			3.8	%			3.7	%			3.1	%			3.2	%