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GM Reports STRONG 1Q 2021 Results - Way To Go Mary!


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DETROIT – General Motors Co. today reported first-quarter earnings driven by strong price and mix performance in North America, strong credit and residual value performance at GM Financial, and the industry recovery in China. The company is highly confident in its full-year 2021 guidance outlined earlier this year as it works to manage through the semiconductor shortage, which is impacting automakers globally. Based on information available today, the company expects to be at the higher-end of the EBIT-adjusted range.

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First-quarter 2021 results overview

  • Revenue of $32.5 billion
  • Net income of $3.0 billion, and EBIT-adjusted of $4.4 billion
  • Net income margin of 9.3 percent, and EBIT-adjusted margin of 13.6 percent
  • Automotive operating cash flow of $(1.1) billion, and adjusted automotive free cash flow of $(1.9) billion
  • EPS-diluted of $2.03, and EPS-diluted-adjusted of $2.25*
  • GM North America EBIT-adjusted of $3.1 billion, and EBIT-adjusted margin of 12.1 percent
  • GM International EBIT-adjusted of $0.3 billion, including China Equity Income of $0.3 billion
  • GM Financial EBT-adjusted of $1.2 billion

First-quarter 2020 results overview

  • Revenue of $32.7 billion
  • Net income of $0.3 billion, and EBIT-adjusted of $1.2 billion
  • Net income margin of 0.9 percent, and EBIT-adjusted margin of 3.8 percent
  • Automotive operating cash flow of $0.3 billion, and adjusted automotive free cash flow of $(0.9) billion
  • EPS-diluted of $0.17, and EPS-diluted-adjusted of $0.62**
  • GM North America EBIT-adjusted of $2.2 billion, and EBIT-adjusted margin of 8.5 percent
  • GM International EBIT-adjusted of $(0.6) billion, including China Equity Income of $(0.2) billion
  • GM Financial EBT-adjusted of $0.2 billion

* EPS-diluted and EPS-diluted-adjusted include a $0.08 gain from Stellantis (formerly PSA) and Lordstown Motor Corporation.
**EPS-diluted and EPS-diluted-adjusted includes a $(0.28) impact from Lyft and Stellantis revaluations.

2021 guidance

  • Full-year EPS-dilued of between $4.28 and $5.03, and EPS-diluted-adjusted of between $4.50 and $5.25
  • Full-year net income of between $6.8 billion and $7.6 billion, and EBIT-adjusted of between $10.0 billion and $11.0 billion
  • Six months ending June 30, 2021 net income of ~$3.5 billion, and EBIT-adjusted of ~$5.5 billion

See below for reconciliations of non-GAAP measures to their most directly comparable GAAP measures or visit the GM Investor Relations website for complete details.

General Motors is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from massmarket to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.

 

Non-GAAP Reconciliations

The following table reconciles net income attributable to stockholders under U.S. GAAP to EBIT-adjusted (dollars in millions):

 

Three Months Ended

 

March 31, 2021

March 31, 2020

Net income attributable to stockholders(a)

$

3,022 

 

$

294 

 

Automotive interest income

(32)

 

(83)

 

Automotive interest expense

250 

 

193 

 

Income tax expense

1,177 

 

357 

 

Adjustments

 

 

GMI restructuring(b)

— 

 

489 

 

Total adjustments

— 

 

489 

 

EBIT-adjusted

$

4,417 

 

$

1,250 

 

aNet of Net loss attributable to noncontrolling interests.
bThese adjustments were excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international markets to focus resources on opportunities expected to deliver higher returns. The adjustments primarily consist of asset impairments, dealer restructurings, employee separation charges and sales allowances in Australia, New Zealand and Thailand in the three months ended March 31, 2020

 

The following table reconciles diluted earnings (loss) per common share under U.S. GAAP to EPS-diluted-adjusted (dollars in millions, except per share amounts):

 

Three Months Ended

 

March 31, 2021

March 31, 2020

 

Amount

Per Share

Amount

Per Share

Diluted earnings per common share

$

2,976 

 

$

2.03 

 

$

247 

 

$

0.17 

 

Adjustments(a)

— 

 

— 

 

489 

 

0.34 

 

Tax effect on adjustment(b)

— 

 

— 

 

(73)

 

(0.05)

 

Tax adjustment(c)

316 

 

0.22 

 

236 

 

0.16 

 

EPS-diluted-adjusted

$

3,292 

 

$

2.25 

 

$

899 

 

$

0.62 

 

aRefer to the reconciliation of  Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted for adjustment details.
bThe tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
cThese adjustments consist of tax expense related to the establishment of a valuation allowance against deferred tax assets that are considered no longer realizable for Cruise in the three months ended March 31, 2021 and for GM in Australia and New Zealand for the three months ended March 31, 2020. These adjustments were excluded because significant impacts of valuation allowances are not considered part of our core operations.

 

The following table reconciles net automotive cash used in operating activities under U.S. GAAP to adjusted automotive free cash flow (dollars in millions):

 

Three Months Ended

 

March 31, 2021

March 31, 2020

Net automotive cash provided by (used in) operating activities

$

(1,096)

 

$

337 

 

Less: Capital expenditures

(860)

 

(1,205)

 

Add: GMI restructuring

24 

 

23 

 

Less: GM Brazil indirect tax recoveries

— 

 

(58)

 

Adjusted automotive free cash flow

$

(1,932)

 

$

(903)

 

 

Guidance Reconciliations

The following table reconciles expected Net income attributable to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars in billions):

 

Six Months Ending
June 30, 2021
Year Ending
December 31, 2021

Net income attributable to stockholders

$ ~3.5

$ 6.8-7.6

Income tax expense

~1.5

2.2-2.4

Automotive interest expense, net

~0.5

1.0 

EBIT-adjusted (a)

$ ~5.5

$ 10.0-11.0

aWe do not consider the potential future impact of adjustments on our expected financial results.

 

The following table reconciles expected EPS-diluted under U.S. GAAP to expected EPS-diluted-adjusted:

 

Year Ending
December 31, 2021

Diluted earnings per common share

$ 4.28-5.03  

Adjustment - Cruise deferred income tax valuation allowance

0.22 

 

EPS-diluted-adjusted(a)

$ 4.50-5.25

aWe do not consider the potential future impact of adjustments on our expected financial results.