AmeriCredit Corp. Announces Q4 and Fiscal 1998 Operating Results
5 August 1998
AmeriCredit Corp. Announces Record Fourth Quarter and Record Fiscal 1998 Operating Results
FORT WORTH, Texas--Aug. 4, 1998--AMERICREDIT CORP. today announced record net income of $17,670,000, or $0.53 per share, for its fourth fiscal quarter ended June 30, 1998, versus earnings of $11,303,000, or $0.36 per share, for the quarter ended June 30, 1997. On a comparative basis, net income increased 56% and earnings per share rose 47%.
For the fiscal year ended June 30, 1998, AmeriCredit reported record net income of $60,741,000, or $1.86 per share, versus earnings of $38,699,000, or $1.26 per share, for the fiscal year ended June 30, 1997, representing an increase of 57% in net income and an increase of 48% in earnings per share.
Automobile loan purchases were $561,079,000 for the fourth quarter of fiscal 1998, an increase of 85% over loan purchases of $302,847,000 for the fourth quarter of fiscal 1997. For the fiscal year ended June 30, 1998, automobile loan purchases were $1,737,813,000, 92% higher than loan purchases of $906,794,000 for the fiscal year ended June 30, 1997.
AmeriCredit's managed auto receivables totaled $2,302,516,000 at June 30, 1998, an increase of 102% since June 30, 1997. The Company opened ten branch locations in its fourth fiscal quarter bringing the total number of new branches for fiscal 1998 to 44. AmeriCredit operated 129 branch locations in 36 states at June 30, 1998.
Managed auto receivables more than sixty days delinquent were 2.6% of total managed auto receivables at June 30, 1998, compared to 3.2% at June 30, 1997.
Annualized net charge-offs decreased to 5.1% of average managed auto receivables for the fourth quarter ended June 30, 1998, down from annualized net charge-offs of 5.5% for the fourth quarter ended June 30, 1997. Net charge-offs for the fiscal year ended June 30, 1998 were 5.3%, down from 5.5% for the fiscal year ended June 30, 1997.
AmeriCredit is a national consumer finance company specializing in purchasing, securitizing and servicing automobile loans and originating and selling home equity loans. AmeriCredit maintains a web site at http://www.americredit.com that contains further information on the Company.
Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties including competitive factors, the management of growth, and other risks 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 year ended June 30, 1997. Such 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,
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1998 1997 1998 1997
---- ---- ---- ----
Revenue:
Finance charge income $ 15,785 $ 11,306 $ 55,837 $ 44,910
Gain on sale of receivables 37,141 21,348 123,245 67,256
Servicing fee income 13,030 7,138 42,684 21,024
Investment income 1,213 958 5,054 2,909
Other income 116 595 1,120 1,648
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67,285 41,345 227,940 137,747
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Costs and expenses:
Operating expenses 28,382 16,320 94,484 51,915
Provision for losses 2,009 1,555 7,555 6,595
Interest expense 8,162 5,089 27,135 16,312
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38,553 22,964 129,174 74,822
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Income before income taxes 28,732 18,381 98,766 62,925
Income tax provision 11,062 7,078 38,025 24,226
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Net income $ 17,670 $ 11,303 $ 60,741 $ 38,699
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Earnings per share:
Basic $ 0.58 $ 0.39 $ 2.02 $ 1.34
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Diluted $ 0.53 $ 0.36 $ 1.86 $ 1.26
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Weighted average shares 30,636,063 29,228,964 30,094,394 28,887,362
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Weighted average shares and
assumed incremental shares 33,298,838 31,098,326 32,601,730 30,787,274
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Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
June 30, March 31, June 30,
1998 1998 1997
-------- -------- --------
Cash and short term investments $102,845 $ 88,908 $ 80,422
Finance receivables, net 342,853 315,070 266,657
Excess servicing receivable 255,793 218,757 114,376
Other assets 47,070 46,859 31,998
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Total assets $748,561 $669,594 $493,453
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Borrowings under warehouse lines $165,608 $124,028 $ 72,045
Senior notes 175,000 175,000 125,000
Other notes payable 6,410 16,923 27,206
Other liabilities 95,382 76,130 52,666
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Total liabilities 442,400 392,081 276,917
Shareholders' equity 306,161 277,513 216,536
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Total liabilities and
shareholders' equity $748,561 $669,594 $493,453
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Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
June 30,
------------------------
1998 1997
---------- ----------
Auto lending operations
Auto loan originations $ 561,079 $ 302,847
Auto loans sold 520,000 263,668
Gain on sale of auto loans 37,799 20,030
Gain on sale of auto loans 6.9% 7.6%
(% of loans sold)
Average owned receivables $ 268,694 $ 212,003
Average serviced receivables 1,844,995 821,115
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Average managed receivables $2,113,689 $1,033,118
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Home equity lending operations
Home equity loan originations $ 42,632 $ 21,948
Home equity loans sold 48,954 25,065
Gain on sale of home equity loans 1,343 1,318
Gain on sale of home equity 2.7% 5.3%
loans (% of loans sold)
Year Ended
June 30,
------------------------
1998 1997
---------- ---------
Auto lending operations
Auto loan originations $1,737,813 $ 906,794
Auto loans sold 1,637,499 817,500
Gain on sale of auto loans 118,893 64,338
Gain on sale of auto loans 7.3% 7.9%
(% of loans sold)
Average owned receivables $ 250,304 $ 223,351
Average serviced receivables 1,399,112 568,804
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Average managed receivables $1,649,416 $ 792,155
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Home equity lending operations
Home equity loan originations $ 137,169 $ 53,785
Home equity loans sold 119,683 52,489
Gain on sale of home equity loans 4,353 2,918
Gain on sale of home equity 3.6% 5.6%
loans (% of loans sold)
June 30, 1998
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Auto loan portfolio Owned Serviced Total Managed
----- -------- -------------
Principal $ 334,110 $ 1,968,406 $ 2,302,516
Allowance for losses (12,756) (176,759) (189,515)
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$ 321,354 $ 1,791,647 $ 2,113,001
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Allowance for losses (%) 3.8% 9.0% 8.2%
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June 30, March 31, June 30,
1998 1998 1997
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Auto loan delinquency (%)
31 - 60 days 5.5% 5.4% 6.4%
> 60 days 2.6% 2.6% 3.2%
----------- ----------- -----------
8.1% 8.0% 9.6%
Repossessions 0.8% 1.2% 1.3%
----------- ----------- -----------
8.9% 9.2% 10.9%
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