Americredit Announces Its 21st Consecutive Quarterly Earnings Increase
5 August 1999
Americredit Corp. Announces Its 21st Consecutive Quarterly Earnings Increase and Record Fiscal Year End Operating Results
FORT WORTH, Texas--Aug. 4, 1999--Americredit Corp. today announced record net income of $22,477,000, or $0.33 per share, for its fourth fiscal quarter ended June 30, 1999, versus earnings of $13,901,000, or $0.21 per share, for the quarter ended June 30, 1998. On a comparative basis, net income increased 62% and earnings per share rose 57%.For the fiscal year ended June 30, 1999, AmeriCredit reported record net income of $74,840,000, or $1.11 per share, versus earnings of $49,301,000, or $0.76 per share, for the fiscal year ended June 30, 1998, representing an increase of 52% in net income and an increase of 46% in earnings per share.
Automobile loan purchases were $888,902,000 for the fourth quarter of fiscal 1999, an increase of 58% over loan purchases of $561,079,000 for the fourth quarter of fiscal 1998. For the fiscal year ended June 30, 1999, automobile loan purchases were $2,879,796,000, 66% higher than loan purchases of $1,737,813,000 for the fiscal year ended June 30, 1998.
AmeriCredit's managed auto receivables totaled $4,105,468,000 at June 30, 1999, an increase of 78% since June 30, 1998. The Company opened 8 branch locations in its fourth fiscal quarter bringing the total number of branch locations to 176 in 41 states and Canada at June 30, 1999.
Annualized net charge-offs decreased to 4.5% of average managed auto receivables for the fourth quarter ended June 30, 1999, from 5.1% for the fourth quarter of fiscal 1998. Net charge-offs for the fiscal year ended June 30, 1999 were 4.7%, down from 5.3% for the fiscal year ended June 30, 1998.
Managed auto receivables more than sixty days delinquent were 1.8% of total managed auto receivables at June 30, 1999, down from 2.6% at June 30, 1998.
The statistical summary attached to this release includes a table presenting pro-forma "portfolio-based" earnings data.
AmeriCredit is a national consumer finance company specializing in purchasing, securitizing and servicing automobile loans and originating and selling mortgage loans. AmeriCredit maintains a Web site at www.americredit.com that contains further information on the Company.
AmeriCredit will host a conference call for analysts and investors at 10:30 A.M. EDT on Aug. 5, 1999. For an Internet broadcast of this conference call please go to www.vcall.com before 10:30 A.M. EDT on Aug. 5, 1999, 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.
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. 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,
------------------ -------------
1999 1998 1999 1998
---- ---- ---- ----
Revenue:
Finance charge income $ 23,750 $ 15,785 $ 75,288 $ 55,837
Gain on sale of
receivables 53,341 31,356 169,892 103,194
Servicing fee income 24,264 13,521 85,966 47,910
Other income 949 494 4,310 2,395
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102,304 61,156 335,456 209,336
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Costs and expenses:
Operating expenses 49,585 28,382 165,345 94,484
Provision for losses 3,040 2,009 9,629 7,555
Interest expense 13,132 8,162 38,792 27,135
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65,757 38,553 213,766 129,174
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Income before income
taxes 36,547 22,603 121,690 80,162
Income tax provision 14,070 8,702 46,850 30,861
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Net income $ 22,477 $ 13,901 $ 74,840 $ 49,301
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Earnings per share:
Basic $ 0.35 $ 0.23 $ 1.19 $ 0.82
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Diluted $ 0.33 $ 0.21 $ 1.11 $ 0.76
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Weighted average shares 63,802,626 61,272,126 63,005,746 60,188,788
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Weighted average shares
and assumed incremental
shares 68,695,877 66,597,676 67,191,235 65,203,460
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Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
June 30, March 31, June 30,
1999 1999 1998
---------- ---------- ----------
Cash and short term
investments $ 21,189 $ 36,846 $ 33,087
Finance receivables, net 456,009 415,421 342,853
Interest-only receivables
from Trusts 191,865 173,643 131,694
Investments in Trust
receivables 195,598 157,201 98,857
Restricted cash 107,399 82,809 55,758
Other assets 91,427 72,062 51,422
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Total assets $ 1,063,487 $ 937,982 $ 713,671
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---------- ---------- ----------
Borrowings under warehouse
lines $ 114,659 $ 255,531 $ 165,608
Senior notes 375,000 175,000 175,000
Other notes payable 17,874 12,759 6,410
Other liabilities 156,224 133,928 78,805
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Total liabilities 663,757 577,218 425,823
Shareholders' equity 399,730 360,764 287,848
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Total liabilities and
shareholders' equity $ 1,063,487 $ 937,982 $ 713,671
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Cash Flows From Operating Activities:
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
------------------ ---------------
1999 1998 1999 1998
---- ---- ---- -----
Cash revenue
Finance charge income $ 23,750 $ 15,785 $ 75,288 $ 55,837
Servicing fee income 22,278 11,900 73,241 37,043
Cash gain on sale 3,226 (671) 12,135 6,789
Other income 949 494 4,310 2,395
Securitization
distributions 9,349 16,724 44,531 43,807
Changes in working
capital 2,452 17,549 25,231 9,063
---------- -------- --------- ---------
62,004 61,781 234,736 154,934
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Cash expenses
Operating expenses (43,842) (26,968) (152,700) (89,986)
Interest expense (13,132) (8,162) (38,792) (27,135)
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(56,974) (35,130) (191,492) (117,121)
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Operating cash flow 5,030 26,651 43,244 37,813
Upfront credit enhancement
requirement (25,500) (13,325) (82,750) (56,725)
Early release of credit
enhancement -- -- 23,000 --
---------- -------- --------- ---------
Net cash flow $ (20,470) $ 13,326 $ (16,506) $ (18,912)
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Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
------------------ -----------
1999 1998 1999 1998
---- ---- ---- ----
Auto lending operations
Auto loan
originations $ 888,902 $ 561,079 $2,879,796 $1,737,813
Auto loans sold 849,999 520,000 2,770,000 1,637,499
Gain on sale of auto
loans 50,901 30,014 162,353 98,842
Gain on sale of auto
loans (% of loans
sold) 6.0% 5.8% 5.9% 6.0%
Average owned
receivables $ 406,583 $ 268,694 $ 320,962 $ 250,304
Average serviced
receivables 3,438,215 1,844,995 2,808,501 1,399,112
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Average managed
receivables $3,844,798 $2,113,689 $3,129,463 $ 1,649,416
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Mortgage lending operations
Mortgage loan
originations $ 94,017 $ 42,632 $ 297,535 $ 137,169
Mortgage loans sold 95,143 48,954 294,096 119,683
Gain on sale of
mortgage loans 2,440 1,343 7,539 4,353
Gain on sale of
mortgage loans
(% of loans sold) 2.6% 2.7% 2.6% 3.6%
June 30, 1999
---------------
Auto loan portfolio Owned Serviced Total Managed
----- -------- -------------
Principal $ 444,128 $ 3,661,340 $ 4,105,468
Allowance for losses (11,841) (354,338) (366,179)
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$ 432,287 $ 3,307,002 $ 3,739,289
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-------- --------- ----------
Allowance for losses (%) 2.7% 9.7% 8.9%
-------- --------- ----------
-------- --------- ----------
June 30, June 30,
1999 1998
--------- ---------
Auto loan delinquency (%)
31 - 60 days 6.8% 5.5%
More than 60 days 1.8% 2.6%
-------- ---------
8.6% 8.1%
Repossessions 0.9% 0.8%
-------- ---------
9.5% 8.9%
-------- ---------
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Pro Forma "Portfolio-Based" Earnings Data (1)
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
--------------------- ---------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
Finance charge, fee
and other income $ 189,702 $ 108,985 $ 621,048 $ 340,951
Funding costs (69,022) (38,726) (220,958) (120,546)
---------- ---------- ---------- ----------
Net margin 120,680 70,259 400,090 220,405
Operating expenses (49,585) (28,383) (165,345) (94,485)
Credit losses (43,453) (27,084) (147,344) (88,002)
---------- ---------- ---------- ----------
Pre-tax
"portfolio-based"
income 27,642 14,792 87,401 37,918
Income taxes (10,642) (5,695) (33,649) (14,598)
---------- ---------- ---------- ----------
Net
"portfolio-based"
income $ 17,000 $ 9,097 $ 53,752 $ 23,320
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Diluted
"portfolio-based"
earnings per
share $ 0.25 $ 0.14 $ 0.80 $ 0.36
---------- ---------- ---------- ----------
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Return on managed
assets (auto
business) 1.8% 1.7% 1.7% 1.4%
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(1) The pro forma "portfolio-based" earnings data above presents
the Company's operating results under the assumption that
securitization transactions are financings and no gain on sale or
servicing fee income is recognized. Instead, finance charge income and
fees as well as interest and other costs are recognized over the life
of the securitized receivables as accrued. Credit losses are recorded
as incurred. While the pro forma "portfolio-based" earnings data does
not purport to present the Company's operating results in accordance
with GAAP, the Company believes such presentation provides another
measure for assessing the Company's performance.