AmeriCredit Corp. Announces Record First Quarter Operating Results
14 October 1999
AmeriCredit Corp. Announces Record First Quarter Operating Results and its 22nd Consecutive Quarterly Earnings Increase
FORT WORTH, Texas--Oct. 13, 1999--AmeriCredit Corp. today announced record net income of $25,324,000, or $0.35 per share, for its first fiscal quarter ended September 30, 1999, versus earnings of $15,482,000, or $0.23 per share, for the quarter ended September 30, 1998. On a comparative basis, net income increased 64% and earnings per share rose 52%.Automobile loan purchases were $1,031,837,000 for the first quarter of fiscal 2000, an increase of 65% over loan purchases of $624,967,000 for the first quarter of fiscal 1999. AmeriCredit's managed auto receivables totaled $4,749,085,000 at September 30, 1999, an increase of 75% since September 30, 1998. The Company opened 4 branch locations in its first fiscal quarter bringing the total number of branch locations to 180 in 41 states and Canada at September 30, 1999.
Annualized net charge-offs decreased to 4.3% of average managed auto receivables for the first quarter ended September 30, 1999, down from 4.9% for the first quarter of fiscal 1999.
Managed auto receivables more than sixty days delinquent were 2.3% of total managed auto receivables at September 30, 1999, down from 2.8% at September 30, 1998.
Clifton H. Morris, Jr., Chairman and Chief Executive Officer of AmeriCredit, said the record quarterly performance was attributable to "continuing improvement in managing credit risk and strong loan growth, resulting in a decline in loan defaults and our first quarter of auto loan purchases in excess of $1 billion."
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 8:30 A.M. EDT on October 14, 1999. For an Internet broadcast of this conference call, please go to the Company's Web site 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
September 30,
----------------------------------
1999 1998
---------------- ---------------
Revenue:
Finance charge income $ 27,536 $ 16,917
Gain on sale of receivables 48,928 35,120
Servicing fee income 34,787 16,865
Other income 1,368 864
---------------- ---------------
112,619 69,766
---------------- ---------------
Costs and expenses:
Operating expenses 53,678 34,059
Provision for losses 3,487 2,188
Interest expense 14,276 8,345
---------------- ---------------
71,441 44,592
---------------- ---------------
Income before income taxes 41,178 25,174
Income tax provision 15,854 9,692
---------------- ---------------
Net income $ 25,324 $ 15,482
---------------- ---------------
---------------- ---------------
Earnings per share:
Basic $ 0.38 $ 0.25
---------------- ---------------
---------------- ---------------
Diluted $ 0.35 $ 0.23
---------------- ---------------
---------------- ---------------
Weighted average shares 67,503,547 62,339,479
---------------- ---------------
---------------- ---------------
Weighted average shares and
assumed incremental shares 71,678,349 66,968,691
---------------- ---------------
---------------- ---------------
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
September 30, June 30, September 30,
1999 1999 1998
------------ ------------ ------------
Cash and short term
investments $ 24,013 $ 21,189 $ 28,218
Finance receivables, net 606,355 456,009 386,476
Interest-only receivables
from Trusts 214,233 191,865 139,290
Investments in Trust
receivables 234,725 195,598 107,084
Restricted cash 128,574 107,399 69,328
Other assets 115,605 91,427 64,333
------------ ------------ ------------
Total assets $1,323,505 $1,063,487 $ 794,729
------------ ------------ ------------
------------ ------------ ------------
Borrowings under
warehouse lines $ 181,561 $ 114,659 $ 208,185
Senior notes 375,000 375,000 175,000
Other notes payable 23,355 17,874 8,285
Other liabilities 196,251 156,224 95,402
------------ ------------ ------------
Total liabilities 776,167 663,757 486,872
Shareholders' equity 547,338 399,730 307,857
------------ ------------ ------------
Total liabilities and
shareholders' equity $1,323,505 $1,063,487 $ 794,729
------------ ------------ ------------
------------ ------------ ------------
Cash Flows From Operating Activities:
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
----------------------------------
1999 1998
---------------- ---------------
Cash revenue
Finance charge income $ 27,536 $ 16,917
Cash gain on sale 3,600 6,806
Servicing fee income 26,010 14,520
Other income 1,368 864
Securitization distributions 14,230 12,470
Changes in working capital 9,511 10,733
---------------- ---------------
82,255 62,310
---------------- ---------------
Cash expenses
Operating expenses (48,313) (32,239)
Interest expense (14,276) (8,345)
Income taxes (2,795) (4)
---------------- ---------------
(65,384) (40,588)
---------------- ---------------
Operating cash flow 16,871 21,722
Restricted cash deposits (27,000) (16,750)
---------------- ---------------
Net cash flow $ (10,129) $ 4,972
---------------- ---------------
---------------- ---------------
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
---------------------------------
1999 1998
---------------- ---------------
Auto lending operations
Auto loan originations $ 1,031,837 $ 624,967
Auto loans sold 899,998 570,001
Gain on sale of auto loans 47,417 33,770
Gain on sale of auto loans 5.3% 5.9%
(% of loans sold)
Average owned receivables $ 460,748 $ 290,187
Average serviced receivables 3,953,034 2,216,953
------------- ------------
Average managed receivables $ 4,413,782 $ 2,507,140
------------- ------------
------------- ------------
Mortgage lending operations
Mortgage loan originations $ 93,781 $ 38,901
Mortgage loans sold 80,259 47,542
Gain on sale of mortgage loans 1,511 1,350
Gain on sale of mortgage loans 1.9% 2.8%
(% of loans sold)
September 30, 1999
------------------------------------------
Auto loan portfolio Owned Serviced Total Managed
-------------- ------------- -------------
Principal $ 585,860 $ 4,163,225 $ 4,749,085
Allowance for losses (16,712) (400,738) (417,450)
-------------- ------------- -------------
$ 569,148 $ 3,762,487 $ 4,331,635
-------------- ------------- -------------
-------------- ------------- -------------
Allowance for losses (%) 2.9% 9.6% 8.8%
-------------- ------------- -------------
-------------- ------------- -------------
September 30, June 30, September 30,
1999 1999 1998
-------------- ------------- -------------
Auto loan delinquency (%)
31 - 60 days 7.8% 6.8% 6.3%
More than 60 days 2.3% 1.8% 2.8%
-------------- ------------- -------------
10.1% 8.6% 9.1%
Repossessions 0.8% 0.9% 0.6%
-------------- ------------- -------------
10.9% 9.5% 9.7%
-------------- ------------- -------------
-------------- ------------- -------------
Pro Forma "Portfolio-Based" Earnings Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
--------------------------------
1999 1998
------------- ---------------
Finance charge, fee and other income $ 218,325 $ 125,735
Funding costs (78,172) (44,394)
------------- ---------------
Net margin 140,153 81,341
Operating expenses (53,678) (34,059)
Credit losses (48,210) (30,719)
------------- ---------------
Pre-tax "portfolio-based" income 38,265 16,563
Income taxes (14,732) (6,376)
------------- ---------------
Net "portfolio-based" income $ 23,533 $ 10,187
------------- ---------------
------------- ---------------
Diluted "portfolio-based"
earnings per share $ 0.33 $ 0.15
------------- ---------------
------------- ---------------
Return on managed assets
(auto business) 2.1% 1.7%
------------- ---------------
------------- ---------------
(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 generally
accepted accounting principles, the Company believes such
presentation provides another measure for assessing the Company's
performance.