AmeriCredit Corp. Reports Record First Quarter Operating Results
12 October 2000
AmeriCredit Corp. Reports Record First Quarter Operating Results
FORT WORTH, Texas--Oct. 11, 2000--AMERICREDIT CORP.| -- | 1st Quarter Earnings Per Share Up 46% to $0.51 |
| -- | 1st Quarter Net Income Up 67% to $42.3 Million |
| -- | Managed Portfolio Up 57% Over September 1999 |
| -- | Annualized Charge-Off Rate Declines to 3.7% |
AMERICREDIT CORP. today announced record net income of $42,273,000, or $0.51 per share, for its first fiscal quarter ended September 30, 2000, versus earnings of $25,324,000, or $0.35 per share for the same period a year earlier. On a comparative basis, net income increased 67% and earnings per share rose 46%.
Automobile loan purchases were a record $1,406,753,000 for the first quarter of fiscal 2001, an increase of 36% over loan purchases of $1,031,837,000 for the first quarter of fiscal 2000. AmeriCredit's managed auto receivables totaled $7,448,553,000 at September 30, 2000, an increase of 57% since September 30, 1999. The Company had 198 branch locations in 41 states and Canada at September 30, 2000.
Annualized net charge-offs decreased to 3.7% of average managed auto receivables for the first quarter ended September 30, 2000, down from 4.3% for the first quarter of fiscal 2000. This marks the Company's 18th consecutive quarter of stable or declining charge-off levels.
Managed auto receivables more than sixty days delinquent were 2.4% of total managed auto receivables at September 30, 2000, compared to 2.3% at September 30, 1999.
REGULATION FD
AmeriCredit provides information to investors on its Web site at www.americredit.com including press releases, conference calls, SEC filings, and other financial data.
From time to time, management makes presentations to the investment community. In response to the new SEC Regulation FD, AmeriCredit now posts all such presentations on its Web site.
Also pursuant to Regulation FD, the Company will provide its expectations regarding future business trends to the public via a press release or 8-K filing. Based on current business trends:
-- The Company projects it will originate $1.2 to $1.3 billion in
auto loans during its second fiscal quarter ending December
31, 2000, and $5.5 to $5.9 billion in auto loans during its
fiscal year ending June 30, 2001.
-- Earnings per share are projected in a range of $0.52 to $0.54
for the quarter ending December 31, 2000 and $2.14 to $2.18
for the fiscal year ending June 30, 2001.
-- Pro forma "portfolio-based" earnings per share are projected
in a range between $0.61 to $0.63 for the quarter ending
December 31, 2000 and $2.48 to $2.54 for the fiscal year
ending June 30, 2001.
AmeriCredit will host a conference call for analysts and investors at 9:00 a.m. Eastern Time on Thursday, October 12, 2000. For a live 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.
AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended
September 30,
-------------------------------------
2000 1999
---------------- -----------------
Revenue:
Finance charge income $ 45,400 $ 27,536
Gain on sale of receivables 61,586 48,928
Servicing fee income 59,270 34,787
Other income 3,085 1,368
---------------- -----------------
169,341 112,619
---------------- -----------------
Costs and expenses:
Operating expenses 67,294 53,678
Provision for losses 6,054 3,487
Interest expense 27,256 14,276
---------------- -----------------
100,604 71,441
---------------- -----------------
Income before income taxes 68,737 41,178
Income tax provision 26,464 15,854
---------------- -----------------
Net income $ 42,273 $ 25,324
================ =================
Earnings per share:
Basic $ 0.55 $ 0.38
================ =================
Diluted $ 0.51 $ 0.35
================ =================
Weighted average shares 77,253,522 67,503,547
================ =================
Weighted average shares and
assumed incremental shares 83,358,230 71,678,349
================ =================
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
September 30, June 30, September 30,
2000 2000 1999
------------- ------------- -------------
Cash and cash equivalents $ 128,897 $ 42,916 $ 24,013
Finance receivables, net 1,057,408 871,511 606,355
Interest-only receivables
from Trusts 230,624 229,059 214,233
Investments in Trust
receivables 390,912 341,707 234,725
Restricted cash 284,976 253,852 128,574
Other assets 154,222 123,224 115,605
------------- ------------- -------------
Total assets $ 2,247,039 $ 1,862,269 $ 1,323,505
============= ============= =============
Borrowings under warehouse
lines $ 766,195 $ 487,700 $ 181,561
Senior notes 375,000 375,000 375,000
Other notes payable 95,726 86,297 23,355
Other liabilities 249,129 224,693 196,251
------------- ------------- -------------
Total liabilities 1,486,050 1,173,690 776,167
Shareholders' equity 760,989 688,579 547,338
------------- ------------- -------------
Total liabilities and
shareholders' equity $ 2,247,039 $ 1,862,269 $ 1,323,505
============= ============= =============
Cash Flows From Operating Activities:
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
------------------------------------
2000 1999
---------------- ---------------
Cash revenue
Finance charge income $ 45,400 $ 27,536
Cash gain on sale 12,150 3,600
Servicing fee income 39,480 26,010
Other income 2,418 1,368
Securitization distributions 49,060 14,230
Changes in working capital 22,608 3,574
---------------- ---------------
171,116 76,318
---------------- ---------------
Cash expenses
Operating expenses (62,217) (48,313)
Interest expense (27,256) (14,276)
Income taxes (21,168) (12,541)
---------------- ---------------
(110,641) (75,130)
---------------- ---------------
Operating cash flow 60,475 1,188
Undistributed securitization cash
flow 26,498 33,609
Restricted cash deposits (36,000) (27,000)
Net cash flow $ 50,973 $ 7,797
================ ===============
Total Cash Flow Generated by Trusts:
Undistributed $ 26,498 $ 33,609
Distributed 49,060 14,230
---------------- ---------------
Total $ 75,558 $ 47,839
================ ===============
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
--------------------------------------
2000 1999
--------------- ----------------
Auto lending operations
Auto loan originations $ 1,406,753 $ 1,031,837
Auto loans sold 1,199,998 899,998
Gain on sale of auto loans 61,586 47,417
Gain on sale of auto loans 5.1% 5.3%
(% of loans sold)
Average owned receivables $ 800,684 $ 460,748
Average serviced receivables 6,238,610 3,953,034
--------------- ----------------
Average managed receivables $ 7,039,294 $ 4,413,782
=============== ================
Three Months Ended
September 30,
--------------------------------------
2000 1999
--------------- ----------------
Auto lending operations
Net charge-offs
Owned $ 2,835 $ 1,658
Serviced 62,712 46,552
--------------- ----------------
$ 65,547 $ 48,210
=============== ================
Net charge-offs as a
percentage of average
managed receivables
outstanding 3.7% 4.3%
=============== ================
September 30, 2000
-------------------------------------------
Auto loan portfolio Owned Serviced Total Managed
----- -------- -------------
Principal $ 1,084,646 $ 6,363,907 $ 7,448,553
Allowance for losses (30,994) (623,743) (654,737)
------------ ------------ -------------
$ 1,053,652 $ 5,740,164 $ 6,793,816
============ ============ =============
Allowance for losses (%) 2.9% 9.8% 8.8%
============ ============ =============
September 30, June 30, September 30,
2000 2000 1999
------------ ------------ -------------
Auto loan delinquency (%)
31 - 60 days 7.3% 6.7% 7.8%
> 60 days 2.4% 2.3% 2.3%
------------ ------------ -------------
9.7% 9.0% 10.1%
Repossessions 0.8% 0.6% 0.8%
------------ ------------ -------------
10.5% 9.6% 10.9%
============ ============ =============
Pro Forma "Portfolio-Based" Earnings Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
--------------------------------------
2000 1999
--------------- ----------------
Finance charge, fee and
other income $ 355,826 $ 218,325
Funding costs (142,397) (78,172)
--------------- ----------------
Net margin 213,429 140,153
Operating expenses (67,294) (53,678)
Credit losses (65,547) (48,210)
--------------- ----------------
Pre-tax "portfolio-based"
income 80,588 38,265
Income taxes (31,026) (14,732)
--------------- ----------------
Net "portfolio-based"
income $ 49,562 $ 23,533
=============== ================
Diluted "portfolio-based"
earnings per share $ 0.59 $ 0.33
=============== ================
Pro Forma Return on Managed Assets(1)
(Auto Business, Unaudited)
Three Months Ended
September 30,
--------------------------------------
2000 1999
--------------- ----------------
Finance charge, fee and
other income 20.0% 19.4%
Funding costs (8.0) (7.0)
--------------- ----------------
Net margin 12.0 12.4
Credit losses (3.7) (4.3)
--------------- ----------------
Risk adjusted margin 8.3 8.1
Operating expenses (3.8) (4.6)
--------------- ----------------
Pre-tax return on managed
assets 4.5 3.5
Income taxes (1.7) (1.4)
--------------- ----------------
Return on managed assets 2.8% 2.1%
=============== ================
(1) The pro forma "portfolio-based" earnings data and return on
managed assets present 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 this 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.