AMERICREDIT CORP. ANNOUNCES SECOND QUARTER OPERATING RESULTS.FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 16, 1996--AmeriCredit Corp. (NYSE NYSE See: New York Stock Exchange :ACF (Advanced Communications Function) An earlier official product line name for IBM SNA programs, such as VTAM (ACF/VTAM) and NCP (ACF/NCP). ACF - Advanced Communications Function ) announced today net income of $5,586,000, or $.18 per share, for its second fiscal quarter ended Dec. 31, 1995, as compared to earnings of $2,092,000, or $.07 per share, for the same period last fiscal year. The current quarter results represent increases of 167 percent in net income and 157 percent in earnings per share compared to the second quarter of fiscal 1995. For the six months ended Dec. 31, 1995, AmeriCredit AmeriCredit Corp.(NYSE: ACF) is a Fort Worth-based company that provides car loans, both directly and through automobile dealerships, to medium- and high-risk customers in the United States and Canada. Their headquarters is located in Fort Worth, Texas. reported net income of $8,106,000, or $.26 per share, vs. earnings of $3,893,000, or $.13 per share for the six month period ended Dec. 31, 1994. On a comparative basis, net income rose 108 percent and earnings per share were up 100 percent. The fiscal 1996 results include a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain on sale of receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed of $5,621,000 resulting from the company's $65 million securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. transaction completed on Dec. 19, 1995. The three month and six month periods ended Dec. 31, 1995 also include income tax provisions of $3,243,000 and $4,662,000, respectively, which are primarily non-cash. The results for the corresponding periods of fiscal 1995 do not include any federal income tax provisions. Originations through the company's nation-wide nation-wide adj → diffuso/a in tutto il paese adv → in tutto il paese network of 42 branches were $86,583,000 for the second quarter of fiscal 1996, an increase of 85 percent over loan volume of $46,740,000 for the second quarter of fiscal 1995. Clifton Clifton, industrial city (1990 pop. 71,742), Passaic co., NE N.J., on the Passaic River; settled 1685, set off from Passaic and inc. 1917. It has steel, textile equipment, chemical, plastics, clothing, and electronics industries. H. Morris Jr., chairman and chief executive officer, commented, "We were able to open seven branches this quarter and strengthen our underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and servicing capabilities while continuing to push the expense ratio down." Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of average net receivables Net Receivables A company's accounts receivable (money owed to the company) minus bad debts. Notes: If a company estimates that 2% of its sales are never going to be paid, then net receivables equals 98% (100% - 2%) of the accounts receivable. decreased to 7.0 percent for the three months ended Dec. 31, 1995, from 11.2 percent for the corresponding prior year period. AmeriCredit is a consumer finance company specializing in purchasing automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. through its branch offices and servicing these receivables at its central facility in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. . -0- AmeriCredit Corp. Consolidated Income Statements (Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended
December 31, December 31,
------------------------ ------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
Revenue:
Finance charge
income $ 13,852 $ 6,312 $ 27,229 $ 11,138
Gain on sale
of receivables 5,621 -- 5,621 --
Investment income 275 299 556 647
Servicing fee income 215 -- 215 --
Other income 298 167 563 654
----------- ----------- ----------- -----------
20,261 6,778 34,184 12,439
----------- ----------- ----------- -----------
Costs and expenses:
Operating expenses 5,538 3,396 10,442 6,517
Provision for
losses 2,145 883 4,112 1,537
Interest expense 3,749 364 6,862 413
----------- ----------- ----------- -----------
11,432 4,643 21,416 8,467
----------- ----------- ----------- -----------
Income before income taxes 8,829 2,135 12,768 3,972
Provision for
income taxes 3,243 43 4,662 79
----------- ----------- ----------- -----------
Net income $ 5,586 $ 2,092 $ 8,106 $ 3,893
=========== =========== =========== ===========
Earnings per share $ .18 $ .07 $ .26 $ .13
=========== =========== =========== ===========
Weighted average
shares and share
equivalents 31,120,461 30,191,179 31,130,423 30,126,388
=========== =========== =========== ===========
Condensed Consolidated Balance Sheets (Unaudited, Dollars in Thousands)
Dec. 31, Sept. 30, Dec. 31,
1995 1995 1994
--------- --------- ---------
Cash and short term investments $ 17,122 $ 17,408 $ 44,888
Finance receivables 272,249 286,719 137,229
Allowance for losses (18,972) (22,174) (13,034)
--------- --------- ---------
Finance receivables, net 253,277 264,545 124,195 Excess servicing receivable 9,243 -- --
Deferred income taxes 16,404 18,711 --
Other assets 12,015 10,172 8,329
--------- --------- ---------
Total assets $ 308,061 $ 310,836 $ 177,412
========= ========= =========
Liabilities $ 158,507 $ 162,081 $ 53,792
Shareholders' equity 149,554 148,755 123,620
--------- --------- ---------
Total liabilities and
shareholders' equity $ 308,061 $ 310,836 $ 177,412
========= ========= =========
CONTACT: AmeriCredit Corp. Beverly Beverly, city (1990 pop. 38,195), Essex co., NE Mass., on Massachusetts Bay; inc. as a city 1894. Its chief manufactures are electronic and scientific equipment, consumer goods, and chemicals. H. Mastran, 817/882-7009 |
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