AmeriCredit Completes Operating Plan Restructuring.Business Editors FORT WORTH, Texas--(BUSINESS WIRE)--March 11, 2003 Implements new loan volume target Renews master warehouse credit facility Reiterates managed portfolio credit loss guidance 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 ) reports that it has substantially completed the restructuring outlined in its revised operating plan announced in February. The objective of that plan is to position AmeriCredit to generate positive cash flow by the June 2003 quarter and build its liquidity thereafter, and the Company is currently on target to meet that objective. As planned, the Company has scaled back its origination platform in its effort to originate approximately $750 million per quarter by June 2003. Loan volume for the current quarter is still expected to be approximately $1.3-1.5 billion. The Company has completed its workforce reduction and branch consolidation. AmeriCredit currently services more than 10,000 automobile dealers in all 50 states. AmeriCredit also reports that it has renewed the one-year component of its $2 billion master warehouse credit facility. When combined with remaining facilities, AmeriCredit now has $4 billion in committed credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , with approximately 75 percent of these commitments having maturities greater than one year. The Company remains in compliance with all covenants in its warehouse credit facilities. AmeriCredit continues to pursue the permanent funding of its receivables including future asset-backed securitizations. As scheduled, AmeriCredit will report its most recent monthly 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. pool results on March 12 at www.americredit.com. Liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. receivables (credit losses in the securitization pools) have increased in part due to the Company's strategy to aggressively repossess repossess v. to take back property through judicial processes, foreclosure, or self-help upon default in required payments. late-stage delinquencies. The Company is also experiencing the traditional seasonal improvement in delinquencies. All trusts complied with performance triggers in February. The Company received cash distributions of $28 million (net of swap payments), including $14 million from FSA-insured trusts. AmeriCredit still expects some trusts to breach performance triggers in the first half of 2003, which may delay additional cash receipts from FSA-insured trusts through mid-2004. AmeriCredit is reiterating its previous forecast that annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net charge-offs for its managed portfolio will peak in the 7.0-7.9% range during the first half of calendar year 2003 before declining to the 6.0-6.9% range later this year. About AmeriCredit AmeriCredit Corp. is one of the largest independent middle-market auto finance companies in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Using its branch network and strategic alliances with auto groups and banks the company purchases retail installment contracts installment contract n. an agreement in which payments of money, delivery of goods or performance of services are to be made in a series of payments, deliveries or performances, usually on specific dates or upon certain happenings. entered into by auto dealers with consumers who are typically unable to obtain financing from traditional sources. AmeriCredit has more than one million customers and $16 billion in managed auto receivables. The company was founded in 1992 and is headquartered 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. . For more information, visit www.americredit.com. 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 including the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended June 30, 2002. Such risks include -- but are not limited to -- deteriorating economic environment, adverse portfolio performance, reliance on capital markets, fluctuating interest rates, increased competition, regulatory changes and tightening labor markets. These forward-looking 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. |
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