AmeriCredit Corp. Announces Record First Quarter Operating Results and its 22nd Consecutive Quarterly Earnings Increase.FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 13, 1999-- 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. 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 ) today announced record net income of $25,324,000, or $0.35 per share, for its first fiscal quarter ended September September: see month. 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 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 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 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 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 Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of at September 30, 1999. 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 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 delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. were 2.3% of total managed auto receivables at September 30, 1999, down from 2.8% at September 30, 1998. 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 of AmeriCredit, said the record quarterly performance was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk 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 EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on October October: see month. 14, 1999. For an Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the broadcast of this conference call, please go to the Company's Web site to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. -0-
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
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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
---------------- ---------------
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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
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Average managed receivables $ 4,413,782 $ 2,507,140
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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)
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Net margin 140,153 81,341
Operating expenses (53,678) (34,059)
Credit losses (48,210) (30,719)
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Pre-tax "portfolio-based" income 38,265 16,563
Income taxes (14,732) (6,376)
------------- ---------------
Net "portfolio-based" income $ 23,533 $ 10,187
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------------- ---------------
Diluted "portfolio-based"
earnings per share $ 0.33 $ 0.15
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------------- ---------------
Return on managed assets
(auto business) 2.1% 1.7%
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------------- ---------------
(1) The pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma "portfolio-based" earnings data above presents the Company's operating results under the assumption that 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. 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 securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. receivables as accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. . Credit losses are recorded as incurred. While the pro forma forma, adj/n minor elements between the members of a botanical species. "portfolio-based" earnings data does not purport To convey, imply, or profess; to have an appearance or effect. The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to present the Company's operating results in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles, the Company believes such presentation provides another measure for assessing the Company's performance. |
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