AmeriCredit Corp. Reports Record First Quarter Operating Results and Expansion of Credit Facilities.FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 14, 1997--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 ) today announced record net income of $13,194,000, or $0.41 per share, for its first fiscal quarter ended Sept. 30, 1997, versus earnings of $8,072,000, or $0.27 per share, for the quarter ended Sept. 30, 1996. On a comparative basis, net income increased 63% 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 $355,058,000 for the first quarter of fiscal 1998, an increase of 102% over loan purchases of $175,892,000 for the first quarter of fiscal 1997. AmeriCredit's total 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 were $1,384,251,000 at Sept. 30, 1997, an increase of 116% since Sept. 30, 1996. The Company opened fourteen branch locations in its first fiscal quarter bringing the total number of branch locations to 99 in 31 states at Sept. 30, 1997. 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 3.4% of total managed auto receivables at Sept. 30, 1997, compared to 3.5% at Sept. 30, 1996 and 3.2% at June June: see month. 30, 1997. 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 were 5.5% of average managed auto receivables for the first quarter ended Sept. 30, 1997, unchanged from both the previous quarter ended June 30, 1997 and the first quarter of fiscal 1997. 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. also announced that it has entered into a new $245 million structured warehouse facility with The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. as funding agent on behalf of six banks. This facility matures in October October: see month. 1998. In addition, AmeriCredit has completed a $310 million credit agreement with a group of thirteen banks led by Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank, replacing the Company's $240 million bank line of credit. This facility also matures in October 1998. The credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities will be used to finance the purchase of automobile receivables prior to 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. . With the closing of these two financing agreements Financing Agreements In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. , AmeriCredit has increased its warehouse capacity to a total of $555 million. AmeriCredit is a national consumer finance company specializing in purchasing, securitizing and servicing automobile loans and originating and selling home equity loans. Except for the historical information contained herein, the matters discussed in this news release are 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 including competitive factors, the management of growth, and other risks 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 year ended June 30, 1997. Such statements are only predictions and 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,
------------------
1997 1996
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Revenue:
Finance charge income $ 13,061 $ 10,764
Gain on sale of receivables 26,042 12,590
Servicing fee income 8,713 3,643
Investment income 1,280 468
Other income 194 330
---------- ----------
49,290 27,795
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Costs and expenses:
Operating Expenses 20,091 9,827
Provision for losses 1,906 1,617
Interest expense 5,839 3,226
---------- ----------
27,836 14,670
---------- ----------
Income before income taxes 21,454 13,125
Income tax provision 8,260 5,053
---------- ----------
Net income $ 13,194 $ 8,072
========== ==========
Earnings per share $ 0.41 $ 0.27
========== ==========
Weighted average shares and
share equivalents 31,991,958 30,118,939
========== ==========
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
9/30/97 6/30/97 9/30/96
------- ------- -------
Cash and short term investments $ 88,555 $ 80,422 $ 43,592
Finance receivables, net 276,170 266,657 248,270
Excess servicing receivable 148,009 114,376 42,656
Other assets 35,832 31,998 18,941
-------- -------- --------
Total assets $548,566 $493,453 $353,459
======== ======== ========
Borrowings under warehouse lines $103,295 $ 72,045 $109,800
Senior notes 125,000 125,000 --
Other notes payable 22,407 27,206 54,757
Other liabilities 60,226 52,666 20,030
-------- -------- --------
Total liabilities 310,928 276,917 184,587
Shareholders' equity 237,638 216,536 168,872
-------- -------- --------
Total liabilities and
shareholders' equity $548,566 $493,453 $353,459
======== ======== ========
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
------------------
1997 1996
------------------
Auto lending operations
-----------------------
Auto loan originations $ 355,058 $ 175,892
Auto loans sold 332,499 155,180
Gain on sale of auto loans 24,852 12,590
Gain on sale of auto loans
(% of loans sold) 7.5% 8.1%
Average owned receivables $ 245,988 $ 218,667
Average serviced receivables 1,013,034 362,748
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Average managed receivables $1,259,022 $ 581,415
========== ==========
Home equity lending operations
------------------------------
Home equity loan originations $ 27,393
Home equity loans sold 24,969
Gain on sale of home equity loans 1,190
Gain on sale of home equity loans
(% of loans sold) 4.8%
September 30, 1997
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Total
Auto loan portfolio Owned Serviced Managed
------------------- ------------------------------------
Principal $ 282,939 $1,101,312 $1,384,251
Allowance for losses (13,549) (94,549) (108,098)
---------- ---------- ----------
$ 269,390 $1,006,763 $1,276,153
========== ========== ==========
Allowance for losses (%) 4.8% 8.6% 7.8%
========== ========== ==========
CONTACT: AmeriCredit Corp., Fort Worth Kim Kim orphan wanders streets of India with lama. [Br. Lit.: Kim] See : Adventurousness Welch Welch , William Henry 1850-1934. American pathologist and bacteriologist who discovered the bacteria that causes gas gangrene. , 817/882-7009 |
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