AmeriCredit Reports Second Quarter Operating Results.* 2(nd) Quarter net loss of $25.6 million, $0.21 per share * Allowance for loan losses increased to 7.1% of outstanding receivables * Total available liquidity of $375.7 million 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. -- 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 a net loss of $25.6 million, or $0.21 per share, for its fiscal second quarter ended December 31, 2008, compared to a loss of $19.1 million, or $0.17 per share, for the same period a year earlier. For the six months ended December 31, 2008, AmeriCredit reported a net loss of $27.2 million, or $0.23 per share, versus earnings of $42.7 million, or $0.35 per share, for the six months ended December 31, 2007. The allowance for loan losses as a percentage of finance receivables increased to 7.1% at December 31, 2008, from 6.8% at September 30, 2008 and 5.6% at December 31, 2007. Originations were $320.8 million for the quarter ended December 31, 2008, compared to $1.8 billion for the same quarter last fiscal year. Originations for the six months ended December 31, 2008, were $900.1 million, compared to $4.2 billion for the same period a year earlier. Finance receivables totaled $13.0 billion at December 31, 2008, compared to $16.4 billion at December 31, 2007. 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 totaled 9.5% of average finance receivables for the quarter ended December 31, 2008, compared to 6.9% for the quarter ended December 31, 2007. For the six months ended December 31, 2008, annualized net charge-offs were 8.3%, compared to 6.2% for the same period last year. Finance receivables 31-to-60 days delinquent were 7.8% of the portfolio at December 31, 2008, compared to 6.8% at December 31, 2007. Accounts more than 60 days delinquent were 4.2% of the portfolio at December 31, 2008, compared to 3.0% a year ago. The Company had total liquidity of $375.7 million at December 31, 2008, consisting of $166.7 million of unrestricted cash and approximately $209.0 million of available borrowing capacity on unpledged eligible receivables. "Over the past year, the recessionary environment has accelerated, including increasing job losses, falling consumer confidence, a decline in demand for new and used vehicles, and the scarcity Scarcity The basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently. and high cost of funding and capital. We do not expect improvement in the macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. outlook in 2009. As such, we are focused on maximizing cash collections from our loan portfolio and diligently managing the business to preserve capital and liquidity," said AmeriCredit President and Chief Executive Officer Dan Berce. AmeriCredit will host a conference call for analysts and investors today at 5:30 p.m. Eastern time. 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. About AmeriCredit AmeriCredit Corp. is a leading independent automobile finance company that provides financing solutions indirectly through auto dealers across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . AmeriCredit has approximately one million customers and $13 billion in auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. 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 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 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, 2008. Such risks include - but are not limited to - variable economic conditions, adverse portfolio performance, volatile wholesale vehicle values, reliance on warehouse financing and capital markets, the ability to continue to securitize Securitize The practice of a company selling accounts receivables or other debts owed to it. The third party that buys the debt assumes ownership of it and the responsibility for collecting the debts, and keeps the repayments when made. its loan portfolio, the continued availability of credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing for its 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 on acceptable terms, fluctuating interest rates, increased competition, regulatory changes, the high degree of risk associated with subprime borrowers, and exposure to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . 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 the Company's management. Actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to, and does not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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