Americredit Corp. Announces Record Third Quarter Operating Results and Expansion of Credit Facilities.FORT WORTH, Texas--(BUSINESS WIRE)--April 14, 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 $19,505,000, or $0.29 per share, for its third fiscal quarter ended March 31, 1999, versus earnings of $13,258,000, or $0.20 per share, for the quarter ended March 31, 1998. On a comparative basis, net income increased 47% and earnings per share rose 45%. For the nine months ended March 31, 1999, AmeriCredit reported record net income of $52,363,000, or $0.78 per share, versus earnings of $35,400,000, or $0.55 per share, for the nine months ended March 31, 1998, representing an increase of 48% in net income and an increase of 42% in earnings per share. 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 $766,778,000 for the third quarter of fiscal 1999, an increase of 60% over loan purchases of $480,482,000 for the third quarter of fiscal 1998. For the nine months ended March 31, 1999, automobile loan purchases were $1,990,893,000, 69% higher than loan purchases of $1,176,734,000 for the nine months ended March 31, 1998. 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 $3,553,208,000 at March 31, 1999, an increase of 85% since March 31, 1998. The Company opened 3 branch locations in its third fiscal quarter bringing the total number of branch locations to 168 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 March 31, 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 March 31, 1999, down from 2.6% at March 31, 1998. 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 4.7% of average managed auto receivables for the third quarter ended March 31, 1999, from 5.3% for the third quarter of fiscal 1998. AmeriCredit also announced that it has entered into a new $150 million structured warehouse facility with Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. as agent. This facility matures in March 2000. In addition, AmeriCredit completed a $115 million credit agreement with a group of 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 $235 million bank line of credit. This facility also matures in March 2000. 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 $770 million. The credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities are 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. . The statistical summary attached to this release includes a table presenting 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. In its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge prepared 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 standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "), the Company records a gain on the sale of receivables in securitization transactions primarily representing the present value of estimated future net cash flows related to the receivables sold. Future net cash flows consist of finance charges and fees to be collected on the receivables less interest payable on the asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. , credit losses and expenses of the securitization trust. The Company also earns servicing fees for managing the receivables sold. The pro forma "portfolio-based" earnings data presents the Company's operating results under the assumption that securitization transactions are financings and no gain on sale or servicing fee income is recognized. Instead, finance charges and fees 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. and interest and other costs related to the asset-backed securities are also recognized as accrued. Credit losses are recorded as incurred. While the pro forma "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 with GAAP, the Company believes such presentation provides another measure for assessing the Company's performance. 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 http://www.americredit.com that contains further information on the Company. 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
March 31,
1999 1998
----------- -----------
Revenue:
Finance charge income $ 18,361 $ 13,862
Gain on sale of receivables 42,531 27,503
Servicing fee income 23,691 12,218
Other income 484 879
----------- -----------
85,067 54,462
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Costs and expenses:
Operating expenses 42,025 24,186
Provision for losses 2,286 1,791
Interest expense 9,041 6,928
----------- -----------
53,352 32,905
----------- -----------
Income before income taxes 31,715 21,557
Income tax provision 12,210 8,299
----------- -----------
Net income $ 19,505 $ 13,258
----------- -----------
----------- -----------
Earnings per share:
Basic $ 0.31 $ 0.22
----------- -----------
----------- -----------
Diluted $ 0.29 $ 0.20
----------- -----------
----------- -----------
Weighted average shares 63,187,789 60,293,708
----------- -----------
----------- -----------
Weighted average shares and
assumed incremental shares 66,514,367 64,969,618
----------- -----------
----------- -----------
Nine Months Ended
March 31,
1999 1998
----------- -----------
Revenue:
Finance charge income $ 51,538 $ 40,052
Gain on sale of receivables 116,551 71,838
Servicing fee income 61,702 34,389
Other income 3,361 1,901
----------- -----------
233,152 148,180
----------- -----------
Costs and expenses:
Operating expenses 115,760 66,102
Provision for losses 6,589 5,546
Interest expense 25,660 18,973
----------- -----------
148,009 90,621
----------- -----------
Income before income taxes 85,143 57,559
Income tax provision 32,780 22,159
----------- -----------
Net income $ 52,363 $ 35,400
----------- -----------
----------- -----------
Earnings per share:
Basic $ 0.83 $ 0.59
----------- -----------
----------- -----------
Diluted $ 0.78 $ 0.55
----------- -----------
----------- -----------
Weighted average shares 62,872,858 59,732,984
----------- -----------
----------- -----------
Weighted average shares and
assumed incremental shares 66,822,426 64,644,030
----------- -----------
----------- -----------
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
March 31, December 31, June 30,
1999 1998 1998
---------- ---------- ----------
Cash and short term investments $ 36,846 $ 68,709 $ 33,087
Finance receivables, net 415,421 345,654 342,853
Interest-only receivables from
Trusts 173,643 170,162 131,694
Investments in Trust receivables 157,201 123,627 98,857
Restricted cash 82,809 87,912 55,758
Other assets 72,062 69,341 51,422
---------- ---------- ----------
Total assets $ 937,982 $ 865,405 $ 713,671
---------- ---------- ----------
---------- ---------- ----------
Borrowings under warehouse lines $ 255,531 $ 236,922 $ 165,608
Senior notes 175,000 175,000 175,000
Other notes payable 12,759 11,022 6,410
Other liabilities 133,928 105,152 78,805
---------- ---------- ----------
Total liabilities 577,218 528,096 425,823
Shareholders' equity 360,764 337,309 287,848
---------- ---------- ----------
Total liabilities and
shareholders' equity $ 937,982 $ 865,405 $ 713,671
---------- ---------- ----------
---------- ---------- ----------
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
March 31,
1999 1998
---------- ----------
Auto lending operations
Auto loan originations $ 766,778 $ 480,482
Auto loans sold 700,000 435,000
Gain on sale of auto loans 40,514 26,737
Gain on sale of auto loans 5.8% 6.2%
(% of loans sold)
Average owned receivables $ 308,375 $ 242,002
Average serviced receivables 2,970,569 1,500,798
---------- ----------
Average managed receivables $3,278,944 $1,742,800
---------- ----------
---------- ----------
Mortgage lending operations
Mortgage loan originations $ 79,072 $ 42,965
Mortgage loans sold 77,464 22,600
Gain on sale of mortgage loans 2,017 766
Gain on sale of mortgage loans 2.6% 3.4%
(% of loans sold)
Nine Months Ended
March 31,
1999 1998
---------- ----------
Auto lending operations
Auto loan originations $1,990,893 $1,176,734
Auto loans sold 1,920,001 1,117,499
Gain on sale of auto loans 111,452 68,828
Gain on sale of auto loans 5.8% 6.2%
(% of loans sold)
Average owned receivables $ 292,629 $ 244,218
Average serviced receivables 2,600,123 1,251,566
---------- ----------
Average managed receivables $2,892,752 1,495,784
---------- ----------
---------- ----------
Mortgage lending operations
Mortgage loan originations $ 203,518 $ 94,537
Mortgage loans sold 198,953 70,729
Gain on sale of mortgage loans 5,099 3,010
Gain on sale of mortgage loans 2.6% 4.3%
(% of loans sold)
March 31, 1999
--------------
Auto loan portfolio Owned Serviced Total Managed
----- -------- -------------
Principal $ 400,722 $ 3,152,486 $ 3,553,208
Allowance for losses (10,549) (299,017) (309,566)
----------- ------------ -------------
$ 390,173 $ 2,853,469 $ 3,243,642
----------- ------------ -------------
----------- ------------ -------------
Allowance for losses (%) 2.6% 9.5% 8.7%
----------- ------------ -------------
----------- ------------ -------------
March 31, March 31,
1999 1998
------ -----
Auto loan delinquency (%)
31 - 60 days 6.2% 5.4%
More than 60 days 2.3% 2.6%
------- -------
8.5% 8.0%
Repossessions 0.9% 1.2%
------- -------
9.4% 9.2%
------- -------
------- -------
Pro Forma "Portfolio-Based" Earnings Data
(Unaudited, Dollars in Thousands)
Nine Months Ended
March 31,
-------------------------------
1999 1998
------------ --------------
Finance charge, fee and other income $ 431,346 $ 231,966
Funding costs (151,166) (82,719)
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Net margin 280,180 149,247
Operating expenses (115,760) (66,102)
Credit losses (103,891) (60,918)
------------ ------------
Pre-tax "portfolio-based" income 60,529 22,227
Income taxes (23,304) (8,557)
------------ ------------
Net "portfolio-based" income $ 37,225 $ 13,670
------------ ------------
------------ ------------
Diluted "portfolio-based"
earnings per share $ 0.56 $ 0.21
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