FORT WORTH, TX – AMERICREDIT CORP. (NYSE: ACF) today announced net income of $64.6 million, or $0.39 per share, for its fiscal second quarter ended December 31, 2004. AmeriCredit reported net income of $47.2 million, or $0.29 per share, for the same period a year earlier. For the six months ended December 31, 2004, AmeriCredit reported net income of $133.4 million, or $0.80 per share, versus earnings of $80.5 million, or $0.50 per share, for the six months ended December 31, 2003. Earnings per share for all periods beginning with the December 2003 quarter were revised to reflect the retroactive application of EITF Issue No. 04-8, “The Effect of Contingently Convertible Debt on Diluted Earnings Per Share”.
Automobile loan purchases increased to $1.12 billion for the second quarter of fiscal year 2005, compared to $700.0 million in the December 2003 quarter. Loan purchases for the six months ended December 31, 2004, were $2.21 billion compared to $1.45 billion for the same period last year. Managed auto receivables totaled $11.11 billion at December 31, 2004.
Annualized net charge-offs totaled 7.0% of average managed auto receivables for the December 2004 quarter compared to 9.1% for the December 2003 quarter. Annualized net charge-offs for the six months ended December 31, 2004, were 6.6% compared to 8.3% for the same period last year. Effective for the quarter ended December 31, 2003, AmeriCredit revised its repossession charge-off policy to charge off accounts when the repossessed vehicles are legally available for sale rather than at the time repossessed automobiles are liquidated at auction. To implement the change, AmeriCredit incurred a one-time, cumulative adjustment to accelerate the timing of charge-offs, raising the managed portfolio annualized charge-off rate for the December 2003 quarter to 9.1%, from 7.3% of the managed portfolio under the old policy.
Managed auto receivables 31-to-60 days delinquent were 6.6% of the portfolio at December 31, 2004, compared to 7.5% at December 31, 2003. Accounts more than 60 days delinquent were 2.6% of the portfolio at December 31, 2004, compared to 2.9% at December 31, 2003.
Unrestricted cash totaled $487.8 million at December 31, 2004. During the quarter, the Company purchased $76.3 million of common stock under the Company’s August 2004 $100 million stock repurchase plan. Shareholders’ equity was $2.15 billion at December 31, 2004, resulting in a managed assets-to-equity ratio of 5.2 at December 31, 2004.
“The December quarter is historically a more challenging time of year in our business. Yet loan volume was strong in the quarter and we finished the calendar year with good credit results,” said AmeriCredit Chairman and CEO Clifton Morris. “This positive momentum positions us well to deliver on our earnings forecast as we enter the second half of our fiscal year.”
About AmeriCredit
AmeriCredit Corp. is a leading independent auto finance company. Using its branch network and strategic alliances with auto groups and banks, the Company purchases retail installment contracts entered into by auto dealers with consumers who are typically unable to obtain financing from traditional sources. AmeriCredit has approximately one million customers and $11 billion in managed 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 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 for the period ended June 30, 2004. Such risks include – but are not limited to – variable economic conditions, adverse portfolio performance, volatile wholesale values, reliance on warehouse financing and capital markets, the ability to continue to securitize its loan portfolio, the continued availability of credit enhancement for its securitization transactions on acceptable terms, fluctuating interest rates, increased competition, regulatory changes and exposure to 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 Company management. Actual events or results may differ materially.
