FORT WORTH, TX – AMERICREDIT CORP. (NYSE: ACF) today announced net income of $68.8 million, or $0.43 per share, for its fiscal first quarter ended September 30, 2004. AmeriCredit reported net income of $33.3 million, or $0.21 per share, for the same period a year earlier.
Automobile loan purchases increased to $1.085 billion for the first quarter of fiscal year 2005, compared to $745.1 million in the September 2003 quarter. Managed auto receivables totaled $11.468 billion at September 30, 2004.
Annualized net charge-offs totaled 6.3% of average managed auto receivables for the September 2004 quarter, compared to 7.6% for the September 2003 quarter. Managed auto receivables 31-to-60 days delinquent were 6.6% of the portfolio at September 30, 2004, compared to 7.6% at September 30, 2003. Accounts more than 60 days delinquent were 2.7% of the portfolio at September 30, 2004, compared to 2.9% at September 30, 2003.
Unrestricted cash totaled $526.3 million at September 30, 2004, up $104.8 million from June 30, 2004. During the quarter, the Company purchased $67.8 million of common stock, which completed the Company’s April 2004 $100 million stock repurchase plan. The Company has not made any purchases under the additional $100 million share repurchase plan authorized in August. Shareholders’ equity increased to $2.148 billion at September 30, 2004, resulting in a managed assets-to-equity ratio of 5.3 at September 30, 2004.
“We have started fiscal year 2005 on a solid note,” said AmeriCredit Chairman and CEO Clifton Morris. “Our loan volume is on track, credit losses – while seasonally higher – have improved significantly from last year, our margins are very strong, and we are close to receiving monthly cash distributions from our old FSA-insured portfolio.”
Regulation FD
Pursuant to Regulation FD, the Company provides its expectations regarding future business trends to the public via a press release or 8-K filing. The Company anticipates some risks and uncertainties with its business. The forecasts for fiscal year 2005 incorporate, but are not limited to, the following assumptions:
- New loan volume of $4.5 to $5 billion — consistent with planned growth in loan volume of 10 to 15 percent annually over time;
- Net interest margins on the managed portfolio of 12.5 to 13 percent;
- Operating expenses of 2.5 to 3 percent of the managed portfolio;
- Managed portfolio-level credit losses to average between 5.5 and 6.5 percent overall for fiscal year 2005, but varying seasonally by quarter; and
- Implementation of Statement of Position 03-3 on July 1, 2004, regarding dealer acquisition fees.
Additionally, an earnings per share forecast is provided which assumes conversion of AmeriCredit’s $200 million contingent convertible notes into 10.7 million shares of common stock for diluted weighted average share purposes as required by EITF Issue No. 04-8. This assumption, which is effective beginning with the December 2004 quarter, will result in the Company’s contingent convertible notes being treated as convertible securities and included in the diluted earnings per share calculation using the if-converted method. EITF Issue No. 04-8 does not affect net income, but will lower fiscal year 2005 earnings per share by approximately $0.08. Including the impact of EITF Issue No. 04-8, fiscal first quarter net income would remain at $68.8 million while earnings per share would be $0.41.
AmeriCredit will host a conference call for analysts and investors today at 5:30 P.M. Eastern Daylight 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 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 over $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.
