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AmeriCredit Posts 1Q Profit, Activates Approximately 3,000 Dealers

October 22, 2009

FORT WORTH, Texas — AmeriCredit Corp. reported net income of $26 million for its fiscal first quarter, a higher profit than analysts predicted and an improvement from a net loss of $5 million in the year-ago period.

Originations were $229 million in the first quarter ended Sept. 30, 2009, down from the $579 million recorded in the year-ago period. Loans originated in the first quarter carried an average interest rate of 19.1 percent, up from 17.8 percent in the fourth quarter.

He added that the auto finance company had taken steps toward rebuilding its origination volume, and had activated or re-activated approximately 3,000 dealers.

“Credit metrics reflected typical seasonal decline and the impact of a decreasing portfolio balance. However, we are seeing a moderation in the rate of deterioration in our credit performance,” said President and CEO Dan Berce.

Annualized net charge-offs totaled 8.4 percent of average finance receivables in the first quarter, up from 7.3 percent in the year-ago period.

Finance receivables totaled $10 billion in the first quarter, compared to $14.1 billion in the year-ago period.

In addition, 31- to 60-day delinquencies rose slightly to 7.6 percent in the quarter, compared to 7.4 percent in the year-ago period. Accounts more than 60 days delinquent were 3.8 percent in the quarter, compared to 3.6 percent in the year-ago period.

Annualized net credit losses increased to 8.4 percent in the first quarter, up from 7.3 percent a year ago. The provision for loan losses fell to $157.9 million from $274.8 million.

The company had total available liquidity of $704 million at Sept. 30.

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