AmeriCredit Reports First Quarter 2004 Operating Results
AmeriCredit Corp. on Oct. 23 announced net income of $33.3 million, or $0.21 per share, for its first fiscal quarter ended Sept. 30, 2003. These results include costs and expenses of $29.0 million ($18.1 million after income taxes) related to the termination of the company's whole loan purchase facility, as previously announced.
AmeriCredit earned $75.7 million, or $0.87 per share, for the same period a year earlier, which was the last quarter that the company recognized gain on sale revenue.
"During the past quarter our loan volume was on target, our credit statistics were stable and our cash position continued to improve," said AmeriCredit CEO Clifton Morris. "While we're pleased with the progress we've made, we must remain focused on executing our plan as we move into calendar year 2004 when we expect to receive a higher level of cash distributions from our securitization trusts."
Automobile loan purchases were $745.1 million for the first quarter of fiscal year 2004, in line with the Company's origination goal of approximately $750 million per quarter. Loan purchases for the same quarter last year were $2.4 billion. Managed auto receivables totaled $13.9 billion at Sept. 30, 2003.
Annualized net charge-offs were 7.6 percent of average managed auto receivables for the September 2003 quarter, compared with annualized net charge-offs of 7.4 percent for the June 2003 quarter and 5.3 percent for the September 2002 quarter. Managed auto receivables more than 60 days delinquent were 2.9 percent of total managed auto receivables at Sept. 30, 2003, compared with 3.3 percent at June 30, 2003, and 3.5 percent at Sept. 30, 2002.
AmeriCredit's unrestricted cash balance totaled $358.0 million at Sept. 30, 2003, compared with $316.9 million at June 30, 2003. Distributions of $63.3 million, net of swap payments, for the month of September were received in October 2003 and are not included in the cash balance at Sept. 30, 2003.
Company Provides Expectations Regarding Future Business Trends
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 said it anticipates some risks and uncertainties with its guidance as it continues to execute its revised operating plan implemented in February 2003. The guidance, which is unchanged from the forecast provided in the press release dated Aug. 25, 2003, incorporates the following assumptions:
Approximately $750 million in quarterly loan originations,
Stable credit quality, and
An increase in operating expenses as a percent of the managed portfolio as the portfolio balance declines.
Net income and EPS forecast
---------------------------
12 mos. ending
6/30/04
---------------
Net income ($ millions) $125 - 155
Earnings per share $0.80 - 0.99
About AmeriCredit
AmeriCredit Corp. is an independent middle-market 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 more than one million customers and approximately $14 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.
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