FI showroom red and grey logo
MenuMENU
SearchSEARCH

AmeriCredit Reports Fourth Quarter and Fiscal-Year 2007 Operating Results

Americredit Corp. recently announced net income of $87 million, or $0.66 per share, for its fiscal fourth quarter ended June 30, 2007.

by Staff
August 13, 2007
3 min to read


Fort Worth, Texas — Americredit Corp. recently announced net income of $87 million, or $0.66 per share, for its fiscal fourth quarter ended June 30, 2007. AmeriCredit reported net income of $79 million, or $0.55 per share, for the same period a year earlier. For the fiscal year ended June 30, 2007, AmeriCredit reported net income of $360 million, or $2.73 per share, compared to $306 million, or $2.08 per share, for the fiscal year ended June 30, 2006.



Net income for the fiscal year ended June 30, 2007, included a $33 million after-tax gain ($52 million pre-tax), or $0.25 per share, related to the sale of AmeriCredit's investment in DealerTrack Holdings, Inc., and a $21 million, or $0.16 per share, reduction in reserves for contingent tax positions. Net income for the fiscal year ended June 30, 2006, included a $6 million after-tax gain ($9 million pre-tax), or $0.04 per share, related to the sale of AmeriCredit's investment in DealerTrack Holdings, Inc. Net income for the quarter and fiscal year ended June 30, 2006, included a $6 million after-tax loss ($9 million pre-tax), or $0.04 per share, related to the redemption of the 9 1/4 Senior Notes due in May 2009. Operating results include Bay View Acceptance Corporation since its acquisition on May 1, 2006, and Long Beach Acceptance Corp. since its acquisition on January 1, 2007.

Ad Loading...



Automobile finance originations increased to $2.51 billion for the fourth quarter of fiscal year 2007, compared to $1.73 billion for the same period last year. Origination volume for the fiscal year ended June 30, 2007, was $8.45 billion compared to $6.21 billion for the same period a year earlier. Managed receivables totaled $15.95 billion at June 30, 2007.



Annualized net charge-offs totaled 3.3 percent of average managed receivables for the June 2007 quarter compared to 3.9 percent for the June 2006 quarter. For the fiscal year ended June 30, 2007, net charge-offs were 4.7 percent compared to 5.2 percent for the same period last year.



Managed auto receivables 31-to-60 days delinquent were 4.7 percent of the portfolio at June 30, 2007, compared to 5.1 percent at June 30, 2006. Accounts more than 60 days delinquent remained stable at 2.1 percent of the portfolio at June 30, 2007, compared to June 30, 2006.



During fiscal year 2007, the company repurchased $324 million of its common stock. Subsequent to June 30, 2007, the company has repurchased an additional $100 million of its common stock and has $200 million remaining under its board approved stock repurchase plan.



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.

Ad Loading...



The following net income and earnings per share forecasts have been updated from guidance provided on April 30, 2007, to reflect changes in the company's current business outlook and the impact of stock repurchased through August 8, 2007.



The forecasts for fiscal year 2008 incorporate, but are not limited to, the following assumptions, which remained unchanged from April 30, 2007:


•Origination volume of $10.0 to $10.5 billion;


•Net interest margin of 10.5 percent to 11.5 percent of average receivables;


•Operating expenses of 2.6 percent to 3.0 percent of the portfolio;

Ad Loading...


•Credit losses to average between 4.0 percent and 5.0 percent overall for the fiscal year, but varying seasonally by quarter; and


•Provision for loan losses as a percent of average receivables to range between 4.5 percent and 5.5 percent



These forecasts do not assume any share repurchase activity subsequent to August 8, 2007.


Topics:Digital

More Digital

Hyundai Motor Group Tech Talent Forum 2026 September 17-18 San Jose, California. background of starry night
Digitalby Lauren LawrenceApril 20, 2026

Hyundai Hosts Tech Talent Forum

Technology leaders from Hyundai Motor Group will have open discussions at the inaugural HMG Tech Talent Forum on topics ranging from autonomous driving to 'smart' manufacturing.

Read More →
car outline on top of a data background
Digitalby Lauren LawrenceApril 7, 2026

Dealers Seek Actionable AI

Dealers are facing growing frustrations with current generic artificial intelligence tools, according to a survey by Lotlinx, which found they want a solution that understands their inventories.

Read More →
Ron Reahard, president of Reahard & Associates, announcing an integration with ImpactMenu to enhance F&I transaction recording, compliance and dealership performance insights.
Digitalby StaffMarch 19, 2026

Reahard & Associates Forges New Integration

The firm's F&I Insight tie-up with The Impact Group’s ImpactMenu platform is designed to enhance finance-and-insurance transaction recording for auto dealerships.

Read More →
Ad Loading...
Chris Walsh, president and acting CEO of Reynolds and Reynolds, promoting the company’s Amplify 2026 event for dealership professionals focused on technology and operations.
Digitalby StaffMarch 13, 2026

Registration Open for Reynolds Amplify Retail Summit

Advancements with Reynolds' AI Agent, Rey, will take center stage this August at the Park Hyatt Aviara in Carlsbad, Calif., near San Diego.

Read More →
A customer signs documents on a digital e-contracting tablet using a stylus while a dealership employee points to the screen, alongside the Reynolds and Reynolds and Assurant logos.
Digitalby StaffMarch 6, 2026

Automotive Training Academy by Assurant Grows Offering

A new Atlanta location on Reynolds and Reynolds' docuPAD e-contracting system is designed to broaden access for auto professionals.

Read More →
A dealership customer works with an F&I representative at a desk during the vehicle purchase process.
Digitalby StaffJanuary 30, 2026

Assurant Debuts Virtual Solution for Dealers' Staffing Challenges

Company says on-demand access to F&I specialists is shown to boost dealership efficiency and profitability.

Read More →
Ad Loading...
DigitalDecember 16, 2025

What to Do When Your Vendor Is Hacked

The quickest way to turn a breach into a crisis is to wing it. Follow this seven-step playbook to ensure you meet your obligations.

Read More →
Digitalby Hannah MitchellDecember 3, 2025

Dealer Credit Service Provider Breached

Hack exposed thousands of dealerships’ customer data

Read More →
DigitalNovember 18, 2025

Unearthing the Gold in Your Dealership Data

How to take a smarter path to revenue

Read More →
Ad Loading...
Digitalby Hannah MitchellOctober 29, 2025

Auto Dealers’ Take on AI

Study finds recognition of its usefulness, but franchisers are treading sometimes confusing waters carefully

Read More →