AmeriCredit Reports Second Quarter Operating Results
AmeriCredit Corp. has announced net income of $95 million, or $0.74 per share, for its fiscal second quarter ended December 31, 2006. AmeriCredit reported net income of $87 million, or $0.59 per share, for the same period a year earlier.
Fort Worth, Texas — AmeriCredit Corp. has announced net income of $95 million, or $0.74 per share, for its fiscal second quarter ended December 31, 2006. AmeriCredit reported net income of $87 million, or $0.59 per share, for the same period a year earlier. For the six months ended December 31, 2006, AmeriCredit reported net income of $170 million, or $1.27 per share, versus earnings of $141 million, or $0.93 per share, for the six months ended December 31, 2005.
Net income for the three and six months ended December 31, 2006, included a $23 million after-tax gain ($36 million pre-tax), or $0.18 per share and $0.17 per share, respectively, related to the partial sale of AmeriCredit's investment in DealerTrack Holdings, Inc. Net income for all periods ended December 31, 2005, included a $6 million after-tax gain ($9 million pre-tax), or $0.04 per share, related to the partial sale of AmeriCredit's investment in DealerTrack Holdings, Inc.
Automobile loan purchases increased to $1.74 billion for the second quarter of fiscal year 2007, compared to $1.34 billion for the same period last year. Loan purchases for the six months ended December 31, 2006, were $3.42 billion compared to $2.86 billion for the same period a year earlier. Managed receivables totaled $12.58 billion at December 31, 2006, compared to $11.00 billion at December 31, 2005.
Annualized net charge-offs totaled 5.8 percent of average managed receivables for the December 2006 quarter compared to 5.9 percent for the December 2005 quarter. For the six months ended December 31, 2006, annualized net charge-offs were 5.6 percent compared to 5.8 percent for the same period last year.
Managed auto receivables 31-to-60 days delinquent were 6.7 percent of the portfolio at December 31, 2006, compared to 6.5 percent at December 31, 2005. Accounts more than 60 days delinquent were 2.6 percent of the portfolio at December 31, 2006, compared to 2.8 percent at December 31, 2005.
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 following net income and earnings per share forecasts have been updated from guidance provided on October 24, 2006, to reflect the impact of the acquisition of Long Beach Acceptance Corp. on January 1, 2007, and a pre-tax gain of $16 million on the sale of the Company's remaining investment in DealerTrack Holdings, Inc., in January 2007.
During the revised fiscal year ending June 30, 2007, net income forecast (in millions) is $337-$367. Earnings per share are forecasted at $2.54-$2.74. During the previous fiscal year ending June 30, 2007, net income forecast is $325-$355. Earnings per share are forecasted at $2.45-$2.65.
The forecasts for fiscal year 2007 incorporate, but are not limited to, the following assumptions, which include Long Beach:
-New loan origination volume of $7.8 to $8.4 billion;
-Net interest margin of 11.6 percent to 12.6 percent of average receivables;
-Operating expenses of 2.8 percent to 3.2 percent of the portfolio;
-Credit losses to average between 4.3 percent and 5.3 percent overall for the fiscal year, but varying seasonally by quarter; and
-Annualized provision for loan losses as a percent of average receivables to range between 4.8 percent and 5.8 percent.
More Digital

Zurich Launches Advisor IQ for F&I Manager Coaching
The new platform uses real transaction data and artificial intelligence-driven insights to help car dealerships improve consistency and performance.
Read More →
F&I in the Digital Age
Digital retailing has not made the F&I manager obsolete. If anything, it has revealed how valuable the role can become when technology is used correctly.
Read More →
Need for Speed: EV Apps Lack Consistency
Fifty-five percent of surveyed EV owners said their mobile applications had a major or moderate impact on their purchasing decisions, but connectivity issues remain a problem.
Read More →
Four Keys to Your Digital Trail Defense
Federal regulators are cracking down on hidden fees. This protective measure could mean the difference between winning and losing a lawsuit or surviving a duel with the Dark Side.
Read More →
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 →
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 →
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 →
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 →
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 →
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 →