GM Financial Reports September Quarter Operating Results

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GM Financial Reports September Quarter Operating Results

  • Earnings of $124 million
  • Consumer loan and lease originations of $1.8 billion
  • Available liquidity of $3.1 billion
  • Annualized net credit losses of 2.5% on consumer loans

FORT WORTH, Texas--(BUSINESS WIRE)-- GENERAL MOTORS FINANCIAL COMPANY, INC. ("GM Financial" or the "Company") announced net income of $124 million for the quarter ended September 30, 2012, compared to $109 million for the quarter ended September 30, 2011. Net income for the nine months ended September 30, 2012 was $373 million, compared to $282 million for the nine months ended September 30, 2011.

Consumer loan originations were $1.5 billion for the quarter ended September 30, 2012, compared to $1.5 billion for the quarter ended June 30, 2012, and $1.4 billion for the quarter ended September 30, 2011. Consumer loan originations for the nine months ended September 30, 2012 were $4.4 billion, compared to $3.8 billion for the nine months ended September 30, 2011. The outstanding balance of consumer finance receivables totaled $10.9 billion at September 30, 2012.


Lease originations of General Motors Company ("GM") vehicles were $299 million for the quarter ended September 30, 2012, compared to $394 million for the quarter ended June 30, 2012 and $189 million for the quarter ended September 30, 2011. Lease originations for the nine months ended September 30, 2012 were $1.1 billion, compared to $672 million for the nine months ended September 30, 2011. Leased vehicles, net, totaled $1.6 billion at September 30, 2012.

Consumer finance receivables 31-to-60 days delinquent were 5.2% of the portfolio at September 30, 2012, compared to 4.7% at September 30, 2011. Accounts more than 60 days delinquent were 1.9% of the portfolio at September 30, 2012, compared to 1.7% a year ago.

Annualized net credit losses were 2.5% of average consumer finance receivables for the quarter ended September 30, 2012, compared to 3.0% for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, annualized consumer net credit losses were 2.2%, compared to 3.1% last year.

The Company had total available liquidity of $3.1 billion at September 30, 2012, consisting of $1.8 billion of unrestricted cash, approximately $1.0 billion of borrowing capacity on unpledged eligible assets and $300 million on a line of credit from GM.

About GM Financial

General Motors Financial Company, Inc. provides auto finance solutions through auto dealers across the United States and Canada. GM Financial has approximately 3,700 employees, over 809,000 customers and $16.3 billion in assets. The Company is a wholly-owned subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.gmfinancial.com.

Forward-Looking Statements

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 year ended December 31, 2011. Such risks include - but are not limited to - changes in general economic and business conditions, GM's ability to sell new vehicles in the United States and Canada that we finance, interest rate fluctuations, our financial condition and liquidity, as well as future cash flows and earnings, competition, the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements, the availability of sources of financing, the level of net credit losses, delinquencies and prepayments on the loans and leases we originate, the prices at which used cars are sold in the wholesale auction markets, changes in business strategy, including acquisitions and expansion of product lines and credit risk appetite, and significant 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 the Company's management. Actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to, and does not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.

    
General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, in Thousands)
 
Three Months EndedNine Months Ended
September 30,September 30,
2012  20112012  2011
Revenue
Finance charge income$415,064$348,285$1,176,107$907,047
Leased vehicles income80,57827,096199,69960,831
Other income 18,875 15,300 56,625 47,855
 514,517 390,681 1,432,431 1,015,733
Costs and expenses
Operating expenses105,34488,135295,930249,920
Leased vehicles expenses56,02917,864147,68639,446
Provision for loan losses78,16650,941188,596134,935
Interest expense 74,329 56,295 201,597 139,729
 313,868 213,235 833,809 564,030
Income before income taxes200,649177,446598,622451,703
Income tax provision 76,701 68,639 226,100 169,840
Net income$123,948$108,807$372,522$281,863
 
     
Consolidated Balance Sheets
(Unaudited, in Thousands)
 
September 30,December 31,September 30,
201220112011
Assets
Cash and cash equivalents$1,805,981$572,297$307,215
Finance receivables, net10,598,3539,162,4928,917,970
Restricted cash - securitization notes payable718,729919,283929,196
Restricted cash - credit facilities118,492136,556124,979
Property and equipment, net52,07947,44046,487
Leased vehicles, net1,570,625809,491564,103
Deferred income taxes143,733108,684119,017
Goodwill1,108,4371,107,9821,107,684
Other assets 178,770 178,695 190,083
Total assets$16,295,199$13,042,920$12,306,734
Liabilities and Shareholder's Equity
Liabilities:
Credit facilities$556,946$1,099,391$552,871
Securitization notes payable9,005,2036,937,8416,901,572
Senior notes1,500,000500,000500,000
Convertible senior notes500500
Accounts payable and accrued expenses233,151160,172194,244
Deferred income66,64724,987
Taxes payable91,48085,47783,231
Intercompany taxes payable548,056300,306245,369
Interest rate swap and cap agreements 1,802 11,208 22,932
Total liabilities 12,003,285 9,119,882 8,500,719
 
Shareholder's equity 4,291,914 3,923,038 3,806,015
Total liabilities and shareholder's equity$16,295,199$13,042,920$12,306,734
 
    
Consolidated Statements of Cash Flows
(Unaudited, in Thousands)
 
Three Months EndedNine Months Ended
September 30,September 30,
2012  20112012  2011
Cash flows from operating activities:
Net income$123,948$108,807$372,522$281,863
Adjustments to reconcile net income to

net cash provided by operating activities:

Depreciation and amortization66,08331,353178,44472,397
Accretion and amortization of loan and leasing fees(13,372)(6,996)(37,635)(14,910)
Amortization of carrying value adjustment(10,421)16,853(2,075)143,775
Amortization of purchase accounting premium(7,071)(13,007)(26,068)(57,698)
Provision for loan losses78,16650,941188,596134,935
Deferred income taxes3,7323,303(34,002)41,159
Stock-based compensation expense6023,5323,1419,585
Other(175)(5,968)(9,072)(23,148)
Changes in assets and liabilities:
Other assets8,6131,699(4,399)27,743
Accounts payable and accrued expenses28,9778,72148,159(500)
Taxes payable6847,7955,985(79,518)
Intercompany taxes payable 69,895  59,214  247,750  203,155 
Net cash provided by operating activities 349,661  266,247  931,346  738,838 
Cash flows from investing activities:
Purchases of consumer finance receivables, net(1,483,858)(1,340,610)(4,353,965)(3,793,696)
Principal collections and recoveries
on consumer finance receivables1,009,527936,4313,049,5332,816,607
Fundings of commercial finance receivables, net(408,341)(581,499)
Collections of commercial finance receivables253,494299,731
Net purchases of leased vehicles(221,904)(156,022)(824,826)(552,709)
Net changes in restricted cash and other (32,682) (3,801) 214,742  (27,152)
Net cash used by investing activities (883,764) (564,002) (2,196,284) (1,556,950)
Cash flows from financing activities:
Net change in credit facilities21,746133,442(552,388)(274,040)
Net change in securitization notes payable385,49833,3802,093,322828,527
Issuance of senior notes1,000,0001,000,000500,000
Other net changes (21,061) (85,397) (44,052) (120,132)
Net cash provided by financing activities 1,386,183  81,425  2,496,882  934,355 
Net increase in cash and cash equivalents852,080(216,330)1,231,944116,243
Effect of Canadian exchange rate changes on
cash and cash equivalents1,810(2,183)1,740(3,582 Read Full Story

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