GM Financial Reports December Quarter Operating Results

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GM Financial Reports December Quarter Operating Results

  • Earnings of $91 million
  • Consumer loan and lease originations of $1.5 billion
  • Available liquidity of $2.9 billion
  • Annualized net credit losses of 3.3% on consumer loans

FORT WORTH, Texas--(BUSINESS WIRE)-- GENERAL MOTORS FINANCIAL COMPANY, INC. ("GM Financial" or the "Company") announced net income of $91 million for the quarter ended December 31, 2012, compared to $104 million for the quarter ended December 31, 2011. Net income for the year ended December 31, 2012 was $463 million, compared to $386 million for the year ended December 31, 2011. Net income for the quarter and year ended December 31, 2012 was impacted by $20.4 million in pre-tax expenses related to the pending acquisition of Ally Financial Inc.'s international operations.

Consumer loan originations were $1.2 billion for the quarter ended December 31, 2012, compared to $1.5 billion for the quarter ended September 30, 2012, and $1.2 billion for the quarter ended December 31, 2011. Consumer loan originations for the year ended December 31, 2012 were $5.6 billion, compared to $5.1 billion for the year ended December 31, 2011. The outstanding balance of consumer finance receivables totaled $11.0 billion at December 31, 2012.


Lease originations of General Motors Company ("GM") vehicles were $265 million for the quarter ended December 31, 2012, compared to $299 million for the quarter ended September 30, 2012 and $314 million for the quarter ended December 31, 2011. Lease originations for the year ended December 31, 2012 were $1.3 billion, compared to $1.0 billion for the year ended December 31, 2011. Leased vehicles, net, totaled $1.7 billion at December 31, 2012.

Consumer finance receivables 31-to-60 days delinquent were 6.1% of the portfolio at December 31, 2012, compared to 5.3% at December 31, 2011. Accounts more than 60 days delinquent were 2.1% of the portfolio at December 31, 2012, compared to 1.9% a year ago.

Annualized net credit losses were 3.3% of average consumer finance receivables for the quarter ended December 31, 2012, compared to 3.3% for the quarter ended December 31, 2011. For the year ended December 31, 2012, annualized consumer net credit losses were 2.5%, compared to 3.2% last year.

The Company had total available liquidity of $2.9 billion at December 31, 2012, consisting of $1.3 billion of unrestricted cash, approximately $1.3 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 3,800 employees, over 815,000 customers and $16.2 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 which are the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties that could cause actual results to differ significantly from historical results or those anticipated by the Company. The most significant of these risks are 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 - our ability to close the acquisition of some or all of Ally Financial Inc.'s ("Ally") international operations and integrate those operations into our business successfully, 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, the ability to integrate the business and operations of acquisitions, and significant litigation. If one or more of these risks of uncertainties materializes, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. 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 EndedYear Ended
December 31,December 31,
2012 

2011

2012 2011
Revenue
Finance charge income$418,067$339,640$1,594,174$

1,246,687

Leased vehicles income89,55736,845289,25697,676
Other income 20,480 17,770 77,105 65,625
 528,104 394,255 1,960,535 1,409,988
Costs and expenses
Operating expenses101,65288,620397,582338,540
Leased vehicles expenses63,72127,642211,40767,088
Provision for loan losses115,09643,437303,692178,372
Interest expense81,65364,441283,250204,170
Acquisition expenses 20,388  20,388 
 382,510 224,140 1,216,319 788,170
Income before income taxes145,594170,115744,216621,818
Income tax provision 54,990 66,451 281,090 236,291
Net income$90,604$103,664$463,126$385,527
 
 
Consolidated Balance Sheets
(Unaudited, in Thousands)
 

December 31,

2012 2011
Assets
Cash and cash equivalents$1,289,494$572,297
Finance receivables, net10,998,2749,162,492
Restricted cash - securitization notes payable728,908919,283
Restricted cash - credit facilities14,808136,556
Property and equipment, net52,07647,440
Leased vehicles, net1,702,867809,491
Deferred income taxes107,075108,684
Goodwill1,108,2781,107,982
Other assets 195,291 178,695
Total assets$16,197,071$13,042,920
 
Liabilities and Shareholder's Equity
Liabilities:
Credit facilities$354,203$1,099,391
Securitization notes payable9,023,3086,937,841
Senior notes1,500,000500,000
Convertible senior notes500
Accounts payable and accrued expenses217,938160,172
Deferred income69,78424,987
Taxes payable93,46285,477
Related party taxes payable558,622300,306
Interest rate swap and cap agreements 527 11,208

Total liabilities

 11,817,844 9,119,882
 
Shareholder's equity 4,379,227 3,923,038
Total liabilities and shareholder's equity$16,197,071$13,042,920
  
 
Consolidated Statements of Cash Flows
(Unaudited, in Thousands)
 
Three Months EndedYear Ended
December 31,December 31,
2012 20112012 2011
Cash flows from operating activities:
Net income$90,604$103,664$463,126$385,527
Adjustments to reconcile net income to

net cash provided by operating activities:

Depreciation and amortization76,73837,222255,182109,619
Accretion and amortization of loan and leasing fees(15,554)(5,792)(53,189)(20,702)
Amortization of carrying value adjustment(8,344)33,791(10,419)177,566
Amortization of purchase accounting premium(5,580)(9,973)(31,648)(67,671)
Provision for loan losses115,09643,437303,692178,372
Deferred income taxes36,6289,0772,62650,236
Stock-based compensation expense5757,5213,71617,106
Other(2,137)(70)(11,209)(23,218)
Changes in assets and liabilities:
Other assets6,7776,9062,37834,649
Accounts payable and accrued expenses(213)(20,899)47,946(21,399)
Taxes payable1,8312,2337,816(77,285)
Related party taxes payable 10,566  54,937  258,316  258,092 
Net cash provided by operating activities 306,987  262,054  1,238,333  1,000,892 
Cash flows from investing activities:
Purchases of consumer finance receivables, net(1,202,204)(1,226,943)(5,556,169)(5,020,639)
Principal collections and recoveries
on consumer finance receivables957,360902,6574,006,8933,719,264
Fundings of commercial finance receivables(642,583)(1,224,082)
Collections of commercial finance receivables367,450667,181
Net purchases of leased vehicles(196,923)(272,412)(1,021,749)(857,138)
Net changes in restricted cash and other 

73,578

  13,601  288,320  18,466 
Net cash used in investing activities (643,322) (583,097) (2,839,606) (2,140,047)
Cash flows from financing activities:
Net change in credit facilities(198,389)544,575(750,777)270,535
Net change in securitization notes payable23,70146,0142,117,023874,541
Issuance of senior notes1,000,000500,000
Other net changes (4,939) (4,878) (48,991) (125,010)

Net cash (used in) provided by financing activities

 (179,627) 585,711  2,317,255  1,520,066 
Net (decrease) increase in cash and cash equivalents(515,962)264,668715,982380,911
Effect of foreign exchange rate changes on
cash and cash equivalents(525)4141,215(3,168)
Cash and cash equivalents at beginning of period 1,805,981  307,215  572,297  194,554 
Cash and cash equivalents at end of period$1,289,494 $572,297 $1,289,494 $572,297 
  
 
Other Financial Data
(Unaudited, Dollars in Thousands)
 
Three Months EndedYear Ended
December 31,December 31,
2012 20112012 2011
Consumer loan originations$1,215,820$1,239,542

$

5,578,839

$5,084,800

GM lease originations

265,372314,3431,342,818986,760
GM new vehicle loans as a percent of
total consumer loan originations30.4%30.2%30.7%28.5%
GM new vehicle loans and leases
as a percent of total consumer loan and lease originations42.9%44.3%44.2%40.1 Read Full Story

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