GM Financial Reports March Quarter Operating Results

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GM Financial Reports March Quarter Operating Results

  • Earnings of $106 million
  • Consumer loan and lease originations of $2.0 billion
  • Annualized net credit losses of 2.6% on consumer loans

FORT WORTH, Texas--(BUSINESS WIRE)-- GENERAL MOTORS FINANCIAL COMPANY, INC. ("GM Financial" or the "Company") announced net income of $106 million for the quarter ended March 31, 2013, compared to $112 million for the quarter ended March 31, 2012.

Consumer loan originations were $1.4 billion for the quarter ended March 31, 2013, compared to $1.2 billion for the quarter ended December 31, 2012, and $1.4 billion for the quarter ended March 31, 2012. The outstanding balance of consumer finance receivables totaled $11.2 billion at March 31, 2013.


Lease originations of General Motors Company ("GM") vehicles were $620 million for the quarter ended March 31, 2013, compared to $265 million for the quarter ended December 31, 2012 and $384 million for the quarter ended March 31, 2012. Leased vehicles, net, totaled $2.1 billion at March 31, 2013.

Consumer finance receivables 31-to-60 days delinquent were 4.3% of the portfolio at March 31, 2013, compared to 3.2% at March 31, 2012. Accounts more than 60 days delinquent were 1.5% of the portfolio at March 31, 2013, compared to 1.2% a year ago.

Annualized net credit losses were 2.6% of average consumer finance receivables for the quarter ended March 31, 2013, compared to 2.5% for the quarter ended March 31, 2012.

The Company had total available liquidity of $3.3 billion at March 31, 2013, consisting of $2.9 billion of unrestricted cash, approximately $108 million 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. 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, 2012. Such risks include - but are not limited to - our ability to close the acquisition of the remaining portions of Ally Financial Inc.'s ("Ally") international operations that we have not already acquired and integrate the operations that we have acquired and will acquire into our business successfully, changes in general economic and business conditions, GM's ability to sell new vehicles that we finance, our dependence on the financial condition of GM dealers, interest rate and exchange 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 Ended
March 31,
2013  2012
Revenue
Finance charge income$414,731$358,256
Leased vehicle income106,70552,893
Other income 18,684 20,254
 540,120 431,403
Costs and expenses
Operating expenses107,82497,869
Leased vehicle expenses80,40740,646
Provision for loan losses93,60648,554
Interest expense82,22863,092

Acquisition and integration expenses

 6,383 
 370,448 250,161
Income before income taxes169,672181,242
Income tax provision 63,729 68,963
Net income$105,943$112,279
 
    
Consolidated Balance Sheets
(Unaudited, in Thousands)
 

 

March 31, 2013December 31, 2012
Assets
Cash and cash equivalents$2,896,870$1,289,494
Finance receivables, net11,502,47210,998,274
Restricted cash - securitization notes payable778,213728,908
Restricted cash - credit facilities53,10114,808
Property and equipment, net50,80152,076
Leased vehicles, net2,103,9611,702,867
Deferred income taxes81,559107,075
Goodwill1,108,0111,108,278
Related party receivables45,73366,360
Other assets 133,458 128,931
Total assets$18,754,179$16,197,071
 
Liabilities and Shareholder's Equity
Liabilities:
Credit facilities$2,719,134$354,203
Securitization notes payable9,029,6949,023,308
Senior notes1,500,0001,500,000
Accounts payable and accrued expenses235,866217,938
Deferred income94,02369,784
Taxes payable97,17593,462
Related party taxes payable594,806558,622
Derivative swap and cap agreements 3,052 527
Total liabilities 14,273,750 11,817,844
 
Shareholder's equity 4,480,429 4,379,227
Total liabilities and shareholder's equity$18,754,179$16,197,071
 
  
Consolidated Statements of Cash Flows
(Unaudited, in Thousands)
 
Three Months Ended
March 31,
2013  2012
Cash flows from operating activities:
Net income$105,943$112,279
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization92,16650,565
Accretion and amortization of loan and leasing fees(17,902)(11,087)
Amortization of carrying value adjustment(5,032)20,169
Amortization of acquisition accounting premium(4,521)(9,944)
Provision for loan losses93,60648,554
Deferred income taxes25,487(9,652)
Stock based compensation expense1,337584
Other(300)(5,556)
Changes in assets and liabilities:
Other assets(7,132)(1,943)
Accounts payable and accrued expenses(8,306)25,674
Taxes payable3,6764,108
Related party taxes payable 36,184  72,378 
Net cash provided by operating activities 315,206  296,129 
Cash flows from investing activities:
Purchases of consumer finance receivables, net(1,343,002)(1,364,662)
Principal collections and recoveries on consumer finance receivables1,096,2751,015,918
Funding of commercial finance receivables, net(1,036,138)
Collections of commercial finance receivables763,074
Purchases of leased vehicles, net(510,052)(305,370)
Proceeds from termination of leased vehicles37,2746,922
Purchases of property and equipment(1,432)(3,952)
Change in restricted cash - securitization notes payable(49,305)62,710
Change in restricted cash - credit facilities(38,610)15,452
Change in other assets 4,923  10,079 
Net cash used in investing activities (1,076,993) (562,903)
Cash flows from financing activities:
Borrowings on credit facilities2,383,928453,774
Payments on credit facilities(11,253)(778,054)
Issuance of securitization notes payable1,000,0001,800,000
Payments on securitization notes payable(989,104)(1,168,700)
Debt issuance costs (13,167) (4,761)
Net cash provided by financing activities 2,370,404  302,259 
Net increase in cash and cash equivalents1,608,61735,485
Effect of foreign exchange rate changes on cash and cash equivalents(1,241)1,009
Cash and cash equivalents at beginning of period 1,289,494  572,297 
Cash and cash equivalents at end of period$2,896,870 $608,791 
 
  
Other Financial Data
(Unaudited, Dollars in Thousands)
 
Three Months Ended
March 31,
2013  2012
Consumer loan originations$1,358,710$1,395,757
GM lease originations620,350383,799
GM new vehicle loans as a percent of
total consumer loan originations28.8%29.4%
GM new vehicle loans and leases
as a percent of total consumer loan and lease originations51.1%44.6%
Loans securitized$1,055,420$1,915,719
 
 
Three Months Ended
March 31,
20132012
Average consumer finance receivables$11,076,243$9,822,848
Average commercial finance receivables 704,396  
Average finance receivables11,780,6399,822,848
Average leased vehicles, net 1,878,783  969,223 
Average earning assets$13,659,422 $10,792,071 
 

Finance Receivables

  March 31, 2013  December 31, 2012
Consumer:
Pre-acquisition consumer finance receivables - outstanding balance

$

1,758,629

*

$2,161,863 
Pre-acquisition consumer finance receivables - carrying value$1,579,955$1,958,204
Post-acquisition consumer finance receivables, net of fees 

9,433,105

*

 8,830,914 
 11,013,060  10,789,118 
Less: allowance for loan losses on post-acquisition
consumer finance receivables (382,455) (344,740)
Total consumer finance receivables, net 10,630,605  10,444,378 
 
Commercial:
Commercial finance receivables, net of fees882,736559,999
Less: allowance for loan losses (10,869) (6,103)
Total commercial finance receivables, net 871,867  553,896 
Total finance receivables, net$11,502,472 $10,998,274 
 
Allowance for loan losses as a percentage of post-acquisition
consumer finance receivables 4.1%
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