GM Financial Reports September Quarter Operating Results

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 Ended

Nine Months Ended

September 30,

September 30,

2012

2011

2012

2011

Revenue

Finance charge income

$

415,064

$

348,285

$

1,176,107

$

907,047

Leased vehicles income

80,578

27,096

199,699

60,831

Other income

18,875

15,300

56,625

47,855

514,517

390,681

1,432,431

1,015,733

Costs and expenses

Operating expenses

105,344

88,135

295,930

249,920

Leased vehicles expenses

56,029

17,864

147,686

39,446

Provision for loan losses

78,166

50,941

188,596

134,935

Interest expense

74,329

56,295

201,597

139,729

313,868

213,235

833,809

564,030

Income before income taxes

200,649

177,446

598,622

451,703

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,

2012

2011

2011

Assets

Cash and cash equivalents

$

1,805,981

$

572,297

$

307,215

Finance receivables, net

10,598,353

9,162,492

8,917,970

Restricted cash - securitization notes payable

718,729

919,283

929,196

Restricted cash - credit facilities

118,492

136,556

124,979

Property and equipment, net

52,079

47,440

46,487

Leased vehicles, net

1,570,625

809,491

564,103

Deferred income taxes

143,733

108,684

119,017

Goodwill

1,108,437

1,107,982

1,107,684

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 payable

9,005,203

6,937,841

6,901,572

Senior notes

1,500,000

500,000

500,000

Convertible senior notes

500

500

Accounts payable and accrued expenses

233,151

160,172

194,244

Deferred income

66,647

24,987

Taxes payable

91,480

85,477

83,231

Intercompany taxes payable

548,056

300,306

245,369

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 Ended

Nine Months Ended

September 30,

September 30,

2012

2011

2012

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 amortization

66,083

31,353

178,444

72,397

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 losses

78,166

50,941

188,596

134,935

Deferred income taxes

3,732

3,303

(34,002

)

41,159

Stock-based compensation expense

602

3,532

3,141

9,585

Other

(175

)

(5,968

)

(9,072

)

(23,148

)

Changes in assets and liabilities:

Other assets

8,613

1,699

(4,399

)

27,743

Accounts payable and accrued expenses

28,977

8,721

48,159

(500

)

Taxes payable

684

7,795

5,985

(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 receivables

1,009,527

936,431

3,049,533

2,816,607

Fundings of commercial finance receivables, net

(408,341

)

(581,499

)

Collections of commercial finance receivables

253,494

299,731

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 facilities

21,746

133,442

(552,388

)

(274,040

)

Net change in securitization notes payable

385,498

33,380

2,093,322

828,527

Issuance of senior notes

1,000,000

1,000,000

500,000

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 equivalents

852,080

(216,330

)

1,231,944

116,243

Effect of Canadian exchange rate changes on

cash and cash equivalents

1,810

(2,183

)

1,740

(3,582