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 | |||||||||||||||
