GM Financial Reports March Quarter Operating Results
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 income | 106,705 | 52,893 | ||||||
Other income | 18,684 | 20,254 | ||||||
540,120 | 431,403 | |||||||
Costs and expenses | ||||||||
Operating expenses | 107,824 | 97,869 | ||||||
Leased vehicle expenses | 80,407 | 40,646 | ||||||
Provision for loan losses | 93,606 | 48,554 | ||||||
Interest expense | 82,228 | 63,092 | ||||||
Acquisition and integration expenses | 6,383 | |||||||
370,448 | 250,161 | |||||||
Income before income taxes | 169,672 | 181,242 | ||||||
Income tax provision | 63,729 | 68,963 | ||||||
Net income | $ | 105,943 | $ | 112,279 | ||||
Consolidated Balance Sheets | ||||||||
(Unaudited, in Thousands) | ||||||||
March 31, 2013 | December 31, 2012 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 2,896,870 | $ | 1,289,494 | ||||
Finance receivables, net | 11,502,472 | 10,998,274 | ||||||
Restricted cash - securitization notes payable | 778,213 | 728,908 | ||||||
Restricted cash - credit facilities | 53,101 | 14,808 | ||||||
Property and equipment, net | 50,801 | 52,076 | ||||||
Leased vehicles, net | 2,103,961 | 1,702,867 | ||||||
Deferred income taxes | 81,559 | 107,075 | ||||||
Goodwill | 1,108,011 | 1,108,278 | ||||||
Related party receivables | 45,733 | 66,360 | ||||||
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 payable | 9,029,694 | 9,023,308 | ||||||
Senior notes | 1,500,000 | 1,500,000 | ||||||
Accounts payable and accrued expenses | 235,866 | 217,938 | ||||||
Deferred income | 94,023 | 69,784 | ||||||
Taxes payable | 97,175 | 93,462 | ||||||
Related party taxes payable | 594,806 | 558,622 | ||||||
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 amortization | 92,166 | 50,565 | ||||||||
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 losses | 93,606 | 48,554 | ||||||||
Deferred income taxes | 25,487 | (9,652 | ) | |||||||
Stock based compensation expense | 1,337 | 584 | ||||||||
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 payable | 3,676 | 4,108 | ||||||||
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 receivables | 1,096,275 | 1,015,918 | ||||||||
Funding of commercial finance receivables, net | (1,036,138 | ) | ||||||||
Collections of commercial finance receivables | 763,074 | |||||||||
Purchases of leased vehicles, net | (510,052 | ) | (305,370 | ) | ||||||
Proceeds from termination of leased vehicles | 37,274 | 6,922 | ||||||||
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 facilities | 2,383,928 | 453,774 | ||||||||
Payments on credit facilities | (11,253 | ) | (778,054 | ) | ||||||
Issuance of securitization notes payable | 1,000,000 | 1,800,000 | ||||||||
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 equivalents | 1,608,617 | 35,485 | ||||||||
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 originations | 620,350 | 383,799 | ||||||||
GM new vehicle loans as a percent of | ||||||||||
total consumer loan originations | 28.8 | % | 29.4 | % | ||||||
GM new vehicle loans and leases | ||||||||||
as a percent of total consumer loan and lease originations | 51.1 | % | 44.6 | % | ||||||
Loans securitized | $ | 1,055,420 | $ | 1,915,719 | ||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2013 | 2012 | |||||||||
Average consumer finance receivables | $ | 11,076,243 | $ | 9,822,848 | ||||||
Average commercial finance receivables | 704,396 | |||||||||
Average finance receivables | 11,780,639 | 9,822,848 | ||||||||
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 fees | 882,736 | 559,999 | ||||||||
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 | % | ||||||||
