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

%