GM Financial Reports June Quarter Operating Results

GM Financial Reports June Quarter Operating Results

  • Earnings of $178 million

  • Consumer loan and lease originations of $3.3 billion

  • End of period earning assets of $26.2 billion

  • Results reflect acquisition of international operations completed to date

FORT WORTH, Texas--(BUSINESS WIRE)-- GENERAL MOTORS FINANCIAL COMPANY, INC. ("GM Financial" or the "Company") announced earnings of $178 million for the quarter ended June 30, 2013, compared to $137 million for the quarter ended June 30, 2012. Earnings for the six months ended June 30, 2013 were $284 million, compared to $249 million for the six months ended June 30, 2012. Earnings include $16 million and $22 million in pre-tax acquisition and integration expenses for the quarter ended June 30, 2013 and the six month period ended June 30, 2013, respectively.

Consumer loan originations were $2.5 billion for the quarter ended June 30, 2013, compared to $1.4 billion for the quarter ended March 31, 2013, and $1.5 billion for the quarter ended June 30, 2012. Consumer loan originations in North America for the quarter ended June 30, 2013 were $1.4 billion. Consumer loan originations for the six months ended June 30, 2013 were $3.8 billion, compared to $2.9 billion for the six months ended June 30, 2012. Consumer loan originations in North America for the six months ended June 30, 2013 were $2.7 billion. The outstanding balance of consumer finance receivables totaled $18.6 billion at June 30, 2013.


Operating lease originations of General Motors Company ("GM") vehicles were $834 million for the quarter ended June 30, 2013, compared to $620 million for the quarter ended March 31, 2013 and $394 million for the quarter ended June 30, 2012. Operating lease originations for the six months ended June 30, 2013 were $1.5 billion, compared to $778 million for the six months ended June 30, 2012. Leased vehicles, net, totaled $2.7 billion at June 30, 2013.

The outstanding balance of commercial finance receivables was $4.9 billion at June 30, 2013 compared to $883 million at March 31, 2013 and $560 million at December 31, 2012. The outstanding balance of the North America commercial finance receivables at June 30, 2013 was $1.2 billion.

Consumer finance receivables 31-to-60 days delinquent were 3.4% of the portfolio at June 30, 2013, compared to 4.1% at June 30, 2012. Accounts more than 60 days delinquent were 1.4% of the portfolio at June 30, 2013, compared to 1.5% a year ago. Consumer finance receivables 31-to-60 and more than 60 days delinquent for North America were 5.3% and 1.8%, respectively, at June 30, 2013.

Annualized net credit losses were 1.4% of average consumer finance receivables for the quarter ended June 30, 2013, compared to 1.5% for the quarter ended June 30, 2012. For the six months ended June 30, 2013, annualized consumer net credit losses were 1.8%, compared to 2.0% last year. Annualized net credit losses for North America as a percent of average North America consumer finance receivables were 2.1% and 2.3%, respectively, for the three and six months ended June 30, 2013.

The Company had total available liquidity of $4.1 billion at June 30, 2013, consisting of $1.8 billion of unrestricted cash, approximately $1.6 billion of borrowing capacity on unpledged eligible assets, $76 million of borrowing capacity on unsecured lines of credit and $600 million on a line of credit from GM.

The Company acquired Ally Financial's auto finance and financial services operations in Germany, the United Kingdom, Italy, Sweden, Switzerland, Austria, Belgium, the Netherlands, Greece, Spain, Chile, Colombia and Mexico on April 1, 2013, and we acquired Ally Financial's auto finance and financial services operations in France and Portugal on June 1, 2013. The results of operations of the acquired entities since the applicable acquisition dates are included in our results for the three and six months ended June 30, 2013; accordingly, the information provided below in the Consolidated Statements of Income, the Consolidated Balance Sheet and the accompanying operational data for the three and six months ended June 30, 2012 represent only operations in North America. Furthermore, the presentation convention has been changed from "thousands" to "millions" to simplify the review and analysis of the financial information. Some prior period amounts may not round under the new convention in a manner consistent with the previous presentation.

About GM Financial

General Motors Financial Company, Inc. is the captive finance company for and 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's 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 charge-offs, 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. 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 Millions)

Three Months Ended

Six Months Ended

June 30,

June 30,

2013

2012

2013

2012

Revenue

Finance charge income

$

647

$

404

$

1,062

$

762

Leased vehicle income

136

66

243

119

Other income

53

17

71

37

836

487

1,376

918

Costs and expenses

Operating expenses

191

93

299

191

Leased vehicle expenses

101

51

181

92

Provision for loan losses

100

62

194

110

Interest expense

164

64

246

127

Acquisition and integration expenses

16

22

572

270

942

520

Income before income taxes

264

217

434

398

Income tax provision

86

80

150

149

Net income

$

178

$

137

$

284

$

249

Consolidated Balance Sheets

(Unaudited, in Millions)

June 30, 2013

December 31, 2012

Assets

Cash and cash equivalents

$

1,757

$

1,289

Finance receivables, net

22,945

10,998

Restricted cash

1,426

744

Property and equipment, net

121

52

Leased vehicles, net

2,655

1,703

Deferred income taxes

120

107

Goodwill

1,158

1,108

Related party receivables

105

66

Other assets

298

130

Total assets

$

30,585

$

16,197

Liabilities and Shareholder's Equity

Liabilities

Secured debt

$

17,548

$

9,378

Unsecured debt

5,238

1,500

Accounts payable and accrued expenses

486

217

Deferred income

123

70

Taxes payable

124

93

Related party taxes payable

644

559

Other liabilities

135

1

Related party payable

385

Total liabilities

24,683

11,818

Shareholder's equity

5,902

4,379

Total liabilities and shareholder's equity

$

30,585

$

16,197

Operational Data

(Unaudited, Dollars in Millions)

Three Months Ended

June 30,

2013

2012

North America

International

Total

North America

Consumer finance receivables originations

$

1,351

$

1,117

$

2,468

$

1,489

GM lease originations

$

834

$

834

$

394

GM new vehicle loans and leases as a percent of total loan and lease originations

58.8

%

86.0

%

68.0

%

45.4

%

Six Months Ended

June 30,

2013

2012

North America

International

Total

North America

Consumer finance receivables originations

$

2,710

$

1,117

$

3,827

$

2,885

GM lease originations

$

1,454

$

1,454

$

778

GM new vehicle loans and leases as a percent of total loan and lease originations

55.2

%

86.0

%

61.7

%

45.0

%

Three Months Ended

June 30,

2013

2012

North America

International

Total

North America

Average consumer finance receivables

$

11,323

$

6,957

$

18,280

$

10,238

Average commercial finance receivables

1,059

3,515

4,574

56

Average finance receivables

12,382

10,472

22,854

10,294

Average leased vehicles, net

2,410

7

2,417

1,231

Average earning assets

$

14,792

$

10,479

$

25,271

$

11,525

Six Months Ended

June 30,

2013

2012

North America

International

Total

North America

Average consumer finance receivables

$

11,200

$

3,615

$

14,815

$

10,030

Average commercial finance receivables

882

1,725

2,607

32

Average finance receivables

12,082

5,340

17,422

10,062

Average leased vehicles, net

2,150

4

2,154

1,100

Average earning assets

$

14,232

$

5,344

$

19,576

$

11,162

June 30, 2013

December 31, 2012

North America

International

Total

North America

Consumer finance receivables

$

11,379

$

7,238

$

18,617

$

10,993

Commercial finance receivables

1,169

3,792

4,961

560

Leased vehicles, net

2,650

5

2,655

1,703

Ending Earning Assets

$

15,198

$

11,035

$

26,233

$

13,256

June 30, 2013

December 31, 2012

Consumer

North America

International

Total

North America

Pre-acquisition consumer finance receivables - outstanding balance

$

1,432

$

1,305

$

2,737

$

2,162

P