The meat of the report is here:
cbs.marketwatch.com
The key stat is the net charge-offs, which is going through the roof. Also minimal disclosure of their
retained portfolio, it appears they're hiding quite a few turds there that they haven't been able to securitize
(see footnote):
AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended
September 30,
-------------------------
2002 2001
----------- -----------
Revenue:
Finance charge income $90,629 $96,797
Gain on sale of receivables 132,084 92,930
Servicing fee income 108,075 85,235
Other income 5,020 2,873
----------- -----------
335,808 277,835
----------- -----------
Costs and expenses:
Operating expenses 115,826 99,376
Provision for loan losses 65,784 14,842
Interest expense 40,019 35,590
----------- -----------
221,629 149,808
----------- -----------
Income before income taxes 114,179 128,027
Income tax provision 43,959 49,290
----------- -----------
Net income $70,220 $78,737
=========== ===========
Earnings per share:
Basic $0.82 $0.94
=========== ===========
Diluted $0.81 $0.88
=========== ===========
Weighted average shares 85,839,717 83,888,338
=========== ===========
Weighted average shares and
assumed incremental shares 87,063,187 89,836,898
=========== ===========
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
Sept. 30, June 30, Sept. 30,
2002 2002 2001
---------- ---------- ----------
Cash and cash equivalents $97,059 $119,445 $92,110
Finance receivables, net 2,041,316 2,198,391 2,207,270
Interest-only receivables from
Trusts 556,285 514,497 376,291
Investments in Trust receivables 742,464 691,065 514,852
Restricted cash 386,499 343,570 353,674
Restricted cash - medium term notes 198,468 27,759 30,857
Other assets 345,011 330,204 288,813
---------- ---------- ----------
Total assets $4,367,102 $4,224,931 $3,863,867
========== ========== ==========
Borrowings under warehouse lines $1,820,409 $1,751,974 $1,755,121
Senior notes 381,676 418,074 375,000
Other notes payable 64,534 66,811 104,201
Other liabilities 599,642 555,756 496,697
---------- ---------- ----------
Total liabilities 2,866,261 2,792,615 2,731,019
Shareholders' equity 1,500,841 1,432,316 1,132,848
---------- ---------- ----------
Total liabilities and
shareholders' equity $4,367,102 $4,224,931 $3,863,867
========== ========== ==========
Cash Flow Data
(Unaudited, Dollars in Thousands) Three Months Ended
September 30,
-----------------------
2002 2001
--------- ---------
Cash flows from operating activities:
Net income $70,220 $78,737
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 11,153 8,313
Provision for loan losses 65,784 14,842
Deferred income taxes 2,150 41,591
Accretion of present value discount and other (25,185) (27,842)
Non-cash gain on sale of receivables (124,831) (89,678)
Other 6,029
Distributions from Trusts 63,262 70,733
Change in assets and liabilities:
Other assets (24,724) (27,117)
Accrued taxes and expenses 34,877 15,914
--------- ---------
78,735 85,493
Credit enhancement deposits (58,101) (34,500)
Operating cash flow, excluding purchases,
principal collections --------- ---------
and sales of receivables $20,634 $50,993
========= =========
Total cash flow generated by Trusts $140,231 $89,419
========= =========
Other Financial Data
(Unaudited, Dollars in Thousands)
Sept. 30, June 30, Sept. 30,
2002 2002 2001
----------- ----------- -----------
Loan delinquency:
31 - 60 days 7.6% 7.0% 7.7%
Greater than 60 days 3.5 3.3 3.1
------ ------- ------
11.1 10.3 10.8
Repossessions 1.1 1.1 1.0
------ ------- ------
12.2% 11.4% 11.8%
====== ======= ======
Three Months Ended
September 30,
---------------------------
2002 2001
----------- -----------
Net charge-offs:
Owned $13,596 $8,263
Serviced 191,685 95,950
----------- -----------
$205,281 $104,213
=========== ===========
Net charge-offs as a percent
of average managed receivables 5.3% 3.8%
=========== ===========
Loan originations $2,419,084 $2,035,219
Loans sold 2,507,906 1,724,999
Gain on sale of loans 132,084 92,930
Gain on sale of loans 5.3% 5.4%
(% of loans sold)
Average owned receivables $1,958,487 $1,962,955
Average serviced receivables 13,339,527 8,794,923
----------- -----------
Average managed receivables $15,298,014 $10,757,878
=========== ===========
September 30, 2002
----------------------------------------
Auto loan portfolio: Owned Serviced Total Managed
---------- ------------ -----------
Principal $2,156,471 $13,590,732 $15,747,203
Allowance for losses (115,155) (1,488,291) (1,603,446)
---------- ------------ -----------
$2,041,316 $12,102,441 $14,143,757
========== ============ ===========
Allowance for losses (%) 5.3% 11.0% 10.2%
========== ============ ===========
Managed Basis Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
-----------------------
2002 2001
--------- ---------
Finance charge, fee and other income $686,728 $512,544
Funding costs (201,990) (179,492)
--------- ---------
Net margin $484,738 $333,052
========= =========
Three Months Ended
September 30,
----------------------
2002 2001
--------- ---------
Finance charge, fee and other income 17.8% 18.9%
Funding costs (5.2) (6.6)
--------- ---------
Net margin as a percent of
average managed receivables 12.6% 12.3%
========= =========
Three Months Ended
September 30,
----------------------
2002 2001
--------- ---------
Operating expenses $115,826 $99,376
Operating expenses as a percent of
average managed receivables 3.0% 3.7%
Tax rate 38.5% 38.5%
(1) The Company evaluates the profitability of its lending
activities based upon the net margin related to its managed
auto loan portfolio, including owned and serviced receivables.
The Company routinely securitizes its receivables and
historically has recorded a gain on the sale of such
receivables in the income statement. The net margin on a
managed basis presented above assumes that securitized
receivables have not been sold and are still on the Company's
consolidated balance sheet. Accordingly, no gain on sale or
servicing fee income would have been recognized. Instead,
finance charges and fees would be recognized over the life of
the securitized receivables as accrued and interest and other
costs related to the asset-backed securities also would be
recognized as incurred. |
