GENERAL MOTORS FINANCIAL COMPANY, INC. 
By • Earnings of $96 million
• Loan originations of $1.3 billion
• GM lease originations of $173 million
• Annualized net credit losses of 2.4%
FORT WORTH, TEXAS August 4, 2011 – GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”), announced net income of $96 million for the quarter ended June 30, 2011, and $173 million for the six months ended June 30, 2011.Loan originations were $1.3 billion for the quarter ended June 30, 2011, compared to $1.1 billion for the quarter ended March 31, 2011, and $906 million for the quarter ended June 30, 2010. Lease originations of General Motors Company (“GM”) vehicles were $173 million for the
quarter ended June 30, 2011, compared to $311 million for the quarter ended March 31, 2011. Loan and lease financing for new GM vehicles accounted for 38.0% of total loan and lease originations for the quarter ended June 30, 2011, compared to 38.8% for the quarter ended March 31, 2011. Originations for the six months ended June 30, 2011, were $2.5 billion, compared to $1.5 billion for the six months ended June 30, 2010. Finance receivables totaled
$9.1 billion at June 30, 2011.
Finance receivables 31-to-60 days delinquent were 4.4% of the portfolio at June 30, 2011, compared to 6.2% at June 30, 2010. Accounts more than 60 days delinquent were 1.7% of the portfolio at June 30, 2011, compared to 2.7% a year ago.
Annualized net charge-offs were 2.4% of average finance receivables for the quarter ended
June 30, 2011, compared to 4.5% for the quarter ended June 30, 2010. For the six months ended June 30, 2011, annualized net charge-offs were 3.2%, compared to 6.1% last year.
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The Company had total available liquidity of $1.5 billion at June 30, 2011, consisting of $526 million of unrestricted cash, approximately $675 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. provides auto finance solutions through auto dealers across the United States and Canada. GM Financial has approximately 3,300 employees,
700,000 customers and $9 billion in auto receivables and leases. The Company is a wholly- owned subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.americredit.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 transition report on Form 10-K/T for the six month period ended December 31, 2010. Such risks include – but are not limited to – variable economic conditions, adverse portfolio performance, volatile wholesale vehicle values, reliance on warehouse financing and capital markets, the ability to continue to securitize loans, the continued
availability of credit enhancement for securitization transactions on acceptable terms, fluctuating interest rates, competition, regulatory and legal changes, the high degree of risk associated with subprime borrowers, and exposure to 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.
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On October 1, 2010, the Company was acquired by General Motors Holdings LLC, a wholly owned subsidiary of General Motors Company. The merger was accounted for under purchase accounting whereby the purchase price of the transaction was allocated to the assets acquired and liabilities assumed based upon fair market values. As a result of the purchase price
allocation, the carrying value of GM Financial’s net finance receivables, deferred tax assets, credit facilities, securitization notes payable and uncertain tax positions increased. Additionally, goodwill of approximately $1.1 billion was established on October 1, 2010. The consolidated financial statements as of and for the three and six months ended June 30, 2011 (labeled “Successor”) reflect the change in basis from the application of purchase accounting. The consolidated
financial statements for the periods prior to the merger (labeled “Predecessor”), have been prepared on the same basis as the audited financial statements included in the annual report on Form 10-K for the year ended June 30, 2010.
General Motors Financial Company, Inc. Consolidated Statements of Income
(Unaudited, Dollars in Thousands) Successor Predecessor Three Months Ended June 30, 2011 June 30, 2011 June 30, 2010 June 30, 2010Revenue Finance charge income | $290,916 | $558,762 | $338,531 | $678,423 |
Other income | 38,969 | 66,290 | 23,142 | 44,355 |
329,885 | 625,052 | 361,673 | 722,778 | |
Costs and expenses Operating expenses | 85,379 | 161,785 | 68,304 | 143,519 |
Leased vehicles expenses | 13,098 | 21,582 | 5,620 | 14,308 |
Provision for loan losses | 44,570 | 83,994 | 49,326 | 123,909 |
Interest expense | 42,817 | 83,434 | 98,730 | 205,314 |
Restructuring charges, net | 534 | 754 | ||
185,864 | 350,795 | 222,514 | 487,804 | |
Income before income taxes | 144,021 | 274,257 | 139,159 | 234,974 |
Income tax provision | 48,203 | 101,201 | 53,609 | 86,218 |
Net income | $ 95,818 | $173,056 | $ 85,550 | $148,756 |
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Consolidated Balance Sheets
(Unaudited, Dollars in Thousands) Successor Predecessor June 30, December 31, June 30, 2011 2010 2010Assets | |||
Cash and cash equivalents | $ 525,728 | $ 194,554 | $ 282,273 |
Finance receivables, net | 8,587,015 | 8,197,324 | 8,160,208 |
Restricted cash – securitization notes payable | 937,162 | 926,082 | 930,155 |
Restricted cash – credit facilities | 109,386 | 131,438 | 142,725 |
Property and equipment, net | 46,810 | 47,290 | 37,734 |
Leased vehicles, net | 439,430 | 46,780 | 94,677 |
Deferred income taxes | 119,975 | 157,884 | 81,836 |
Goodwill | 1,108,696 | 1,094,923 | |
Other assets | 210,971 | 122,463 | 151,425 |
Total assets | $12,085,173 | $10,918,738 | $9,881,033 |
Liabilities and Shareholder’s Equity
Liabilities Credit facilities $ 422,756 $ 831,802 $ 598,946 Securitization notes payable 6,880,681 6,128,217 6,108,976 Senior notes 569,870 70,054 70,620 Convertible senior notes 1,447 1,446 414,068 Accounts payable and accrued expenses 203,361 97,169 141,052 Taxes payable 75,203 160,712 68,961 Intercompany taxes payable 186,155 42,214 Interest rate swap agreements 23,720 46,797 70,421 Other liabilities 11,486 10,219 7,565 Total liabilities 8,374,679 7,388,630 7,480,609 Shareholder’s equity 3,710,494 3,530,108 2,400,424 Total liabilities and shareholder’s equity $12,085,173 $10,918,738 $9,881,0335
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands) Cash flows from operating activities: Successor Predecessor Three Months Six Months Three Months Six Months Ended Ended Ended Ended June 30, 2011 June 30, 2011 June 30, 2010 June 30, 2010 Net income $ 95,818 $ 173,056 $ 85,550 $ 148,756 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 23,176 41,044 17,047 35,398 Amortization of debt discount (21,574) (44,691) Amortization of finance receivables premium 58,995 126,922 Accretion and amortization of loan and leasing fees (4,978) (7,914) 62 779 Provision for loan losses 44,570 83,994 49,326 123,909 Deferred income taxes 59,645 37,856 (350) (69,144) Stock-based compensation expense 3,128 6,053 3,605 8,209 Other (8,336) (17,180) 5,968 3,018 Changes in assets and liabilities: Other assets (10,384) 1,137 (6,918) 33,440 Accounts payable and accrued expenses 3,544 (9,221) (31,755) 27,447 Taxes payable (104,430) (87,313) 9,605 11,906 Intercompany taxes payable 89,124 143,941 Sale of leases held for sale 24,907 24,907 Net cash provided by operating activities 253,205 472,591 132,140 323,718 Cash flows from investing activities: Purchases of receivables (1,318,304) (2,453,086) (894,301) (1,504,944) Principal collections and recoveries on receivables 925,885 1,880,176 873,516 1,826,064 Purchases of leased vehicles (97,542) (417,748) Proceeds from termination of leased vehicles 8,181 21,061 Net change in restricted cash and other 87,535 (23,351) 87,325 (57,572) Net cash (used) provided by investing activities (394,245) (992,948) 66,540 263,548 Cash flows from financing activities: Net change in credit facilities (988,493) (407,482) (59,191) (110,981) Net change in securitization notes payable 840,205 795,147 (354,370) (483,434) Issuance of senior notes 500,000 500,000 Other net changes (16,926) (34,735) (511) (30,582) Net cash provided (used) by financing activities 334,786 852,930 (414,072) (624,997) Net increase (decrease) in cash and cash equivalents 193,746 332,573 (215,392) (37,731) Effect of Canadian exchange rate changes on cash and cash equivalents (1,201) (1,399) 336 360 Cash and cash equivalents at beginning of period 333,183 194,554 497,329 319,644 Cash and cash equivalents at end of period $ 525,728 $ 525,728 $ 282,273 $ 282,2736
Other Financial Data
(Unaudited, Dollars in Thousands)Three Months Ended June 30, 2011 | Six Months Ended June 30, 2011 | Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | |
Loan origination volume | $1,349,222 | $ 2,487,143 | $ 906,097 | $1,529,952 |
Loans securitized | 2,068,978 | 2,917,788 | 640,004 | 1,567,762 |
Average finance receivables | 8,926,612 | 8,797,154 | 8,794,764 | 8,918,215 |
GM lease origination volume | 172,764 | 483,711 | ||
Average leased vehicles, net | $ 377,928 | $ 243,105 | $ 105,857 | $ 113,001 |
Successor Predecessor
Finance receivables: June 30, December 31, June 30,2011 2010 2010
Pre-acquisition finance receivables $5,886,828 $7,724,188 $8,733,518
Post-acquisition finance receivables 3,222,584 923,713 9,109,412 8,647,901 8,733,518 Add purchase accounting premium 109,206 423,556 Less non-accretable discount on: Pre-acquisition finance receivables (524,077) (847,781) Less allowance for loan losses on: Post-acquisition finance receivables (107,526) (26,352) Pre-acquisition finance receivables (573,310) $8,587,015 $8,197,324 $8,160,208 Non-accretable discount as a percentage of ending pre-acquisition finance receivables 8.9% 11.0% Allowance for loan losses as a percentage of ending post-acquisition finance receivables 3.3% 2.9% Allowance for loan losses as a percentage of ending pre-acquisition finance receivables 6.6%7
June 30, 2011 | December 31, 2010 | June 30, 2010 | |
Loan delinquency as a percent of ending finance receivables: 31 - 60 days | 4.4% | 6.2% | 6.2% |
Greater than 60 days | 1.7 | 2.4 | 2.7 |
Total | 6.1% | 8.6% | 8.9% |
Contracts receiving a payment deferral as an average quarterly
percentage of average finance Three Months Six Months Three Months Six Months Ended Ended Ended Ended June 30, 2011 June 30, 2011 June 30, 2010 June 30, 2010 receivables 4.9% 5.1% 5.8% 6.4% Net charge-offs $ 54,260 $ 139,096 $ 99,265 $ 267,658 Annualized net charge-offs as a percent of average finance receivables 2.4% 3.2% 4.5% 6.1% Net recoveries as a percent of gross repossession charge-offs 56.4% 53.6% 48.6% 46.4% Components of net margin: Successor Predecessor Three Months Six Months Three Months Six Months Ended Ended Ended Ended June 30, 2011 June 30, 2011 June 30, 2010 June 30, 2010 Finance charge income $ 290,916 $ 558,762 $ 338,531 $ 678,423 Other income 38,969 66,290 23,142 44,355 Interest expense (42,817) (83,434) (98,730) (205,314) Net margin $ 287,068 $ 541,618 $ 262,943 $ 517,4648
Annualized net margin as a percent of average finance receivables:
Successor Predecessor Three Months Six Months Three Months Six Months Ended Ended Ended Ended June 30, 2011 June 30, 2011 June 30, 2010 June 30, 2010 Finance charge income 13.1% 12.8% 15.4% 15.3% Other income 1.7 1.5 1.1 1.0 Interest expense (1.9) (1.9) (4.5) (4.6) Net margin 12.9% 12.4% 12.0% 11.7% Successor Predecessor Three Months Six Months Three Months Six Months Ended Ended Ended Ended June 30, 2011 June 30, 2011 June 30, 2010 June 30, 2010 Operating expenses $ 85,379 $ 161,785 $ 68,304 $ 143,519 Annualized operating expenses as a percent of average finance receivables 3.8% 3.7% 3.1% 3.2% Contact: Caitlin DeYoung (817) 302-7394