AmeriCredit Reports Second Quarter Operating Results
- 2nd quarter net loss of $19 million, $0.17 per share
- Increased loan loss reserves through higher provision for loan losses
- FY08 originations target reduced to $6.5 to $7.0 billion
- FY08 earnings guidance updated
FORT WORTH, Texas, Jan. 22, 2008 /PRNewswire-FirstCall/ -- AMERICREDIT CORP. (NYSE: ACF) today announced a net loss of $19 million, or $0.17 per share, for its second fiscal quarter ended December 31, 2007, versus earnings of $95 million, or $0.74 per share, for the same period a year earlier. For the six months ended December 31, 2007, AmeriCredit reported net income of $43 million, or $0.35 per share, versus earnings of $170 million, or $1.27 per share, for the six months ended December 31, 2006. Operating results include Long Beach Acceptance Corp. since its acquisition on January 1, 2007.
Net income for the three and six months ended December 31, 2006, included a $23 million after-tax gain ($36 million pre-tax), or $0.18 per share and $0.17 per share, respectively, related to the partial sale of AmeriCredit's investment in DealerTrack Holdings, Inc.
Automobile loan purchases increased to $1.80 billion for the three months ended December 31, 2007, compared to $1.74 billion for the same quarter last fiscal year. Loans purchased for the six months ended December 31, 2007, were $4.19 billion compared to $3.42 billion for the same period a year earlier. Managed receivables totaled $16.35 billion at December 31, 2007, compared to $12.58 billion at December 31, 2006.
Annualized net charge-offs totaled 6.9% of average managed receivables for the December 2007 quarter compared to 5.8% for the December 2006 quarter. For the six months ended December 31, 2007, annualized net charge-offs were 6.2% compared to 5.6% for the same period last year.
Managed receivables 31-to-60 days delinquent were 6.8% of the portfolio at December 31, 2007, compared to 6.7% at December 31, 2006. Accounts more than 60 days delinquent were 3.0% of the portfolio at December 31, 2007, compared to 2.6% a year ago.
'The December quarter was challenging on many fronts, with weaker credit performance and uncertainty in the capital markets. As a result, we have revised our operating plans to align our loan volume with available capital resources,' said AmeriCredit President and Chief Executive Officer Dan Berce. 'Over the next several months, we will bring our originations infrastructure and overhead into alignment with our revised originations target.'
