ACF Americredit Corp.

AMERICREDIT CORP. (NYSE: ACF) today announced net income of $86 million, or $0.61 per share, for its fiscal fourth quarter ended June 30, 2010. AmeriCredit reported net income of $32 million, or $0.24 per share, for the same period a year earlier. For the fiscal year ended June 30, 2010, AmeriCredit reported net income of $221 million, or $1.60 per share, versus a net loss of $11 million, or $0.09 per share, for the fiscal year ended June 30, 2009. Results for the three months and fiscal year ended June 30, 2009, were revised, from net income of $31 million, or $0.23 per share, and net income of $14 million, or $0.11 per share, respectively, to reflect the retrospective adoption, on July 1, 2009, of a new accounting standard that changed the accounting for convertible bonds.

Originations were $906 million for the quarter ended June 30, 2010, compared to $624 million for the quarter ended March 31, 2010 and $175 million for the quarter ended June 30, 2009. Originations for the fiscal year ended June 30, 2010, were $2.1 billion, compared to $1.3 billion for the prior fiscal year. Finance receivables totaled $8.7 billion at June 30, 2010, compared to $8.8 billion at March 31, 2010 and $10.9 billion at June 30, 2009.

Annualized net charge-offs were 4.5% of average finance receivables for the quarter ended June 30, 2010, compared to 7.1% for the quarter ended June 30, 2009. For the fiscal year ended June 30, 2010, annualized net charge-offs were 7.4%, compared to 7.9% last fiscal year.

Finance receivables 31-to-60 days delinquent were 6.2% of the portfolio at June 30, 2010, compared to 6.9% at June 30, 2009. Accounts more than 60 days delinquent were 2.7% of the portfolio at June 30, 2010, compared to 3.5% a year ago.

The allowance for loan losses as a percentage of finance receivables was 6.6% at June 30, 2010, compared to 7.1% at March 31, 2010 and 8.2% at June 30, 2009.

The Company had total available liquidity of $772 million at June 30, 2010, consisting of $282 million of unrestricted cash and approximately $490 million of borrowing capacity on unpledged eligible receivables.

About AmeriCredit

AmeriCredit Corp. is a leading independent automobile finance company that provides financing solutions indirectly through auto dealers across the United States. AmeriCredit has about 800,000 customers and approximately $9 billion in auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit www.americredit.com.

On July 22, 2010, AmeriCredit and General Motors (GM) announced they have entered into a definitive agreement for GM to acquire AmeriCredit. Under the terms of the agreement, which has been approved by both companies’ boards of directors, at closing, AmeriCredit shareholders will receive $24.50 in cash for each share of stock held as of the transaction closing date. The transaction is expected to close by the end of the fourth quarter of calendar 2010, pending certain closing conditions, including the approval of AmeriCredit shareholders.

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 (the “SEC”) including the Company's annual report on Form 10-K for the year ended June 30, 2009. 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. The definitive agreement for GM to acquire AmeriCredit is subject to closing conditions and there is a risk that the transaction may not close. 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.

In connection with the proposed merger, AmeriCredit plans to file a proxy statement with the SEC. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND THE PARTIES TO THE MERGER. Investors and security holders may obtain a free copy of the proxy statement (when available) and other relevant documents filed with the SEC from the SEC’s web site at http://www.sec.gov. Investors and security holders and other interested parties will also be able to obtain, free of charge, a copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Investor Relations, AmeriCredit Corp., 801 Cherry Street, Suite 3500, Fort Worth, Texas 76102, telephone (800) 644-2297, or from AmeriCredit’s web site at www.AmeriCredit.com.

AmeriCredit and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from AmeriCredit's shareholders with respect to the merger. Information about AmeriCredit’s directors and executive officers and their ownership of AmeriCredit’s common stock is set forth in AmeriCredit’s Proxy Statement on Schedule 14A filed on September 16, 2009. Shareholders and investors may obtain additional information regarding the interests of AmeriCredit and its directors and executive officers in the merger, which may be different than those of AmeriCredit’s shareholders generally, by reading the proxy statement and other relevant documents regarding the merger, which will be filed with the SEC.

    AmeriCredit Corp. Consolidated Statements of Operations (Unaudited, Dollars in Thousands, Except Per Share Amounts)     Three Months Ended Fiscal Year Ended June 30, June 30, 2010   2009 2010   2009   (Revised)   (Revised) Revenue: Finance charge income $ 338,531 $ 418,965 $ 1,431,319 $ 1,902,684 Other income 23,142 25,595 91,215 116,488 Gain on retirement of debt   -   5,699   283   48,152     361,673   450,259   1,522,817   2,067,324   Costs and expenses: Operating expenses 68,304 63,926 288,791 308,803 Leased vehicles expenses 5,620 11,115 34,639 47,880 Provision for loan losses 49,326 174,678 388,058 972,381 Interest expense 98,730 152,894 457,222 726,560 Restructuring charges   534   1,382   668   11,847     222,514   403,995   1,169,378   2,067,471   Income (loss) before income taxes 139,159 46,264 353,439 (147 ) Income tax provision   53,609   14,471   132,893   10,742   Net income (loss) $ 85,550 $ 31,793 $ 220,546 $ (10,889 )   Earnings (loss) per share: Basic $ 0.64 $ 0.24 $ 1.65 $ (0.09 ) Diluted $ 0.61 $ 0.24 $ 1.60 $ (0.09 )   Weighted average shares   134,618,012   132,890,596   133,845,238   125,239,241   Weighted average shares and assumed incremental shares   139,787,408   133,523,867   138,179,945   125,239,241       Consolidated Balance Sheets (Unaudited, Dollars in Thousands)     June 30, June 30, 2010 2009   (Revised) Cash and cash equivalents $ 282,273 $ 193,287 Finance receivables, net 8,160,208 10,037,329 Restricted cash – securitization notes payable 930,155 851,606 Restricted cash – credit facilities 142,725 195,079 Property and equipment, net 37,734 44,195 Leased vehicles, net 94,677 156,387 Deferred income taxes 81,836 75,782 Income tax receivable - 197,579 Other assets   151,425   207,083 Total assets $ 9,881,033 $ 11,958,327   Credit facilities $ 598,946 $ 1,630,133 Securitization notes payable 6,108,976 7,426,687 Senior notes 70,620 91,620 Convertible debt 414,068 392,514 Accrued taxes and expenses 210,013 157,640 Interest rate swap agreements 70,421 131,885 Other liabilities   7,565   20,540 Total liabilities   7,480,609   9,851,019   Shareholders’ equity (outstanding common shares of   2,400,424   2,107,308 134,939,850 and 133,171,366 respectively) Total liabilities and shareholders’ equity $ 9,881,033 $ 11,958,327     Consolidated Statements of Cash Flows (Unaudited, Dollars in Thousands)     Three Months Ended Fiscal Year Ended June 30, June 30, 2010   2009 2010   2009   (Revised)   (Revised) Cash flows from operating activities: Net income (loss) $ 85,550 $ 31,793 $ 220,546 $ (10,889 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 17,047 26,153 79,044 109,008 Accretion and amortization of fees 62 3,191 4,791 19,094 Provision for loan losses 49,326 174,678 388,058 972,381 Deferred income taxes (350 ) 7,789 (24,567 ) 226,783 Non-cash interest charges on convertible debt 5,529 5,598 21,554 22,506 Stock-based compensation expense 3,605 3,026 15,115 14,264 Amortization of warrant costs - 2,084 1,968 45,101 Gain on retirement of debt - (5,699 ) (283 ) (48,907 ) Other 439 (868 ) (15,954 ) 2,773 Changes in assets and liabilities: Income tax receivable - 5,238 197,402 (174,682 ) Other assets (6,918 ) 9,294 5,256 (6,704 ) Accrued taxes and expenses   (22,150 )   (6,125 )   35,779     (52,113 ) Net cash provided by operating activities   132,140     256,152     928,709     1,118,615   Cash flows from investing activities: Purchases of receivables (894,301 ) (168,148 ) (2,090,602 ) (1,280,291 ) Principal collections and recoveries on receivables 873,516 944,783 3,606,680 4,257,637 Net change in restricted cash and other   87,325     79,368     26,146     194,699   Net cash provided by investing activities   66,540     856,003     1,542,224     3,172,045   Cash flows from financing activities: Net change in credit facilities (59,191 ) (152,583 ) (1,031,187 ) (1,278,117 ) Net change in securitization notes payable (354,370 ) (876,328 ) (1,321,569 ) (2,987,424 ) Proceeds from issuance of common stock 2,927 2,470 15,635 3,741 Retirement of debt - (13,894 ) (20,425 ) (238,617 ) Other net changes   (3,438 )   2,034     (24,109 )   (33,212 ) Net cash used by financing activities   (414,072 )   (1,038,301 )   (2,381,655 )   (4,533,629 ) Net (decrease) increase in cash and cash equivalents (215,392 ) 73,854 89,278 (242,969 ) Effect of Canadian exchange rate changes on cash and cash equivalents 336 (1,498 ) (292 ) 2,763 Cash and cash equivalents at beginning of period   497,329     120,931     193,287     433,493   Cash and cash equivalents at end of period $ 282,273   $ 193,287   $ 282,273   $ 193,287       Other Financial Data (Unaudited, Dollars in Thousands)     Three Months Ended Fiscal Year Ended June 30, June 30, 2010   2009 2010   2009   Origination volume $ 906,097 $ 174,907 $ 2,137,620 $ 1,285,091 Loans securitized 640,004 - 2,843,308 1,289,082 Average finance receivables $ 8,794,764 $ 11,419,099 $ 9,495,125 $ 13,001,773   June 30, June 30, 2010 2009 Finance receivables: Principal $ 8,733,518 $ 10,927,969

Allowance for loan losses

  (573,310 )   (890,640 ) $ 8,160,208   $ 10,037,329     Allowance as a percent of ending finance receivables   6.6 %   8.2 %     June 30, June 30, 2010 2009   Loan delinquency as a percent of ending finance receivables: 31 - 60 days 6.2 % 6.9 % Greater than 60 days   2.7     3.5   Total   8.9 %   10.4 %     Three Months Ended Fiscal Year Ended June 30, June 30, 2010 2009 2010 2009 Contracts receiving a payment deferral as an average quarterly percentage of average finance receivables 5.8 % 7.9 % 7.3 % 7.8 %   Net charge-offs $ 99,265 $ 202,030 $ 705,388 $ 1,032,854     Annualized net charge-offs as a percent of average finance receivables 4.5 % 7.1 % 7.4 % 7.9 %   Net recoveries as a percent of gross repossession charge-offs 48.6 % 42.1 % 44.1 % 39.8 %      

Components of net margin:

  Three Months Ended Fiscal Year Ended June 30, June 30, 2010   2009 2010 2009

 

  (Revised)   (Revised)   Finance charge income $ 338,531 $ 418,965 $ 1,431,319 $ 1,902,684 Other income 23,142 25,595 91,215 116,488 Interest expense   (98,730 )   (152,894 )   (457,222 )   (726,560 ) Net margin $ 262,943   $ 291,666   $ 1,065,312   $ 1,292,612      

Annualized net margin as a percent of average finance receivables:

  Three Months Ended Fiscal Year Ended June 30, June 30, 2010 2009 2010 2009     (Revised)   (Revised) Finance charge income 15.4 % 14.7 % 15.1 % 14.6 % Other income 1.1 0.9 0.9 0.9 Interest expense   (4.5 )   (5.4 )   (4.8 )   (5.6 )

Net margin

 

  12.0 %   10.2 %   11.2 %   9.9 %     Three Months Ended Fiscal Year Ended June 30,

June 30,

2010 2009 2010

2009

Operating expenses $ 68,304   $ 63,926   $ 288,791   $ 308,803   Annualized operating expenses as a percent of average finance receivables   3.1 %   2.2 %   3.0 %   2.4 %     June 30, June 30, 2010 2009   Book value per share $ 17.79   $ 15.82     Leverage 3.6x   5.2x