RNS Number:7900S
General Motors Accept Corp Canada
02 December 2003
Consolidated Financial Statements of
General Motors Acceptance Corporation of Canada, Limited
September 30, 2003
(Unaudited)
CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS
September 30, December 31,
2003 2002
(unaudited)
Cash and cash equivalents $ 1,784,000 $ 781,000
Subordinated interests in securitization trusts, net (Note 398,601 346,920
3)
Finance receivables and loans, net (Note 2)
Consumer 5,231,818 5,556,658
Commercial 2,103,428 3,210,457
Allowance for credit losses (74,149) (76,920)
Total finance receivables and loans, net 7,261,097 8,690,195
Investment in operating leases, net (Note 4) 5,770,693 5,169,099
Notes receivable from affiliates 2,486,031 2,706,486
Investments 1,084,392 1,084,392
Other assets 455,461 575,804
TOTAL ASSETS $ 19,240,275 $ 19,353,896
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities
Debt payable within one year (Note 6) $ 5,214,213 $ 6,394,603
Accounts payable to GMCL and affiliates 74,407 92,151
Interest payable 171,914 184,766
Income and other taxes payable - 74,635
Accrued expenses and other liabilities 838,836 693,961
Future income taxes 707,554 656,807
Debt payable after one year (Note 7) 10,322,460 9,432,215
Total Liabilities $ 17,329,384 $ 17,529,138
Shareholder's Equity (Note 9)
Capital stock without par value (authorized - unlimited,
outstanding - 1,450,000 common shares) 50,000 50,000
Contributed surplus 129,692 129,692
Retained earnings 1,731,199 1,645,066
Total Shareholder's Equity $ 1,910,891 $ 1,824,758
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 19,240,275 $ 19,353,896
Certain amounts for 2002 have been reclassified to conform with the 2003 presentation.
The Notes to Consolidated Financial Statements are an integral part of these statements.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(in thousands)
For the Nine Months Ended For the Quarter Ended
September 30, September 30,
2003 2002 2003 2002
(unaudited) (unaudited)
Financing Revenue
Consumer $ 240,680 $ 269,244 $ 79,811 $ 87,596
Commercial 205,572 265,077 51,798 79,717
Operating leases 1,001,787 819,065 347,801 305,341
Total financing revenue 1,448,039 1,353,386 479,410 472,654
Interest and discount (602,619) (546,767) (203,088) (189,497)
Depreciation on operating (733,256) (559,538) (250,563) (208,834)
leases
Net financing revenue 112,164 247,081 25,759 74,323
Other income (Note 8) 203,683 211,041 57,404 78,374
Net financing revenue and
other income 315,847 458,122 83,163 152,697
Expenses
Operating expenses (143,458) (134,001) (46,409) (47,467)
Provision for credit
losses (18,236) (24,877) (9,087) (8,936)
Total expenses (161,694) (158,878) (55,496) (56,403)
Income before income taxes 154,153 299,244 27,667 96,294
Provision for income taxes (68,020) (101,556) (13,547) (37,890)
Net income 86,133 197,688 14,120 58,404
Retained earnings, beginning
of the period 1,645,066 1,375,465 1,717,079 1,514,749
Retained earnings, end of the
period $ 1,731,199 $ 1,573,153 $ 1,731,199 $ 1,573,153
Certain amounts for 2002 have been reclassified to conform with the 2003 presentation.
The Notes to Consolidated Financial Statements are an integral part of these statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Nine Months Ended September 30, For the Quarter Ended
September 30,
2003 2002 2003 2002
(unaudited) (unaudited)
Operating Activities
Net income $86,133 $197,688 $14,120 $58,404
Depreciation 734,689 561,069 251,094 209,559
Provision for 18,236 24,877 9,087 8,936
credit losses
Gain on sale (33,520) (35,567) - (21,124)
of finance
receivables -
Consumer
Net change in:
Other assets 118,910 (102,652) (24,632) (66,631)
Accounts (17,744) 62,618 31,762 (688)
payable to
GMCL and
affiliates
Interest (12,852) (45,150) (11,513) (31,579)
payable
Income and (74,635) (47,935) (19,170) (19,905)
other taxes
receivable /
payable
Accrued 144,875 (35,288) (68,109) (9,056)
expenses and
other
liabilities
Future income 50,747 (13,351) 26,745 1,188
taxes
Cash provided by operating 1,014,839 566,309 209,384 129,104
activities
Financing Activities
Net change in (1,186,141) 396,369 (681,139) 253,904
short-term
debt
Issuance of 3,744,069 2,601,080 1,552,139 681,109
long-term
debt
Repayment of (2,848,073) (3,209,471) (707,664) (1,199,481)
long-term
debt
Increase in - 34,692 - -
contributed
surplus
Cash provided by (used in) (290,145) (177,330) 163,336 (264,468)
financing activities
Investing Activities
Acquisitions (15,278,051) (17,128,457) (4,169,809) (5,020,302)
of finance
receivables
and loans
Liquidations 14,447,156 15,220,757 4,940,357 5,078,019
of finance
receivables
and loans
Proceeds from 2,275,277 1,941,180 - 797,420
sales of
finance
receivables
Purchases of (2,382,618) (2,560,195) (953,827) (867,971)
operating
lease assets
Disposals of 1,047,768 557,177 410,535 207,967
operating
lease assets
Net change in:
Notes 220,455 1,306,015 222,320 559,374
receivable
from
affiliates
Investments - (34,692) - -
Subordinated (51,681) (27,765) 57,196 28,357
interests in
securitization
trusts
Cash provided by (used in) 278,306 (725,980) 506,772 782,864
investing activities
Increase (decrease) in cash 1,003,000 (337,001) 879,492 647,500
and cash equivalents
Cash and cash equivalents at 781,000 1,302,001 904,508 317,500
beginning of the period
Cash and cash equivalents at $1,784,000 $965,000 $1,784,000 $ 965,000
end of the period
Supplemental disclosure
Cash paid for:
Interest $614,360 $ 591,799 $214,154 $ 221,036
Taxes $103,787 $169,332 $ 7,007 $62,116
Certain amounts for 2002 have been reclassified to conform with the 2003 presentation.
The Notes to Consolidated Financial Statements are an integral part of these statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared
by General Motors Acceptance Corporation of Canada, Limited (the "Company") in
accordance with Canadian generally accepted accounting principles, using the
same accounting policies and methods of application as used in the Company's
financial statements as of and for the year ended December 31, 2002. In the
opinion of management, the financial statements include all necessary
adjustments (which are of a normal and recurring nature) for the fair
presentation of the results of the interim periods presented and consistent with
prior period reporting.
These financial statements should be read in conjunction with the Company's
December 31, 2002 audited consolidated financial statements. Certain amounts in
prior year consolidated financial statements have been reclassified to conform
with current year presentation.
Note 2. Finance Receivables and Loans
The composition of finance receivables and loans outstanding was as follows:
September 30, December 31,
2003 2002
(unaudited)
(in thousands)
Consumer
Retail Automotive $ 5,231,818 $ 5,556,658
Commercial
Automotive:
Wholesale 1,185,272 2,113,952
Leasing and lease financing 576,976 718,349
Term loans to dealers and other 341,180 378,156
Total commercial 2,103,428 3,210,457
Total finance receivables and loans, net 1 $ 7,335,246 $ 8,767,115
1 Net of unearned income of $551,401 and $534,774 at September 30, 2003 and December 31, 2002, respectively.
Note 3. Sale of Finance Receivables
In May 2003, the Company sold retail finance receivables with contractual
principal aggregating $1,713.7 million. An aggregate pre-tax gain of $20.5
million was realized on the sales. In February 2003, the Company sold retail
finance receivables with contractual principal aggregating $836.0 million. A
pre-tax gain of $13.0 million was realized on the sale. For the nine months
September 2002, the Company sold retail finance receivables with contractual
principal aggregating $1,745.1 million, resulting in total realized pre-tax
gains of $35.6 million. The outstanding principal balance of sold retail
finance receivables totaled $3,519.2 and $2,581.5 million at September 30, 2003
and December 31, 2002, respectively.
The Company has also sold wholesale receivables on a revolving basis resulting
in a decrease in the balance of wholesale receivables outstanding of $2,203.7
and $2,385.0 million at September 30, 2003 and December 31, 2002, respectively.
No gains or losses are recorded with respect to these sales.
The retained interest amount recorded with respect to securitization activity is comprised of the following:
September 30, December 31,
2003 2002
(unaudited)
(in thousands)
Subordinated interests in securitization
trusts $ 427,541 $ 368,686
Allowance for estimated credit losses on (28,940) (21,766)
sold receivables
$ 398,601 $ 346,920
Note 4. Investment in Operating Leases, Net
Investments in operating leases, including unamortized deferred lease origination costs, were as follows:
September 30, December 31,
2003 2002
(unaudited)
(in thousands)
Vehicles and other equipment, at cost $ 7,073,635 $ 6,393,764
Accumulated depreciation (1,302,942) (1,224,665)
Investment in operating leases, net $ 5,770,693 $ 5,169,099
Note 5. Lines of Credit With Banks
Established committed revolving lines of credit with banks totaled $1.25 billion
at September 30, 2003 and December 31, 2002, and were renewed in June 2003. Of
this amount, $625 million will expire on June 14, 2004 and $625 million will
expire on June 16, 2008.
Note 6. Debt Payable Within One Year
September 30, 2003 September 30, December 31,
Weighted 2003 2002
Average (unaudited)
Interest Rate (in thousands)
Short-term notes
Domestic 3.053% $ 1,544,821 $ 2,657,598
Foreign 1 3.003% 21,292 87,113
Total principal amount 1,566,113 2,744,711
Unamortized discount (5,200) (8,503)
Total 1,560,913 2,736,208
Bank loans and overdrafts 4.530% 9,923 20,770
Other notes and debentures payable within one year
Domestic 5.266% 3,118,197 2,799,445
Foreign 2 2.886% 525,180 838,180
Total 3,643,377 3,637,625
Total payable within one year $ 5,214,213 $ 6,394,603
This debt, guaranteed by General Motors Acceptance Corporation, is unsecured.
1 Denominated in U.S. dollars
2 Denominated in Euro, British Pounds, Norwegian Krone and Japanese Yen
Note 7. Debt Payable After One Year
Denominated in
Contract Foreign Currency September 30, December 31,
Maturity Date Rate (in millions) 2003 2002
(unaudited)
(in thousands)
March, 2004 6.500% GBP 100 $ - $ 250,194
June, 2004 6.000% NOK 400 - 90,876
June, 2004 5.500% - 100,000
September, 2004 5.750% - 100,000
September, 2004 1.480% Y 1,000 - 13,286
September, 2004 6.250% - 100,000
December, 2004 6.500% 100,000 100,000
January, 2005 7.000% USD 200 271,820 315,640
February, 2005 (1) Y 6,000 73,204 79,721
February, 2005 8.250% NZD 100 79,833 82,746
February, 2005 (2) USD 30 40,773 47,346
March, 2005 7.000% 100,000 100,000
March, 2005 7.750% USD 250 339,775 394,550
April, 2005 (3) Euro 26 39,774 42,246
April, 2005 7.000% CZK 1,000 48,949 52,458
April, 2005 12.250% PLN 100 34,054 41,233
July, 2005 5.250% DKK 400 83,796 88,979
October, 2005 7.500% NZD 100 79,834 82,745
November, 2005 6.125% DKK 400 83,796 88,979
December, 2005 6.625% 100,000 100,000
February, 2006 6.125% DKK 600 125,693 133,469
March, 2006 6.250% 100,000 100,000
May, 2006 6.250% 100,000 100,000
September, 2006 6.125% 100,000 100,000
November, 2007 6.125% DKK 400 83,796 88,979
February, 2008 6.000% DKK 500 104,744 111,224
May, 2008 7.000% 10,000 -
June, 2008 5.825% Euro 50 77,791 -
June, 2008 5.665% Euro 25 38,896 -
September, 2008 (4) Euro 400 622,332 -
September, 2008 7.750% NZD 100 79,834 -
Notes with original maturities up to ten years with a weighted average interest rate at
September 30, 2003 of 6.10% 7,403,766 6,527,544
$ 10,322,460 $ 9,432,215
This debt, guaranteed by General Motors Acceptance Corporation, is unsecured.
(1) Interest at a rate of 0.10% above the 3 month JPY LIBOR rate
(2) Interest at a rate of 0.21% above the 3 month US LIBOR rate
(3) Interest at a rate of 0.20% above the 3 month EURIBOR rate
(4) Interest at a rate of 1.75% above the 3 month EURIBOR rate
Note 8. Other Income
Details of other income were as follows:
For the Nine Months Ended For the Quarter Ended
September 30, September 30,
2003 2002 2003 2002
(unaudited) (unaudited)
( in thousands) ( in thousands)
Automotive receivable $ 137,741 $ 136,042 $ 33,034 $ 56,145
securitizations
Service fee revenue from GMCL 39,151 63,488 11,446 17,541
Other 26,791 11,511 12,924 4,688
Total other income $ 203,683 $ 211,041 $ 57,404 $ 78,374
Note 9. Shareholder's Equity
There have been no changes in authorized or issued share capital as at September
30, 2003.
Note 10. Guarantees
The Company has standard indemnification clauses in certain of its funding and
securitization arrangements that would require the Company to pay counterparties
for increased costs due to certain changes in laws or regulations. Since any
changes would be dictated by legislative and regulatory actions, which by their
nature are unpredictable, the Company is not able to estimate a maximum exposure
under these arrangements.
This information is provided by RNS
The company news service from the London Stock Exchange
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