GM Financial Reports September Quarter Operating Results

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• Earnings of $109 million
• Loan and lease originations of $1.5 billion
• Available liquidity of $1.5 billion
• Annualized net credit losses of 3.0%

FORT WORTH, Texas--(BUSINESS WIRE)-- GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $109 million for the quarter ended September 30, 2011, and $282 million for the nine months ended September 30, 2011.

Loan originations were $1.4 billion for the quarter ended September 30, 2011, compared to $1.3 billion for the quarter ended June 30, 2011, and $959 million for the quarter ended September 30, 2010. Loan originations for the nine months ended September 30, 2011, were $3.8 billion, compared to $2.5 billion for the nine months ended September 30, 2010. Finance receivables totaled $9.4 billion at September 30, 2011.

Lease originations of General Motors Company (“GM”) vehicles were $189 million for the quarter ended September 30, 2011, compared to $173 million for the quarter ended June 30, 2011. Lease originations of GM vehicles totaled $672 million for the nine months ended September 30, 2011. Leased vehicles, net, totaled $564 million at September 30, 2011.

Finance receivables 31-to-60 days delinquent were 4.7% of the portfolio at September 30, 2011, compared to 6.2% at September 30, 2010. Accounts more than 60 days delinquent were 1.7% of the portfolio at September 30, 2011, compared to 2.5% a year ago.

Annualized net charge-offs were 3.0% of average finance receivables for the quarter ended September 30, 2011, compared to 5.4% for the quarter ended September 30, 2010. For the nine months ended September 30, 2011, annualized net charge-offs were 3.1%, compared to 5.8% last year.

The Company had total available liquidity of $1.5 billion at September 30, 2011, consisting of $307 million of unrestricted cash, approximately $860 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 3,400 employees, 700,000 customers and $10 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, unpredictable leased vehicle residual values and return rates, 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.

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 nine months ended September 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				Nine Months				Three Months					Nine Months
		Ended				Ended				Ended					Ended
		September 30,2011				September 30,2011				September 30,2010					September 30,2010
Revenue
Finance charge income		$	348,285			$	907,047			$	342,349				$	1,020,772
Other income			42,396				108,686				30,275					74,630
			390,681				1,015,733				372,624					1,095,402
Costs and expenses
Operating expenses			88,135				249,920				68,855					212,374
Leased vehicles expenses			17,864				39,446				6,539					20,847
Provision for loan losses			50,941				134,935				74,618					198,527
Interest expense			56,295				139,729				89,364					294,678
Acquisition expenses											42,651					42,651
Restructuring charges, net											(39	)				715
			213,235				564,030				281,988					769,792
Income before income taxes			177,446				451,703				90,636					325,610
Income tax provision			68,639				169,840				39,336					125,554
Net income		$	108,807			$	281,863			$	51,300				$	200,056

Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
		Successor								Predecessor
		September 30,				December 31,				September 30,
		2011				2010				2010
Assets
Cash and cash equivalents		$	307,215			$	194,554			$	537,529
Finance receivables, net			8,917,970				8,197,324				8,147,086
Restricted cash – securitization notes payable			929,196				926,082				975,942
Restricted cash – credit facilities			124,979				131,438				134,468
Property and equipment, net			46,487				47,290				36,592
Leased vehicles, net			564,103				46,780				54,730
Deferred income taxes			119,017				157,884				77,999
Goodwill			1,107,684				1,094,923
Other assets			190,083				122,463				143,064
Total assets		$	12,306,734			$	10,918,738			$	10,107,410
Liabilities and Shareholder's Equity
Liabilities:
Credit facilities		$	552,871			$	831,802			$	617,415
Securitization notes payable			6,901,572				6,128,217				6,273,224
Senior notes			500,000				70,054				70,620
Convertible senior notes			500				1,446				419,693
Accounts payable and accrued expenses			194,244				97,169				138,072
Taxes payable			83,231				160,712				70,366
Intercompany taxes payable			245,369				42,214
Interest rate swap agreements			16,050				46,797				60,895
Other liabilities			6,882				10,219				6,504
Total liabilities			8,500,719				7,388,630				7,656,789
Shareholder's equity			3,806,015				3,530,108				2,450,621
Total liabilities and shareholder's equity		$	12,306,734			$	10,918,738			$	10,107,410

Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
		Successor											Predecessor
		Three Months					Nine Months						Three Months					Nine Months
		Ended					Ended						Ended					Ended
		September 30,2011					September 30,2011						September 30,2010					September 30,2010
Cash flows from operating activities:
Net income		$	108,807				$	281,863					$	51,300				$	200,056
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization			31,353					72,397						14,649					50,047
Amortization of purchase accounting premium			(13,007	)				(57,698	)
Amortization of accretable yield			16,853					143,775
Accretion and amortization of loan and leasing fees			(6,996	)				(14,910	)					(942	)				(163	)
Provision for loan losses			50,941					134,935						74,618					198,527
Deferred income taxes			3,303					41,159						452					(68,692	)
Stock-based compensation expense			3,532					9,585						5,019					13,228
Other			(5,968	)				(23,148	)					(8,175	)				(5,157	)
Changes in assets and liabilities:
Other assets			1,699					27,743						16,373					49,813
Accounts payable and accrued expenses			8,721					(500	)					(9,957	)				17,490
Taxes payable			7,795					(79,518	)					1,405					13,311
Intercompany taxes payable			59,214					203,155
Net cash provided by operating activities			266,247					738,838						144,742					468,460
Cash flows from investing activities:
Purchases of receivables			(1,340,610	)				(3,793,696	)					(940,763	)				(2,445,707	)
Principal collections and recoveries on receivables			936,431					2,816,607						883,807					2,709,871
Purchases of leased vehicles			(166,978	)				(584,726	)
Proceeds from termination of leased vehicles			10,956					32,017
Net change in restricted cash and other			(3,801	)				(27,152	)					2,351					(55,221	)
Net cash (used) provided by investing activities			(564,002	)				(1,556,950	)					(54,605	)				208,943
Cash flows from financing activities:
Net change in credit facilities			133,442					(274,040	)					(68,030	)				(179,011	)
Net change in securitization notes payable			33,380					828,527						254,488					(228,946	)
Issuance of senior notes								500,000
Other net changes			(85,397	)				(120,132	)					(21,297	)				(51,879	)
Net cash provided (used) by financing activities			81,425					934,355						165,161					(459,836	)
Net (decrease) increase in cash and cash equivalents			(216,330	)				116,243						255,298					217,567
Effect of Canadian exchange rate changes on
cash and cash equivalents			(2,183	)				(3,582	)					(42	)				318
Cash and cash equivalents at beginning of period			525,728					194,554						282,273					319,644
Cash and cash equivalents at end of period		$	307,215				$	307,215					$	537,529				$	537,529

Other Financial Data
(Unaudited, Dollars in Thousands)
		Three Months					Nine Months						Three Months					Nine Months
		Ended					Ended						Ended					Ended
		September 30,2011					September 30,2011						September 30,2010					September 30,2010
Loan origination volume		$	1,358,115				$	3,845,258					$	959,004				$	2,488,956
GM lease origination volume			188,706					672,417
GM new vehicle loans as %
of total loan originations			30.9	%				28.0	%					15.7	%				13.2	%
GM new vehicle loans and
leases as % of total loan
and lease originations			39.3	%				38.7	%					15.7	%				13.2	%
Loans securitized		$	954,915				$	3,872,703					$	1,164,267				$	2,732,029
		Successor											Predecessor
		Three Months					Nine Months						Three Months					Nine Months
		Ended					Ended						Ended					Ended
		September 30,2011					September 30,2011						September 30,2010					September 30,2010
Average finance receivables		$	9,276,098				$	8,958,549					$	8,718,310				$	8,850,833
Average leased vehicles, net			501,767					305,442						74,704					93,028
Average earning assets		$	9,777,865				$	9,263,991					$	8,793,014				$	8,943,861

		Successor										Predecessor
		September 30,					December 31,					September 30,
		2011					2010					2010
Finance receivables:
Pre-acquisition finance receivables		$	5,076,311				$	7,724,188				$	8,675,575
Post-acquisition finance receivables			4,361,893					923,713
			9,438,204					8,647,901					8,675,575
Add accretable yield:
Pre-acquisition finance receivables			83,006					423,556
Less non-accretable discount on:
Pre-acquisition finance receivables			(451,918	)				(847,781	)
Less allowance for loan losses on:
Post-acquisition finance receivables			(151,322	)				(26,352	)
Pre-acquisition finance receivables													(528,489	)
		$	8,917,970				$	8,197,324				$	8,147,086
Non-accretable discount as a percentage
of pre-acquisition finance receivables			8.9	%				11.0	%
Allowance for loan losses as a percentage
of post-acquisition finance receivables			3.5	%				2.9	%
Allowance for loan losses as a percentage
of pre-acquisition finance receivables													6.1	%
		September 30,					December 31,					September 30,
		2011					2010					2010
Loan delinquency as a percent of
ending finance receivables:
31 - 60 days			4.7	%				6.2	%				6.2	%
Greater than 60 days			1.7					2.4					2.5
Total			6.4	%				8.6	%				8.7	%

		Three Months					Nine Months						Three Months					Nine Months
		Ended					Ended						Ended					Ended
		September 30,2011					September 30,2011						September 30,2010					September 30,2010
Contracts receiving a payment
deferral as an average quarterly
percentage of average finance
receivables			5.4	%				5.2	%					6.1	%				6.3	%
Net charge-offs		$	69,957				$	209,053					$	119,439				$	387,097
Annualized net charge-offs as a
percent of average finance receivables			3.0	%				3.1	%					5.4	%				5.8	%
Net recoveries as a percent of
gross repossession charge-offs			55.3	%				54.2	%					46.4	%				46.4	%

Components of net margin:

		Successor											Predecessor
		Three Months					Nine Months						Three Months					Nine Months
		Ended					Ended						Ended					Ended
		September 30,2011					September 30,2011						September 30,2010					September 30,2010
Finance charge income		$	348,285				$	907,047					$	342,349				$	1,020,772
Other income			42,396					108,686						30,275					74,630
Interest expense			(56,295	)				(139,729	)					(89,364	)				(294,678	)
Net margin		$	334,386				$	876,004					$	283,260				$	800,724

Annualized net margin as a percent of average earning assets:

		Successor											Predecessor
		Three Months					Nine Months						Three Months					Nine Months
		Ended					Ended						Ended					Ended
		September 30,2011					September 30,2011						September 30,2010					September 30,2010
Finance charge income and other income			15.9	%				14.6	%					16.8	%				16.4	%
Interest expense			(2.3	)				(2.0	)					(4.0	)				(4.4	)
Net margin			13.6	%				12.6	%					12.8	%				12.0	%
		Successor											Predecessor
		Three Months					Nine Months						Three Months					Nine Months
		Ended					Ended						Ended					Ended
		September 30,2011					September 30,2011						September 30,2010					September 30,2010
Operating expenses		$	88,135				$	249,920					$	68,855				$	212,374
Annualized operating expenses as a
percent of average earning assets			3.6	%				3.6	%					3.1	%				3.2	%

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50062773&lang=en

General Motors Financial Company, Inc.Caitlin DeYoung, 817-302-7394

Source: General Motors Financial Company, Inc.

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