EX-99.1 2 september2016quarterearnin.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

gmfinancial4ca04.jpg
GM FINANCIAL REPORTS SEPTEMBER QUARTER 2016
OPERATING RESULTS

•
September quarter net income of $147 million
•
Consumer loan and lease originations of $11.2 billion for the September quarter
•
End of period earning assets of $73.8 billion
•
Available liquidity of $15.4 billion at quarter end

FORT WORTH, TEXAS October 25, 2016 – GENERAL MOTORS FINANCIAL COMPANY, INC.
(“GM Financial” or the “Company”) announced net income of $147 million for the quarter ended September 30, 2016, compared to $179 million for the quarter ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $500 million, compared to $515 million for the nine months ended September 30, 2015.

Retail loan originations were $5.1 billion for the quarter ended September 30, 2016, compared to $4.2 billion for the quarter ended June 30, 2016, and $4.7 billion for the quarter ended September 30, 2015. Retail loan originations for the nine months ended September 30, 2016 were $13.4 billion, compared to $13.1 billion for the nine months ended September 30, 2015. The outstanding balance of retail finance receivables was $32.2 billion at September 30, 2016.

Operating lease originations were $6.2 billion for the quarter ended September 30, 2016, compared to $6.5 billion for the quarter ended June 30, 2016, and $6.2 billion for the quarter ended September 30, 2015. Operating lease originations for the nine months ended September 30, 2016 were $19.4 billion, compared to $14.8 billion for the nine months ended September 30, 2015. Leased vehicles, net was $31.8 billion at September 30, 2016.

The outstanding balance of commercial finance receivables was $9.8 billion at September 30, 2016 compared to $9.4 billion at June 30, 2016 and $7.8 billion at September 30, 2015.

Retail finance receivables 31-60 days delinquent were 3.5% of the portfolio at September 30, 2016 and 4.0% at September 30, 2015. Accounts more than 60 days delinquent were 1.5% of the portfolio at September 30, 2016 and 1.6% at September 30, 2015.

Annualized net charge-offs were 2.0% of average retail finance receivables for the quarter ended September 30, 2016 and 1.9% for the quarter ended September 30, 2015. For the nine months ended September 30, 2016, annualized retail net charge-offs were 1.9%, compared to 1.8% for the nine months ended September 30, 2015.

The Company had total available liquidity of $15.4 billion at September 30, 2016, consisting of $2.6 billion of cash and cash equivalents, $11.6 billion of borrowing capacity on unpledged eligible assets, $0.6 billion of borrowing capacity on committed unsecured lines of credit and $0.6 billion of borrowing capacity on a Junior Subordinated Revolving Credit Facility from GM.

Earnings resulting from the Company's equity investment in SAIC-GMAC, a joint venture that conducts auto finance operations in China, were $36 million for the three months ended September 30, 2016 compared to $37 million for the three months ended June 30, 2016, and $29 million for the three months ended September 30, 2015. Earnings for the nine months ended September 30, 2016 were $109 million, compared to $85 million for the nine months ended September 30, 2015.

1

About GM Financial

General Motors Financial Company, Inc. is the wholly-owned captive finance subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.gmfinancial.com.

Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements which are our current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties that could cause actual results to differ significantly from historical results or from those anticipated. The most significant risks are detailed from time to time in our filings and reports with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2015. Such risks include – but are not limited to – changes in general economic and business conditions; GM’s ability to sell new vehicles that we finance in the markets we serve in North America, Latin America, China and Europe, particularly the United Kingdom where automobile sales may be negatively impacted due to the passage of the referendum to discontinue its membership in the European Union; interest rate and currency fluctuations; our financial condition and liquidity, as well as future cash flows and earnings; competition; the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements; the availability and cost of sources of financing; the level of net charge-offs, delinquencies and prepayments on the loans and leases we originate; vehicle return rates and the residual value performance on vehicles we lease; the viability of GM-franchised dealers that are commercial loan customers; the prices at which used cars are sold in the wholesale markets; and changes in business strategy, including expansion of product lines and credit risk appetite, and acquisitions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. We undertake no obligation to, and do 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.

2

General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, Dollars in millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Revenue
 
 
 
 
 
 
 
Finance charge income
$
837

 
$
842

 
$
2,481

 
$
2,544

Leased vehicle income
1,590

 
797

 
4,164

 
1,827

Other income
72

 
68

 
221

 
205

  Total revenue
2,499

 
1,707

 
6,866

 
4,576

Costs and expenses
 
 
 
 
 
 
 
Operating expenses
392

 
320

 
1,069

 
945

Leased vehicle expenses
1,202

 
629

 
3,163

 
1,423

Provision for loan losses
172

 
144

 
519

 
440

Interest expense
541

 
412

 
1,505

 
1,183

           Total costs and expenses
2,307

 
1,505

 
6,256

 
3,991

Equity income
36

 
29

 
109

 
85

Income before income taxes
228

 
231

 
719

 
670

Income tax provision
81

 
52

 
219

 
155

Net income
$
147

 
$
179

 
$
500

 
$
515


3

Consolidated Balance Sheets
(Unaudited, Dollars in millions)
 
September 30, 2016
 
December 31, 2015
ASSETS
 
 
 
Cash and cash equivalents
$
2,588

 
$
3,061

Finance receivables, net
41,132

 
36,781

Leased vehicles, net
31,775

 
20,172

Restricted cash
2,055

 
1,941

Goodwill
1,198

 
1,189

Equity in net assets of non-consolidated affiliates
940

 
986

Property and equipment, net of accumulated depreciation
253

 
219

Deferred income taxes
310

 
231

Related party receivables
850

 
573

Other assets
1,010

 
751

Total assets
$
82,111

 
$
65,904

LIABILITIES AND SHAREHOLDER'S EQUITY
 
 
 
Liabilities
 
 
 
Secured debt
$
35,237

 
$
30,689

Unsecured debt
33,526

 
23,657

Accounts payable and accrued expenses
1,419

 
1,218

Deferred income
2,226

 
1,454

Deferred income taxes
299

 
129

Related party payables
407

 
362

Other liabilities
379

 
343

Total liabilities
73,493

 
57,852

Shareholder's equity
8,618

 
8,052

Total liabilities and shareholder's equity
$
82,111

 
$
65,904


4

Operational and Financial Data
(Unaudited, Dollars in millions)
 
Three Months Ended September 30,
Originations
2016
 
2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Retail finance receivables originations
$
3,360

 
$
1,698

 
$
5,058

 
$
3,155

 
$
1,586

 
$
4,741

GM lease originations
$
6,113

 
$
57

 
$
6,170

 
$
6,161

 
$
19

 
$
6,180

GM new vehicle loans and leases as a percent of total loan and lease originations
87.4
%
 
87.8
%
 
87.5
%
 
87.8
%
 
84.5
%
 
87.3
%


 
Nine Months Ended September 30,
 
2016
 
2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Retail finance receivables originations
$
8,485

 
$
4,912

 
$
13,397

 
$
8,070

 
$
5,037

 
$
13,107

GM lease originations
$
19,280

 
$
158

 
$
19,438

 
$
14,755

 
$
56

 
$
14,811

GM new vehicle loans and leases as a percent of total loan and lease originations
88.0
%
 
87.1
%
 
87.9
%
 
83.0
%
 
84.8
%
 
83.3
%


 
Three Months Ended September 30,
Average Earning Assets
2016
 
2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Average retail finance receivables
$
20,088

 
$
11,425

 
$
31,513

 
$
16,435

 
$
11,396

 
$
27,831

Average commercial finance receivables
5,005

 
4,424

 
9,429

 
3,475

 
4,258

 
7,733

Average finance receivables
25,093

 
15,849

 
40,942

 
19,910

 
15,654

 
35,564

Average leased vehicles, net
29,934

 
186

 
30,120

 
14,875

 
66

 
14,941

Average earning assets
$
55,027

 
$
16,035

 
$
71,062

 
$
34,785

 
$
15,720

 
$
50,505



 
Nine Months Ended September 30,
 
2016
 
2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Average retail finance receivables
$
19,266

 
$
11,262

 
$
30,528

 
$
15,084

 
$
11,650

 
$
26,734

Average commercial finance receivables
4,565

 
4,502

 
9,067

 
3,312

 
4,358

 
7,670

Average finance receivables
23,831

 
15,764

 
39,595

 
18,396

 
16,008

 
34,404

Average leased vehicles, net
26,104

 
142

 
26,246

 
11,236

 
50

 
11,286

Average earning assets
$
49,935

 
$
15,906

 
$
65,841

 
$
29,632

 
$
16,058

 
$
45,690



Ending Earning Assets
September 30, 2016
 
September 30, 2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Retail finance receivables
$
20,766

 
$
11,480

 
$
32,246

 
$
16,994

 
$
10,993

 
$
27,987

Commercial finance receivables
5,328

 
4,432

 
9,760

 
3,503

 
4,342

 
7,845

Leased vehicles
31,570

 
205

 
31,775

 
16,843

 
72

 
16,915

Ending earning assets
$
57,664

 
$
16,117

 
$
73,781

 
$
37,340

 
$
15,407

 
$
52,747



5

Total Finance Receivables
September 30, 2016
 
December 31, 2015
 
North America
 
International


Total
 
North America
 
International
 
Total
Retail
 
 
 
 
 
 
 
 
 
 
 
Retail finance receivables, net of fees(a,b)
$
20,766

 
$
11,480

 
$
32,246

 
$
18,148

 
$
10,976

 
$
29,124

Less: allowance for loan losses
(695
)
 
(127
)
 
(822
)
 
(618
)
 
(117
)
 
(735
)
Total retail finance receivables, net
20,071

 
11,353

 
31,424

 
17,530

 
10,859

 
28,389

Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial finance receivables, net of fees
5,328

 
4,432

 
9,760

 
4,051

 
4,388

 
8,439

Less: allowance for loan losses
(33
)
 
(19
)
 
(52
)
 
(23
)
 
(24
)
 
(47
)
Total commercial finance receivables, net
5,295

 
4,413

 
9,708

 
4,028

 
4,364

 
8,392

Total finance receivables, net
$
25,366

 
$
15,766

 
$
41,132

 
$
21,558

 
$
15,223

 
$
36,781

    
(a) Includes $1.3 billion and $1.1 billion of direct-financing leases at September 30, 2016 and December 31, 2015.
(b) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $200 million and $179 million at September 30, 2016 and December 31, 2015.

Allowance for Loan Losses
September 30, 2016
 
December 31, 2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Allowance for loan losses as a percentage of retail finance receivables, net of fees
3.3
%
 
1.1
%
 
2.5
%
 
3.4
%
 
1.1
%
 
2.5
%
Allowance for loan losses as a percentage of commercial finance receivables, net of fees
0.6
%
 
0.4
%
 
0.5
%
 
0.6
%
 
0.5
%
 
0.6
%


Delinquencies
September 30, 2016
 
September 30, 2015
 
North America
 
International
 
Total
North America
 
International
 
Total
Loan delinquency as a percent of ending retail finance receivables:
 
 
 
 
 
 
 
 
 
 
 
    31 - 60 days
4.9
%
 
0.9
%
 
3.5
%
 
6.1
%
 
0.9
%
 
4.0
%
    Greater than 60 days
1.9
%
 
0.9
%
 
1.5
%
 
2.1
%
 
0.8
%
 
1.6
%
Total
6.8
%
 
1.8
%
 
5.0
%
 
8.2
%
 
1.7
%
 
5.6
%


 
Three Months Ended September 30,
Charge-offs and Recoveries
2016
 
2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Charge-offs
$
253

 
$
41

 
$
294

 
$
221

 
$
35

 
$
256

Less: recoveries
(118
)
 
(16
)
 
(134
)
 
(111
)
 
(13
)
 
(124
)
Net charge-offs
$
135

 
$
25

 
$
160

 
$
110

 
$
22

 
$
132

Net annualized charge-offs as a percent of average retail finance receivables
2.7
%
 
0.9
%
 
2.0
%
 
2.7
%
 
0.8
%
 
1.9
%
Recoveries as a percentage of gross repossession charge-offs(a)
52.3
%
 
 
 
 
 
56.2
%
 
 
 
 
 
(a)
Charge-offs for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross charge-offs is not meaningful.

6

 
Nine Months Ended September 30,
 
2016
 
2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Charge-offs
$
740

 
$
113

 
$
853

 
$
609

 
$
101

 
$
710

Less: recoveries
(378
)
 
(39
)
 
(417
)
 
(321
)
 
(36
)
 
(357
)
Net charge-offs
$
362

 
$
74

 
$
436

 
$
288

 
$
65

 
$
353

Net annualized charge-offs as a percent of average retail finance receivables
2.5
%
 
0.9
%
 
1.9
%
 
2.6
%
 
0.7
%
 
1.8
%
Recoveries as a percentage of gross repossession charge-offs(a)
53.8
%
 
 
 
 
 
57.5
%
 
 
 
 

(a)
Charge-offs for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross charge-offs is not meaningful.


 
Three Months Ended September 30,
Operating Expenses
2016
 
2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Annualized operating expenses as a percent of average earning assets
1.7
%
 
3.8
%
 
2.2
%
 
2.1
%
 
3.4
%
 
2.5
%


 
Nine Months Ended September 30,
 
2016
 
2015
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Annualized operating expenses as a percent of average earning assets
1.8
%
 
3.5
%
 
2.2
%
 
2.4
%
 
3.5
%
 
2.8
%





Investor Relations contact:
Stephen Jones
Vice President, Investor Relations
(817) 302-7119
Investors@gmfinancial.com


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