Wednesday, automobile finance company AmeriCredit Corp. (ACF) reported a profit for the second quarter, compared with a loss a year-ago, attributable to lower provision for loans losses and a significant decline in expenses.
According to the Fort Worth, Texas-based company, net income for the second quarter was $46.02 million or $0.33 per share, compared with a loss of $35.00 million or $0.29 per share in the year-ago period.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.08 per share. Analysts' estimates typically exclude special items.
Second quarter revenue declined to $386.75 million from $558.59 million in the prior year period. Five Wall Street analysts estimated revenues of $388.85 million for the quarter.
The company said that net loss for the quarter and six months ended December 31, 2008, were revised, from a net loss of $26 million or $0.21 per share and $27 million or $0.23 per share, respectively, to reflect the retrospective adoption, on July 1, 2009, of a new accounting standard that changes the accounting for convertible bonds.
AmeriCredit's originations for the quarter were $379 million, compared to $321 million for the same quarter last fiscal year.
Annualized net charge-offs for the quarter were 8.9% of average finance receivables, compared with 9.5% for the prior year quarter. The allowance for loan losses as a percentage of finance receivables was 7.7% at December 31, 2009, compared with 7.1% at December 31, 2008.
"We had an outstanding December quarter with year-over-year improvements in all key aspects of our business - originations, credit performance and earnings," said President and Chief Executive Officer Dan Berce. "While we remain cautious about the economic recovery, our strong balance sheet and improving credit trends combined with a more favorable capital markets environment, position us well to move forward and continue to rebuild our business in 2010," he added.
Segment-wise, revenue from Finance charge income declined to $363.1 million from $497.56 million a year-ago, while other income declined to $23.65 million from $30.62 million in the year-ago period. Also, a one-time item in the form of a gain on retirement of debt of $30.41 million added to the revenue in the year-ago period.
According to the company, total costs and expenses during the quarter declined to $314.54 million from $611.40 million a year-ago. Operating expenses declined to $76.41 million from $84.34 million a year-ago and leased vehicles expenses declined to $10.22 million from $12.15 million a year-ago. Provision for loan losses declined to $106.19 million from $288.02 million in the prior year period. Interest expenses declined significantly to $121.76 million from $224.77 million in the year ago period.
On November 16, 2009, market rival Consumer Portfolio Services Inc. reported a narrower net loss for its third quarter.
For the six months, AmeriCredit reported net income of $71.79 million or $0.52 per share, compared with net loss of $40.27 million or $0.34 per share a year-ago. Year-to-date revenue declined to $800.03 million from $1.124 billion a year-ago.
ACF closed Wednesday's last trade on the New York Stock Exchange at $21.30, up $0.36 or 1.72%, on a volume of 1.14 million shares on the New York Stock Exchange. In the after hours, the stock further traded up $0.01 or 0.05%.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.