AmeriCredit's Income Rises as Charge-offs Decline

FORT WORTH, TX – AmeriCredit Corp. (NYSE: ACF) yesterday announced net income of $76.9 million, or $0.48 per share, for its fiscal fourth quarter ended June 30, 2005. AmeriCredit reported net income of $82.7 million, or $0.49 per share, for the same period a year earlier. For the fiscal year ended June 30, 2005, AmeriCredit reported net income of $285.9 million, or $1.73 per share, versus earnings of $227.0 million, or $1.37 per share, for the fiscal year ended June 30, 2004. Earnings per share for fiscal year 2004 were revised to reflect the retroactive application of EITF Issue No. 04-8, “The Effect of Contingently Convertible Debt on Diluted Earnings Per Share.”

Automobile loan purchases increased to $1.45 billion for the fourth quarter of fiscal year 2005, compared to $1.08 billion for the June 2004 quarter. Loan purchases for the fiscal year ended June 30, 2005, were $5.03 billion compared to $3.47 billion for fiscal year 2004. Managed auto receivables totaled $11.00 billion at June 30, 2005.

Annualized net charge-offs totaled 4.2% of average managed auto receivables for the June 2005 quarter compared to 5.1% for the June 2004 quarter. Net charge-offs for the fiscal year ended June 30, 2005, were 5.7% compared to 7.2% for fiscal year 2004. Charge-offs for the fiscal year ended June 30, 2004, include the impact of a revision of the Company’s repossession charge-off policy effective for the period ended December 31, 2003.

Managed auto receivables 31-to-60 days delinquent were 5.2% of the portfolio at June 30, 2005, compared to 6.3% at June 30, 2004. Accounts more than 60 days delinquent were 2.2% of the portfolio at June 30, 2005, compared to 2.3% at June 30, 2004.

Unrestricted cash totaled $663.5 million at June 30, 2005. During the June 2005 quarter, the Company repurchased $161.7 million of its common stock. Since June 30, 2005, and through August 5, 2005, the Company has repurchased an additional $38.3 million of its common stock bringing the aggregate total of repurchases since inception of its stock repurchase program in April 2004 to $433.0 million. The Company has $267.0 million remaining under the January 2005 $500 million stock repurchase plan as of August 5, 2005. Shareholders’ equity was $2.12 billion at June 30, 2005, resulting in a managed assets-to-equity ratio of 5.2 at June 30, 2005.

“AmeriCredit ended fiscal year 2005 in its strongest shape ever,” said President and Chief Executive Officer Dan Berce. “Our loan originations were the highest since our restructuring in 2003, and annualized net charge-offs were the lowest in four years.”

“By increasing new loan volume today, we are positioning the company for portfolio and earnings growth in calendar year 2006 and beyond,” said Chief Financial Officer Chris Choate. “At the same time, we continue to maintain our strong capital position and deploy excess capital into our stock repurchase program.”

AmeriCredit will host a conference call for analysts and investors today at 5:30 p.m. Eastern Daylight Time. For a live Internet broadcast of this conference call, please go to the Company’s web site to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.

About AmeriCredit
AmeriCredit Corp. is a leading independent auto finance company. Using its branch network and strategic alliances with auto groups and banks, the Company purchases retail installment contracts entered into by auto dealers with consumers who are typically unable to obtain financing from traditional sources. AmeriCredit has approximately one million customers and $11 billion in managed auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit www.americredit.com.