RNS Number:4598P
General Motors Accept Corp Canada
05 September 2003
Consolidated Financial Statements of
General Motors Acceptance Corporation of Canada, Limited
June 30, 2003
(Unaudited)
CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS
June 30, December 31,
2003 2002
(unaudited)
Cash and cash equivalents $ 904,508 $ 781,000
Subordinated interests in securitization
trusts, net (Note 3) 453,213 344,336
Finance receivables and loans, net (Note 2)
Consumer 4,041,927 5,556,658
Commercial 4,063,718 3,210,457
Allowance for credit losses (64,913) (76,920)
Total finance receivables and loans, net 8,040,732 8,690,195
Investment in operating leases, net (Note 4) 5,477,964 5,169,099
Notes receivable from affiliates 2,762,660 2,760,795
Investments 1,084,392 1,084,392
Other assets 431,360 575,804
TOTAL ASSETS $19,154,829 $19,405,621
LIABILITIES AND SHAREHOLDER'S EQUITY
June 30, December 31,
2003 2002
(unaudited)
Liabilities
Debt payable within one year (Note 6) $ 5,799,902 $ 6,394,603
Accounts payable to GMCL and affiliates 96,954 146,460
Interest payable 183,427 184,766
Income and other taxes payable 19,170 74,635
Accrued expenses and other liabilities 904,361 691,377
Future income taxes 680,809 656,807
Debt payable after one year (Note 7) 9,573,435 9,432,215
Total Liabilities $17,258,058 $17,580,863
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 1,717,079 1,645,066
Total Shareholder's Equity $ 1,896,771 $ 1,824,758
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $19,154,829 $19,405,621
Certain amounts for 2002 have been reclassified to conform with the 2003
presentation.
Reference should be made to the Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(in thousands)
For the Six Months Ended June For the Quarter Ended June
30, 30,
2003 2002 2003 2002
(unaudited) (unaudited)
Financing Revenue
Consumer $ 160,869 $ 181,648 $ 68,211 $ 85,680
Commercial 153,774 185,360 82,929 90,778
Operating leases 653,986 513,724 328,880 275,105
Total financing revenue 968,629 880,732 480,020 451,563
Interest and discount (399,531) (357,270) (205,959) (182,763)
Depreciation on operating
leases (482,693) (350,704) (237,493) (184,020)
Net financing revenue 86,405 172,758 36,568 84,780
Other income (Note 8) 146,279 132,667 78,518 73,666
Net Financing Revenue and Other
Income 232,684 305,425 115,086 158,446
Expenses
Operating expenses (97,049) (86,534) (46,402) (46,811)
Provision for credit losses (9,149) (15,941) (5,929) (6,526)
Total expenses (106,198) (102,475) (52,331) (53,337)
Income before income taxes 126,486 202,950 62,755 105,109
Provision for income taxes (54,473) (63,666) (27,633) (28,133)
Net Income 72,013 139,284 35,122 76,976
Retained earnings, beginning of 1,645,066
the period 1,375,465 1,681,957 1,437,773
Retained earnings, end of the $ 1,717,079 $ 1,514,749 $ 1,717,079 $ 1,514,749
period
Certain amounts for 2002 have been reclassified to conform with the 2003
presentation.
Reference should be made to the Notes to Consolidated Financial
Statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Six Months Ended June 30, For the Quarter Ended June 30,
2003 2002 2003 2002
(unaudited) (unaudited)
Operating Activities
Net income $ 72,013 $ 139,284 $ 35,122 $ 76,976
Depreciation 483,595 351,510 237,945 184,481
Provision for credit losses 9,149 15,941 5,929 6,526
Gain on sale of finance
receivables - Consumer (33,520) (14,443) (20,505) (14,443)
Net change in:
Other assets 143,542 (36,021) 17,117 (38,024)
Accounts payable to GMCL and
affiliates (49,506) 63,306 (40,802) (133,267)
Interest payable (1,339) (13,571) 25,274 34,611
Income and other taxes
payable (55,465) (28,030) 441 12,475
Accrued expenses and other
liabilities 212,984 (26,232) 223,295 (36,680)
Future income taxes 24,002 (14,539) 19,855 (1,824)
Cash provided by operating
activities 805,455 437,205 503,671 90,831
Financing Activities
Net change in short-term debt (505,002) 142,465 (587,382) (164,754)
Issuance of long-term debt 2,191,930 1,919,971 1,390,638 1,037,342
Repayment of long-term debt (2,140,409) (2,009,990) (856,323) (986,958)
Increase in contributed surplus - 34,692 - -
Cash provided by (used in)
financing activities (453,481) 87,138 (53,067) (114,370)
Investing Activities
Acquisitions of finance
receivables and loans (11,108,242) (12,108,155) (5,925,158) (7,107,869)
Liquidations of finance
receivables and loans 9,506,799 10,142,738 5,331,910 6,500,880
Proceeds from sales of finance
receivables 2,275,277 1,143,760 1,528,732 757,760
Purchases of operating lease
assets (1,428,791) (1,692,224) (663,177) (1,033,568)
Disposals of operating lease
assets 637,233 349,210 187,396 198,675
Net change in:
Notes receivable from
affiliates (1,865) 746,641 (117,678) 557,624
Investments - (34,692) - -
Subordinated interests in
securitization trusts (108,877) (56,122) (78,621) (37,964)
Cash provided by (used in)
investing activities (228,466) (1,508,844) 263,404 (164,462)
Increase (decrease) in cash and
cash equivalents 123,508 (984,501) 714,008 (188,001)
Cash and cash equivalents at
beginning of the period 781,000 1,302,001 190,500 505,501
Cash and cash equivalents at end $ 904,508 $ 317,500 $ 904,508 $ 317,500
of the period
Supplemental disclosure
Cash paid for:
Interest $ 400,206 $ 370,763 $ 180,441 $ 148,113
Taxes $ 96,780 $ 107,216 $ 16,875 $ 14,718
Certain amounts for 2002 have been reclassified to conform with the 2003
presentation.
Reference should be made to the Notes to Consolidated Financial
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 unaudited interim 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:
June 30, December 31,
2003 2002
(unaudited)
(in thousands)
Consumer
Retail Automotive $ 4,041,927 $ 5,556,658
Commercial
Automotive:
Wholesale 3,053,750 2,113,952
Leasing and lease financing 662,339 718,349
Term loans to dealers and other 347,629 378,156
Total commercial 4,063,718 3,210,457
Total finance receivables and loans, net1 $ 8,105,645 $ 8,767,115
1 Net of unearned income of $401,739 and $534,774 at June 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 six months
ended June 2002, the Company sold retail finance receivables with contractual
principal aggregating $860.1 million, resulting in total realized pre-tax gains
of $14.4 million. The outstanding principal balance of sold retail finance
receivables totaled $4,101.8 and $2,581.5 million at June 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 $2,385.0
million at June 30, 2003 and December 31, 2002. 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:
June 30, December 31,
2003 2002
(unaudited)
(in
thousands)
Subordinated interests in securitization trusts $ 486,712 $ 366,102
Allowance for estimated credit losses on sold receivables (33,499) (21,766)
Total $ 453,213 $ 344,336
Note 4. Investment in Operating Leases, Net
Investments in operating leases, including unamortized deferred lease
origination costs, were as follows:
June 30, December 31,
2003 2002
(unaudited)
(in thousands)
Vehicles and other equipment, at cost $ 6,616,342 $ 6,393,764
Accumulated depreciation (1,138,378) (1,224,665)
Investment in operating leases, net $ 5,477,964 $ 5,169,099
Note 5. Lines of Credit With Banks
Established committed revolving lines of credit with banks totaled $1.25 billion
at June 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
June 30, 2003 June 30, December 31,
Weighted 2003 2002
Average (unaudited)
Interest Rate (in thousands)
Short-term notes
Domestic 3.393% $ 2,191,324 $ 2,657,598
Foreign1 3.485% 68,302 87,113
Total principal amount 2,259,626 2,744,711
Unamortized discount (9,162) (8,503)
Total 2,250,464 2,736,208
Bank loans and overdrafts 5.000% 1,512 20,770
Other notes and debentures payable within one year
Domestic 5.535% 3,038,496 2,799,445
Foreign2 3.407% 509,430 838,180
Total 3,547,926 3,637,625
Total payable within one year $ 5,799,902 $ 6,394,603
This debt, guaranteed by General Motors Acceptance Corporation, is unsecured.
1Denominated in U.S. dollars
2Denominated in Euro, British Pounds and Norwegian Krone
Note 7. Debt Payable After One Year
Denominated in
Contract Foreign Currency June 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% 100,000 100,000
September, 2004 1.480% Y 1,000 11,331 13,286
September, 2004 6.250% 100,000 100,000
December, 2004 6.500% 100,000 100,000
January, 2005 7.000% USD 200 271,020 315,640
February, 2005 (1) Y 6,000 67,988 79,721
February, 2005 8.250% NZD 100 78,765 82,746
February, 2005 (2) USD 30 40,653 47,346
March, 2005 7.000% 100,000 100,000
March, 2005 7.750% USD 250 338,774 394,550
April, 2005 (3) Euro 26 39,635 42,246
April, 2005 7.000% CZK 1,000 49,196 52,458
April, 2005 12.250% PLN 100 34,689 41,233
July, 2005 5.250% DKK 400 83,494 88,979
October, 2005 7.500% NZD 100 78,765 82,745
November, 2005 6.125% DKK 400 83,493 88,979
December, 2005 6.625% 100,000 100,000
February, 2006 6.125% DKK 600 125,240 133,469
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 83,494 88,979
February, 2008 6.000% DKK 500 104,367 111,224
May, 2008 7.000% 10,000 -
June, 2008 5.825% Euro 50 80,325 -
June, 2008 5.665% Euro 25 40,082 -
Notes with original maturities up to ten years with a weighted average interest
rate at
June 30, 2003 of 6.09% 7,152,124 6,527,544
$ 9,573,435 $ 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
Note 8. Other Income
Details of other income were as follows:
For the Six Months Ended June 30, For the Quarter Ended June 30,
2003 2002 2003 2002
(unaudited) (unaudited)
( in thousands) ( in thousands)
Automotive receivable $ 104,707 $ 79,897 $ 57,514 $ 49,727
securitizations
Service fee revenue from GMCL 27,705 45,947 13,498 21,116
Other 13,867 6,823 7,506 2,823
Total other income $ 146,279 $ 132,667 $ 78,518 $ 73,666
Note 9. Shareholder's Equity
There have been no changes in authorized or issued share capital as at June 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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