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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF
- --- 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998, OR
TRANSITION REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF
- --- 1934 FOR THE TRANSITION PERIOD FROM ________________ TO_______________
Commission file number 1-3754
------
GENERAL MOTORS ACCEPTANCE CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 38-0572512
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3044 WEST GRAND BOULEVARD, DETROIT, MICHIGAN 48202
- -------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-556-5000
------------
The registrant meets the conditions set forth in General Instruction H(1) (a)
and (b) of Form 10-Q and is therefore filing this Form with the reduced
disclosure format.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of the Securities Exchange Act of 1934 during the
preceding 12 months, and (2) has been subject to such filing requirements for
the past 90 days. Yes X . No ___.
As of March 31, 1998, there were outstanding 10 shares of the issuer's common
stock.
DOCUMENTS INCORPORATED BY REFERENCE
None
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<PAGE>
This quarterly report, filed pursuant to Rule 13a-13 of the General Rules and
Regulations under the Securities Exchange Act of 1934, consists of the following
information as specified in Form 10-Q:
PART 1. FINANCIAL INFORMATION
The required information is given as to the registrant, General Motors
Acceptance Corporation and subsidiaries (the "Company" or "GMAC").
ITEM 1. FINANCIAL STATEMENTS.
In the opinion of management, the interim consolidated financial
statements reflect all adjustments, consisting of only normal recurring
items which are necessary for a fair presentation of the results for
the interim periods presented. The results for interim periods are
unaudited and are not necessarily indicative of results which may be
expected for any other interim period or for the full year. These
financial statements should be read in conjunction with the
consolidated financial statements, the significant accounting policies,
and the other notes to the consolidated financial statements included
in the Company's 1997 Annual Report to the Securities and Exchange
Commission on Form 10-K.
The Financial Statements described below are submitted herein as
Exhibit 20.
1. Consolidated Balance Sheet, March 31, 1998, December 31, 1997 and
March 31, 1997.
2. Consolidated Statement of Income, Net Income Retained for Use in
the Business and Comprehensive Income for the three months ended
March 31, 1998 and 1997.
3. Consolidated Statement of Cash Flows for the three months ended
March 31, 1998 and 1997.
4. Notes to Consolidated Financial Statements.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EARNINGS
Consolidated net income for the quarter decreased by 6% from the comparable
prior year period.
<TABLE>
<CAPTION>
(in millions of dollars, after tax) Three Months Ended March 31,
----------------------------
1998 1997
------ ------
<S> <C> <C>
Automotive Financing Operations $246.6 $257.0
Insurance Operations * 79.7 78.4
Mortgage Operations** 23.0 36.6
------ ------
Consolidated Net Income $349.3 $372.0
====== ======
* GMAC Insurance Holdings, Inc. (GMACI)
** GMAC Mortgage Group, Inc. (GMACMG)
Consolidated Return on Average Equity 15.7% 17.8%
</TABLE>
The 4% decline in net income from automotive financing operations during the
first quarter of 1998, compared to the same period in 1997, can be attributed to
reduced net financing margins partially offset by a lower effective income tax
rate and a decrease in provisions for credit losses.
Earnings from insurance operations increased by 2% when comparing first quarter
1998 with the same period during 1997. Improved underwriting results was the
primary contributor to the increase, partially offset by lower capital gains.
Net income from mortgage operations for the three month period ended March 31,
1998, was 37% lower than the same three month period in 1997. Earnings were
lower primarily due to the effects of accelerated prepayment experience on first
and second mortgages, resulting from lower interest rates.
UNITED STATES NEW PASSENGER CAR AND TRUCK DELIVERIES
During the first quarter of 1998, deliveries of new General Motors ("GM")
vehicles in the U.S. were substantially unchanged compared to the same period in
1997.
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1998 1997
---- ----
(in millions of units)
<S> <C> <C>
Industry 3.6 3.7
General Motors 1.1 1.1
New GM Vehicle Deliveries Financed by GMAC
Retail (Installment Sale Contracts and
Operating Leases) 43.4% 32.1%
Fleet Transactions (Lease Financing) 1.9% 4.2%
Total 34.5% 26.2%
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
FINANCING VOLUME
New vehicle deliveries financed during the three months ended March 31, 1998 and
1997 are summarized below:
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1998 1997
---- ----
(in thousands of units)
UNITED STATES
<S> <C> <C>
Retail installment sale contracts 233 206
Operating leases 142 82
Leasing 6 12
--- ---
New deliveries financed 381 300
=== ===
OTHER COUNTRIES
Retail installment sale contracts 108 81
Operating leases 55 64
Leasing 20 18
--- ---
New deliveries financed 183 163
=== ===
WORLDWIDE
Retail installment sale contracts 341 287
Operating leases 197 146
Leasing 26 30
--- ---
New deliveries financed 564 463
=== ===
</TABLE>
During the first quarter of 1998, the Company increased its financing of new
vehicles in the U.S. by 27% over the comparable period in 1997 principally as a
result of increased retail and operating lease incentive programs sponsored by
GM. Outside of the U.S., retail financing levels in Canada increased by 66% over
the same period in 1997, primarily as a result of additional GM sponsored retail
incentive programs. Growth in European and Latin American retail financing
portfolios during the first quarter of 1998, compared to the same period in
1997, also contributed to the 22% worldwide gain in financing volume.
GMAC also provides wholesale financing for GM and other dealers' new and used
vehicle inventories. In the United States, inventory financing was provided for
725,000 and 841,000 new GM vehicles, representing 62.8% and 67.9% of all GM
sales to dealers during the first quarter of 1998 and 1997, respectively.
Increased competitive market conditions led to the decline in wholesale
penetration levels.
INCOME AND EXPENSES
Automotive financing revenue totaled $3,106.8 million in the first quarter of
1998, a decrease of $67.9 million compared with the first quarter of 1997.
Reduced average outstanding automotive receivable balances resulting from
increased sales of receivables activity during 1997 was the leading factor in
the decline in total finance revenue.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
The Company's worldwide cost of borrowing for the first quarter of 1998 averaged
6.09%, a decrease of 18 basis points from the first quarter of 1997. Total
borrowing costs for U.S. operations averaged 6.08% for the first quarter of 1998
compared with 6.31% for the same period in 1997. The decreases in U.S. and
worldwide borrowing costs are attributable to lower long-term interest rates and
a greater proportion of floating rate debt compared to fixed rate debt.
Insurance premiums earned, mortgage revenue and other income totaled $1,219.2
million for the three months ended March 31, 1998, a $287.0 million increase
over the comparable 1997 period. The improvement is primarily attributable to
higher insurance premiums and investment income resulting from the acquisition
of Integon by GMACI in October 1997, as well as higher mortgage investment
income, partially offset by lower capital gains for insurance operations.
Consolidated salaries and other operating expenses totaled $788.2 million and
$694.2 million for the respective quarters ended March 31, 1998 and 1997. The
increase is mainly attributable to the acquisition of Integon by GMACI and
continued growth at GMACMG.
Annualized net retail losses were 1.03% of total average serviced automotive
receivables during the first quarter of 1998, compared to 1.41% for the same
period last year. The provision for credit losses totaled $107.2 million and
$129.9 million for the three month periods ended March 31, 1998 and 1997,
respectively. The decline in the provision is primarily due to lower credit
losses resulting from tightened credit standards.
The effective income tax rate for the first quarter of 1998 was 32.1%, compared
to 41.2% and 41.0% at December 31, 1997 and March 31, 1997, respectively. The
decrease in the effective tax rate can be attributed to lower U.S. and foreign
taxes assessed on foreign source income and a favorable change resulting from
periodic assessments of state and local income tax accruals.
INSURANCE OPERATIONS
Net premiums earned by GMACI and its subsidiaries totaled $471.0 million and
$305.5 million for the three month periods ended March 31, 1998 and 1997,
respectively. Pre-tax capital gains at GMACI totaled $49.9 million for the
quarter ended March 31, 1998 compared to $68.8 million for the quarter ended
March 31, 1997. Insurance losses and loss adjustment expenses totaled $353.0
million and $228.3 million during the same comparable periods. The increases in
net premiums earned and losses are primarily attributable to the inclusion of
Integon's non-standard automobile operations since its acquisition in October
1997. The decline in capital gains is due to additional diversification of
GMACI's investment portfolio during 1997 which resulted in a higher
concentration of gains in the first quarter of 1997 compared to the same period
in 1998.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
MORTGAGE OPERATIONS
During the first quarter of 1998, GMACMG loan origination, mortgage servicing
acquisitions and correspondent loan volume totaled $16.8 billion, an increase of
$9.3 billion compared with the first quarter of 1997. Reflecting sustained
growth over the past twelve months, the combined GMACMG servicing portfolio,
excluding GMAC term loans to dealers, totaled $147.7 billion at March 31, 1998
compared with the $141.2 billion and $110.7 billion serviced at December 31 and
March 31, 1997, respectively.
On April 2, 1998, GMAC Mortgage Corporation announced that it entered into a
letter of intent to acquire a $28.1 billion mortgage servicing portfolio and
related servicing assets and subservice an additional $6.4 billion in bank-owned
loans of Wells Fargo Bank, N.A. The transaction is expected to close during the
second quarter of 1998.
FINANCIAL CONDITION AND LIQUIDITY
At March 31, 1998, the Company's owned assets and serviced automotive
receivables totaled $125.6 billion, which was $4.4 billion and $16.2 billion
higher than December 31 and March 31, 1997, respectively. Comparing the first
quarter of 1998 to the same period in 1997, the higher balances can be
attributed to increases in serviced retail and wholesale receivables,
investments in securities, real estate mortgages, operating lease assets and
receivables due from General Motors Corporation.
Additionally, the Company's non-prime financing subsidiary, Nuvell Financial
Services Corporation, serviced $1.9 billion in mortgage and other non-automotive
receivables at March 31, 1998, which is $0.3 billion less than the $2.2 billion
serviced at December 31, 1997.
Earning assets totaled $109.5 billion at March 31, 1998 compared to $104.5
billion and $99.5 billion at December 31 and March 31, 1997, respectively. The
increase since year-end 1997 is primarily attributable to higher outstanding
balances in retail and wholesale finance receivables as well as receivables due
from General Motors Corporation.
Finance receivables serviced by the Company, including sold receivables, totaled
$76.0 billion, $73.4 billion and $71.2 billion at March 31, 1998, December 31,
1997 and March 31, 1997, respectively. On-balance sheet consolidated finance
receivables at March 31, 1998 totaled $64.6 billion, 7% and 1% above December 31
and March 31, 1997, respectively. The increases from the first quarter of 1997
and year-end 1997 are attributable to increased retail incentive programs
sponsored by GM in the U.S. and Canada.
Investment in operating lease assets, net of accumulated depreciation, totaled
$26.2 billion at March 31, 1998, compared to $25.8 billion at year-end 1997, and
$24.6 billion at March 31, 1997. The increase in balances from the quarters
ended March 31, 1997 to March 31, 1998 can be attributed to additional lease
incentive programs sponsored by GM during the first quarter of 1998.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Investments in securities at March 31, 1998 totaled $7.7 billion, compared with
$7.9 billion and $5.2 billion at December 31 and March 31, 1997, respectively.
The $2.5 billion increase in the portfolio at the end of the first quarter of
1998 over the same period in 1997 is attributable to the acquisition of Integon
by GMACI and continued growth at GMACMG.
The Company's due and deferred from receivable sales (net) totaled $258.6
million at March 31, 1998, compared with $690.5 million and $585.3 million at
December 31 and March 31, 1997, respectively. The significant decline in the
March 31, 1998 balance was primarily due to the upgrade in GMAC's short-term
debt rating by Standard & Poor's Ratings Group in January 1998, which eliminated
the requirement to segregate and hold in trust the collections on sold
receivables.
As of March 31, 1998, GMAC's total borrowings were $89.6 billion, compared with
$86.7 billion and $81.3 billion at December 31 and March 31, 1997, respectively.
The higher debt balances were used to fund increased asset levels. The Company's
ratio of debt to total stockholder's equity at March 31, 1998, December 31, 1997
and March 31, 1997 was 9.9:1.
The Company and its subsidiaries maintain substantial bank lines of credit which
totaled $40.0 billion at March 31, 1998, compared to $39.8 billion at year-end
1997 and $40.0 billion at March 31, 1997. The unused portion of these credit
lines totaled $31.1 billion at March 31, 1998, $0.7 billion higher than December
31, 1997, and $0.2 billion lower than March 31, 1997. Included in the unused
credit lines are a committed U.S. revolving credit facility of $10 billion which
serves primarily as back-up for GMAC's unsecured commercial paper program and an
$11.5 billion U.S. asset-backed commercial paper liquidity and receivables
credit facility for New Center Asset Trust (NCAT), a non-consolidated limited
purpose business trust established to issue asset-backed commercial paper.
Effective April 23, 1998, Moody's Investors Service increased the rating of the
Company's senior debt from A3 to A2. The increase in the rating is closely
related to the improved financial condition of GM, which also received the same
upgrade of its senior debt.
As discussed in the Company's 1997 Annual Report on Form 10-K, the Company
utilizes a variety of interest rate and currency derivative instruments in
managing its interest rate and foreign exchange exposures. The notional amount
of derivatives increased from $56.4 billion at December 31, 1997 to $69.6
billion at March 31, 1998. The change is primarily attributable to an increase
in financial instruments associated with mortgage related securities and
mortgage related commitments.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONCLUDED)
ACCOUNTING STANDARDS
In February 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 132, Employers'
Disclosures about Pensions and Other Postretirement Benefits. SFAS No. 132
requires an entity to disclose certain information about pensions and other
postretirement benefits. The effects of adopting these new accounting standards
will not be material to the Company's consolidated financial statements, when
adopted for this fiscal year, as required.
In the first quarter of 1998, the AICPA's Accounting Standards Executive
Committee issued Statement of Position (SOP) 98-1, Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use. SOP 98-1 provides
guidance on the capitalization of software for internal use. GMAC will adopt SOP
98-1 on January 1, 1999, as required. Management is currently assessing the
impact of this SOP on the financial statements of the Company.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company did not become a party to any material pending legal proceedings
during the quarter ended March 31, 1998, or prior to the filing of this report.
ITEM 5. OTHER INFORMATION
<TABLE>
<CAPTION>
RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended
March 31,
------------------
<S> <C> <C>
1998 1997
---- ----
1.37 1.49
</TABLE>
The ratio of earnings to fixed charges has been computed by dividing earnings
before income taxes and fixed charges by the fixed charges. This ratio includes
the earnings and fixed charges of the Company and its consolidated subsidiaries;
fixed charges consist of interest, debt discount and expense and the portion of
rentals for real and personal properties in an amount deemed to be
representative of the interest factor.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS:
20. General Motors Acceptance Corporation and Subsidiaries
Consolidated Financial Statements for the three months
ended March 31, 1998.
(b) REPORTS ON FORM 8-K:
The Company filed a Form 8-K on January 5, 1998 to report the following
information:
Through December 31, 1997, GMAC was organized under Article XII of the
Banking Law of the State of New York. In response to a request from the
New York State Banking Department to Article XII investment companies
that they consider changing their corporate status, GMAC determined
that it did not have significant reasons to remain organized under
Article XII. Accordingly, GMAC merged on January 1, 1998 with its
wholly-owned Delaware subsidiary GMAC Financial Services Corporation.
The surviving corporation, renamed General Motors Acceptance
Corporation, is incorporated under the Delaware General Corporation Law
and has assumed all rights and obligations of the predecessor New York
corporation.
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (CONCLUDED)
(b) REPORTS ON FORM 8-K (concluded):
The Company filed a Form 8-K on January 28, 1998 to report the
following information:
On January 27, 1998, Standard & Poor's Ratings Group (S&P), raised the
credit ratings of the Company and its parent, General Motors
Corporation (GM).
The S&P rating of the Company's senior debt was upgraded from A- to A,
sixth highest among ten investment grade ratings available. The A
rating is assigned to bonds considered to have a strong capacity to pay
interest and repay principal.
The Company's commercial paper was upgraded from A-2 to A-1, the second
highest of four ratings, reflecting that the degree of safety regarding
timely payment is very strong for senior short-term debt obligations
and assured ability to access alternative sources of liquidity.
Additional repayment characteristics of debt issues receiving this
premium rating include leading market position in a well established
industry, high rates of return on funds employed, and broad margins in
earnings coverage of fixed financial charges.
The Company is pleased with the upgraded ratings as it expects to
benefit from increased competitiveness resulting from enhanced
financial flexibility and lower borrowing costs.
The Company filed a Form 8-K on April 27, 1998 to report the following
information:
On April 23, 1998, Moody's Investors Service, Inc. (Moody's), raised
certain credit ratings of the Company and its parent, General Motors
Corporation (GM).
The Moody's rating of the Company's senior debt was upgraded from A3
to A2, seventh and sixth highest among ten investment grade ratings
available, respectively. The A2 rating is assigned to the bonds
considered to have "upper medium grade" quality as they possess many
favorable investment attributes with security factors for principal and
interest considered to be adequate.
The Company's short term rating, which was upgraded to Prime-1 on May
30, 1995, remains unchanged.
The Company is pleased with the upgraded ratings as it expects to
benefit from enhanced financial flexibility and lower borrowing costs.
The Company is presently not under review by any of the nationally
recognized statistical rating agencies. Additional disclosures
regarding credit ratings are provided on pages 15 and 16 of the
Company's Annual Report on Form 10-K for the year ended December 31,
1997, filed with the Securities and Exchange Commission on March 17,
1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GENERAL MOTORS ACCEPTANCE CORPORATION
-------------------------------------
(Registrant)
S/ WILLIAM F. MUIR
-------------------------------------
Dated: May 5, 1998 William F. Muir, Executive Vice
----------- President and Principal Financial
Officer
S/ GERALD E. GROSS
------------------------------------
Dated: May 5, 1998 Gerald E. Gross, Comptroller and
----------- Principal Accounting Officer
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEET
Exhibit 20
Page 1 of 7
March 31, Dec. 31, March 31,
1998 1997 1997
---------- ---------- ----------
(in million of dollars)
<S> <C> <C> <C>
Cash and cash equivalents $ 845.8 $ 759.2 $ 666.6
EARNING ASSETS
Investments in securities 7,701.9 7,896.1 5,153.5
Finance receivables, net (Note 1) 63,711.7 59,630.8 62,850.5
Investment in operating leases, net 26,164.1 25,849.1 24,623.9
Notes receivable from General Motors Corporation 2,077.1 551.7 429.2
Real estate mortgages - held for sale 4,903.2 5,119.5 2,758.7
- held for investment 675.6 713.0 587.8
- lending receivables 2,196.1 2,222.9 1,288.3
Due and deferred from receivable sales, net 258.6 690.5 585.3
Other 1,803.3 1,807.6 1,221.5
---------- --------- ----------
Total earning assets 109,491.6 104,481.2 99,498.7
Nonearning assets 4,362.7 4,078.9 2,046.3
---------- --------- ----------
TOTAL ASSETS $114,700.1 $109,319.3 $102,211.6
========== ========== ==========
Notes, loans and debentures payable within
one year (Note 2) $ 51,646.9 $ 50,399.5 $ 47,822.5
---------- ---------- ----------
ACCOUNTS PAYABLE AND OTHER LIABILITIES
General Motors Corporation and affiliated companies 2,017.9 698.9 1,265.4
Interest 1,358.4 1,101.8 1,374.7
Insurance losses and loss expenses 2,085.2 2,125.3 1,590.5
Unearned insurance premiums 1,836.3 1,804.1 1,434.3
Deferred income taxes 2,597.7 2,577.1 1,973.4
United States and foreign income and other taxes
payable 377.8 321.2 295.7
Other postretirement benefits 669.3 652.6 640.3
Other 5,066.5 4,607.5 4,166.4
---------- ---------- ----------
Total accounts payable and other liabilities 16,009.1 13,888.5 12,740.7
---------- ---------- ----------
Notes, loans and debentures payable after one year
(Note 3) 37,981.2 36,275.2 33,460.8
---------- ---------- ----------
Common stock ($.10 par value, authorized 10,000
shares, outstanding 10 shares) and paid-in capital 2,200.0 2,200.0 2,200.0
Net income retained for use in the business 6,600.6 6,326.3 5,797.2
Net unrealized gains on securities 421.9 368.5 223.7
Unrealized accumulated foreign currency translation
adjustment (159.6) (138.7) (33.3)
Accumulated other comprehensive income 262.3 229.8 190.4
---------- ---------- ----------
Total stockholder's equity 9,062.9 8,756.1 8,187.6
---------- ---------- ----------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $114,700.1 $109,319.3 $102,211.6
========== ========== ==========
Certain amounts for 1997 have been reclassified to conform with 1998
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF INCOME,
NET INCOME RETAINED FOR USE IN THE BUSINESS AND
COMPREHENSIVE INCOME
Exhibit 20
Page 2 of 7
Three Months Ended
March 31,
-------------------
1998 1997
------ ------
(in millions of dollars)
FINANCING REVENUE
<S> <C> <C>
Retail and lease financing $ 902.0 $ 940.0
Operating leases 1,784.7 1,801.2
Wholesale and term loans 420.1 433.5
-------- --------
Total automotive financing revenue 3,106.8 3,174.7
Interest and discount 1,384.5 1,265.8
Depreciation on operating leases 1,178.3 1,158.2
-------- --------
Net automotive financing revenue 544.0 750.7
Insurance premiums earned 471.0 305.5
Mortgage revenue 417.4 301.1
Other income 330.8 325.6
-------- --------
Net financing revenue and other 1,763.2 1,682.9
EXPENSES
Salaries and benefits 289.9 265.5
Other operating expenses 498.3 428.7
Insurance losses and loss adjustment expenses 353.0 228.3
Provision for credit losses 107.2 129.9
Total expenses 1,248.4 1,052.4
Income before income taxes 514.8 630.5
United States, foreign and other income taxes 165.5 258.5
-------- --------
NET INCOME 349.3 372.0
Net income retained for use in the business
at beginning of the period 6,326.3 5,775.2
-------- --------
Total 6,675.6 6,147.2
Cash dividends 75.0 350.0
-------- --------
NET INCOME RETAINED FOR USE IN THE BUSINESS
AT END OF THE PERIOD $6,600.6 $5,797.2
======== ========
TOTAL COMPREHENSIVE INCOME $ 381.8 $ 270.0
======== ========
Certain amounts for 1997 have been reclassified to conform with 1998
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
Exhibit 20
Page 3 of 7
Three Months Ended
March 31,
------------------------
1998 1997
------ ------
(in millions of dollars)
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income $ 349.3 $ 372.0
Depreciation 1,195.7 1,169.6
Provision for credit losses 107.2 129.9
Mortgage loans - originations/purchases (11,542.2) (4,553.4)
- proceeds on sale 11,758.5 4,579.7
Mortgage related securities held for trading - acquisitions (529.9) (319.8)
- liquidations 342.0 142.1
Changes in the following items:
Due to General Motors Corporation and affiliated companies 1,323.4 638.4
Taxes payable and deferred 107.6 69.0
Interest payable 256.3 313.2
Other assets (233.6) 87.2
Other liabilities 391.0 194.3
Other 51.6 95.0
---------- ----------
Net cash provided by operating activities 3,576.9 2,917.2
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Finance receivables - acquisitions (41,799.5) (37,474.9)
- liquidations 32,544.1 26,847.9
Notes receivable from General Motors Corporation (1,525.4) (238.7)
Operating leases - acquisitions (3,713.0) (4,174.8)
- liquidations 2,108.1 3,101.4
Investments in securities - acquisitions (3,200.2) (5,690.7)
- liquidations 3,606.2 5,472.4
Proceeds from sales of receivables - wholesale 5,143.4 5,537.9
Due and deferred from receivable sales 431.9 629.3
Other 9.6 185.7
---------- ----------
Net cash used in investing activities (6,394.8) (5,804.5)
----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 5,515.2 4,054.5
Principal payments on long-term debt (3,507.9) (3,298.5)
Change in short-term debt, net 969.7 2,402.9
Dividends paid (75.0) (350.0)
----------- ----------
Net cash provided by financing activities 2,902.0 2,808.9
----------- ----------
Effect of exchange rate changes on cash and cash equivalents 2.5 2.7
Net increase/(decrease) in cash and cash equivalents 86.6 (75.7)
Cash and cash equivalents at the beginning of the period 759.2 742.3
---------- ----------
Cash and cash equivalents at the end of the period $ 845.8 $ 666.6
========== ==========
Certain amounts for 1997 have been reclassified to conform with 1998
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Exhibit 20
Page 4 of 7
NOTE 1. FINANCE RECEIVABLES
The composition of finance receivables outstanding at March 31, 1998, December
31, 1997 and March 31, 1997 is summarized as follows:
March 31, Dec. 31, March 31,
1998 1997 1997
---------- ---------- ----------
(in millions of dollars)
United States
<S> <C> <C> <C>
Retail $ 28,440.7 $ 26,570.2 $ 27,674.9
Wholesale 17,054.5 15,212.7 17,600.3
Leasing and lease financing 658.4 716.2 1,129.2
Term loans to dealers and others 3,738.8 3,506.6 3,344.5
----------- ----------- ----------
Total United States 49,892.4 46,005.7 49,748.9
----------- ----------- ----------
Europe
Retail 4,967.9 4,944.2 5,329.9
Wholesale 3,130.4 3,828.5 3,397.0
Leasing and lease financing 456.9 578.1 532.8
Term loans to dealers and others 318.3 279.7 237.5
----------- ----------- ----------
Total Europe 8,873.5 9,630.5 9,497.2
----------- ----------- ----------
Canada
Retail 1,462.8 1,088.5 839.2
Wholesale 2,965.1 2,245.9 2,172.0
Leasing and lease financing 944.8 962.3 853.6
Term loans to dealers and others 175.5 215.6 162.8
----------- ----------- ----------
Total Canada 5,548.2 4,512.3 4,027.6
----------- ----------- ----------
Other Countries
Retail 2,138.5 2,026.0 2,284.6
Wholesale 1,063.9 1,048.0 959.7
Leasing and lease financing 535.6 523.7 621.0
Term loans to dealers and others 129.6 124.2 183.7
----------- ----------- ----------
Total Other Countries 3,867.6 3,721.9 4,049.0
----------- ----------- ----------
Total finance receivables 68,181.7 63,870.4 67,322.7
----------- ----------- ----------
Deductions
Unearned income 3,545.5 3,336.6 3,564.2
Allowance for credit losses 924.5 903.0 908.0
----------- ----------- ----------
Total deductions 4,470.0 4,239.6 4,472.2
----------- ----------- ----------
Finance receivables, net $ 63,711.7 $ 59,630.8 $ 62,850.5
=========== =========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Exhibit 20
Page 5 of 7
NOTE 2. NOTES, LOANS AND DEBENTURES PAYABLE WITHIN ONE YEAR
March 31, Dec. 31, March 31,
1998 1997 1997
---------- ---------- ----------
(in millions of dollars)
Short-term notes
<S> <C> <C> <C>
Commercial paper $ 28,703.5 $ 27,460.9 $ 25,323.1
Master notes 256.6 248.2 304.8
Demand notes 4,408.4 3,709.2 3,543.2
Other 780.3 869.3 863.9
---------- ---------- ----------
Total principal amount 34,148.8 32,287.6 30,035.0
Unamortized discount (167.3) (192.0) (183.7)
---------- ---------- ----------
Total 33,981.5 32,095.6 29,851.3
----------- ----------- ----------
Bank loans and overdrafts
United States 1,747.7 1,660.8 1,124.4
Other countries 6,010.7 6,850.1 6,342.3
----------- ----------- ----------
Total 7,758.4 8,510.9 7,466.7
----------- ----------- ----------
Other notes, loans and debentures
payable within one year
United States 8,626.9 8,869.2 9,726.8
Other countries 1,280.1 923.8 777.7
----------- ----------- ----------
Total 9,907.0 9,793.0 10,504.5
----------- ----------- ----------
Total payable within one year $ 51,646.9 $ 50,399.5 $ 47,822.5
=========== =========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Exhibit 20
Page 6 of 7
NOTE 3. NOTES, LOANS AND DEBENTURES PAYABLE AFTER ONE YEAR
Weighted average
interest rates at March 31, Dec. 31, March 31,
MATURITY March 31, 1998 1998 1997 1997
- ----------------------- ------------------ ---------- ---------- ----------
(in millions of dollars)
United States
<S> <C> <C> <C> <C>
1998 -- $ - $ - $ 5,049.8
1999 6.6% 5,656.3 8,479.7 5,988.6
2000 6.8% 5,630.4 4,567.7 3,960.5
2001 6.6% 5,262.4 4,534.8 3,158.8
2002 6.1% 6,620.9 6,329.1 3,511.8
2003 6.6% 3,884.6 2,602.8 1,670.0
2004 - 2008 6.6% 2,899.2 2,075.5 2,557.2
2009 - 2013 10.2% 1,215.4 1,215.4 1,215.4
2014 - 2018 10.3% 373.8 373.8 373.8
2019 - 2049 5.3% 75.0 75.0 75.0
----------- ----------- ----------
Total United States 31,618.0 30,253.8 27,560.9
Other countries
1998 - 2006 6.0% 7,058.3 6,715.2 6,634.8
---------- ---------- ----------
Total notes, loans and debentures 38,676.3 36,969.0 34,195.7
Unamortized discount (695.1) (693.8) (734.9)
---------- ---------- ----------
Total notes, loans and debentures payable
after one year $ 37,981.2 $ 36,275.2 $ 33,460.8
=========== =========== ==========
</TABLE>
<PAGE>
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Exhibit 20
Page 7 of 7
NOTE 4. SEGMENT INFORMATION
GMAC's reportable operating segments include GMAC North American Financing
Operations (GMAC-NAO), GMAC International Financing Operations (GMAC-IO),
Insurance Operations (GMACI) and Mortgage Operations (GMACMG). GMAC-NAO consists
of the United States and Canada, and GMAC-IO consists of all other countries and
Puerto Rico.
Financial results of GMAC's operating segments for the quarters ended March 31,
1998 and 1997 are summarized below:
<TABLE>
<CAPTION>
OPERATING SEGMENTS:
(in millions of dollars)
Eliminations/
GMAC-NAO GMAC-IO GMACI GMACMG RECLASSIFICATIONS TOTAL
-------- ------- ----- ------ ----------------- --------
March 31, 1998
- --------------
Net automotive
<S> <C> <C> <C> <C> <C> <C>
financing revenue $ 359.8 $ 203.0 $ 0.0 $ 0.0 $ (18.8) $ 544.0
Other revenue 329.5 6.9 613.7 253.1 16.0 1,219.2
Net income 190.2 56.4 79.7 23.0 0.0 349.3
March 31, 1997
- --------------
Net automotive
financing revenue $ 541.5 $ 212.7 $ 0.0 $ 0.0 $ (3.5) $ 750.7
Other revenue 262.1 4.4 444.4 221.4 (0.1) 932.2
Net income 199.8 57.2 78.4 36.6 0.0 372.0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This Schedule contains summary financial information extracted from the General
Motors Acceptance Corporation Form 10-Q for the period ending March 31, 1998
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000040729
<NAME> GMAC
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 846
<SECURITIES> 7702
<RECEIVABLES> 68182
<ALLOWANCES> 925
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 26164
<DEPRECIATION> 0
<TOTAL-ASSETS> 114700
<CURRENT-LIABILITIES> 59323
<BONDS> 37981
0
0
<COMMON> 2200
<OTHER-SE> 6863
<TOTAL-LIABILITY-AND-EQUITY> 114700
<SALES> 0
<TOTAL-REVENUES> 4326
<CGS> 0
<TOTAL-COSTS> 1531
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 107
<INTEREST-EXPENSE> 1385
<INCOME-PRETAX> 515
<INCOME-TAX> 166
<INCOME-CONTINUING> 349
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 349
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
