Group 1 - The company provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history [1][5] - Credit Acceptance Corporation has increased the amount of its asset-backed non-recourse secured financing from $200.0 million to $300.0 million, with the revolving period extended to June 15, 2027 [2][3] - The financing programs not only facilitate vehicle purchases for consumers but also help improve their credit scores, allowing them to access more traditional financing options in the future [5] Group 2 - Credit Acceptance Corporation is publicly traded on the Nasdaq Stock Market under the symbol CACC [5]

Core Insights - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history [1][5] - The company has increased its asset-backed non-recourse secured financing from $200 million to $300 million, extending the revolving period to June 15, 2027 [3][4] Financing Solutions - The financing programs are offered through a nationwide network of automobile dealers, allowing sales to consumers who otherwise could not obtain financing [1] - These programs also generate repeat and referral sales from customers who improve their credit scores and eventually qualify for traditional financing [5] Company Overview - Credit Acceptance Corporation is publicly traded on the Nasdaq Stock Market under the symbol CACC [5] - The company reports to three national credit reporting agencies, providing consumers with an opportunity to improve their credit scores [5]

Southfield, Michigan, June 20, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (the "Company", "Credit Acceptance", "we", "our", or "us") announced today the completion of a $550.0 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, we conveyed loans having a value of approximately $687.7 million to a wholly-owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes: have an expected av ...

Southfield, Michigan, June 20, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (the "Company", "Credit Acceptance", "we", "our", or "us") announced today the completion of a $550.0 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, we conveyed loans having a value of approximately $687.7 million to a wholly-owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes: The notes have not ...

Description of Credit Acceptance Corporation As of June 17, 2024, we had $66.8 million outstanding under the facility. Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Cre ...

As of June 17, 2024, we had $66.8 million outstanding under the facility. Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasd ...

Core Viewpoint - Credit Acceptance Corporation (CACC) is positioned for growth in auto loans, supported by increased dealer enrollments and a robust share buyback policy, although elevated expenses and concerns over credit quality and debt levels may impact profitability [1][7][10]. Financial Performance - CACC's revenues have shown a compound annual growth rate (CAGR) of 10.1% from 2016 to 2023, with continued growth expected in Q1 2024 [5]. - In Q1 2024, finance charges constituted 92.4% of total revenues, with projections indicating total GAAP revenues will rise by 9.5% in 2024, 6.3% in 2025, and 3.7% in 2026 [6]. Expenses and Profitability - The company has experienced a CAGR of 10.4% in operating expenses from 2017 to 2023, driven by increases in salaries, wages, and marketing expenses [8][11]. - Total expenses are projected to grow at a CAGR of 5.2% over the next three years [8]. Debt and Liquidity - As of March 31, 2024, CACC had total debt of $5.60 billion, significantly higher than cash and cash equivalents of $667.5 million, but maintains sufficient liquidity to meet near-term obligations [10]. Shareholder Returns - CACC prioritizes capital return through stock repurchases, having authorized an additional 2 million shares for buyback in August 2023, with 1.5 million shares remaining as of March 31, 2024 [7].

Credit Acceptance Corporation’s (CACC) first-quarter 2024 earnings of $5.08 per share missed the Zacks Consensus Estimate of $6.81. The bottom line reflects a 33.2% decline from the prior-year quarter. These figures include certain non-recurring items.Results were primarily hurt by an increase in operating expenses and higher provisions. Nevertheless, improvements in GAAP revenues and consumer loan assignment volumes were positives.Excluding non-recurring items, net income was $117.4 million or $9.28 per sh ...

For the quarter ended March 2024, Credit Acceptance (CACC) reported revenue of $508 million, up 11.9% over the same period last year. EPS came in at $5.08, compared to $7.61 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $495.27 million, representing a surprise of +2.57%. The company delivered an EPS surprise of -25.40%, with the consensus EPS estimate being $6.81.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Credit Acceptance Corporation (NASDAQ:CACC) Q1 2024 Earnings Conference Call April 29, 2024 5:00 PM ET Company Participants Jay Martin - Chief Financial Officer Ken Booth - Chief Executive Officer Douglas Busk - Chief Treasury Officer Conference Call Participants Rob Wildhack - Autonomous Research Ryan Shelley - Bank of America Operator Good day, everyone. And welcome to the Credit Acceptance Corporation First Quarter 2024 Earnings Call. Today’s call is being recorded. A webcast and transcript of today’s ea ...