The following table compares our forecast of Consumer Loan collection rates as of March 31, 2023 with the forecasts at the time of assignment, for Dealer Loans and Purchased Loans separately: | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------|-------------------------------------------------------|---------------------------------------------------------|----------|--------------------------------------------------|------------------------------------------------------------- ...

No single Dealer's Loans receivable balance accounted for more than 10% of total Loans receivable balance as of December 31, 2022 or 2021. Regulation 11 • On May 7, 2019, we received a subpoena from the Consumer Frauds and Protection Bureau of the Office of the New York State Attorney General, relating to the Company's origination and collection policies and procedures in the state of New York. On July 30, 2020, we received two additional subpoenas from the Office of the New York State Attorney General, bot ...

Financial Data and Key Metrics Changes - Adjusted net income decreased by 26.6% from Q4 2021 to $156 million [33] - Adjusted earnings per share decreased by 17.7% from Q4 2021 to $11.74 [33] - Unit and dollar volumes grew by 25.6% and 26.2%, respectively, compared to Q4 2021 [42] Business Line Data and Key Metrics Changes - The provision expense for new loans was $60 million in Q4, which is lower than the previous quarter [4] - Forecasted collection rates for loans originated in 2021 and 2022 decreased, leading to a decline in forecasted net cash flows from the loan portfolio by $41 million or 0.5% [42] Market Data and Key Metrics Changes - The competitive environment has improved, with a more constructive market tone observed in January [7][38] - Funding markets for subprime ABS have shown signs of recovery, with spreads lower than late last year [5][6] Company Strategy and Development Direction - The company intends to tap the ABS market at the appropriate time, leveraging its strong liquidity position with $1.6 billion in unused availability at committed revolving credit facilities [10] - The company emphasizes maintaining a significant margin of safety in loan pricing to address uncertainties in the market [63] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation and declining vehicle values have impacted loan performance, which has been worse than expected over the last few quarters [48] - The company is cautious about the future, acknowledging that used car prices remain elevated and the market is not yet stabilized [62] Other Important Information - The company disagrees with the allegations in the pending lawsuit and intends to vigorously defend itself [12][14] - The company has been proactive in adjusting pricing and risk assessments to maintain profitability amid economic uncertainties [65] Q&A Session Summary Question: What is the outlook for the competitive environment? - Management indicated that the competitive environment could become more intense if funding markets remain constructive [7] Question: Why not tap the ABS market given the origination growth? - Management stated they intend to tap the ABS market but currently have a strong liquidity position [10] Question: What are the implications of the lawsuit on accessing the securitization market? - Management confirmed that there is nothing in the lawsuit that would prohibit them from accessing the securitization market [22] Question: How does the company view the impact of inflation and vehicle values on loan performance? - Management believes inflation and declining vehicle values are primary factors affecting loan performance [48] Question: What adjustments are being made to pricing and risk assessments? - Management is adjusting pricing and maintaining margins to protect profitability amid economic changes [65]

Credit Acceptance Corporation (NASDAQ:CACC) Q3 2022 Earnings Conference Call November 1, 2022 5:00 PM ET Company Participants Doug Busk - Chief Treasury Officer Conference Call Participants Moshe Orenbuch - Credit Suisse John Rowan - Janney Montgomery Scott Rob Wildhack - Autonomous Research Jason Hahn - Principal Global Investors Operator Good day, everyone, and welcome to Credit Acceptance Corporation Third Quarter 2022 Earnings Call. Today's call is being recorded. A webcast and transcript of today's ear ...

Financial Performance - For the three months ended September 30, 2022, consolidated net income was $86.8 million, or $6.49 per diluted share, a decrease from $250.0 million, or $15.79 per diluted share, for the same period in 2021[226] - For the nine months ended September 30, 2022, consolidated net income was $408.5 million, or $29.74 per diluted share, down from $740.7 million, or $44.73 per diluted share, for the same period in 2021[227] - Net income for the three months ended September 30, 2022, was $86.8 million, down 65.3% from $250.0 million in the same period last year[259] - Net income for the nine months ended September 30, 2022, was $408.5 million, down $332.2 million or -44.8% from $740.7 million in 2021[270] - Total revenue for the three months ended September 30, 2022, was $460.3 million, a decrease of 2.1% from $470.1 million in 2021[259] - Total revenue for the nine months ended September 30, 2022, was $1,373.4 million, a decrease of $19.4 million or -1.4% compared to $1,392.8 million in 2021[270] Consumer Loan Performance - Consumer Loan assignment volume grew, with unit and dollar volumes increasing by 29.3% and 32.1%, respectively, compared to the third quarter of 2021[226] - The average Consumer Loan assignment for 2022 was $27,197, with an average advance of $12,938 and an initial loan term of 59 months[235] - The company experienced a decline in Consumer Loan assignment unit volume of 0.4% for the nine months ended September 30, 2022, while dollar volume grew by 11.5%[227] - Forecasted profitability per Consumer Loan assignment significantly exceeded initial estimates for loans assigned in 2018 through 2020[226] - Consumer Loan unit volume for the three months ended September 30, 2022, was 71,937, a 29.3% increase from 55,620 in 2021[252] - Consumer Loan unit volume from new active Dealers rose to 2,522, a 70.9% increase compared to 1,476 in the prior year[253] Collection Rates and Forecasts - Forecasted collection rates for Consumer Loans assigned in 2022 were 66.5% as of September 30, 2022, down from an initial forecast of 67.4%[231] - The forecasted collection rate for Consumer Loans in 2022 is 66.5%, with an advance rate of 47.6% and a spread of 18.9%[238] - The spread between the forecasted collection rate and the advance rate has ranged from 18.9% to 25.8% over the last 10 years, with a decrease from 2021 to 2022 primarily due to lower performance of 2022 Consumer Loans[239] - The forecasted collection rates for Dealer Loans and Purchased Loans as of September 30, 2022, were 66.1% and 67.3%, respectively, with corresponding advance rates of 46.5% and 50.1%[243] - The risk of a material change in the forecasted collection rate declines as Consumer Loans age, with over 90% of expected collections realized for loans from 2018 and prior[238] Expenses and Provisions - Total costs and expenses for the three months ended September 30, 2022, were $338.2 million, a significant increase of 145.3% from $137.9 million in 2021[259] - Provision for credit losses increased by $188.6 million, reflecting changes in forecasted credit losses[263] - The total provision for credit losses reached $351.1 million, reflecting an increase of $368.6 million primarily due to forecast changes[275] - Provision for credit losses for new Consumer Loan assignments increased to $283.5 million in 2022 from $298.9 million in 2021, a change of $(15.4) million[276] - Operating expenses increased by $43.2 million or 15.5%, primarily due to a $45.8 million increase in salaries and wages[274] Debt and Financing - The funded debt to equity ratio was 2.9 to 1 as of September 30, 2022, indicating the company's strategy to maintain modest financial leverage[247] - Total balance sheet indebtedness increased to $4,625.9 million as of September 30, 2022, from $4,616.3 million as of December 31, 2021, primarily due to stock repurchases[289] - Scheduled principal debt maturities total $4,647.3 million as of September 30, 2022, with $1,608.8 million due in 2023 and $1,293.8 million due in 2024[290] - The company completed a $350.0 million Term ABS financing on June 16, 2022, with an expected annualized cost of approximately 5.4%[285] - The maturity of the revolving secured line of credit facility was extended from June 22, 2024, to June 22, 2025, with a net decrease in the facility amount from $435.0 million to $410.0 million[287] Operational Adjustments - The company is considering options to further reduce office space, which may include the sale of one or both of its buildings in Southfield, Michigan[281] - Management believes that cash flows from operations and various financing alternatives will provide sufficient financing for debt maturities and future operations[291] - The company had $1,171.1 million in unused and available lines of credit as of September 30, 2022[289] - The company removed the COVID forecast adjustment in Q1 2022, resulting in an increase of $149.5 million in forecasted net cash flows[294] - The implementation of enhanced forecasting methodology led to a total increase of $95.7 million in forecasted net cash flows[294]

Credit Acceptance Corporation (NASDAQ:CACC) Q2 2022 Earnings Conference Call August 1, 2022 5:00 PM ET Company Participants Doug Busk – Chief Treasurer Officer Jay Martin – Senior Vice President, Finance and Accounting Ken Booth – Chief Executive Officer Conference Call Participants Moshe Orenbuch – Credit Suisse Ray Cheesman – Anfield Capital Management John Hecht – Jefferies Diogo Vaz da Silva – PSquared Asset Management Robert Wildhack – Autonomous Research John Rowan – Janney Operator Good day, everyone ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-20202 CREDIT ACCEPTANCE CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-1999511 (State or other juri ...

Credit Acceptance Corporation (NASDAQ:CACC) Q1 2022 Earnings Conference Call May 2, 2022 5:00 PM ET Company Participants Doug Busk - Chief Treasury Officer Ken Booth - Chief Executive Officer Conference Call Participants Moshe Orenbuch - Credit Suisse Arjun Tuteja - Jarislowsky, Fraser Rob Wildhack - Autonomous Research Alexandra Villalobos - Jefferies Operator Good day, everyone and welcome to the Credit Acceptance Corporation’s First Quarter 2022 Earnings Call. Today’s call is being recorded. A webcast an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-20202 CREDIT ACCEPTANCE CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-1999511 (State or other jur ...

_________________________________________________________________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ________ Commission file number 000-20202 ...