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 ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) The company provides auto financing programs via a dealer network for consumers with limited or impaired credit histories - The company's business model focuses on financing programs for automobile dealers to sell vehicles to consumers with **sub-par credit histories**[10](index=10&type=chunk) - The company operates under two primary financing programs, with the **Portfolio Program accounting for 67.9% of unit volume** and **65.0% of dollar volume** in 2021[17](index=17&type=chunk) - The company faces **ongoing regulatory inquiries** from multiple state Attorneys General, the BCFP, and the DOJ regarding its business practices[72](index=72&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - In 2021, the company resolved regulatory matters with Massachusetts for a **$27.2 million settlement** and with Mississippi for a **$450,000** payment[70](index=70&type=chunk)[71](index=71&type=chunk) Consumer Loan Assignment Volume by FICO Score | Year | Percentage of volume with FICO® scores below 650 or no FICO® score | | :--- | :--- | | 2021 | 91.0% | | 2020 | 94.9% | | 2019 | 95.9% | Revenue Sources as a Percentage of Total Revenue | Revenue Source | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Finance charges | 93.9% | 93.6% | 92.0% | | Premiums earned | 3.2% | 3.4% | 3.4% | | Other income | 2.9% | 3.0% | 4.6% | Dealer Network Statistics | Year | Dealer Enrollments | Active Dealers | | :--- | :--- | :--- | | 2021 | 2,804 | 11,410 | | 2020 | 3,413 | 12,690 | | 2019 | 4,482 | 13,399 | [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces operational, macroeconomic, capital, technology, and significant legal and regulatory risks - The **COVID-19 pandemic** adversely affected business through supply chain disruptions and a significant decline in Consumer Loan assignments[89](index=89&type=chunk)[90](index=90&type=chunk) - A core risk is the inability to **accurately forecast future collections** from subprime consumer loans, which is critical for profitability[95](index=95&type=chunk) - The company faces **substantial competition** from larger entities with greater financial resources, including banks and captive finance affiliates[96](index=96&type=chunk) - Debt agreements contain **restrictive covenants** that limit financial flexibility, with breaches potentially leading to debt acceleration[121](index=121&type=chunk)[122](index=122&type=chunk) - The business is **highly dependent on its proprietary systems (CAPS)** and servicing platforms, making it vulnerable to technology failures and cyber attacks[140](index=140&type=chunk)[141](index=141&type=chunk) - The company is subject to numerous consumer claims, litigation, and regulatory investigations that could result in **substantial damages and fines**[152](index=152&type=chunk) - A small number of shareholders, including **Prescott General Partners (18.3%)**, can significantly influence shareholder-approved matters[117](index=117&type=chunk) [Unresolved Staff Comments](index=24&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[157](index=157&type=chunk) [Properties](index=24&type=section&id=Item%202.%20Properties) The company owns its Michigan headquarters and leases office space in Nevada - Owns two office buildings in Southfield, Michigan, serving as its headquarters[158](index=158&type=chunk) - Leases approximately **31,000 square feet** of office space in Henderson, Nevada, with the lease expiring in December 2022[159](index=159&type=chunk) [Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various legal and regulatory actions inherent to the consumer finance industry - The company is involved in various legal proceedings and regulatory investigations that could result in **substantial damages, fines, and penalties**[161](index=161&type=chunk) - For a detailed description of significant litigation, the report refers to **Note 16** of the consolidated financial statements[162](index=162&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[163](index=163&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock (CACC) trades on Nasdaq, and significant share repurchases were made in Q4 2021 - The company's common stock is traded on The Nasdaq Global Select Market under the symbol **'CACC'**[166](index=166&type=chunk) - The Board authorized repurchasing up to **two million shares** in September 2021, with **1,625,550 shares** remaining available for repurchase at year-end[174](index=174&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2021 | 271,908 | $603.33 | | Nov 2021 | 158,359 | $634.57 | | Dec 2021 | 176,042 | $643.61 | | **Total Q4** | **606,309** | **$623.19** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income rose significantly in 2021 due to lower credit loss provisions, despite a decline in new loan volume - The increase in 2021 net income was primarily due to a **decrease in provision for credit losses** and an increase in finance charges[178](index=178&type=chunk) - The company's critical accounting estimates involve a high degree of judgment, particularly for **Finance Charge Revenue & Allowance for Credit Losses**[227](index=227&type=chunk) - As of December 31, 2021, the company had total debt of **$4.6 billion** and unused/available lines of credit of **$1.5 billion**[262](index=262&type=chunk)[264](index=264&type=chunk) Consolidated Financial Highlights | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Net Income (in millions) | $958.3 | $421.0 | | Diluted EPS | $59.52 | $23.47 | | Unit Volume Change | -21.4% | -7.5% | | Dollar Volume Change | -13.0% | -3.5% | Change in Forecasted Net Cash Flows (in millions) | Year | Change in Forecasted Net Cash Flows | | :--- | :--- | | 2021 | $326.1 | | 2020 | $(46.3) | | 2019 | $14.6 | Results of Operations (in millions) | Line Item | 2021 | 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $1,856.0 | $1,669.3 | $186.7 | 11.2% | | Provision for credit losses | $8.4 | $556.9 | $(548.5) | -98.5% | | Total costs and expenses | $595.1 | $1,119.8 | $(524.7) | -46.9% | | Net income | $958.3 | $421.0 | $537.3 | 127.6% | [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on floating-rate debt, managed via interest rate caps - The company is primarily exposed to market risks from **movements in interest rates** on its floating-rate debt[267](index=267&type=chunk) - Interest rate risk is managed primarily by entering into **interest rate cap agreements** on certain financing facilities[268](index=268&type=chunk)[270](index=270&type=chunk) [Financial Statements and Supplementary Data](index=43&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited financial statements with an unqualified opinion and a critical audit matter on credit loss estimation - The independent auditor, Grant Thornton LLP, issued an **unqualified opinion** on the consolidated financial statements[280](index=280&type=chunk) - A **critical audit matter** was identified relating to the estimation of credit losses and finance charge revenue due to high subjectivity[284](index=284&type=chunk)[293](index=293&type=chunk) - The company adopted the **CECL accounting standard** on January 1, 2020, significantly changing credit loss recognition[352](index=352&type=chunk) Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Assets | $7,050.9 | $7,489.0 | | Loans receivable, net | $6,336.3 | $6,787.9 | | Total Liabilities | $5,226.7 | $5,186.5 | | Total Shareholders' Equity | $1,824.2 | $2,302.5 | Consolidated Income Statement Highlights (in millions) | Account | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Total revenue | $1,856.0 | $1,669.3 | $1,489.0 | | Provision for credit losses | $8.4 | $556.9 | $76.4 | | Net income | $958.3 | $421.0 | $656.1 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=96&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This section is not applicable to the company - Not applicable[559](index=559&type=chunk) [Controls and Procedures](index=96&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that disclosure and internal controls were effective as of year-end 2021 - Management concluded that **disclosure controls and procedures were effective** as of December 31, 2021[561](index=561&type=chunk) - Management's assessment concluded that **internal control over financial reporting was effective** as of December 31, 2021[566](index=566&type=chunk) - The independent auditor, Grant Thornton LLP, issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[570](index=570&type=chunk) [Other Information](index=98&type=section&id=Item%209B.%20Other%20Information) The company reports no other information in this section - None[577](index=577&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=98&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This section is not applicable to the company - Not applicable[578](index=578&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=98&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Required information is incorporated by reference from the company's 2022 Annual Meeting Proxy Statement - Information is incorporated by reference from the Proxy Statement[580](index=580&type=chunk) [Executive Compensation](index=98&type=section&id=Item%2011.%20Executive%20Compensation) Required information is incorporated by reference from the company's 2022 Annual Meeting Proxy Statement - Information is incorporated by reference from the Proxy Statement[581](index=581&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=98&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference, with details provided on the equity compensation plan Equity Compensation Plan Information as of December 31, 2021 | Plan Category | Number of shares to be issued upon exercise | Weighted-average exercise price of outstanding options | Number of shares remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plan approved by shareholders | 1,082,584 | $350.74 | 258,467 | [Certain Relationships and Related Transactions, and Director Independence](index=98&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Required information is incorporated by reference from the company's 2022 Annual Meeting Proxy Statement - Information is incorporated by reference from the Proxy Statement[585](index=585&type=chunk) [Principal Accounting Fees and Services](index=98&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Required information is incorporated by reference from the company's 2022 Annual Meeting Proxy Statement - Information is incorporated by reference from the Proxy Statement[586](index=586&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=99&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - Lists the consolidated financial statements and notes from Item 8 as part of the filing[589](index=589&type=chunk) - Provides a detailed Exhibit Index listing all documents filed with the report, such as debt agreements, bylaws, and executive compensation plans[591](index=591&type=chunk)[592](index=592&type=chunk) [Form 10-K Summary](index=107&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a Form 10-K summary - None[603](index=603&type=chunk)

Credit Acceptance Corporation (NASDAQ:CACC) Q4 2021 Earnings Conference Call January 31, 2022 5:00 PM ET Company Participants Doug Busk - Chief Treasury Officer Ken Booth - Chief Executive Officer Conference Call Participants Moshe Orenbuch - Credit Suisse David Scharf - JMP Securities Rob Wildhack - Autonomous Research John Hecht - Jefferies John Rowan - Janney Montgomery Vincent Caintic - Stephens Operator Good day, everyone and welcome to the Credit Acceptance Corporation Fourth Quarter 2021 Earnings Con ...

Credit Acceptance Corporation (NASDAQ:CACC) Q3 2021 Results Earnings Conference Call November 1, 2021 5:00 PM ET Company Participants Doug Busk - Chief Treasury Officer, Conference Call Participants David Scharf - JMP Securities Moshe Orenbuch - Credit Suisse Ray Cheesman - Anfield Capital Rob Wildhack - Autonomous Research Operator Good day everyone and welcome to the Credit Acceptance Corporation third quarter 2021 earnings call. Today's call is being recorded. A webcast and transcript of today's earnings ...

Financial Highlights [Consolidated Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Net income surged to $740.7 million due to lower credit loss provisions; assets decreased, and operations generated $938.3 million cash | Financial Metric | As of Sep 30, 2021 | As of Dec 31, 2020 | | :--- | :--- | :--- | | Total Assets | $7,199.0 million | $7,489.0 million | | Loans receivable, net | $6,582.6 million | $6,787.9 million | | Total Liabilities | $5,245.2 million | $5,186.5 million | | Total Shareholders' Equity | $1,953.8 million | $2,302.5 million | | Income Statement (in millions) | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$470.1** | **$426.5** | **$1,392.8** | **$1,221.9** | | Finance charges | $442.1 | $404.4 | $1,312.4 | $1,144.5 | | **Provision for credit losses** | **($8.3)** | **($29.8)** | **($17.5)** | **$464.3** | | **Net Income** | **$250.0** | **$242.1** | **$740.7** | **$254.7** | | **Diluted EPS** | **$15.79** | **$13.56** | **$44.73** | **$14.17** | | Cash Flow (in millions) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $938.3 | $783.0 | | Net cash provided by (used in) investing activities | $214.2 | ($658.0) | | Net cash used in financing activities | ($1,106.4) | ($241.9) | | Repurchase of common stock | ($1,093.9) | ($307.1) | Business Overview [Business Model and Programs](index=9&type=section&id=2.%20DESCRIPTION%20OF%20BUSINESS) The company provides auto financing to subprime consumers via Portfolio and Purchase programs, with the Portfolio Program dominating Q3 2021 volume - The company's financing programs enable auto dealers to sell vehicles to consumers regardless of their credit history. A significant majority of consumer loans are assigned for individuals with **FICO scores below 650** or no FICO score[27](index=27&type=chunk)[30](index=30&type=chunk) | Program Mix (Unit Volume) | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Portfolio Program (Dealer Loans) | 69.9% | 64.1% | | Purchase Program (Purchased Loans) | 30.1% | 35.9% | - Under the Portfolio Program, the company advances cash to dealers and receives future collections, net of a **20% servicing fee**. Dealers retain an interest in the back-end collections (Dealer Holdback) after the advance is repaid[34](index=34&type=chunk)[36](index=36&type=chunk) - The Purchase Program involves a one-time payment to the dealer to acquire the consumer loan, with the company keeping all subsequent collections[43](index=43&type=chunk) [Loans Receivable and Credit Quality](index=20&type=section&id=6.%20LOANS%20RECEIVABLE) Net loans receivable decreased to $6.58 billion, with a Q3 2021 net reversal of credit loss provision due to improved collection forecasts | Loans Receivable (in millions) | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Dealer Loans, net | $4,030.6 | $4,167.5 | | Purchased Loans, net | $2,552.0 | $2,620.4 | | **Total Loans receivable, net** | **$6,582.6** | **$6,787.9** | | Provision for Credit Losses (in millions) | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :--- | :--- | :--- | :--- | :--- | | New Consumer Loan assignments | $75.5 | $114.1 | $298.9 | $426.2 | | Forecast changes | ($83.8) | ($143.9) | ($316.4) | $38.1 | | **Total** | **($8.3)** | **($29.8)** | **($17.5)** | **$464.3** | - Forecasted collection rates for the 2020 vintage loans improved to **67.7%** as of Q3 2021, a **4.3 percentage point** positive variance from the initial forecast of 63.4%. The 2021 vintage is also performing slightly ahead of initial forecasts[128](index=128&type=chunk)[243](index=243&type=chunk) - The company's estimate of future net cash flows continues to include an adjustment for the potential impact of the COVID-19 pandemic, which was initially established in Q1 2020[137](index=137&type=chunk) Management's Discussion and Analysis (MD&A) [Overview](index=48&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Q3 2021 net income increased to $250.0 million, driven by finance charges despite lower loan volumes and significant stock repurchases - Q3 2021 net income rose to **$250.0 million**, compared to **$242.1 million** in Q3 2020[238](index=238&type=chunk) - For the nine months ended Sep 30, 2021, net income surged to **$740.7 million** from **$254.7 million** in the prior-year period, mainly due to a significant decrease in the provision for credit losses[239](index=239&type=chunk) - Key quarterly highlights: * Consumer Loan assignment unit and dollar volumes declined **29.4%** and **17.9%** YoY, respectively * The company repurchased **1.3 million shares**, representing **8.0%** of shares outstanding at the start of the quarter[238](index=238&type=chunk) [Business Performance and Key Metrics](index=49&type=section&id=2.2%20Business%20Performance%20and%20Key%20Metrics) Consumer loan volume significantly declined in Q3 2021 due to market conditions, yet collection rate forecasts for recent vintages improved | Consumer Loan Volume Change (YoY) | Q3 2021 | Q2 2021 | Q1 2021 | | :--- | :--- | :--- | :--- | | Unit Volume | -29.4% | -28.7% | -7.5% | | Dollar Volume | -17.9% | -20.5% | -2.2% | - Management believes the significant decline in loan volume since May 2021 is primarily due to low dealer inventories and elevated used vehicle prices stemming from automotive industry supply chain disruptions[265](index=265&type=chunk) - The spread between forecasted collection rates and advance rates for the 2021 vintage was **20.8%**, lower than the **23.8%** for the 2020 vintage, primarily due to the exceptionally strong performance of 2020 loans[250](index=250&type=chunk)[251](index=251&type=chunk) [Results of Operations](index=56&type=section&id=2.3%20Results%20of%20Operations) The company's financial performance improved significantly in the first nine months of 2021 compared to 2020 [Comparison for the Three Months Ended September 30, 2021 and 2020](index=56&type=section&id=2.3.1%20Three%20Months%20Ended%20September%2030%2C%202021%20and%202020) Q3 2021 revenue grew 10.2% to $470.1 million, driven by finance charges, while operating expenses rose and credit loss reversal was smaller - Finance charges increased by **$37.7 million** (**9.3%**) YoY, primarily due to a higher average portfolio yield (**26.5%** vs **23.7%**) resulting from CECL accounting rules[277](index=277&type=chunk) - Salaries and wages expense increased **35.6%** YoY, primarily driven by a **$14.7 million** increase in stock-based compensation expense related to newly-approved stock option grants[279](index=279&type=chunk) - The reversal of provision for credit losses was smaller in Q3 2021 (**$8.3M**) than in Q3 2020 (**$29.8M**). This was because the positive change in collection forecasts was less pronounced (**$82.3M** in 2021 vs. **$138.5M** in 2020)[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk) - Interest expense decreased by **15.0%** to **$39.8 million** due to a lower average cost of debt (**3.4%** vs **3.9%**) on recently completed financings[284](index=284&type=chunk)[285](index=285&type=chunk) [Comparison for the Nine Months Ended September 30, 2021 and 2020](index=59&type=section&id=2.3.2%20Nine%20Months%20Ended%20September%2030%2C%202021%20and%202020) Nine-month net income surged 190.8% to $740.7 million, primarily due to a $481.8 million decrease in credit loss provision - The provision for credit losses decreased by **$481.8 million** YoY, moving from a **$464.3 million** expense to a **$17.5 million** reversal. This was due to improved loan performance forecasts in 2021 versus large provisions made for the expected impact of COVID-19 in 2020[292](index=292&type=chunk)[293](index=293&type=chunk)[294](index=294&type=chunk) - General and administrative expenses increased by **$33.1 million** (**70.7%**), primarily due to a **$27.2 million** settlement with the Commonwealth of Massachusetts[291](index=291&type=chunk) - Interest expense decreased by **$21.3 million** (**14.5%**) due to a lower average cost of debt (**3.5%** vs **4.1%**) from more favorable recent financing transactions[296](index=296&type=chunk)[297](index=297&type=chunk) - A loss on extinguishment of debt of **$7.4 million** was recognized in the first nine months of 2020 related to the redemption of senior notes, with no similar loss in 2021[297](index=297&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=2.4%20Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.52 billion in available credit and $4.6 billion total debt, completing significant financings - As of September 30, 2021, the company had **$1.52 billion** in unused and available lines of credit and total debt of **$4.6 billion**[309](index=309&type=chunk) - Key 2021 financing activities include: * Completed three Term ABS financings totaling **$1.05 billion** * Extended maturities on Warehouse Facilities II, IV, VI, VIII and the main revolving secured line of credit[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk) | Scheduled Principal Debt Maturities (in millions) | Amount | | :--- | :--- | | Remainder of 2021 | $163.8 | | 2022 | $1,430.4 | | 2023 | $1,725.0 | | 2024 | $915.6 | | Over five years | $400.0 | | **Total** | **$4,634.8** | Risk Factors and Controls [Risk Factors](index=64&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces diverse risks including industry, operational, capital, liquidity, IT, cybersecurity, legal, and regulatory challenges - Key identified risks include: * **Industry/Operational:** Inability to accurately forecast collections, competition, reliance on senior management, and the adverse impact of COVID-19 * **Capital/Liquidity:** Inability to access funding, restrictive debt covenants, and interest rate fluctuations, including the phaseout of LIBOR * **Legal/Regulatory:** Ongoing litigation and investigations, and changes in consumer protection regulations[318](index=318&type=chunk)[319](index=319&type=chunk)[323](index=323&type=chunk) [Market Risk](index=66&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes to the company's market risk profile have occurred since the 2020 Annual Report on Form 10-K - There have been no material changes to the company's market risk profile since the 2020 Annual Report on Form 10-K[326](index=326&type=chunk) [Controls and Procedures](index=66&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective, with no material changes to internal controls during Q3 2021 - The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[327](index=327&type=chunk) - No material changes to internal control over financial reporting occurred during the third quarter of 2021[328](index=328&type=chunk) Other Information [Legal Proceedings](index=44&type=section&id=PART%20II.%20%E2%80%94%20OTHER%20INFORMATION) The company settled a $27.2 million legal case with Massachusetts and faces ongoing investigations from multiple regulatory bodies - On September 1, 2021, the company finalized a settlement with the Massachusetts Attorney General, agreeing to a payment of **$27.2 million** to resolve claims of unfair and deceptive trade practices[228](index=228&type=chunk) - The company is cooperating with ongoing investigations from the New York State Attorney General, the CFPB, and the Maryland Attorney General regarding its origination, collection, and securitization practices[221](index=221&type=chunk)[222](index=222&type=chunk)[226](index=226&type=chunk) - A lawsuit filed by the Mississippi Attorney General alleging unfair and deceptive trade practices is ongoing, and the company intends to defend itself vigorously[223](index=223&type=chunk) [Stock Repurchases](index=67&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 1.29 million shares for $704.2 million in Q3 2021 and authorized an additional 2 million shares for repurchase | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | July 2021 | 364,963 | $454.67 | | August 2021 | 406,680 | $566.33 | | September 2021 | 514,603 | $598.20 | | **Q3 2021 Total** | **1,286,246** | **$547.40** | - On September 28, 2021, the board authorized the repurchase of an additional **2 million shares** of common stock[335](index=335&type=chunk) - As of September 30, 2021, a total of **2,231,859 shares** remained available for repurchase under board authorizations[333](index=333&type=chunk)

Credit Acceptance Corporation (NASDAQ:CACC) Q2 2021 Earnings Conference Call July 29, 2021 5:00 PM ET Company Participants Doug Busk - Chief Treasury Officer Ken Booth - Chief Executive Officer Jay Martin - Senior Vice President, Finance and Accounting Conference Call Participants Moshe Orenbuch - Credit Suisse Ray Cheesman - Anfield Capital Rob Wildhack - Autonomous Research Operator Good afternoon, everyone and welcome to the Credit Acceptance Corporation Second Quarter 2021 Earnings Call. Today’s call is ...

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, 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 CREDIT ACCEPTANCE CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-1999511 (State or other juri ...

Financial Data and Key Metrics Changes - The company reported improved collection percentages for the years 2018 through 2020 during the first part of 2021, although collection expectations for Q1 2021 slightly deteriorated by a tenth of a percent, which is considered flat [12][14] - Collections in March were significantly better, with an increase of approximately 25% in April compared to the previous year, although the accounting method did not fully reflect this in the earnings release [19][20] Business Line Data and Key Metrics Changes - The company noted that unit volume and originations were up 25% in April, attributed to easier year-over-year comparisons due to stimulus effects from the previous year [21][23] Market Data and Key Metrics Changes - The impact of stimulus programs on originations and active dealers was acknowledged, with indications that stimulus positively influenced both collections and originations, although quantification of this impact was not provided [26] Company Strategy and Development Direction - The company is undergoing a leadership transition with Ken Booth replacing Brett Roberts as CEO, emphasizing a collaborative management approach that has been in place for over 15 years [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the experienced leadership team and the company's culture, which is characterized by trust and goodwill, indicating a stable operational environment moving forward [7][8] Other Important Information - The company is currently dealing with a contingent loss related to an agreement with the Commonwealth of Massachusetts, but specific details were not disclosed beyond what was included in the press release [10] Q&A Session Summary Question: Can you provide updates on the agreement with the Commonwealth of Massachusetts? - Management could not provide additional details beyond what was disclosed in the press release [10] Question: What caused the deterioration in collection expectations for Q1 2021? - Management explained that the slight decrease was not surprising and attributed it to the nature of the business being priced [12] Question: Can you estimate adjusted earnings for Q1 based on stronger collections in March? - Management stated that it was difficult to quantify the impact of higher collections on adjusted earnings [20] Question: What contributed to the strength in unit volume and originations in April? - The strength was attributed to easier comparisons due to last year's stimulus effects [21] Question: How did the recent stimulus package impact this quarter's results? - Management indicated that while the stimulus likely had a positive impact, they could not quantify its effect [26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Common Stock, $.01 par value CACC The Nasdaq Stock Market LLC (Mark One) FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 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 | --- | --- | --- | |----------------------------------------- ...

_________________________________________________________________________________________________________________ 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, 2020 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 ...