Group 1 - Credit Acceptance Corporation has increased the amount of Warehouse Facility V from $200.0 million to $250.0 million and extended the revolving period to December 29, 2027 [1] - The maturity of the Facility has been extended from December 27, 2027 to December 27, 2029, and the interest rate on borrowings has decreased from SOFR plus 245 basis points to SOFR plus 185 basis points [1] - As of December 5, 2024, there was no outstanding balance under the Facility [2] Group 2 - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history [3] - The financing programs are offered through a nationwide network of automobile dealers, allowing sales to consumers who otherwise could not obtain financing [3] - The company reports to the three national credit reporting agencies, helping consumers improve their credit scores and access more traditional financing sources [4]

Core Insights - Credit Acceptance Corporation has been recognized as the 2 top large company in Michigan by the Detroit Free Press for the year 2024, marking the 13th consecutive year of receiving this award [1] - The company also received the Managers Specialty Award for its leaders' commitment to employee growth and well-being [1] Company Culture and Community Engagement - Credit Acceptance emphasizes its commitment to community involvement, with team members participating in various volunteer efforts, including supporting children with incarcerated parents and providing meals for those in need [2] - The company has established a mission-driven workplace that fosters professional and personal growth among its employees [2] Employee Experience and Recognition - The ranking of Credit Acceptance as a top workplace was based on an anonymous survey conducted by Energage, which measures employee experiences such as respect, support, and empowerment [3] - In 2024, the company received 11 awards, including recognitions from Great Place to Work® and Fortune, highlighting its status as a desirable workplace [4] Business Model and Financing Solutions - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories, thus facilitating vehicle ownership [5] - The company's financing programs not only help consumers purchase vehicles but also assist them in improving their credit scores, allowing them to access traditional financing options in the future [6]

Core Viewpoint - Credit Acceptance Corporation (CACC) reported disappointing third-quarter 2024 results, with earnings per share of $6.95 falling short of the Zacks Consensus Estimate of $7.88, despite a year-over-year growth of 16.9% in the bottom line [1][2]. Financial Performance - Total GAAP revenues for CACC reached $550.3 million, reflecting a 15% increase year over year, driven by higher finance charges and premiums earned, surpassing the Zacks Consensus Estimate of $542 million [3]. - Adjusted net income, excluding non-recurring items, was $109.1 million or $8.79 per share, down from $139.5 million or $10.70 per share in the same quarter last year [2]. - Operating expenses rose to $129.4 million, an increase of 17.1% year over year, which negatively impacted the bottom line [3][5]. Asset and Loan Performance - As of September 30, 2024, net loans receivables stood at $7.78 billion, marking an 11.9% increase from December 2023 [3]. - Total assets increased to $8.68 billion from $7.61 billion as of December 31, 2023, while total shareholders' equity decreased to $1.65 billion from $1.75 billion [4]. - Consumer loan assignment volumes increased by 17.7% in units and 12.2% in dollar volumes year over year [4]. Market Position and Outlook - The company is facing challenges from rising expenses and potential asset quality issues, which may hinder financial performance in the near term [5]. - Despite these challenges, CACC is positioned for revenue growth due to increasing demand for consumer loans [5].

Credit Acceptance Corporation (NASDAQ:CACC) Q3 2024 Earnings Conference Call October 31, 2024 10:00 AM ET Company Participants Jay Martin - CFO Ken Booth - CEO Conference Call Participants Moshe Orenbuch - TD Cowen John Rowan - Janney Montgomery Scott John Hecht - Jefferies Rob Wildhack - Autonomous Research Ryan Shelley - Bank of America Operator Good day, everyone, and welcome to the Credit Acceptance Corporation Third Quarter 2024 Earnings Call. Today’s call is being recorded. A webcast and transcrip ...

For the quarter ended September 2024, Credit Acceptance (CACC) reported revenue of $550.3 million, up 15% over the same period last year. EPS came in at $6.35, compared to $5.43 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $542.46 million, representing a surprise of +1.45%. The company delivered an EPS surprise of -19.42%, with the consensus EPS estimate being $7.88. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Credit Acceptance (CACC) came out with quarterly earnings of $6.35 per share, missing the Zacks Consensus Estimate of $7.88 per share. This compares to earnings of $5.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -19.42%. A quarter ago, it was expected that this auto financing company would post earnings of $7.20 per share when it actually produced a loss of $3.83, delivering a surprise of -153.19%.Over the last four quar ...

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 September 30, 2024 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 ...

Financial Performance - Consolidated net income for Q3 2024 was $78.8 million, or $6.35 per diluted share, compared to $70.8 million, or $5.43 per diluted share in Q3 2023, representing an increase of 14.2% in net income [1]. - Adjusted net income for Q3 2024 was $109.1 million, or $8.79 per diluted share, down from $139.5 million, or $10.70 per diluted share in Q3 2023, indicating a decrease of 21.8% [2]. - GAAP net income for the three months ended September 30, 2024, increased by 11.3% to $78.8 million compared to $70.8 million in the same period of 2023 [36]. - GAAP net income for the nine months ended September 30, 2024, decreased by 50.1% to $96.0 million compared to $192.5 million in the same period of 2023 [36]. - Total revenue for Q3 2024 was $550.3 million, an increase of 15% compared to $478.6 million in Q3 2023 [82]. - Adjusted net income for September 30, 2024, was $109.1 million, down from $126.4 million in June 2024, representing a decrease of 20.5% [50]. - Adjusted revenue for September 30, 2024, was $382.4 million, compared to $393.1 million in June 2024, indicating a decline of 1.8% [50]. Loan Portfolio and Collection Rates - Forecasted collection rates declined, resulting in a decrease in forecasted net cash flows from the loan portfolio by $62.8 million, or 0.6%, compared to a decrease of $69.4 million, or 0.7% in Q3 2023 [3]. - Consumer Loan assignment volume grew by 17.7% in units and 12.2% in dollar volume compared to Q3 2023, with the average balance of the loan portfolio increasing by 14.9% on a GAAP basis [3]. - The forecasted collection rates for Consumer Loans assigned in 2021 through 2024 were lower than previous estimates, primarily due to a decline in collection rates and slower cash flow timing [4]. - The forecasted collection rate for Consumer Loans as of September 30, 2024, is 66.6% for the first half of 2024 and 67.0% for the second half [21]. - The forecasted collection rates for more recent Consumer Loan assignments are less certain, as a significant portion of the forecast has not been realized [21]. Expenses and Interest - The average cost of debt rose from 5.8% to 7.3%, primarily due to higher interest rates on new financings and the repayment of older debt [3]. - Interest expense increased by 57.7% ($40.7 million) for the three months ended September 30, 2024, primarily due to higher average cost of debt and increased outstanding debt balance [36]. - An increase in operating expenses of 17.1% ($18.9 million) for the three months ended September 30, 2024, was primarily due to higher salaries and legal expenses [36]. - The company reported a significant increase in salaries and wages, which rose to $77.3 million in Q3 2024 from $66.7 million in Q3 2023, a rise of 8.9% [82]. Capital and Equity - Adjusted average capital increased by 19.4% to $8,387.6 million for the three months ended September 30, 2024, compared to $7,023.9 million in the same period of 2023 [44]. - Adjusted average equity for September 30, 2024, was $2,316.5 million, up from $2,215.1 million in June 2024, reflecting an increase of 4.6% [50]. - Adjusted average capital increased to $7,976.2 million from $6,801.6 million year-over-year [54]. Economic Profit and Returns - Economic profit decreased by 40.1% for the three months ended September 30, 2024, primarily due to a decrease in adjusted return on capital [44]. - Adjusted return on capital fell to 9.3% in Q3 2024, down from 11.1% in Q3 2023 [47]. - Economic profit for the quarter was $41.4 million, down from $56.2 million in the previous quarter [51]. - Economic profit per diluted share for the quarter was $3.33, compared to $4.58 in the prior quarter [52]. Asset and Liability Growth - Loans receivable increased to $11,197.6 million as of September 30, 2024, compared to $10,020.1 million as of December 31, 2023, reflecting a growth of 11.8% [84]. - Total assets reached $8,683.2 million as of September 30, 2024, compared to $7,610.2 million at the end of 2023, marking an increase of 14.1% [84]. - Total liabilities increased to $7,036.7 million as of September 30, 2024, from $5,856.5 million at the end of 2023, an increase of 20.1% [84]. Future Outlook and Risks - The company expects to continue facing industry, operational, and macroeconomic risks that could impact future performance [72]. - The company anticipates a long-term effective income tax rate of 23% for future periods, reflecting adjustments made in response to tax legislation changes [50].

Southfield, Michigan, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") today announced consolidated net income of $78.8 million, or $6.35 per diluted share, for the three months ended September 30, 2024 compared to consolidated net income of $70.8 million, or $5.43 per diluted share, for the same period in 2023. Adjusted net income, a non-GAAP financial measure, for the three months ended September 30, 20 ...

Southfield, Michigan, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that we expect to issue a news release with our third quarter 2024 earnings on Wednesday, October 30, 2024, after the market closes. A webcast is scheduled for Thursday, October 31, 2024, at 8:30 a.m. Eastern Time to discuss third quarter 2024 earnings.   Conference Call and Webcast Information:Date: Thursday, October 3 ...