Southfield, Michigan, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (the "Company", "Credit Acceptance", "we", "our", or "us") announced today the completion of a $600.0 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, we conveyed loans having a value of approximately $750.2 million to a wholly owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes: | --- | --- | --- ...

Southfield, Michigan , Sept. 19, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today that we have increased the amount of Warehouse Facility II (the "Facility"), one of our revolving secured warehouse facilities, from $400.0 million to $500.0 million. We also extended the date on which the Facility will cease to revolve from April 30, 2026 to September 20, 2027. The interest rate on borrowings under t ...

Southfield, Michigan, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") has been named one of the 2024 Best Workplaces in Financial Services & Insurance™ by Great Place to Work® and Fortune for the tenth consecutive year. The Company ranked #13 out of 50 companies in the large company category. "At Credit Acceptance, we're committed to offering our team members flexibility and opportunities for career gro ...

It has been about a month since the last earnings report for Credit Acceptance (CACC) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Credit Acceptance due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Credit Acceptance Incurs Loss in ...

Southfield, Michigan, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") has been named one of PEOPLE Magazine's 100 Companies That Care® by Great Place To Work® and PEOPLE magazine for the third consecutive year. Credit Acceptance was ranked 59th among the 100 companies that made the list. "This award is a reflection of our remarkable culture," said Ken Booth, CEO of Credit Acceptance. "Together, we are cr ...

Credit Acceptance Corporation (CACC) is well-poised for top-line growth, supported by decent demand for auto loans and an increase in dealer enrollments and active dealers. However, elevated expenses, weakening credit quality and high debt levels are major concerns. Supported by an increase in finance charges, Credit Acceptance's revenues witnessed a seven-year (2016-2023) compound annual growth rate (CAGR) of 10.1%, with the uptrend continuing in the first half of 2024. In the first six months of 2024, fin ...

Financial Data and Key Metrics Changes - The company reported a mixed quarter with significant adjustments to forecasted net cash flows, totaling an additional $147 million for loans originated in 2022, 2023, and the first half of 2024 [4][5] - The loan portfolio reached a record high of $8.6 billion on an adjusted basis, with loan unit volume growing by 20.9% and dollar volume by 16.3% [8] - The adjusted revenue yield was reported at 19.6%, while the yield on loan assets was 17.7% for the quarter [12] Business Line Data and Key Metrics Changes - The company originated 1,057 contracts during the quarter and collected $1.3 billion overall, with $84 million paid in portfolio profit to dealers [9] - The number of active dealers increased to 10,736, marking the highest number for a second quarter [9] Market Data and Key Metrics Changes - The company's market share in its core segment increased to 6.6% as of May 31, 2024 [8] Company Strategy and Development Direction - The company aims to create intrinsic value for its constituents by providing valuable products that enable dealers to sell to consumers with non-prime credit [8] - The management emphasized maintaining underwriting standards during favorable economic conditions to position the company better for future opportunities [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in forecasting collection rates due to volatile economic conditions but expressed confidence in producing substantial economic profit per share in the future [5][6] - The company is optimistic about the performance of loans originated in 2023 and 2024 compared to the disappointing 2022 loans [11] Other Important Information - The company received recognition as a Great Place to Work from multiple organizations, highlighting its commitment to improving workplace conditions [10] Q&A Session Summary Question: Changes in forecasting methodology - Management explained that the adjustments were based on the performance of 2022 originations and assumed similar trends for 2023 and 2024 [11] Question: Impact on adjusted earnings and revenue yield - Management indicated that the yield on loan assets was 17.7%, and they expect a decline in revenue yield in Q3 depending on loan performance [12] Question: Confidence in originating more loans despite previous underperformance - Management believes that the loans are still producing returns above the weighted average cost of capital, adding shareholder value [13] Question: Implied spreads and risk of portfolio write-downs - Management stated that current estimates for 2023 and 2024 are based on absolute performance to date, with historical trends guiding their forecasts [17] Question: Unit growth and acceleration in May and June - Management noted that while growth improved throughout the quarter, macro uncertainties make future predictions challenging [22] Question: Rationale for changes in credit agreement definitions - Management clarified that the changes were made to better reflect financial performance based on forecasted cash flows [26]

Credit Acceptance Corporation (CACC) reported a second-quarter 2024 loss per share of $3.83, missing the Zacks Consensus Estimate for earnings of $7.20. In the prior-year quarter, the company reported earnings per share of $1.69. Notably, in the reported quarter, the company recognized a $23.7-million loss related to the sale of one of its two office buildings, which has been included in the above-mentioned earnings figure. Results were primarily hurt by an increase in operating expenses and higher provisio ...

For the quarter ended June 2024, Credit Acceptance (CACC) reported revenue of $538.2 million, up 12.6% over the same period last year. EPS came in at -$3.83, compared to $1.69 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $523.71 million, representing a surprise of +2.77%. The company delivered an EPS surprise of -153.19%, with the consensus EPS estimate being $7.20. While investors scrutinize revenue and earnings changes year-over-year and how they compare with W ...

Credit Acceptance (CACC) came out with a quarterly loss of $3.83 per share versus the Zacks Consensus Estimate of $7.20. This compares to earnings of $1.69 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -153.19%. A quarter ago, it was expected that this auto financing company would post earnings of $6.81 per share when it actually produced earnings of $5.08, delivering a surprise of -25.40%. Over the last four quarters, the c ...