Southfield, Michigan, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") has been named to the 2024 list of Top Workplaces for Remote Work by Monster and Energage. This is our first time being recognized on this list, with a #2 ranking out of 54 companies honored in the 500-plus employee-size category. The list celebrates organizations that cultivate exceptional remote working environments based on employee ...

Southfield, Michigan, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") has been named to Newsweek's annual America's Top 200 Most Loved Workplaces® list. The Company has been ranked #10 after being named a Most Loved Workplace® in several other categories this year. The Most Loved Workplaces® list reflects companies that prioritize employee loyalty and create workplaces that employees love. These traits a ...

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 ...

Core Insights - Credit Acceptance Corporation has been recognized as one of the 2024 Best Workplaces in Financial Services & Insurance for the tenth consecutive year, ranking 13 out of 50 in the large company category [1][5] Company Overview - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history [6][7] - The company’s financing programs help consumers who might otherwise be unable to purchase vehicles, allowing them to improve their credit scores and access traditional financing options [7] Employee Experience - The company emphasizes flexibility and career growth opportunities for team members, aligning compensation with individual and company success through performance evaluations [2][3] - Credit Acceptance is a remote-first employer, offering flexible scheduling, generous paid time off, and benefits that support physical and mental health [3] - The company allocates time for team members to engage in camaraderie-building activities, both in-person and virtually, based on their interests [4] Recognition Criteria - The Best Workplaces in Financial Services & Insurance list is based on employee survey results from Great Place to Work-Certified companies, focusing on trust, fairness, and inclusivity [5][8] - The rankings are derived from over 194,000 employee responses in the financial services and insurance industry, analyzed through the Great Place To Work Trust Index Survey [8]

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 ...

Core Viewpoint - Credit Acceptance Corporation (CACC) is positioned for growth in auto loan demand, but faces challenges from high expenses, declining credit quality, and significant debt levels [1]. Financial Performance - Credit Acceptance's revenues have experienced a compound annual growth rate (CAGR) of 10.1% from 2016 to 2023, with finance charges making up 92.4% of total revenues in the first half of 2024 [2]. - The company had total debt of $5.86 billion as of June 30, 2024, compared to cash and cash equivalents of $517.6 million, indicating a significant debt burden [3]. Capital Management - The company prefers stock repurchases over dividends, having authorized an additional 2 million shares for repurchase in August 2023, with 1.35 million shares remaining as of June 30, 2024 [4]. Expense Trends - Operating expenses have risen with a CAGR of 10.4% from 2017 to 2023, continuing into the first half of 2024, driven by hiring efforts [5]. Asset Quality Concerns - Credit quality has deteriorated, with provisions for credit losses increasing since 2020, and expected to remain elevated due to rising loan balances and a challenging macroeconomic environment [6]. Market Sentiment - The Zacks Consensus Estimate for CACC's 2024 earnings has been revised down by 18.1%, with the company's shares down 13% this year, contrasting with a 7.8% industry growth [7].

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 ...