Company Announcement - Credit Acceptance Corporation is set to release its fourth quarter 2024 earnings on January 30, 2025, after market close [1] - A webcast to discuss the earnings will take place on the same day at 5:00 p.m. Eastern Time [1] Conference Call and Webcast Information - Participants wishing to ask questions during the webcast must pre-register via a provided link [2] - The webcast can be accessed live through the "Investor Relations" section of the company's website, with a replay and transcript available afterward [3] Company Description - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories [4] - The company's financing programs help consumers who might otherwise be unable to purchase vehicles, thereby improving their credit scores and access to traditional financing [5]

Core Viewpoint - Credit Acceptance Corporation has successfully completed a $300 million asset-backed non-recourse secured financing, involving the conveyance of loans valued at approximately $375.1 million to a special purpose entity for institutional lenders [2]. Financing Details - The financing will consist of three classes of notes with an expected average annualized cost of about 6.3%, which includes upfront fees and other costs [3]. - The financing will revolve for 36 months, after which it will amortize based on the cash flows from the conveyed loans [3]. - The funds from this financing will be utilized to repay outstanding indebtedness and for general corporate purposes [3]. Cash Flow Distribution - The company will receive 4.0% of the cash flows from the underlying consumer loans to cover servicing expenses [5]. - The remaining 96.0% of cash flows, after dealer holdback payments, will be allocated to pay principal and interest to institutional lenders and cover ongoing financing costs [5]. Company Overview - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories [6][7]. - The company’s financing programs are designed to help consumers improve their credit scores, allowing them to access more traditional financing options in the future [6].

Company Recognition - Credit Acceptance Corporation has been named one of the Best Places to Work in IT by Computerworld for the 10th consecutive year, ranking 8 among midsize companies [1] - The company has received multiple honors from Great Place to Work® and Fortune, including 39th in the 100 Best Companies to Work For®, 29th in Best Workplaces for Women, 50th in Best Workplaces for Millennials, and 13th in the Best Workplaces in Financial Services & Insurance [3] Engineering and Innovation - The Engineering team at Credit Acceptance is driving key initiatives to modernize operations, enhance foundational technologies, and maximize automation, which contributes to faster customer value delivery and business growth [2] - The "Test Drive" program allows potential dealers to experience Credit Acceptance's software firsthand, increasing dealer engagement and expanding community reach [2] Financing Solutions - Credit Acceptance provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history, thus facilitating vehicle ownership for many who would otherwise be unable to purchase reliable vehicles [4][5] - The company's financing programs also help consumers improve their credit scores by reporting to national credit agencies, allowing them to transition to more traditional financing sources [5]

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 ...