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 ...

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 ...