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 ...

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: | --- | --- | --- ...