Credit Acceptance(US:CACC) Globenewswire·2025-10-30 20:01Financial Performance - Credit Acceptance Corporation reported consolidated net income of $108.2 million, or $9.43 per diluted share, for the three months ended September 30, 2025, representing a 37.3% increase from $78.8 million in the same period of 2024 [1][29] - Adjusted net income for the same period was $117.9 million, or $10.28 per diluted share, a 2.7% increase from $114.8 million in 2024 [1][31] - The company experienced a 5.4% increase in GAAP average debt, rising to $6.4 billion from $6.1 billion year-over-year [29] Consumer Loan Metrics - The average balance of the loan portfolio increased by 3.9% to $8.0 billion from the third quarter of 2024 [6] - Consumer Loan assignment unit and dollar volumes declined by 16.5% and 19.4%, respectively, compared to the third quarter of 2024 [6][24] - The forecasted collection rates for Consumer Loans assigned in 2025 improved to 67.2% as of September 30, 2025, compared to 66.9% as of June 30, 2025 [7][14] Operational Highlights - The company modernized its loan origination system, resulting in a 70% increase in the speed of delivering enhancements to dealers compared to the previous year [6] - 1,342 new dealers were enrolled in the company's programs, bringing the total to 10,180 active dealers during the quarter [6][24] - The company repurchased approximately 230,000 shares, or 2.0% of the shares outstanding at the beginning of the quarter, totaling $107.4 million [6] Economic Profit and Capital Management - Economic profit decreased by 8.7% for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to an increase in the cost of capital and a decrease in adjusted return on capital [32] - Adjusted average capital increased by 3.7% to $8.7 billion from $8.4 billion year-over-year [31] - The company reported a decrease in provision for credit losses of 17.7%, amounting to $32.7 million, attributed to a decline in Consumer Loan assignment unit volume [33]