Business
Credit Acceptance Announces Fourth Quarter and Full Year 2021 Results
Southfield, Michigan , Jan. 31, 2022 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”,
About this update from Credit Acceptance Corporation
[{"type":"text","content":"Southfield, Michigan , Jan. 31, 2022 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $217.6 million, or $14.60 per diluted share, for the three months ended December 31, 2021 compared to consolidated net income of $166.3 million, or $9.43 per diluted share, for the same period in 2020. For the year ended December 31, 2021, consolidated net income was $958.3 million, or $59.52 per diluted share, compared to consolidated net income of $421.0 million, or $23.47 per diluted share, for the same period in 2020. Adjusted net income, a non-GAAP financial measure, for the three months ended December 31, 2021 was $212.6 million, or $14.26 per diluted share, compared to $189.5 million, or $10.75 per diluted share, for the same period in 2020. For the year ended December 31, 2021, adjusted net income was $826.8 million, or $51.35 per diluted share, compared to adjusted net income of $686.3 million, or $38.26 per diluted share, for the same period in 2020. Our results for the fourth quarter of 2021 included: An increase in forecasted collection rates for Consumer Loans assigned in 2019 and 2020, which increased forecasted net cash flows from our loan portfolio by $31.9 million.Forecasted profitability per Consumer Loan assignment that has exceeded our initial estimate for Consumer Loans assigned in 2021 and significantly exceeded our initial estimates for Consumer Loans assigned in 2018 through 2020.A decline in Consumer Loan assignment volume, as unit and dollar volumes declined 22.6% and 12.7%, respectively, as compared to the fourth quarter of 2020.Stock repurchases of approximately 606,000 shares, which represented 4.1% of the shares outstanding at the beginning of the quarter. Consumer Loan Metrics Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital and t...