Business
Credit Acceptance Announces Fourth Quarter and Full Year 2023 Results
Southfield, Michigan, Jan. 31, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”,
About this update from Credit Acceptance Corporation
[{"type":"text","content":"Southfield, Michigan, Jan. 31, 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 $93.6 million, or $7.29 per diluted share, for the three months ended December 31, 2023 compared to consolidated net income of $127.3 million, or $9.58 per diluted share, for the same period in 2022. Adjusted net income, a non-GAAP financial measure, for the three months ended December 31, 2023 was $129.1 million, or $10.06 per diluted share, compared to $156.1 million, or $11.74 per diluted share, for the same period in 2022. The following table summarizes our financial results: (In millions, except per share data) For the Three Months Ended For the Years Ended December 31, December 31, 2023 September 30, 2023 December 31, 2022 2023 2022GAAP net income $ 93.6 $ 70.8 $ 127.3 $ 286.1 $ 535.8GAAP net income per diluted share $ 7.29 $ 5.43 $ 9.58 $ 21.99 $ 39.32 Adjusted net income (1) $ 129.1 $ 139.5 $ 156.1 $ 535.6 $ 720.1Adjusted net income per diluted share (1) $ 10.06 $ 10.70 $ 11.74 $ 41.17 $ 52.85 (1) Represents a non-GAAP financial measure. Our results for the fourth quarter of 2023 in comparison to the fourth quarter of 2022 included: A larger decrease in forecasted collection rates The decrease in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $57.0 million, or 0.6%, compared to a decrease in forecasted collection rates during the fourth quarter of 2022 that decreased forecasted net cash flows from our loan portfolio by $41.1 million, or 0.5%. A decrease in forecasted profitability for Consumer Loans assigned in 2020 through 2022 Forecasted profitability was lower than our estimates at December 31, 2022, due to a decline in forecasted collection rates since the fourth quarter of 2022 and slower forecasted net cash flow timing during 2023, primarily as a result of a decrease in Consumer Loan prepayments to below-average levels. Growth in Consumer Loan assignment volume and the average balance of our loan portfolio Unit and dollar volumes grew 26.7% and 21.3%, respectively, as compared to the fourth quarter of 2022. The average balance of our loan portfolio, which is our largest-ever, increased 9.1% and 13.4% on a GAAP and adjusted basis, respectively, as compared to...