Business
Credit Acceptance Announces Second Quarter 2021 Results
Southfield, Michigan, July 29, 2021 (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, July 29, 2021 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $288.6 million, or $17.18 per diluted share, for the three months ended June 30, 2021 compared to consolidated net income of $96.4 million, or $5.40 per diluted share, for the same period in 2020. For the six months ended June 30, 2021, consolidated net income was $490.7 million, or $28.96 per diluted share, compared to consolidated net income of $12.6 million, or $0.70 per diluted share, for the same period in 2020. Adjusted net income, a non-GAAP financial measure, for the three months ended June 30, 2021 was $230.3 million, or $13.71 per diluted share, compared to $154.1 million, or $8.63 per diluted share, for the same period in 2020. For the six months ended June 30, 2021, adjusted net income was $395.1 million, or $23.32 per diluted share, compared to adjusted net income of $329.8 million, or $18.29 per diluted share, for the same period in 2020. Our results for the second quarter of 2021 included: An increase in forecasted collection rates for Consumer Loans assigned in 2017 through 2021, which increased forecasted net cash flows from our loan portfolio by $104.5 million.Forecasted profitability per Consumer Loan assignment that is consistent with our initial estimate for Consumer Loans assigned in 2021 and significantly in excess of our initial estimates for Consumer Loans assigned in 2018 through 2020.A decline in Consumer Loan assignment volume, as unit and dollar volumes declined 28.7% and 20.5%, respectively, as compared to the second quarter of 2020.Stock repurchases of approximately 598,000 shares, which represented 3.6% of the shares outstanding at the beginning of the quarter. Impact of COVID-19 Pandemic Although the immediate impact of the COVID-19 virus has subsided, the impact of the COVID-19 pandemic on our business continues to be significant. Starting in mid-March 2020, we experienced a substantial reduction in demand for our product and a significant decline in cash flows from our loan portfolio that lasted through mid-April 2020, after which collections and new loan volumes improved significantly. Starting in late July 2020 and continuing through February 2021, we experienced another substan...