Business
Credit Acceptance Announces Second Quarter 2022 Results
Southfield, Michigan , Aug. 01, 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 , Aug. 01, 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 $107.4 million, or $7.94 per diluted share, for the three months ended June 30, 2022 compared to consolidated net income of $288.6 million, or $17.18 per diluted share, for the same period in 2021. For the six months ended June 30, 2022, consolidated net income was $321.7 million, or $23.10 per diluted share, compared to consolidated net income of $490.7 million, or $28.96 per diluted share, for the same period in 2021. Adjusted net income, a non-GAAP financial measure, for the three months ended June 30, 2022 was $188.2 million, or $13.92 per diluted share, compared to $230.3 million, or $13.71 per diluted share, for the same period in 2021. For the six months ended June 30, 2022, adjusted net income was $385.5 million, or $27.68 per diluted share, compared to adjusted net income of $395.1 million, or $23.32 per diluted share, for the same period in 2021. Our GAAP and adjusted results for the second quarter of 2022 included: A decrease in forecasted collection rates for Consumer Loans assigned in 2020 through 2022, which decreased forecasted net cash flows from our loan portfolio by $43.4 million.Forecasted profitability per Consumer Loan assignment that has significantly exceeded our initial estimates for Consumer Loans assigned in 2018 through 2021.Growth in Consumer Loan assignment volume, as unit and dollar volumes grew 5.1% and 22.0%, respectively, as compared to the second quarter of 2021.Stock repurchases of approximately 404,000 shares, which represented 3.0% of the shares outstanding at the beginning of the quarter.A $12.0 million expense related to an agreement in principle to settle a previously-disclosed putative class action lawsuit, and a $20.0 million increase in stock-based compensation expense primarily due to the retirement of our former Chief Executive Officer in May 2021 and the timing of shareholder approval for 2020 and 2021 stock option grants. 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. Ba...