Business
Credit Acceptance Announces Second Quarter 2023 Results
Southfield, Michigan, Aug. 01, 2023 (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, Aug. 01, 2023 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $22.2 million, or $1.69 per diluted share, for the three months ended June 30, 2023 compared to consolidated net income of $107.4 million, or $7.94 per diluted share, for the same period in 2022. Adjusted net income, a non-GAAP financial measure, for the three months ended June 30, 2023 was $140.0 million, or $10.69 per diluted share, compared to $188.2 million, or $13.92 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 Six Months Ended June 30, June 30, 2023 March 31, 2023 June 30, 2022 2023 2022GAAP net income $ 22.2 $ 99.5 $ 107.4 $ 121.7 $ 321.7GAAP net income per diluted share $ 1.69 $ 7.61 $ 7.94 $ 9.30 $ 23.10 Adjusted net income (1) $ 140.0 $ 127.0 $ 188.2 $ 267.0 $ 385.5Adjusted net income per diluted share (1) $ 10.69 $ 9.71 $ 13.92 $ 20.40 $ 27.68 (1) Represents a non-GAAP financial measure. Our results for the second quarter of 2023 in comparison to the second quarter of 2022 included: A decrease in forecasted collection rates during the second quarter of 2023, which decreased forecasted net cash flows from our loan portfolio by $89.3 million, or 0.9%, compared to a decrease in forecasted collection rates during the second quarter of 2022, which decreased forecasted net cash flows from our loan portfolio by $43.4 million, or 0.5%. The $89.3 million decrease in forecasted net cash flows for the second quarter of 2023 included the impact of an adjustment to our forecasting methodology, which upon implementation, decreased our estimate of future net cash flows by $44.5 million, or 0.5%. In addition, forecasted net cash flow timing slowed during the second quarter of 2023, primarily as a result of a decrease in Consumer Loan prepayments to below-average levels. Changes in the amount and timing of forecasted net cash flows are recognized in our GAAP results in the period of change through provision for credit losses and in our adjusted results prospectively over the remaining forecast period of the loans through finance charges.Forecasted profitability per Consumer Loan assignment for ...