Business
Credit Acceptance Announces Second Quarter 2024 Results
Southfield, Michigan, July 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, July 31, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net loss of $47.1 million, or $3.83 per diluted share, for the three months ended June 30, 2024 compared to consolidated net income of $22.2 million, or $1.69 per diluted share, for the same period in 2023. Adjusted net income, a non-GAAP financial measure, for the three months ended June 30, 2024 was $126.4 million, or $10.29 per diluted share, compared to $140.0 million, or $10.69 per diluted share, for the same period in 2023. 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, 2024 March 31, 2024 June 30, 2023 2024 2023GAAP net income (loss) $ (47.1) $ 64.3 $ 22.2 $ 17.2 $ 121.7 GAAP net income (loss) per diluted share $ (3.83) $ 5.08 $ 1.69 $ 1.37 $ 9.30 Adjusted net income (1) $ 126.4 $ 117.4 $ 140.0 $ 243.8 $ 267.0 Adjusted net income per diluted share (1) $ 10.29 $ 9.28 $ 10.69 $ 19.45 $ 20.40 (1) Represents a non-GAAP financial measure. Our results for the second quarter of 2024 in comparison to the second quarter of 2023 included: A larger decrease in forecasted collection rates The decrease in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $189.3 million, or 1.7%, compared to a decrease in forecasted collection rates during the second quarter of 2023 that decreased forecasted net cash flows from our loan portfolio by $89.3 million, or 0.9%. The $189.3 million decrease in forecasted net cash flows for the second quarter of 2024 was comprised of an ordinary decrease in forecasted net cash flows of $42.1 million, or 0.3%, and an adjustment applied to our forecasting methodology, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%. The $89.3 million decrease in forecasted net cash flows for the second quarter of 2023 was comprised of an ordinary decrease in forecasted net cash flows of $44.8 million, or 0.4%, and an adjustment to our forecasting methodology, which upon implementation, reduced forecasted net cash flows by $44.5 million, or 0.5%. A decrease in forecasted profitability for Consumer Loans assigned in 2021 through 2024 Forec...