Business
Credit Acceptance Announces Third Quarter 2019 Earnings
Southfield, Michigan, Nov. 01, 2019 (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, Nov. 01, 2019 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $165.4 million, or $8.73 per diluted share, for the three months ended September 30, 2019 compared to consolidated net income of $151.0 million, or $7.75 per diluted share, for the same period in 2018. For the nine months ended September 30, 2019, consolidated net income was $494.2 million, or $26.06 per diluted share, compared to consolidated net income of $422.1 million, or $21.68 per diluted share, for the same period in 2018. \n Adjusted net income, a non-GAAP financial measure, for the three months ended September 30, 2019 was $168.4 million, or $8.89 per diluted share, compared to $147.2 million, or $7.56 per diluted share, for the same period in 2018. For the nine months ended September 30, 2019, adjusted net income was $484.9 million, or $25.56 per diluted share, compared to adjusted net income of $401.5 million, or $20.62 per diluted share, for the same period in 2018. Webcast Details We will host a webcast on November 4, 2019 at 8:30 a.m. Eastern Time to answer questions related to our third quarter results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at creditacceptance.com or by dialing 877-303-2904. Additionally, a replay and transcript of the webcast will be archived in the “Investor Relations” section of our website. 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. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital and the amount of capital invested. We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate of each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age,...