Business
Credit Acceptance Announces Third Quarter 2020 Results
Southfield, Michigan, Oct. 29, 2020 (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, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $242.1 million, or $13.56 per diluted share, for the three months ended September 30, 2020 compared to consolidated net income of $165.4 million, or $8.73 per diluted share, for the same period in 2019. For the nine months ended September 30, 2020, consolidated net income was $254.7 million, or $14.17 per diluted share, compared to consolidated net income of $494.2 million, or $26.06 per diluted share, for the same period in 2019.\n Adjusted net income, a non-GAAP financial measure, for the three months ended September 30, 2020 was $167.0 million, or $9.36 per diluted share, compared to $168.4 million, or $8.89 per diluted share, for the same period in 2019. For the nine months ended September 30, 2020, adjusted net income was $496.8 million, or $27.64 per diluted share, compared to adjusted net income of $484.9 million, or $25.56 per diluted share, for the same period in 2019. COVID-19 Pandemic COVID-19 continues to be widespread in the United States. In an effort to contain the virus, authorities implemented various measures, including travel bans, stay-at-home orders and shutdowns of non-essential businesses. These measures caused a significant decline in economic activity and a dramatic increase in unemployment. While the prevalence, severity and impact of such restrictions have lessened and unemployment rates have improved, uncertainty remains as to when economic conditions will return to normalcy and whether further restrictions may be required. Starting in mid-March, 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, after which collections and new loan volumes improved significantly. Starting in late July and continuing into October, we have experienced another substantial reduction in demand for our product. As the virus is not yet fully contained, the ultimate impact of the pandemic on our business is not yet known. The impact will depend on future developments, including, but not limited to, the duration of the pandemic, its severity, the actions to contain the disease or mitigate its impact, addi...