Business
Credit Acceptance Announces Third Quarter 2023 Results
Southfield, Michigan, Oct. 30, 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, Oct. 30, 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 $70.8 million, or $5.43 per diluted share, for the three months ended September 30, 2023 compared to consolidated net income of $86.8 million, or $6.49 per diluted share, for the same period in 2022. Adjusted net income, a non-GAAP financial measure, for the three months ended September 30, 2023 was $139.5 million, or $10.70 per diluted share, compared to $178.5 million, or $13.36 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 Nine Months Ended September 30, September 30, 2023 June 30, 2023 September 30, 2022 2023 2022GAAP net income $ 70.8 $ 22.2 $ 86.8 $ 192.5 $ 408.5GAAP net income per diluted share $ 5.43 $ 1.69 $ 6.49 $ 14.73 $ 29.74 Adjusted net income (1) $ 139.5 $ 140.0 $ 178.5 $ 406.5 $ 564.0Adjusted net income per diluted share (1) $ 10.70 $ 10.69 $ 13.36 $ 31.10 $ 41.05 (1) Represents a non-GAAP financial measure. Our results for the third quarter of 2023 in comparison to the third quarter of 2022 included: A decrease in forecasted collection rates during the third quarter of 2023 that decreased forecasted net cash flows from our loan portfolio by $69.4 million, or 0.7%, compared to a decrease in forecasted collection rates during the third quarter of 2022 that decreased forecasted net cash flows from our loan portfolio by $85.4 million, or 0.9%.Forecasted profitability for Consumer Loans assigned in 2020 through 2022 that was lower than our estimates at September 30, 2022, due to a decline in forecasted collection rates since the third quarter of 2022 and slower forecasted net cash flow timing during 2023, primarily as a result of a decrease in Consumer Loan prepayments to below-average levels.Growth in Consumer Loan assignment volume, as unit and dollar volumes grew 13.0% and 10.5%, respectively, as compared to the third quarter of 2022. The average balance of our loan portfolio on a GAAP and adjusted basis for the third quarter of 2023 increased 5.9% and 10.6%, respectively, as compared to the third quarter of 2022.An increase in the initial spread on Consumer Loan assignments...