Business
Credit Acceptance Announces Third Quarter 2024 Results
Southfield, Michigan, Oct. 30, 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, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $78.8 million, or $6.35 per diluted share, for the three months ended September 30, 2024 compared to consolidated net income of $70.8 million, or $5.43 per diluted share, for the same period in 2023. Adjusted net income, a non-GAAP financial measure, for the three months ended September 30, 2024 was $109.1 million, or $8.79 per diluted share, compared to $139.5 million, or $10.70 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 Nine Months Ended September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023GAAP net income (loss) $ 78.8 $ (47.1) $ 70.8 $ 96.0 $ 192.5 GAAP net income (loss) per diluted share $ 6.35 $ (3.83) $ 5.43 $ 7.68 $ 14.73 Adjusted net income (1) $ 109.1 $ 126.4 $ 139.5 $ 352.9 $ 406.5 Adjusted net income per diluted share (1) $ 8.79 $ 10.29 $ 10.70 $ 28.25 $ 31.10 (1) Represents a non-GAAP financial measure. Our results for the third quarter of 2024 in comparison to the third quarter of 2023 included: A similar decline in forecasted collection ratesA decline in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $62.8 million, or 0.6%, compared to 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%. A decrease in forecasted profitability for Consumer Loans assigned in 2021 through 2024 Forecasted profitability was lower than our estimates at September 30, 2023, due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the third quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain at below-average levels. Growth in Consumer Loan assignment volume and the average balance of our loan portfolio Unit and dollar volumes grew 17.7% and 12.2%, respectively, as compared to the third quarter of 2023. The average balance of our loan portfolio, which is our largest-ever, increa...