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Mar 31, 2020
Credit Acceptance Q1 2020 Earnings Report
Credit Acceptance reported a consolidated net loss due to the adoption of CECL and the impact of COVID-19.
Key Takeaways
Credit Acceptance Corporation reported a consolidated net loss of $83.8 million, or $4.61 per diluted share, for the three months ended March 31, 2020, compared to a net income of $164.4 million, or $8.65 per diluted share, for the same period in 2019. The results were impacted by the adoption of CECL and the COVID-19 pandemic.
The company experienced a net loss of $83.8 million, or $4.61 per diluted share, compared to a net income of $164.4 million, or $8.65 per diluted share, for the same period in 2019.
Adjusted net income was $175.7 million, or $9.66 per diluted share, compared to $153.6 million, or $8.08 per diluted share, for the same period in 2019.
COVID-19 pandemic caused a substantial reduction in demand and a significant decline in cash flows from the loan portfolio.
The company reduced its estimate of future net cash flows from its loan portfolio by $206.5 million due to the impact of the COVID-19 pandemic.
Credit Acceptance
Credit Acceptance
Credit Acceptance Revenue by Segment
Revenue by Segment
Finance Charges Revenue
CapyFin.comPremiums Earned Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
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 and spread of the pandemic, its severity, the actions to contain the disease or mitigate its impact, and the duration, timing and severity of the impact on consumer behavior and economic activity.
Revenue & Expenses
Visualization of income flow from segment revenue to net income