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Mar 31, 2021
Credit Acceptance Q1 2021 Earnings Report
Credit Acceptance reported a net income of $202.1 million and EPS of $11.82 for Q1 2021, with adjusted net income at $164.8 million and adjusted EPS at $9.64. The company reached an agreement in principle to settle pending litigation with the Commonwealth of Massachusetts, recognizing a contingent loss of $27.2 million. Consumer loan assignment volumes declined, but collections improved due to federal stimulus payments.
Key Takeaways
Credit Acceptance Corporation announced a consolidated net income of $202.1 million, or $11.82 per diluted share, for the three months ended March 31, 2021, compared to a consolidated net loss of $83.8 million, or $4.61 per diluted share, for the same period in 2020. Adjusted net income for the three months ended March 31, 2021 was $164.8 million, or $9.64 per diluted share, compared to $175.7 million, or $9.66 per diluted share, for the same period in 2020.
Net income increased significantly to $202.1 million, or $11.82 per diluted share, compared to a net loss of $83.8 million, or $4.61 per diluted share, in the same period last year.
Adjusted net income decreased to $164.8 million, or $9.64 per diluted share, from $175.7 million, or $9.66 per diluted share, in the prior year.
A contingent loss of $27.2 million was recognized due to an agreement in principle to settle pending litigation with the Commonwealth of Massachusetts.
Consumer Loan unit volume declined by 7.5%, and dollar volume declined by 2.2%, while front end collections and total collections improved due to additional federal stimulus payments.
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 company did not provide specific forward guidance in this earnings report. The report discusses the ongoing impact of the COVID-19 pandemic and related economic factors on the company's future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income