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Jun 30, 2024
Credit Acceptance Q2 2024 Earnings Report
Reported a consolidated net loss due to a larger decrease in forecasted collection rates and a decrease in forecasted profitability for consumer loans, partially offset by growth in consumer loan assignment volume.
Key Takeaways
Credit Acceptance Corporation reported a consolidated net loss of $47.1 million, or $3.83 per diluted share, for the three months ended June 30, 2024, compared to a net income of $22.2 million, or $1.69 per diluted share, for the same period in 2023. Adjusted net income, a non-GAAP financial measure, was $126.4 million, or $10.29 per diluted share, compared to $140.0 million, or $10.69 per diluted share, for the same period in 2023. The results were impacted by a larger decrease in forecasted collection rates and a decrease in forecasted profitability for Consumer Loans assigned in 2021 through 2024.
Forecasted collection rates decreased, impacting net cash flows negatively by $189.3 million due to both ordinary decreases and adjustments to forecasting methodology.
Forecasted profitability declined for Consumer Loans assigned between 2021 and 2024 due to decreased collection rates and slower net cash flow timing.
Consumer Loan assignment volume grew by 20.9% and dollar volumes grew 16.3% compared to the second quarter of 2023.
The average cost of debt increased from 5.3% to 7.2%, driven by higher interest rates on recent financings and notes.
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
This is a forward looking statement and is subject to change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income