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Sep 30, 2023
Credit Acceptance Q3 2023 Earnings Report
Credit Acceptance's financial performance decreased due to a decline in forecasted collection rates and an increase in interest and operating expenses.
Key Takeaways
Credit Acceptance Corporation reported a decrease in consolidated net income for the three months ended September 30, 2023, compared to the same period in 2022. GAAP net income was $70.8 million, or $5.43 per diluted share, compared to $86.8 million, or $6.49 per diluted share, for the same period in 2022. Adjusted net income 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.
Consumer Loan assignment volume increased, with unit and dollar volumes growing by 13.0% and 10.5%, respectively, compared to Q3 2022.
The initial spread on Consumer Loan assignments increased to 21.4% in Q3 2023 from 20.2% in Q3 2022.
Forecasted collection rates decreased, impacting forecasted net cash flows from the loan portfolio by $69.4 million, a 0.7% decrease.
GAAP net income decreased due to increased interest and operating expenses, and a decrease in other income.
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
Credit Acceptance did not provide any forward guidance in the Q3 2023 earnings report.
Revenue & Expenses
Visualization of income flow from segment revenue to net income