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Sep 30, 2024
Credit Acceptance Q3 2024 Earnings Report
Credit Acceptance reported consolidated net income and growth in consumer loan assignment volume.
Key Takeaways
Credit Acceptance Corporation announced consolidated net income of $78.8 million, or $6.35 per diluted share, for the three months ended September 30, 2024, compared to $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. Unit and dollar volumes grew 17.7% and 12.2%, respectively, as compared to the third quarter of 2023.
Forecasted collection rates declined, decreasing forecasted net cash flows from the loan portfolio by $62.8 million, or 0.6%.
Forecasted profitability for Consumer Loans assigned in 2021 through 2024 was lower than estimates due to a decline in forecasted collection rates and slower forecasted net cash flow timing.
Consumer Loan assignment volume and the average balance of the loan portfolio grew, with unit and dollar volumes increasing by 17.7% and 12.2%, respectively.
The initial spread on Consumer Loan assignments increased to 21.9% compared to 21.4% in the third quarter of 2023.
Revenue by Segment
Forward Guidance
We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements.
Positive Outlook
- Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws.
- These forward-looking statements represent our outlook only as of the date of this release.
- We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements.
- Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws.
- These forward-looking statements represent our outlook only as of the date of this release.
Challenges Ahead
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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