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Dec 31, 2023
Credit Acceptance Q4 2023 Earnings Report
Credit Acceptance reported a decrease in net income and adjusted net income compared to the same period last year, driven by increased provision for credit losses and interest expenses.
Key Takeaways
Credit Acceptance Corporation reported a decrease in GAAP net income to $93.6 million, or $7.29 per diluted share, for Q4 2023, compared to $127.3 million, or $9.58 per diluted share, for Q4 2022. Adjusted net income, a non-GAAP financial measure, was $129.1 million, or $10.06 per diluted share, compared to $156.1 million, or $11.74 per diluted share, for the same period in 2022. The results were impacted by a larger decrease in forecasted collection rates, a decrease in forecasted profitability for Consumer Loans assigned in 2020 through 2022, growth in Consumer Loan assignment volume, an increase in the initial spread on Consumer Loan assignments, and an increase in the average cost of debt.
GAAP net income decreased by 26.5% year-over-year to $93.6 million.
Adjusted net income decreased by 17.3% year-over-year to $129.1 million.
Consumer Loan unit and dollar volumes grew by 26.7% and 21.3%, respectively, compared to Q4 2022.
The initial spread on Consumer Loan assignments increased to 21.7% compared to 20.9% in Q4 2022.
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 specific forward guidance in the earnings report.
Revenue & Expenses
Visualization of income flow from segment revenue to net income