Credit Accep Corp Mich Stock Price, News & Analysis

Credit Acceptance Corporation (Nasdaq: CACC) has completed a $450 million asset-backed non-recourse secured financing, contributing consumer loans valued at approximately $562.6 million to a special purpose entity. The financing involves three classes of notes, with an expected annualized cost of around 1.5%. The notes will revolve for 24 months before amortizing based on cash flows from the loans. The financing aims to reduce outstanding debt and support general corporate purposes. CACC will retain 4% of cash flows for servicing, while the remaining will cover interest and principal payments.

Credit Acceptance Corporation (CACC) reported consolidated net income of $202.1 million ($11.82 per diluted share) for Q1 2021, a significant recovery from a net loss of $83.8 million ($4.61 per diluted share) in Q1 2020. Adjusted net income was $164.8 million ($9.64 per diluted share), slightly down from $175.7 million ($9.66 per diluted share) year-over-year. The company recognized a $27.2 million contingent loss due to litigation settlement with Massachusetts. Despite improved cash flows and collections, uncertainties remain due to the ongoing impact of the COVID-19 pandemic.

Credit Acceptance Corporation (Nasdaq: CACC) announced the retirement of CEO Brett A. Roberts effective May 3, 2021, after nearly 30 years with the company. Kenneth S. Booth, the current CFO, will succeed him. Under Roberts, adjusted net income per share increased from $0.62 in 2001 to $38.26 in 2020, reflecting a compounded annual growth rate of 24.3%. The company also reported an economic profit rise from a loss of $3.2 million to $471.3 million during the same period. Vinayak R. Hegde will join the Board as an independent director, enhancing leadership expertise.

Credit Acceptance Corporation (CACC) announced that it will release its first quarter 2021 earnings on April 29, 2021, after the market closes. A webcast to discuss these earnings will take place at 5:00 p.m. ET on the same day. Investors can access the live event via the company’s Investor Relations page or by calling 877-303-2904. Credit Acceptance has been providing financing programs for automobile dealers since 1972, enabling consumers with poor credit histories to purchase vehicles and improve their credit scores.

Credit Acceptance Corporation (Nasdaq: CACC) has completed a $500 million asset-backed non-recourse secured financing transaction. This involves the contribution of loans valued at approximately $625.1 million to a special purpose entity which will transfer the loans to a trust. The financing's expected annualized cost is about 1.4%, and it will amortize after 24 months based on cash flows from the contributed loans. The company will retain 4% of cash flows for servicing expenses, while the remainder will go towards paying principal, interest, and ongoing costs.

Credit Acceptance Corporation (Nasdaq: CACC) announced an extension of its $400 million revolving secured warehouse facility's maturity date from July 12, 2022, to April 30, 2024. There were no changes to the terms of the facility. As of February 3, 2021, $75 million was outstanding under the facility. Credit Acceptance has been enabling automobile dealers to sell vehicles to consumers with poor credit since 1972, thus providing them an opportunity to improve their credit scores.

Credit Acceptance Corporation (CACC) reported a consolidated net income of $166.3 million, or $9.43 per diluted share for Q4 2020, up from $161.9 million in Q4 2019. For the full year, net income fell to $421.0 million, or $23.47 per diluted share, down from $656.1 million. Adjusted net income for Q4 was $189.5 million, while for the year it was $686.3 million. The company faced challenges due to the COVID-19 pandemic, resulting in reduced demand and cash flows. A credit loss provision of $92.6 million for Q4 and $556.9 million for the year was reported under the CECL accounting standard.