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Credit Acceptance Corporation reports developments tied to its consumer automobile finance business, which provides financing programs through a nationwide network of automobile dealers. The company focuses on enabling dealers to sell vehicles to consumers regardless of credit history, with revenue tied primarily to finance charges, servicing fees, reinsurance premiums on vehicle service contracts, and other fees.
Recurring CACC news includes quarterly earnings, adjusted net income measures, loan portfolio performance, forecasted collections, dealer and consumer product initiatives, executive appointments, and asset-backed non-recourse secured financings. Company updates also address digital credit applications, franchise dealer experience, consumer self-service tools, and capital transactions that use special purpose entities and trusts to fund conveyed consumer loans.
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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.
Summary not available.
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.
Credit Acceptance Corporation (Nasdaq: CACC) announced the completion of a $100.0 million asset-backed non-recourse secured financing. The company contributed around $125.1 million of loans to a special purpose entity which will pledge these loans to an institutional lender. The financing will bear interest at one-month LIBOR plus 200 basis points, and will be used to repay outstanding debt and for general corporate purposes. Additionally, the company extended its $300.0 million revolving secured warehouse facility's expiration from July 2022 to November 2023, with a slight increase in the interest rate.
Credit Acceptance Corporation (Nasdaq: CACC) plans to release its fourth quarter and full year 2020 earnings on February 1, 2021, after market close. A webcast discussing these results will follow at 5:00 p.m. Eastern Time on the same day, accessible via their Investor Relations website or by phone. Credit Acceptance has been providing financing options since 1972, enabling consumers with poor credit histories to purchase vehicles. The company helps improve customers' credit scores by reporting to national credit agencies, facilitating access to traditional financing sources.