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Credit Acceptance Corp (NASDAQ: CACC) is a distinguished Michigan-based indirect finance company, operating since 1972. With a workforce that exceeds 1,300 employees, the company is dedicated to transforming lives through its innovative finance solutions. Credit Acceptance partners with car dealers across the United States to facilitate vehicle sales to customers, irrespective of their credit histories. This collaboration enables car dealers to sell more vehicles, while also offering individuals access to necessary transportation, thereby improving their quality of life.
The company experienced an impressive operating revenue of $723 million in 2014, which reflects its robust financial health and effective business model. Credit Acceptance's core revenue streams include finance charges, premiums from the reinsurance of vehicle service contracts, and various fees, with finance charges and servicing fees being the predominant sources.
Credit Acceptance's unique value proposition lies in its inclusive approach to financing, which garners repeat and referral sales. By catering to consumers who may not qualify for traditional financing, the company taps into a significant market segment, driving sustainable growth and profitability. Additionally, the company’s motto, “We change lives!” underscores its commitment to making a substantial impact on both dealers and customers.
Credit Acceptance's recent projects and achievements include the continued refinement of their Consumer Loan collection rates, with an emphasis on enhancing forecast accuracy and improving net cash flows. The latest data, as of December 31, 2023, highlights the company’s ongoing efforts to optimize its collection strategies, ensuring financial stability and operational excellence.
The company prides itself on fostering a supportive work environment that encourages team members to reach their fullest potential. Besides offering competitive benefits, progressive career opportunities, and a casual dress code, Credit Acceptance espouses values such as positivity, respect, insightfulness, directness, and earnestness in its operations and workplace culture.
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.
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.
Credit Acceptance Corporation (CACC) announced the extension of its revolving secured line of credit maturity from June 22, 2022, to June 22, 2023. The credit facility amounts to $340 million, reducing to $305 million post-maturity. Also, the Warehouse Facility V increased from $100 million to $125 million, with maturity extended to December 16, 2025, while the interest rate rose from LIBOR + 190 basis points to LIBOR + 225 basis points. As of December 16, 2020, there was no outstanding balance under this facility.
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