Welcome to our dedicated page for Credit Acceptance news (Ticker: CACC), a resource for investors and traders seeking the latest updates and insights on Credit Acceptance stock.
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 (Nasdaq: CACC) has announced two significant financial updates:
1. Warehouse Facility II: The revolving secured warehouse facility has been increased from $400.0 million to $500.0 million. Its revolving period has been extended from April 30, 2026, to September 20, 2027. The interest rate on borrowings has decreased from SOFR plus 230 basis points to SOFR plus 185 basis points.
2. Term ABS 2019-2: The $500.0 million asset-backed non-recourse secured financing has been extended. Its revolving period now ends on September 15, 2026, instead of August 15, 2025. The interest rate has increased from 5.15% to 5.43%.
As of September 19, 2024, the company had $201.0 million outstanding under Warehouse Facility II.
Credit Acceptance (Nasdaq: CACC) has been recognized as one of the 2024 Best Workplaces in Financial Services & Insurance™ by Great Place to Work® and Fortune for the tenth consecutive year, ranking #13 out of 50 in the large company category. The company's commitment to employee success is evident through its remote-first policy, flexible scheduling, generous paid time off, and comprehensive health and wellness benefits.
Credit Acceptance's workplace culture emphasizes collaboration, performance-based compensation, and transparent annual reviews aligned with core values. The company also supports employee-driven charitable initiatives and allocates time for team-building activities. This recognition is based on employee survey results and highlights Credit Acceptance's success in fostering trust, fairness, and inclusivity in the workplace.
Credit Acceptance (Nasdaq: CACC) has been named one of PEOPLE Magazine's 100 Companies That Care® for the third consecutive year, ranking 59th. This award recognizes companies committed to their employees, communities, and the planet. Credit Acceptance demonstrated this commitment by:
- Becoming a remote-first company
- Supporting Make-A-Wish Foundation and St. Jude Children's Research Hospital
- Organizing a Thankful Harvest event, packing over 72,500 meals for food banks
- Investing in sustainability measures
The company has also received other honors in 2024, including ranking 39th in Fortune's 100 Best Companies to Work For® and 50th in Best Workplaces for Millennials. Credit Acceptance provides innovative financing solutions for automobile dealers, enabling vehicle ownership for consumers regardless of credit history.
Credit Acceptance (Nasdaq: CACC) reported a net loss of $47.1 million or $3.83 per diluted share for Q2 2024, compared to a net income of $22.2 million or $1.69 per diluted share in Q2 2023. Adjusted net income was $126.4 million or $10.29 per diluted share, down from $140.0 million or $10.69 per diluted share a year ago.
The company experienced a larger decrease in forecasted collection rates, reducing forecasted net cash flows by $189.3 million due to adjustments in forecasting methodology. Consumer Loan assignment volumes increased by 20.9% in units and 16.3% in dollar volumes compared to Q2 2023.
Significant changes included a 13.7% increase in the average balance of the loan portfolio, a rise in the initial spread on Consumer Loan assignments to 22.0%, and a higher average cost of debt from 5.3% to 7.2%. The company also noted a decrease in forecasted profitability for loans assigned from 2021 to 2024 and repurchased 822,000 shares since Q2 2023.
Credit Acceptance (Nasdaq: CACC) has announced the timing for its second quarter 2024 results release and webcast. The company will issue a news release with the results on Wednesday, July 31, 2024, after market close. A webcast to discuss these results is scheduled for the same day at 5:00 p.m. Eastern Time.
To participate in the webcast by telephone, pre-registration is required through a provided link. The webcast can also be accessed live via the 'Investor Relations' section of the company's website. A replay and transcript will be archived on the website after the event.
Credit Acceptance provides innovative financing solutions for automobile dealers, enabling vehicle sales to consumers regardless of credit history. The company is publicly traded on the Nasdaq Stock Market under the symbol CACC.
Credit Acceptance (Nasdaq: CACC) has been named one of the Best Workplaces for Millennials by Fortune, ranking 50th among 100 large companies. This marks the eighth time the company has received this recognition. Credit Acceptance's workplace culture emphasizes flexibility, equal opportunity, and work-life balance.
Key highlights include:
- 97% average score for Trust Index® statements on fairness
- 89% agreement on professional development opportunities
- 94% agreement on fair treatment regardless of position
The company has also been recognized in other workplace rankings, including 39th in Fortune's 100 Best Companies to Work For® and as a Top Workplaces USA Award winner for the fourth consecutive year.
Credit Acceptance (Nasdaq: CACC) has been recognized as a Top Workplace in the Financial Services Industry, ranking #9 in the 500-plus employee category. This marks the company's debut on this industry-specific list, following four consecutive years of Top Workplaces USA recognition. The award, based on anonymous employee surveys, reflects Credit Acceptance's commitment to its PRIDE culture (Positive, Respectful, Insightful, Direct, and Earnest).
CEO Ken Booth emphasized the importance of maintaining a supportive and collaborative workplace. Credit Acceptance's mission is to make car ownership accessible to those with credit options, while also providing an opportunity for consumers to improve their credit scores. The company operates through a nationwide network of automobile dealers and is publicly traded on the Nasdaq Stock Market under the symbol CACC.
Credit Acceptance (Nasdaq: CACC) has been recognized as a Most Loved Workplace® for 2024 by the Best Practice Institute (BPI) in multiple categories. This accolade highlights the company's commitment to fostering a supportive and inclusive culture that enhances employee well-being, psychological safety, retention, and performance. CEO Ken Booth emphasized the importance of listening to team members to identify opportunities and better serve their dealers. Credit Acceptance was honored in categories such as Career Advancement, LGBTQ+, Parents and Caregivers, Volunteering, Women, Young Professionals, Wellness, and Veterans. Additionally, Ken Booth was named a Most Loved CEO. BPI's research, surveying over 175 companies and 3,000 executives, shows that employee sentiment significantly boosts productivity and retention. Credit Acceptance's innovative financing solutions enable automobile dealers to sell vehicles to consumers, including those with poor credit histories, thereby enhancing their chances of improving their credit scores.
Credit Acceptance (Nasdaq: CACC) announced the increase and extension of its asset-backed non-recourse secured financing, originally entered into on December 15, 2022. The financing, known as Term ABS 2022-2, has been increased from $200 million to $300 million. Additionally, the revolving period for the financing has been extended from December 15, 2025, to June 15, 2027. The company, which provides financing solutions through a national network of automobile dealers, aims to help consumers with poor credit histories purchase vehicles. This program also allows consumers to enhance their credit scores by reporting to the three national credit agencies.
Credit Acceptance (Nasdaq: CACC) has been named one of U.S. News' Best Companies to Work For, along with recognition in the Financial Services sector and the Midwest region. This places Credit Acceptance in the top 25% of companies in each category. CEO Ken Booth attributes these honors to the company's strong work environment, which empowers employees and aligns with its mission to make car ownership more accessible. This marks the company's tenth time in the 100 Best Companies to Work For list. Credit Acceptance has also received the Top Workplaces USA Award for the fourth consecutive year and was listed among People Magazine’s Companies that Care.
FAQ
What is the current stock price of Credit Acceptance (CACC)?
What is the market cap of Credit Acceptance (CACC)?
What is Credit Acceptance Corp?
When was Credit Acceptance Corp founded?
How does Credit Acceptance Corp generate revenue?
What is the company's motto?
How many employees does Credit Acceptance have?
What are some of the recent achievements of Credit Acceptance?
Who benefits from Credit Acceptance's services?
Where is Credit Acceptance Corp headquartered?
How does the company support its employees?
What values does Credit Acceptance promote within its team?
