The following is a summary of the Credit Acceptance Corporation (CACC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Credit Acceptance Corporation reported an 8% decrease in its adjusted net income to $117 million compared to the first quarter of last year. Earnings per share decreased by 4% to $9.28.
The average balance of their loan portfolio increased by 12% on a GAAP basis and by 15% on an adjusted basis compared to the same period previous year.
However, the company experienced a decrease in forecasted collection rates which reduced the net cash flow from loan portfolio by $31 million.
There was an increase in the initial spread in consumer loan assignments to 22% from 21% of the previous year and a rise in the average cost of debt from 5% to 7%.
Business Progress:
The unit and dollar volumes grew by 24.1% and 20.2% respectively as compared to the first quarter of the previous year.
The company repurchased approximately 728,000 shares which is about 6% of the shares outstanding as of March 31, 2023. The repurchase was as a result of generating a significant amount of capital at the end of last year and through a $500 million securitization in Q1 2024.
More details: Credit Acceptance IR
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