Credit Acceptance(CACC) GlobeNewswire News Room·2025-01-30 21:01Financial Performance - Credit Acceptance Corporation reported consolidated net income of 12.26 per diluted share, for Q4 2024, compared to 7.29 per diluted share, in Q4 2023 [1] - Adjusted net income for Q4 2024 was 10.17 per diluted share, compared to 10.06 per diluted share, in Q4 2023 [1] - The average balance of the loan portfolio increased by 14.0% on a GAAP basis and 16.5% on an adjusted basis compared to Q4 2023 [4] Collection Rates and Profitability - A smaller decline in forecasted collection rates resulted in a decrease of 57.0 million, or 0.6%, in Q4 2023 [2] - Forecasted profitability for Consumer Loans assigned in 2021 through 2024 was lower than estimates due to a decline in forecasted collection rates and slower cash flow timing [3] - The initial spread on Consumer Loan assignments increased to 22.4% compared to 21.7% in Q4 2023 [5] Debt and Share Repurchases - The average cost of debt increased from 6.3% to 7.2% due to higher interest rates on recent financings [6] - The company repurchased approximately 590,000 shares, or 4.7% of shares outstanding as of December 31, 2023 [7] Consumer Loan Metrics - Consumer Loan unit volume growth slowed significantly to 0.3% in Q4 2024 compared to 26.7% in Q4 2023 [4] - The number of active dealers increased by 4.7%, while the average volume per active dealer declined by 3.7% [31] - The forecasted collection rates for Consumer Loans assigned in 2022 and 2024 declined, while those for earlier years remained consistent with expectations [12][23] Changes in Loan Assignment Volume - Consumer Loan assignment volumes depend on demand for financing programs, available capital, and infrastructure capacity [30] - The dollar volume of Consumer Loans declined by 4.9% in Q4 2024, despite a modest increase in unit volume [31] - The company experienced a decrease in average advance paid, resulting from smaller average loan sizes and lower advance rates [31]