NASDAQ$CACC

Credit Acceptance · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Credit Acceptance reported a consolidated net loss due to the adoption of CECL and the impact of COVID-19.

Credit Acceptance Corporation reported a consolidated net loss of $83.8 million, or $4.61 per diluted share, for the three months ended March 31, 2020, compared to a net income of $164.4 million, or $8.65 per diluted share, for the same period in 2019. The results were impacted by the adoption of CECL and the COVID-19 pandemic.

  • The company experienced a net loss of $83.8 million, or $4.61 per diluted share, compared to a net income of $164.4 million, or $8.65 per diluted share, for the same period in 2019.
  • Adjusted net income was $175.7 million, or $9.66 per diluted share, compared to $153.6 million, or $8.08 per diluted share, for the same period in 2019.
  • COVID-19 pandemic caused a substantial reduction in demand and a significant decline in cash flows from the loan portfolio.
  • The company reduced its estimate of future net cash flows from its loan portfolio by $206.5 million due to the impact of the COVID-19 pandemic.

Headline financials

Total Revenue

$389M

Previous: $354M+10.0%
EPS (adj)

$9.66

Previous: $8.08+19.6%
Consumer Loan unit volume

101.5K

Previous: 112.8K-10.1%
Active dealers

9.8K

Previous: 9.6K+2.2%
Average volume per active dealer

10.3

Previous: 11.7-12.0%
Capital Expenditures

-$4.4M

Previous: -$4.7M+6.4%
Free Cash Flow

-$88.2M

Previous: $160M-155.2%
Net Income

-$83.8M

Previous: $164M-151.0%
Operating Income

$346M

Previous: $314M+10.1%
Gross Profit

$380M

Previous: $347M+9.5%
Cash & Equivalents

$25.7M

Previous: $41.3M-37.8%
Total Assets

$7.26B

Previous: $6.75B+7.6%
Stock-Based Comp

$1.8M

Previous: $2.2M-18.2%

Revenue & EPS history

Credit Acceptance · Revenue · Quarterly

$389M

Q1 2020+10%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Credit Acceptance · $389M total across 3 segments · Q1 2020

  • Finance charges
    $362M
  • Other income
    $14.3M
  • Premiums earned
    $12.9M

Forward guidance

The ultimate impact of the pandemic on our business is not yet known. The impact will depend on future developments, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the disease or mitigate its impact, and the duration, timing and severity of the impact on consumer behavior and economic activity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.3%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.6%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+21.3%

Q1 2022

Best reaction

-15.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-0.7%+3.5%
Q4 2025+10.6%+12.4%+4.9%
Q3 2025+0.9%-0.2%+2.1%
Q1 2025-4.0%+2.0%-2.1%
Q4 2024-1.2%+1.0%-4.2%
Q3 2024-6.1%-6.4%+10.0%
Q2 2024-15.8%-18.4%-19.7%
Q1 2024-6.9%-4.3%-7.9%
Q4 2023+4.9%+1.9%-0.4%
Q3 2023-0.5%+9.6%+11.4%
Q2 2023-13.1%-10.5%-9.9%
Q1 2023-12.1%-8.0%-9.0%
Q4 2022+17.2%+17.6%+0.0%
Q3 2022-6.1%-4.9%+1.9%
Q2 2022-8.2%-5.5%-7.6%
Q1 2022+21.3%+17.0%+13.9%
Q4 2021-0.9%-1.9%+4.5%
Q3 2021+12.1%+14.7%+4.5%
Q2 2021+2.6%+14.5%+22.5%
Q1 2021+0.4%+6.3%+13.8%
Q4 2020-14.1%-10.1%-2.8%
Q3 2020-4.9%-3.7%-4.4%
Q2 2020-2.4%-0.9%-4.2%
Q1 2020+4.1%+11.5%+16.5%
Q4 2019-7.1%-6.3%-12.6%
Q3 2019-6.0%-3.2%-1.7%
Q2 2019-2.1%-4.5%-5.9%
Q1 2019-1.0%-0.7%-6.9%
Q4 2018-2.6%+4.4%+9.3%
Q3 2018+8.4%+6.8%+3.9%
Q2 2018+13.7%+18.7%+20.0%
Q1 2018-2.1%-0.6%+8.1%
Q4 2017-11.5%-14.4%-14.6%
Q3 2017-4.1%-6.1%+1.7%
Q2 2017+9.1%+9.1%+8.9%
Q1 2017+7.9%+6.1%+5.8%
Q4 2016-5.5%-1.7%-1.4%
Q3 2016-11.4%-9.2%+3.8%
Q2 2016+5.0%+6.1%+8.0%
Q1 2016-5.8%
Q4 2015-3.4%
Q3 2015-13.1%
Q2 2015+9.8%
Q1 2015+9.9%
Q4 2014+13.4%
Q3 2014+6.3%
Q2 2014-3.6%
Q1 2014-6.9%
Q4 2013+8.1%
Q3 2013-0.7%
Q2 2013+0.4%
Q1 2013-2.2%
Q4 2009-7.5%
Q4 2012+3.5%
Q3 2012-0.1%
Q2 2012+4.2%
Q1 2011-7.3%
Q1 2012-0.5%
Q4 2011+0.0%
Q3 2011+5.6%
Q3 2010+5.6%
Q2 2011-0.7%
Q4 2010-0.7%
Q2 2010-0.7%
Q1 2010-0.1%

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