Credit Acceptance · Q1 2021 earnings

Briefing

Credit Acceptance reported a net income of $202.1 million and EPS of $11.82 for Q1 2021, with adjusted net income at $164.8 million and adjusted EPS at $9.64. The company reached an agreement in principle to settle pending litigation with the Commonwealth of Massachusetts, recognizing a contingent loss of $27.2 million. Consumer loan assignment volumes declined, but collections improved due to federal stimulus payments.

Credit Acceptance Corporation announced a consolidated net income of $202.1 million, or $11.82 per diluted share, for the three months ended March 31, 2021, compared to a consolidated net loss of $83.8 million, or $4.61 per diluted share, for the same period in 2020. Adjusted net income for the three months ended March 31, 2021 was $164.8 million, or $9.64 per diluted share, compared to $175.7 million, or $9.66 per diluted share, for the same period in 2020.

• Net income increased significantly to $202.1 million, or $11.82 per diluted share, compared to a net loss of $83.8 million, or $4.61 per diluted share, in the same period last year.
• Adjusted net income decreased to $164.8 million, or $9.64 per diluted share, from $175.7 million, or $9.66 per diluted share, in the prior year.
• A contingent loss of $27.2 million was recognized due to an agreement in principle to settle pending litigation with the Commonwealth of Massachusetts.
• Consumer Loan unit volume declined by 7.5%, and dollar volume declined by 2.2%, while front end collections and total collections improved due to additional federal stimulus payments.

Headline financials

Revenue & EPS history

The company did not provide specific forward guidance in this earnings report. The report discusses the ongoing impact of the COVID-19 pandemic and related economic factors on the company's future performance.