Q3 2024 Credit Acceptance Corp Earnings Call Transcript
Key Points
- Credit Acceptance Corp (CACC) experienced strong growth with the highest Q3 unit and dollar volume ever, growing loan units and dollar buy by 17.7% and 12.2%, respectively.
- The loan portfolio reached a new record high of $8.9 billion, marking an 18.6% increase from Q3 2023.
- CACC added 1,038 new dealers during the quarter, achieving the largest number of active dealers ever for a third quarter with 10,678 dealers.
- The company continues to focus on product innovation and support for dealers and consumers, aiming to improve intrinsic value and positively impact key constituents.
- CACC received four awards from Fortune USA Today and People Magazine, recognizing it as a great place to work, highlighting its commitment to a positive workplace culture.
- The 2022 vintage of loans continued to underperform expectations, with similar declines observed in 2021, 2023, and 2024.
- Forecasted net cash flows declined modestly by 0.6% or $62.8 million, indicating challenges in predicting loan performance during volatile economic conditions.
- Lower consumer prepayments have been observed, which are near historical lows, impacting cash flow timing and yield realization on loans.
- The company did not repurchase any stock in the third quarter or in October, citing higher outstanding balances on revolving credit facilities and uncertainties in collection performance.
- The competitive environment remains challenging, with the company needing to adjust loan forecasts to account for underperformance in previous vintages.
Good day, everyone and welcome to the Credit Acceptance Corporation third quarter 2024 earnings call. Today's call is being recorded a webcast and transcript of today's earnings call will be made available on Credit Acceptance's website.
At this time. I would like to turn the call over to Credit Acceptance Chief Financial Officer, Jay Martin.
Thank you. Good morning and welcome to the Credit Acceptance Corporation third quarter 2024 earnings call. As you read our news release posted on the investor relations section of our website at ir.creditacceptance.com.
And as you listen to this conference call, please recognize that both contain forward-looking statements within the meaning of Federal Securities Law. These forward-looking statements are subject to a number of risks and uncertainties. Many of which are beyond our control and which could cause actual results to differ materially from such statements.
These risks and uncertainties include those spelled out in the
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