Silver Triangle Building
25505 West Twelve Mile Road
Southfield, MI 48034-8339
FOR IMMEDIATE RELEASE
Investor Relations: Douglas W. Busk
Senior Vice President and Treasurer
(248) 353-2700 Ext. 4432
NASDAQ Symbol: CACC
CREDIT ACCEPTANCE ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2014 EARNINGS
Southfield, Michigan – January 29, 2015 – Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $73.0 million, or $3.45 per diluted share, for the three months ended December 31, 2014 compared to consolidated net income of $65.9 million, or $2.80 per diluted share, for the same period in 2013. For the year ended December 31, 2014, consolidated net income was $266.2 million, or $11.92 per diluted share, compared to consolidated net income of $253.1 million, or $10.54 per diluted share, for the same period in 2013.
Adjusted net income, a non-GAAP financial measure, for the three months ended December 31, 2014 was $69.4 million, or $3.28 per diluted share, compared to $64.3 million, or $2.73 per diluted share, for the same period in 2013. For the year ended December 31, 2014, adjusted net income was $271.7 million, or $12.17 per diluted share, compared to adjusted net income of $248.3 million, or $10.34 per diluted share, for the same period in 2013.
During the fourth quarter of 2014, we enhanced our methodologies for forecasting the timing of future collections and future dealer holdback payments on loans through the utilization of more recent data, different segmentations and new forecast variables. Implementation of the enhanced forecasting methodologies increased consolidated net income and adjusted net income by $2.2 million and $0.6 million, respectively, for both the three months and year ended December 31, 2014.
We will host a webcast on January 29, 2015 at 5:00 p.m. Eastern Time to answer questions related to our fourth quarter and full year 2014 results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at creditacceptance.com or by dialing 877-303-2904. Additionally, a replay and transcript of the webcast will be archived in the “Investor Relations” section of our website.
The following information was filed by Credit Acceptance Corp (CACC) on Thursday, January 29, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.