Credit Acceptance Corp (CACC) 10-K Annual Report February 2022

Southfield, Michigan – January 31, 2022 – Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $217.6 million, or $14.60 per diluted share, for the three months ended December 31, 2021 compared to consolidated net income of $166.3 million, or $9.43 per diluted share, for the same period in 2020. For the year ended December 31, 2021, consolidated net income was $958.3 million, or $59.52 per diluted share, compared to consolidated net income of $421.0 million, or $23.47 per diluted share, for the same period in 2020.

Adjusted net income, a non-GAAP financial measure, for the three months ended December 31, 2021 was $212.6 million, or $14.26 per diluted share, compared to $189.5 million, or $10.75 per diluted share, for the same period in 2020. For the year ended December 31, 2021, adjusted net income was $826.8 million, or $51.35 per diluted share, compared to adjusted net income of $686.3 million, or $38.26 per diluted share, for the same period in 2020.

Our results for the fourth quarter of 2021 included:

•An increase in forecasted collection rates for Consumer Loans assigned in 2019 and 2020, which increased forecasted net cash flows from our loan portfolio by $31.9 million.

•Forecasted profitability per Consumer Loan assignment that has exceeded our initial estimate for Consumer Loans assigned in 2021 and significantly exceeded our initial estimates for Consumer Loans assigned in 2018 through 2020.

•A decline in Consumer Loan assignment volume, as unit and dollar volumes declined 22.6% and 12.7%, respectively, as compared to the fourth quarter of 2020.

•Stock repurchases of approximately 606,000 shares, which represented 4.1% of the shares outstanding at the beginning of the quarter.

The following information was filed by Credit Acceptance Corp (CACC) on Monday, January 31, 2022 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.

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Inside Credit Acceptance Corp's 10-K Annual Report:

Other - Other Highlight
Because our business is focused on consumers who do not qualify for conventional automobile financing, the actual rates of delinquencies, defaults, repossessions and losses on our Consumer Loans could be higher than those experienced in the general automobile finance industry, and could be more dramatically affected by a general economic downturn.

Financial - Income Highlight
New Accounting Updates See Note 2 to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference, for information concerning the following new accounting updates and the impact of the implementation of this update on our financial statements: Simplifying the Accounting for Income Taxes.
Financial - Cash Flow Highlight
A 1% decline in the forecasted future net cash flows on Loans as of December 31, 2021 would have reduced 2021 net income by approximately $47.5 million.
Financial - Expense Highlight
We will continue to update our analysis of historical costs under the vehicle service contract program as appropriate, including the consideration of other characteristics that may have led to different patterns of cost incurrence, and revise our revenue recognition timing for any changes in the pattern of our expected costs as they are identified.
Revenue - Product Highlight
During 2021, unit and dollar volumes decreased 21.4% and 13.0%, respectively, as the number of active Dealers declined 10.1% while average volume per active Dealer decreased 12.3%.
Revenue - Product
During 2020, unit and dollar...Read more
Revenue - Product
A decline in Consumer Loan...Read more
Revenue - Product
A decline in Consumer Loan...Read more
Other - Other
We establish a reserve for...Read more
Financial - Earnings
Our provision for credit losses...Read more
Financial - Income
Additionally, higher gasoline prices, increased...Read more
Financial - Cash Flow
For the year ended December...Read more
Other - Other
Cash and cash equivalents increased...Read more
Financial - Cash Flow
The reduction was comprised of:...Read more
Financial - Cash Flow
The reduction was comprised of:...Read more
Financial - Income
The increase was primarily due...Read more
Financial - Cash Flow
Our results for the year...Read more
Revenue - Product
This increase was the result...Read more
Other - Other
(3)A lease liability of $0.5...Read more
Other - Other
For the year ended December...Read more
Revenue - Product
These estimates impact accounts payable...Read more
Financial - Shares
Stock repurchases of approximately 2.9...Read more
Financial - Shares
Stock repurchases of approximately 1.3...Read more
Other - Other
The decrease in provision for...Read more
Revenue - Product
Significant increases in the inventory...Read more
Legal - Other
Negative variances in the ultimate...Read more
Revenue - Product
(2)Attrition is measured according to...Read more
Other - Other
We believe that this decline...Read more
Other - Other
On January 1, 2020, we...Read more
Other - Other
For the year ended December...Read more
Legal - Other
Variances in the pattern of...Read more
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The risk of a material...Read more
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We adjust this liability in...Read more
Revenue - Product
The following table summarizes the...Read more
Financial - Cash Flow
For the year ended December...Read more
Financial - Income
These estimates impact Loans receivable...Read more
Financial - Cash Flow
For Consumer Loans assigned on...Read more
Other - Other
Access to Capital Our strategy...Read more
Other - Other
If the various financing alternatives...Read more
Financial - Earnings
Forecasted profitability per Consumer Loan...Read more
Financial - Earnings
Forecasted profitability per Consumer Loan...Read more
Financial - Expense
The decrease in our average...Read more
Other - Other
We believe that the following...Read more
Revenue - Product
Critical Success Factors Critical success...Read more
Financial - Earnings
For every 100-basis-point increase in...Read more
Other - Other
The increase in finance charges...Read more
Financial - Expense
An increase in general and...Read more
Financial - Debt
On May 20, 2021, we...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Credit Acceptance Corp provided additional information to their SEC Filing as exhibits

Exhibit 21: Subsidaries Of The Registrant

Exhibit 23: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: CACC
CIK: 885550
Form Type: 10-K Annual Report
Accession Number: 0000885550-22-000009
Submitted to the SEC: Fri Feb 11 2022 4:04:09 PM EST
Accepted by the SEC: Fri Feb 11 2022
Period: Friday, December 31, 2021
Industry: Personal Credit Institutions

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Credit Acceptance Corp (CACC) SEC Filing 10-K Annual Report for the fiscal year ending Friday, December 31, 2021

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