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EX - 99.1 2 caccq12021earningsrelease.htm EX - 99.1 FOR IMMEDIATE RELEASE NEWS RELEASE CREDIT ACCEPTANCE ANNOUNCES FIRST QUARTER 2021 RESULTS COVID - 19 Pandemic Credit Acceptance 25505 West Twelve Mile Road Southfield , MI 48034-8339 ( 248 ) 353-2700 creditacceptance.com Date : April 29 , 2021 Investor Relations : Douglas W. Busk Chief Treasury Officer ( 248 ) 353-2700 Ext . 4432 IR@creditacceptance.com Southfield , Michigan - April 29 , 2021 - Credit Acceptance Corporation ( Nasdaq : CACC ) ( referred to as the " Company " , " Credit Acceptance " , " we " , " our " , or " us " ) today announced 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 . Nasdaq Symbol : CACC Adjusted net income , a non - GAAP financial measure , 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 . 1 On April 27 , 2021 , the Company and the Commonwealth of Massachusetts reached an agreement in principle to settle pending litigation . As a result , we recognized a contingent loss of $ 27.2 million in the first quarter of 2021 , which reduced consolidated net income and adjusted net income by $ 20.9 million , or $ 1.22 per diluted share . COVID - 19 continues to be widespread in the United States . In an effort to contain the virus , authorities have implemented various measures , including travel bans , stay - at - home orders and shutdowns of non - essential businesses . In the early stages of the pandemic , these measures caused a significant decline in economic activity and a dramatic increase in unemployment . While the prevalence , severity and impact of such restrictions have lessened and unemployment rates have improved significantly , uncertainty remains as to when economic conditions will return to normalcy and whether further restrictions may be required . Starting in mid - March 2020 , we experienced a substantial reduction in demand for our product and a significant decline in cash flows from our loan portfolio that lasted through mid April 2020 , after which collections and new loan volumes improved significantly . Starting in late July 2020 and continuing through February 2021 , we experienced another substantial reduction in demand for our product . Starting in March 2021 , demand for our product improved again as additional federal stimulus payments were distributed . As the virus is not yet fully contained and the rollout of the COVID - 19 vaccines in the United States is ongoing , 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 of the pandemic , its severity , the actions to contain the disease or mitigate its impact , additional federal stimulus measures and enhanced unemployment benefits , if any , and the duration , timing and severity of the impact on consumer behavior and economic activity .