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We change lives ! Credit Acceptance Announces Second Quarter 2021 Results July 29 , 2021 Southfield , Michigan , July 29 , 2021 ( GLOBE NEWSWIRE ) Credit Acceptance Corporation ( Nasdaq : CACC ) ( referred to as the " Company " , " Credit Acceptance " , " we " , " our " , or " us " ) today announced consolidated net income of $ 288.6 million , or $ 17.18 per diluted share , for the three months ended June 30 , 2021 compared to consolidated net income of $ 96.4 million , or $ 5.40 per diluted share , for the same period in 2020. For the six months ended June 30 , 2021 , consolidated net income was $ 490.7 million , or $ 28.96 per diluted share , compared to consolidated net income of $ 12.6 million , or $ 0.70 per diluted share , for the same period in 2020 . Adjusted net income , a non - GAAP financial measure , for the three months ended June 30 , 2021 was $ 230.3 million , or $ 13.71 per diluted share , compared to $ 154.1 million , or $ 8.63 per diluted share , for the same period in 2020. For the six months ended June 30 , 2021 , adjusted net income was $ 395.1 million , or $ 23.32 per diluted share , compared to adjusted net income of $ 329.8 million , or $ 18.29 per diluted share , for the same period in 2020 . Our results for the second quarter of 2021 included : • An increase in forecasted collection rates for Consumer Loans assigned in 2017 through 2021 , which increased forecasted net cash flows from our loan portfolio by $ 104.5 million . • Forecasted profitability per Consumer Loan assignment that is consistent with our initial estimate for Consumer Loans assigned in 2021 and significantly in excess of our initial estimates for Consumer Loans assigned in 2018 through 2020 . • A decline in Consumer Loan assignment volume , as unit and dollar volumes declined 28.7 % and 20.5 % , respectively , as compared to the second quarter of 2020 . • Stock repurchases of approximately 598,000 shares , which represented 3.6 % of the shares outstanding at the beginning of the quarter . Impact of COVID - 19 Pandemic Although the immediate impact of the COVID - 19 virus has subsided , the impact of the COVID - 19 pandemic on our business continues to be significant . 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 as federal stimulus and enhanced unemployment benefit payments lapsed , dealer inventories declined and used vehicle prices increased . Demand for our product improved again in March and April 2021 as additional federal stimulus payments were distributed . Starting in May 2021 and continuing through July 2021 , we experienced another significant decline in demand for our product . We believe that this decline is primarily due to low dealer inventories and further increases in used vehicle prices , which we believe are primarily due to the downstream impact of supply chain disruptions in the automotive industry . Consumer Loan Metrics Dealers assign retail installment contracts ( referred to as " Consumer Loans " ) to Credit Acceptance . At the time a Consumer Loan is submitted to us for assignment , we forecast future expected cash flows from the Consumer Loan . Based on the amount and timing of these forecasts and expected expense levels , an advance or one - time purchase payment is made to the related dealer at a price designed to maximize economic profit , a non - GAAP financial measure that considers our return on capital , our cost of capital and the amount of capital invested . -- We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment . We continue to evaluate the expected collection rate of each Consumer Loan subsequent to assignment . Our evaluation becomes more accurate as the Consumer Loans age , as we use actual performance data in our forecast . By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment , we are able to assess the accuracy of our initial forecast . The following table compares our forecast of Consumer Loan collection rates as of June 30 , 2021 with the forecasts as of March 31 , 2021 , as of December 31 , 2020 and at the time of assignment , segmented by year of assignment : Consumer Loan Assignment Year 2012 2013 2014 2015 2016 2017 2018 2019 Forecasted Collection Percentage as of ( 1 ) March 31 , December 31 , 2020 2021 June 30 , 2021 73.8 % 73.4 % 71.6 % 65.2 % 63.7 % 64.4 % 64.7 % 65.8 % 73.8 % 73.4 % 71.6 % 65.2 % 63.6 % 64.2 % 64.3 % 65.1 % 73.8 % 73.4 % 71.6 % 65.2 % 63.6 % 64.1 % 64.0 % 64.4 % Initial Forecast 71.4 % 72.0 % 71.8 % 67.7 % 65.4 % 64.0 % 63.6 % 64.0 % Current Forecast Variance from March 31 , December 31 , 2021 2020 0.0 % 0.0 % 0.0 % 0.0 % 0.1 % 0.2 % 0.4 % 0.7 % 0.0 % 0.0 % 0.0 % 0.0 % 0.1 % 0.3 % 0.7 % 1.4 % Initial Forecast 2.4 % 1.4 % -0.2 % -2.5 % -1.7 % 0.4 % 1.1 % 1.8 %