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We change lives ! Credit Acceptance Announces Third Quarter 2021 Results November 1 , 2021 Southfield , Michigan , Nov. 01 , 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 $ 250.0 million , or $ 15.79 per diluted share , for the three months ended September 30 , 2021 compared to consolidated net income of $ 242.1 million , or $ 13.56 per diluted share , for the same period in 2020. For the nine months ended September 30 , 2021 , consolidated net income was $ 740.7 million , or $ 44.73 per diluted share , compared to consolidated net income of $ 254.7 million , or $ 14.17 per diluted share , for the same period in 2020 . Adjusted net income , a non - GAAP financial measure , for the three months ended September 30 , 2021 was $ 219.1 million , or $ 13.84 per diluted share , compared to $ 167.0 million , or $ 9.36 per diluted share , for the same period in 2020. For the nine months ended September 30 , 2021 , adjusted net income was $ 614.2 million , or $ 37.09 per diluted share , compared to adjusted net income of $ 496.8 million , or $ 27.64 per diluted share , for the same period in 2020 . Our results for the third quarter of 2021 included : • An increase in forecasted collection rates for Consumer Loans assigned in 2018 through 2021 , which increased forecasted net cash flows from our loan portfolio by $ 82.3 million . • Forecasted profitability per Consumer Loan assignment that is in excess of 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 29.4 % and 17.9 % , respectively , as compared to the third quarter of 2020 . • Stock repurchases of approximately 1.3 million shares , which represented 8.0 % of the shares outstanding at the beginning of the quarter . 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 September 30 , 2021 with the forecasts as of June 30 , 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 2020 2021 ( 2 ) Forecasted Collection Percentage as of ( 1 ) June 30 , December 31 , 2021 2020 73.8 % 73.4 % 71.6 % 65.2 % 63.7 % 64.4 % 64.7 % 65.8 % 67.0 % 65.8 % September 30 , 2021 73.8 % 73.4 % 71.6 % 65.1 % 63.6 % 64.4 % 65.0 % 66.2 % 67.7 % 66.4 % 73.8 % 73.4 % 71.6 % 65.2 % 63.6 % 64.1 % 64.0 % 64.4 % 64.8 % Initial Forecast 71.4 % 72.0 % 71.8 % 67.7 % 65.4 % 64.0 % 63.6 % 64.0 % 63.4 % 66.0 % Current Forecast Variance from December 31 , 2020 June 30 , 2021 0.0 % 0.0 % 0.0 % -0.1 % -0.1 % 0.0 % 0.3 % 0.4 % 0.7 % 0.6 % 0.0 % 0.0 % 0.0 % -0.1 % 0.0 % 0.3 % 1.0 % 1.8 % 2.9 % Initial Forecast 2.4 % 1.4 % -0.2 % -2.6 % -1.8 % 0.4 % 1.4 % 2.2 % 4.3 % 0.4 % ( 1 ) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment . Contractual repayments include both principal and interest . Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table . ( 2 ) The forecasted collection rate for 2021 Consumer Loans as of September 30 , 2021 includes both Consumer Loans that were in our portfolio as of June 30 , 2021 and Consumer Loans assigned during the most recent quarter . The following table provides forecasted collection rates for each of these segments :