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[CREDIT ACCEPTANCE LOGO] EXHIBIT 99.1
CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except per share data)
--------------------------------------------------
Q1 02 Q2 02 Q3 02 Q4 02
----------- ----------- ----------- -----------
REVENUE
Finance charges $ 24,885 $ 25,522 $ 24,018 $ 23,319
Lease revenue 5,159 4,428 3,614 2,900
Ancillary product income 3,599 3,820 5,500 3,518
Premiums earned 1,440 1,054 1,001 1,017
Other income 3,775 3,765 8,535 3,465
----------- ----------- ----------- -----------
Total revenue 38,858 38,589 42,668 34,219
----------- ----------- ----------- -----------
COSTS AND EXPENSES
General and administrative 5,717 6,383 5,789 6,662
Salaries and wages 7,504 7,448 7,184 6,906
Sales and marketing 1,781 1,809 1,954 2,079
Stock-based compensation expense 482 565 535 490
Provision for insurance and service contract claims 563 570 590 138
Provision for credit losses 3,515 3,562 8,896 7,962
Depreciation of leased assets 2,941 2,566 2,251 1,911
United Kingdom asset impairment expense - - - -
Interest 2,305 2,457 2,364 1,932
----------- ----------- ----------- -----------
Total costs and expenses 24,808 25,360 29,563 28,080
----------- ----------- ----------- -----------
OPERATING INCOME 14,050 13,229 13,105 6,139
Foreign exchange gain (loss) 16 11 (25) (2)
----------- ----------- ----------- -----------
Income before provision for income taxes 14,066 13,240 13,080 6,137
Provision for income taxes 7,869 4,774 4,468 1,047
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
NET INCOME $ 6,197 $ 8,466 $ 8,612 $ 5,090
=========== =========== =========== ===========
Net income per common share:
Basic $ 0.15 $ 0.20 $ 0.20 $ 0.12
Diluted $ 0.14 $ 0.19 $ 0.20 $ 0.12
Weighted average shares outstanding:
Basic 42,437,481 42,535,312 42,363,895 42,371,316
Diluted 43,497,889 43,821,716 43,122,046 42,852,646
Q1 03 Q2 03 Q3 03
----------- ----------- -----------
REVENUE
Finance charges $ 24,256 $ 26,431 $ 25,770
Lease revenue 2,336 1,784 1,251
Ancillary product income 5,733 4,233 4,369
Premiums earned 755 757 734
Other income 3,849 2,767 3,738
----------- ----------- -----------
Total revenue 36,929 35,972 35,862
----------- ----------- -----------
COSTS AND EXPENSES
General and administrative 5,484 5,198 4,679
Salaries and wages 8,517 8,687 7,879
Sales and marketing 2,177 2,483 1,886
Stock-based compensation expense 375 1,428 1,027
Provision for insurance and service contract claims 99 209 329
Provision for credit losses 4,188 2,863 2,303
Depreciation of leased assets 1,548 1,167 853
United Kingdom asset impairment expense - 10,493 -
Interest 1,596 1,401 2,267
----------- ----------- -----------
Total costs and expenses 23,984 33,929 21,223
----------- ----------- -----------
OPERATING INCOME 12,945 2,043 14,639
Foreign exchange gain (loss) 15 14 (1,066)
----------- ----------- -----------
Income before provision for income taxes 12,960 2,057 13,573
Provision for income taxes 4,367 1,049 4,755
----------- ----------- -----------
----------- ----------- -----------
NET INCOME $ 8,593 $ 1,008 $ 8,818
=========== =========== ===========
Net income per common share:
Basic $ 0.20 $ 0.02 $ 0.21
Diluted $ 0.20 $ 0.02 $ 0.20
Weighted average shares outstanding:
Basic 42,328,841 42,321,170 42,315,027
Diluted 42,407,981 42,868,265 43,959,924
NOTE: Certain amounts have been reclassified to conform to the 2003
presentation.
EXHIBIT 99.1
[CREDIT ACCEPTANCE CREDIT ACCEPTANCE CORPORATION
CORPORATION LOGO] CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
3/31/2002 6/30/2002 9/30/2002 12/31/2002 3/31/2003 6/30/2003 9/30/2003
--------- --------- --------- ---------- --------- --------- ---------
ASSETS
Cash and cash equivalents $ 19,580 $ 20,694 $ 12,443 $ 13,466 $ 6,372 $ 22,068 $ 15,450
Investments -- held to maturity 176 175 175 173 99 456 9,789
Loans receivable 778,823 788,579 787,187 770,069 811,961 851,201 869,927
Allowance for credit losses (14,917) (15,223) (17,568) (20,991) (22,929) (24,461) (14,883)
--------- --------- --------- --------- --------- --------- ---------
Loans receivable, net 763,906 773,356 769,619 749,078 789,032 826,740 855,044
Floor plan receivables, net 5,774 6,414 5,261 4,450 3,105 2,964 2,920
Lines of credit, net 5,643 5,027 4,203 3,655 3,244 2,817 2,290
Notes receivable, net 5,344 4,842 4,289 3,899 2,809 2,074 2,076
Investment in Operating Leases, net 35,612 29,246 23,222 17,879 13,199 9,328 6,364
Property and equipment, net 19,649 19,802 20,532 19,951 20,057 18,355 18,294
Other assets 14,037 12,357 14,474 14,280 12,457 13,378 13,152
--------- --------- --------- --------- --------- --------- ---------
TOTAL ASSETS $ 869,721 $ 871,913 $ 854,218 $ 826,831 $ 850,374 $ 898,180 $ 925,379
========= ========= ========= ========= ========= ========= =========
LIABILITIES
Lines of credit $ 67,403 $ 91,272 $ 96,811 $ 43,555 $ 55,627 $ 8,305 $ -
Secured financing 108,364 65,101 30,257 58,153 32,904 100,000 100,000
Mortgage note 6,740 6,562 6,381 6,195 6,005 5,813 5,618
Capital lease obligations - 556 1,029 1,938 1,727 1,538 1,258
Accounts payable and accrued liabilities 37,412 37,402 32,496 28,341 31,428 33,034 33,858
Dealer holdbacks, net 331,791 340,492 349,088 347,040 371,509 397,682 420,759
Deferred income taxes, net 12,237 17,331 16,618 10,058 8,762 4,010 17,048
Income taxes payable 7,125 5,781 2,489 6,094 10,826 11,700 2,538
--------- --------- --------- --------- --------- --------- ---------
TOTAL LIABILITIES 571,072 564,497 535,169 501,374 518,788 562,082 581,079
--------- --------- --------- --------- --------- --------- ---------
SHAREHOLDERS' EQUITY
Common stock 422 417 417 423 423 422 422
Paid-in capital 129,317 124,322 124,693 124,772 107,142 124,446 123,477
Retained earnings 176,691 185,158 193,770 198,858 223,694 208,459 217,277
Accumulated other comprehensive income
(loss) - cumulative translation adjustment (7,781) (2,481) 169 1,404 327 2,771 3,124
--------- --------- --------- --------- --------- --------- ---------
TOTAL S.H. EQUITY 298,649 307,416 319,049 325,457 331,586 336,098 344,300
--------- --------- --------- --------- --------- --------- ---------
TOTAL LIAB. & S.H. EQUITY $ 869,721 $ 871,913 $ 854,218 $ 826,831 $ 850,374 $ 898,180 $ 925,379
========= ========= ========= ========= ========= ========= =========
NOTE: Certain amounts have been reclassified to conform to the 2003
presentation.
EXHIBIT 99.1
[CREDIT ACCEPTANCE CREDIT ACCEPTANCE CORPORATION
CORPORATION LOGO] UNITED STATES INCOME STATEMENTS
(Dollars in thousands, except per share data)
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03
------------ ------------ ------------ ------------ ------------ ------------ ------------
REVENUE
Finance charges $ 19,582 $ 20,425 $ 18,954 $ 19,453 $ 20,759 $ 23,195 $ 23,135
Ancillary product income 3,173 3,332 3,300 3,378 4,848 4,189 4,363
Premiums earned 1,440 1,054 1,001 1,017 755 757 734
Other income 2,457 2,560 7,270 2,335 2,987 2,403 2,466
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total revenue 26,652 27,371 30,525 26,183 29,349 30,544 30,698
------------ ------------ ------------ ------------ ------------ ------------ ------------
COSTS AND EXPENSES
General and administrative 3,964 5,043 4,464 5,717 4,517 4,352 3,940
Salaries and wages 5,962 5,982 5,878 5,923 7,290 7,199 6,741
Sales and marketing 1,512 1,577 1,668 1,765 1,838 1,818 1,884
Stock-based compensation
expense 390 458 426 412 296 1,353 962
Provision for insurance and
service contract claims 563 570 590 138 99 209 329
Provision for credit losses 513 680 5,555 4,998 2,840 1,490 1,189
Interest 1,107 1,352 1,656 1,293 946 958 1,865
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total costs and expenses 14,011 15,662 20,237 20,246 17,826 17,379 16,910
------------ ------------ ------------ ------------ ------------ ------------ ------------
OPERATING INCOME 12,641 11,709 10,288 5,937 11,523 13,165 13,788
Foreign exchange gain (loss) 17 (5) (14) (4) (11) (18) (1,082)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Income before provision for
income taxes 12,658 11,704 10,274 5,933 11,512 13,147 12,706
Provision for income taxes 7,496 4,384 3,801 1,098 4,032 4,444 4,564
------------ ------------ ------------ ------------ ------------ ------------ ------------
NET INCOME $ 5,162 $ 7,320 $ 6,473 $ 4,835 $ 7,480 $ 8,703 $ 8,142
============ ============ ============ ============ ============ ============ ============
Net income per common share:
Basic $ 0.12 $ 0.17 $ 0.15 $ 0.11 $ 0.18 $ 0.21 $ 0.19
Diluted $ 0.12 $ 0.17 $ 0.15 $ 0.11 $ 0.18 $ 0.20 $ 0.19
Weighted average shares
outstanding:
Basic 42,437,481 42,535,312 42,363,895 42,371,316 42,328,841 42,321,170 42,315,027
Diluted 43,497,889 43,821,716 43,122,046 42,852,646 42,407,981 42,868,265 43,959,924
NOTE: Certain amounts have been reclassified to conform to the 2003
presentation.