CACC - Earnings call transcript Q2 2018 | Credit Acceptance Corporation

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Operator

Good day, everyone, and welcome to the Credit Acceptance Corporation's Second Quarter 2018 Earnings Call. Today's call is being recorded. A webcast and transcript of today's earnings call will be made available on Credit Acceptance's website. At this time, I would like to turn the call over to Credit Acceptance's Senior Vice President and Treasurer, Doug Busk.

Doug Busk

Thank you. to Acceptance welcome XXXX second and call. earnings afternoon the Corporation's Credit quarter Good

actual our posted our Federal a include as and news control news forward-looking Relations differ and read and in of within results which in cause subject recognize you These uncertainties to As in release to forward-looking release. contain These our this from could and call, many the statements are statements at risks forward-looking uncertainties, those forward-looking uncertainties. light that to are statements. such the both beyond all information, section meaning included on regarding risks materially website those creditacceptance.com, Law. listen number which of and other out of of you Consider cautionary the conference please risks Securities of statement spelled Investor the statements and

comply Officer; the our G, mention At Regulation Booth, with Chief this GAAP that SEC's I measures. which Release, will time, measures News results your Additionally, financial how take reconcile provides tables to Financial Roberts, Officer; Chief to Ken should I Executive non-GAAP the our our showing to and section Brett questions. refer please of

Operator

first Moshe Suisse. [Operator question comes Instructions] Orenbuch And your from with Credit

is line open. Your

Moshe Orenbuch

in forward? how impact second that think performance going the quarter big quite that in some from Obviously kind the can terms in provision, should the periods? on a of think future your we of - had about quarter smallest probably had actually collections benefit time. you a smaller loan but the some about expected smaller loss we Obviously How good

Ken Booth

where the internally. on no think we performance focus it there view so for the the to losses, clearest way about credit financial look the we at adjusted we think think I is that's way I way provision as results

Moshe Orenbuch

it bit a And for you future to bit? existing you And application portfolio for flush of disclosures And both about applied potential loans. relating just, a be I you you little just like fair option, kind expand the a that could of was I CECL then that kind the expand your sounded loans mean little did hoping in not to would dealer out talked of but how loans. the value potential maybe using to CECL the purchased bit little

Brett Roberts

whatever bit quite in we Yes, an for loans details. CECL transition of getting certain the accounting on economics would basically We adopt, and clear a dealer a for business. underlying be the in our of point decent active the to have reflecting XX-Q. date this disclosure our loans outstanding To purchase without we relief prior would the in of qualify think those loans would do loans job

time charge would method what be in We of this to for originations primarily in at prior though we time as the have expected think first to And active outstanding amounts which the the that’s than that finance economics how losses of never accounting credit require we yield yield accounted because higher - collect a of and would our disclosed expect we our loans, for CECL. adoption XX-Q revenue recognize at reflect a it under that as determined the the place we date loans would under CECL. we future bit originate loans Situation different provision actually as that would significant for Q, of that in is we recognize attain. to then for underlying disclosed we a don't us dealer not the over little

value. are the of course in result, a fair evaluating as we as So Q say we

Operator

[Operator Jefferies. with Kyle Joseph Instructions] question next Your comes from

open. is line Your

Kyle Joseph

not if are specifically? vintages. health impacts driving collections did borrower credit, on wage you Moshe's and to forecasted And your comment on seeing of of wanted did just look it the Going vast is for or majority like your that what they the the underlying all guys questions the if improve could growth

Ken Booth

in disclose flows change is positive in trying that’s to during forecast small net a that project. again positive quarter flow cash nice, it's of to very our terms the XX.X a cash it’s had the small to but relative We number million we’re

as similar to the look would I quarter. very So forecast our at consistent basically that prior during releases is

Kyle Joseph

your for obviously growth in you seeing in seeing if very you're then we’re good just update quarter trends on update and give us the but could us competitive And project what you on an competitively? could demand volume just if

Ken Booth

in as was at we It up per in quarter. the the the the change for is release look I best volume think quarter active dealer. X.X% prior said so Yes, number to in

So to nonetheless. is come of that’s internal probably our mark. solid force it, positive quarter it’s it Loan certainly deciding expansion sales growth we maybe strong to for hard how that’s difficult. that’s the has external always very do I think of much environment, a how got tell, more quarter a favorable the was with but and much was Maybe

Operator

comes with Securities. from JMP [Jeff Your next question Sang]

is line Your open.

Unidentified Analyst

is Jeff in dialing This for David.

provision was around there reversal Some - any allowance the for led that questions this million related the for material only provision quarter, X to to quarter? expense the

Brett Roberts

it same quarter. the calculated been was provision way has The every

of of quarter prior quarter. different in - including quarter is some and than a this just provisions other any it’s no every in reversal So that one

Operator

Mr. no turn remarks. With any additional questions to conference closing in to over you. or the the queue, I further Busk like back for Thank would

Doug Busk

their joining our We support for call would conference on to thank us today. like and everyone for

look at our Investor next If you mailbox any quarter. IR@creditacceptance.com. Thank follow-up additional have you them questions, talking direct you. again please We to forward to to Relations

Operator

conference. today's you We conclude does this for again your thank Once participation.

Credit Acceptance (CACC) 31 Jul 182018 Q2 Earnings call transcript