CACC - Earnings call transcript Q1 2021 | Credit Acceptance Corporation

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Operator

Good day, everyone, and welcome to the Credit Acceptance Corporation First Quarter 2021 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, Chief Treasury Officer, Doug Busk.

Doug Busk

Thank you. to Acceptance welcome XXXX First and Call. Earnings afternoon, the Corporation 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 ir.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 the our G, mention At Regulation Roberts. with this GAAP that SEC's I measures. which release time, measures news results Additionally, financial how reconcile provides tables to turn to call to Brett should over non-GAAP the the showing to section I'll refer please of

Brett Roberts

has with has retiring choice. gratitude run in collaborative company. decision, years. XX for talented, Ken replace made the and company me will Thanks, opportunity challenge, you every one-man decisions He's Booth integrity, I announced collaborative as We've we every been well-respected way. every the that in a my I'm retirement. the on manner. is me least and people decided the Ken a has sense have along The should for discussed retirement great leadership been my about never and a all Board The weekly and has meets anyone for the tremendous personal basis, a team Doug. If reasons last is CEO. worried inside void, high a and I'm at leaving band. the opportunity think Today, had understand a this been very a manner that, of for creating I help to he's

Daniel Smith XX have experienced company Arth the Operating years. Busk We unusually have more and years; for for Charlie XX been Jon the worked Doug than Officer for more Ulatowski Lum our XX XX me years; than team. Ken with than years; more and last Chief has an Pearce;

a that over So I the leave and opportunity great I the confident me experienced behind like use to would have and do supported they years. people team, the all talented I'm this to will job. thank

an We board. have amazing

throughout the have We great leaders company.

We have accomplished what of I say unique and think XX.X and years. goodwill, over and proud the we your culture and to it over to Ken unusual turn filled I Doug an trust about of answer together goodbye last I'm is With questions that, a quarter. with will amount what the

Operator

[Operator Suisse. comes question first from of the from line Orenbuch Instructions] Your Moshe Credit

Your open. line is

Moshe Orenbuch

in loss. contingent I in Are go you a elements of Great. different anything Ken agreement other us there the I an Thanks. tell of you're forward? that that kind agreement – Commonwealth the – the with But release press guess, understand Massachusetts principle. And that and is mentions that to that's as to about terms any of do have could you going of

Doug Busk

disclosed can't XX-Q. Commonwealth in the in I the Massachusetts press have agreement of No, discuss with in really we what release principle the the what's beyond

Moshe Orenbuch

last half March any can from The of CID kind also an the give kind XX-Q of had year. that and forth us back in that of over additional the updates there Is mentions was you Okay. back CFPB you there?

Doug Busk

in the disclosed we've what beyond commentary any provide really Can't XX-Q.

Moshe Orenbuch

Okay.

for of said quarter the XXXX. through 'XX the XXXX that collection your during actually collection the that your of -- part terms expectations improved for percentages while you expectations first the actually of in But way happens? recent In older kind what to Is explain the quarter of deteriorate improve? any the most slightly first would expectations deteriorated. cause that year Like the to how ones there the

Ken Booth

down much tenth percent, quarter, flat. a which of I is pretty mean for first the it's

So me, expectations. our it'd with surprise flat it doesn't be

it's for you're of If to than we're quarters, on lower how initial to it. depends do really That on not pricing. expectation referring really fact is it previous initial what the relevant fact that just kind compared we our business expectation except the

Moshe Orenbuch

guess, sorry. I'm I Right.

Doug Busk

the you footnote, take forecasted from computing are if because denominator thing rates we to loans rates. you'll collection out out that amount the One canceled don't I for like that the collection note is, say consumer we I'd point negatively look of forecasted that contractual think in by impacted purposes

that I canceled loans. think a originations collection So down impact little results or bit. up in see they're the following any little quarter the are depressed event of either in bit But first by you'll a generally

Moshe Orenbuch

kind Doug. are that the of to didn't Thanks, And bit Similar rates. higher. is didn't that to rates understand the understand in that? collection XXXX your help actually so as referring it. if a know think collection explanation because that's I forecast you the that say better -- I that's collections. kind the Ken I of better guess that that the that Does between Got and us way I experienced a spread have what mean of of know were thing you've that. lower don't sort In I the a collections discussed -- the quite there's cause you forecasted you that on advance bit

Ken Booth

our little up has spread made Initially performed what bit expectation we little a talking learn. our we about we there of what a But generally thought from down past initially business than goes seem collect. we're better upon going based have we're bigger. has And like gather is we what an or as month-to-month, information which to more forecast the

Moshe Orenbuch

Okay. Got it. Thank you.

Operator

next question line Investment. from Your Randy of from Goodnow Instructions] the Heck [Operator comes

Your open. line is

Randy Heck

a creating last XX value Well, -- tremendous shareholder job Brett being tremendous to tremendous congratulate first a I And the just shareholders. a just run value for a want years. for real pleasure for and

that the -- the And noted Secondly, think I was collections March the you were it another said they're much release XX% in the better of in April. month XX up month in of and were press didn't because because the get you accounting in in earnings the benefit P&L back collections the works, the the the full way the the the of or -- release skewed. earnings quarter

if into us So what can in general adjusted accounting idea you in roughly would the collections of been give different? if a the stronger we account quarter March have was first the earnings take

Ken Booth

that. we to better. would Randy, But in us collections quarter. come next done I we the -- the if hard mean or ratably will that's to through have a better continue quarter, that had really question that calculate it's quantify Clearly, collections come answer. can't help higher

Randy Heck

were finally comp. you then I that up that in strength of negative And What unit April through, attribute to? and XX% that's volume noted release yesterday Okay. originations the would guess, a or X% something. month the press against And

Ken Booth

A with has to lot of that the really have we comparable do year. to last

first was year comparable stimulus. part to The pretty due last a April of basically easy

the So run we for first was XX while a in included why easier to it days, the XXXX good an comparable it's comparable. the release. really That's

Randy Heck

Yes.

Okay.

Doug Busk

May June. April back XX% last and that and If approximately in and unit in and were a down bit you March year then both think look, up quite volume I go

Randy Heck

Well, you very right. Okay. All much. thank

Ken Booth

Thanks.

Doug Busk

Randy. Thanks,

Operator

Autonomous Your Research. Wildhack Instructions] from the question [Operator line comes next of from Rob

is open. line Your

Rob Wildhack

everyone. Hi,

from and you benefit programs in you're stimulus given the past that helped a still Can any have feeling degree that quarter. in this through package the active recent color also originations mentioned give a as the I'm stimulus dealers helped quarter's if results? You've most April? And package that to wondering stimulus

Ken Booth

it's -- to is stimulus quantify But having and likely hard It's the of the impact both very originations. on that. positive impact collections that

If our and you there's there's better not. and experience the we've over as stimulus done well look not XX at when months, last

a I that have -- though. quantification So we don't of

Rob Wildhack

Thank Okay. you.

Operator

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

Doug Busk

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

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

Operator

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

Credit Acceptance (CACC) 29 Apr 212021 Q1 Earnings call transcript