Credit Acceptance Corp. announces first quarter earnings of $9,188,000 or 20 cents per share.SOUTHFIELD Southfield, city (1990 pop. 75,728), Oakland co., SE Mich., a suburb of Detroit, on the Rouge River; laid out 1817, inc. as a city 1958. There are electronics research, meat-processing, and printing facilities, and manufactures include plastic, metal, rubber, and , Mich.--(BUSINESS WIRE)--April 17, 1996--Credit Acceptance Corp. announced today that consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income for the quarter ended March 31, 1996 was $9,188,000 or 20 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared to $6,171,000 or 15 cents per share for the same period in 1995 representing an increase of 36 percent. Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. A. Foss, chairman and chief executive officer, reported the company enrolled 652 new dealers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and 115 new dealers in the United Kingdom for the quarter ended March 31, 1996, bringing the total number of participating dealers to 3,977 as compared to 2,035 participating dealers at March 31, 1996. New installment contracts installment contract n. an agreement in which payments of money, delivery of goods or performance of services are to be made in a series of payments, deliveries or performances, usually on specific dates or upon certain happenings. accepted increased by 49 percent for the quarter ended March 31, 1996, over the same period in 1995. Total outstanding net installment contracts receivable increased to $729,523,000 as of March 31, 1996, a 60 percent increase over March 31, 1995. This includes net installment contracts receivable of $57,445,000 in the United Kingdom as of March 31, 1996. The increase in consolidated net income is primarily the result of a 44 percent increase in finance charges from 1995 to 1996 as well as continued increases in premiums and commissions earned on the company's credit life, service contract, and dual interest collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although protection insurance programs. Credit Acceptance Corp. is a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company which provides funding, receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed management, collection, sales training and related products and services to automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of dealers selling vehicles to consumers with limited access to traditional sources of consumer credit. -0-
Summary Financial Data
______________________
(Dollars in thousands, except per share data)
Three Months Ended
March 31
____________________
1996 1995
____ ____
Income Statement
REVENUE
Finance charges $20,373 $14,161
Interest and other fees 2,903 1,597
Dealer enrollment fees 964 586
Premiums earned 2,365 1,367
_______ _______
Total revenue 26,605 17,711
COSTS AND EXPENSES
Salaries and wages 2,740 2,088
General and administrative 3,240 2,177
Provision for credit losses 2,726 1,510
Sales and marketing 902 391
Provision for claims 757 426
Interest 2,073 1,789
_______ _______
Total costs and expenses 12,438 8,381
_______ _______
OPERATING INCOME 14,167 9,330
(Gain) loss on foreign exchange
translation 2 (83)
Provision for income taxes 4,977 3,242
_______ _______
NET INCOME $9,188 $6,171
_______ _______
_______ _______
Net income per common share $.20 $.15
____ ____
____ ____
Weighted average shares outstanding 46,436,108 42,456,809 Percent change in Total revenue 50.2% - Net income 48.9% - Earnings per share 36.1% -
Summary Financial Data
______________________
(Dollars in thousands, except per share data)
As of
March 31
____________________
1996 1995
____ ____
Balance Sheet Data ASSETS Cash and investments $ 3,261 $ 1,947
Installment contracts receivable 738,293 461,812
Allowance for credit losses (8,770) (5,155)
_______ _______
Installment contracts receivable, net 729,523 456,657
Floor plan receivables 14,491 8,681
Notes receivable 3,078 2,497
Property and equipment, net 10,730 9,370
Other assets 3,945 3,849
_______ _______
TOTAL ASSETS $765,028 $483,001
_______ _______
_______ _______
LIABILITIES
Total debt $119,748 $94,325
Accounts payable and accrued
liabilities 21,848 15,800
Income taxes payable 3,627 2,766
Deferred dealer enrollment fees, net 2,086 1,266
Dealer holdbacks, net 401,718 281,901
Deferred income taxes 8,159 5,565
_______ _______
TOTAL LIABILITIES $557,186 $400,901
_______ _______
TOTAL SHAREHOLDERS' EQUITY 207,842 82,100
_______ _______
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $765,028 $483,001
_______ _______
_______ _______
Operating Data Number of dealers at period end 3,977 2,035
Summary Financial Data
______________________
(Dollars in thousands, except per share data)
Installment Contracts Receivable
The following table summarizes the
composition of installment contracts
receivable: As of
March 31
______________________
1996 1995
______________________
Gross installment contracts receivable $885,121 $553,341
Unearned finance charges (141,398) (89,020)
Unearned insurance premiums, insurance
reserves and fees (5,430) (2,509)
________ ________
Installment contracts receivable $738,293 $461,812
________ ________
________ ________
Non-accrual installment contracts as a
percent of total gross installment
contracts 33.4% 26.2%
_____ _____
_____ _____
A summary of changes in gross installment
contracts receivable is as follows: Three Months Ended
March 31
______________________
1996 1995
______________________
Balance, beginning of period $790,607 $486,897
Gross amount of installment contracts
accepted 203,926 136,649
Cash collections on installment contracts
receivable (87,278) (58,083)
Charge offs (22,134) (12,122)
________ ________
Balance, end of period $885,121 $553,341
________ ________
________ ________
Dealer Holdbacks
The following table summarizes
the composition of dealer holdbacks: As of
March 31
______________________
1996 1995
______________________
Dealer holdbacks $704,493 $437,320
Less: Advances (net of reserve of
$4,377 and $1,812 at March 31,
1996 and 1995, respectively) (302,775) (156,141)
________ ________
Dealer holdbacks, net $401,718 $281,179
________ ________
________ ________
CONTACT: Credit Acceptance Corp., Southfield Brett n. 1. Same as Britzska. A. Roberts, 810/353-2700, ext. 423 John P. Cavanaugh, 810/353-2700, ext. 442 |
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