Credit Acceptance Corporation (NASDAQ:CACC) Q1 2023 Earnings Conference Call May 1, 2023 5:00 PM ET
Company Participants
Doug Busk - Chief Treasury Officer
Ken Booth - Chief Executive Officer
Jay Martin - Senior Vice President, Finance and Accounting
Conference Call Participants
Moshe Orenbuch - Credit Suisse
Robert Wildhack - Autonomous Research
John Rowan - Janney
Ray Cheesman - Anfield Capital Management
Operator
Good day, everyone. And welcome to the Credit Acceptance Corporation First Quarter 2023 Earnings Call. Today’s call is being recorded. A webcast and transcript of today’s earnings call will be made available on Credit Acceptance website.
At this time, I would like to turn the call over to Credit Acceptance Chief Treasury Officer, Doug Busk.
Doug Busk
Thank you. Good afternoon. And welcome to the Credit Acceptance Corporation first quarter 2023 earnings call. As you read our news release posted on the Investor Relations section of our website at ir.creditacceptance.com and as you listen to this conference call, please recognize that both contain forward-looking statements within the meaning of federal securities laws.
These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control and which could cause actual results to differ materially from such statements.
These risks and uncertainties include those spelled out in the cautionary statement regarding forward-looking information included in the news release. Consider all forward-looking statements in light of those and other risks and uncertainties.
Additionally, I should mention that to comply with the SEC’s Regulation G, please refer to the financial results section of our news release, which provides tables showing how non-GAAP measures reconcile to GAAP measures.
Our GAAP and adjusted results for the quarter include forecasted profitability for consumer loan assignment for consumer loans assigned in 2020 through 2022 that was lower than our estimates at March 31, 2022, due to a decline in forecasted collection rates during the last three quarters of 2022 and slower net cash flow timing during the first quarter of 2023 primarily as a result of a decrease in consumer loan prepayments.
Stable forecasted collection rates during the first quarter of 2023 with forecasted net cash flows from our loan portfolio increasing by $9.4 million or 0.1%. In comparison, our results for the first quarter of 2022 reflected elevated consumer loan performance that followed the distribution of federal stimulus payments and enhanced unemployment benefits.
Growth in consumer loan assignment volume as unit and dollar volumes grew 22.8% and 18.6%, respectively, as compared to the first quarter of 2022.