Credit Acceptance Corporation announced its third quarter 2024 financial results on October 30, 2024, reporting consolidated net income of $78.8 million, or $6.35 per diluted share. This represents an increase compared to $70.8 million, or $5.43 per diluted share, for the same period in 2023. Total revenue for the quarter rose to $550.3 million from $508.9 million in the prior year.
However, adjusted net income, a non-GAAP measure, decreased to $109.1 million, or $8.79 per diluted share, in Q3 2024, down from $139.5 million, or $10.70 per diluted share, in Q3 2023. This decline in adjusted profitability indicates some underlying challenges despite the GAAP net income growth. The company's forecasted collection rates for Consumer Loans assigned in 2021 through 2024 declined during the quarter, signaling continued underperformance in recent loan vintages.
On a positive note, Consumer Loan assignment unit volumes grew by 17.7% and dollar volumes increased by 12.2% during the third quarter of 2024 compared to the prior year. This growth was supported by an 8.8% increase in the number of active dealers. The company also noted that Consumer Loans assigned in 2018 through 2020 have yielded significantly better collection results than initial estimates.
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