Credit Acceptance: We change lives!
Company News

Credit Acceptance Announces Timing of Second Quarter 2014 Earnings Release and Webcast

Southfield, Michigan, July 23, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today that we expect to issue a news release with our second quarter 2014 earnings on Wednesday, July 30, 2014, after the market closes.

A webcast is scheduled for Wednesday, July 30, 2014, at 5:00 p.m. Eastern Time to discuss second quarter 2014 results. The webcast can be accessed live by visiting the "Investor Relations" section of our website at creditacceptance.com or by dialing 877-303-2904. Additionally, a replay and transcript of the webcast will be archived in the "Investor Relations" section of our website.

Description of Credit Acceptance Corporation

Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.

CONTACT: Investor Relations: Douglas W. Busk

         Senior Vice President and Treasurer

         (248) 353-2700 Ext. 4432

IR@creditacceptance.com

Credit Acceptance Announces Extension of Revolving Secured Line of Credit Facility

Southfield, Michigan, June 23, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today that we have extended the maturity of our credit facility with a commercial bank syndicate from June 23, 2016 to June 23, 2017.

There were no material changes to the terms of the facility. The credit facility continues to be secured by a lien on most of our assets. As of June 23, 2014, we had $90.1 million outstanding under the facility.

Description of Credit Acceptance Corporation

Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.

CONTACT: Investor Relations: Douglas W. Busk

         Senior Vice President and Treasurer

         (248) 353-2700 Ext. 4432

IR@creditacceptance.com

Credit Acceptance Announces Final Results of Tender Offer

Southfield, Michigan, June 17, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today the final results of our tender offer, which expired at 5:00 p.m., New York City time, on June 16, 2014. We commenced the tender offer on May 16, 2014 to purchase up to 915,750 shares of our outstanding common stock at a price of $125.58 per share, net to the seller in cash, without interest. Based on the final count by Computershare Trust Company, N.A., the Depositary for the tender offer, 5,352,622 shares of common stock were properly tendered and not properly withdrawn. Because more than the maximum 915,750 shares were tendered, we have accepted for purchase only a prorated portion of the shares tendered by each tendering shareholder, other than odd lot shareholders, as described in our Offer to Purchase. The proration factor used by us in accepting for purchase tendered shares was approximately 17.1%.

We will promptly pay for 915,750 tendered shares of our common stock at a price of $125.58 per share, net to the seller in cash, without interest, at a total cost of approximately $115.0 million. We are financing the purchase of our securities in the tender offer by borrowing under our revolving secured warehouse facility.

As a result of the completion of the tender offer, we have approximately 21.6 million shares of common stock outstanding. Georgeson, Inc. was the Information Agent for the tender offer.

Description of Credit Acceptance Corporation

Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.

 CONTACT: Investor Relations: Douglas W. Busk 
           Senior Vice President and Treasurer
           (248)353-2700 Ext. 4432
           IR@creditacceptance.com
                

Credit Acceptance Announces: Certain Operating Results

Southfield, Michigan, June 9, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today certain operating results in connection with our previously announced tender offer to purchase up to 915,750 shares of our outstanding common stock at a price of $125.58 per share. The tender offer will expire at 5:00 p.m., New York City time, on Monday, June 16, 2014, unless extended by us.

Consumer Loan Performance

Dealers assign retail installment contracts (referred to as "Consumer Loans") to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to achieve an acceptable return on capital. If Consumer Loan performance equals or exceeds our initial expectation, it is likely our target return on capital will be achieved.

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate of each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our forecast of Consumer Loan collection rates as of April 30, 2014 with the forecasts as of March 31, 2014, December 31, 2013, and at the time of assignment, segmented by year of assignment:

Forecasted Collection Percentage as of

Variance in Forecasted Collection Percentage from

Consumer Loan Assignment Year

April 30,
2014

March 31,
2014

December 31, 2013

Initial
Forecast

March 31,
2014

December 31, 2013

Initial
Forecast

2005

73.7

%

73.7

%

73.7

%

74.0

%

0.0

%

0.0

%

-0.3

%

2006

70.0

%

70.0

%

70.0

%

71.4

%

0.0

%

0.0

%

-1.4

%

2007

68.0

%

68.0

%

67.9

%

70.7

%

0.0

%

0.1

%

-2.7

%

2008

70.2

%

70.2

%

70.1

%

69.7

%

0.0

%

0.1

%

0.5

%

2009

79.3

%

79.3

%

79.2

%

71.9

%

0.0

%

0.1

%

7.4

%

2010

77.2

%

77.1

%

77.0

%

73.6

%

0.1

%

0.2

%

3.6

%

2011

74.1

%

74.1

%

74.1

%

72.5

%

0.0

%

0.0

%

1.6

%

2012

73.4

%

73.4

%

73.5

%

71.4

%

0.0

%

-0.1

%

2.0

%

2013

73.4

%

73.3

%

73.3

%

72.0

%

0.1

%

0.1

%

1.4

%

2014

72.3

%

71.9

%

--

72.3

%

0.4

%

--

0.0

%

Consumer Loans assigned in 2009 through 2013 have yielded forecasted collection results materially better than our initial estimates, while Consumer Loans assigned in 2006 and 2007 have yielded forecasted collection results materially worse than our initial estimates. For all other assignment years presented, actual results have been very close to our initial estimates. For the four months ended April 30, 2014, forecasted collection rates improved for Consumer Loans assigned in 2010 and were generally consistent with expectations at the start of the period for all assignment years presented.

Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability, even if collection rates are less than we currently forecast.

The following table presents forecasted Consumer Loan collection rates, advance rates, the spread (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of April 30, 2014. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

As of April 30, 2014

Consumer Loan Assignment Year

Forecasted Collection %

Advance % (1)

Spread %

% of Forecast Realized (2)

2005

73.7

%

46.9

%

26.8

%

99.7

%

2006

70.0

%

46.6

%

23.4

%

99.4

%

2007

68.0

%

46.5

%

21.5

%

99.0

%

2008

70.2

%

44.6

%

25.6

%

98.5

%

2009

79.3

%

43.9

%

35.4

%

98.6

%

2010

77.2

%

44.7

%

32.5

%

95.3

%

2011

74.1

%

45.5

%

28.6

%

82.7

%

2012

73.4

%

46.3

%

27.1

%

61.0

%

2013

73.4

%

47.6

%

25.8

%

29.5

%

2014

72.3

%

48.0

%

24.3

%

4.9

%

(1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.

(2) Presented as a percentage of total forecasted collections.

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2010 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate and the advance rate declined during the 2005 through 2007 period as we increased advance rates during this period in response to a more difficult competitive environment. During 2008 and 2009, the spread increased as the competitive environment improved, and we reduced advance rates. In addition, during 2009, the spread was positively impacted by better than expected Consumer Loan performance. During the 2010 through 2013 period, the spread decreased as we again increased advance rates in response to the competitive environment. The decline in the spread from 2013 to 2014 is primarily the result of the performance of 2013 Consumer Loans, which has exceeded our initial expectations.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last five quarters and the two month period ended May 31, 2014, as compared to the same period in the previous year:

Year over Year Percent Change

Period

Unit Volume

Dollar Volume (1)

Quarter ended March 31, 2013

-2.9

%

-0.4

%

Quarter ended June 30, 2013

8.4

%

10.5

%

Quarter ended September 30, 2013

11.0

%

15.9

%

Quarter ended December 31, 2013

12.6

%

11.3

%

Quarter ended March 31, 2014

14.3

%

16.2

%

Two month period ended May 31, 2014

3.9

%

(2)

(1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.

(2) Dollar volume grew 6.4% for the one month period ended April 30, 2014. May 2014 dollar volume was unavailable at the time of this release.

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our product, (2) the amount of capital available to fund new loans, and (3) our assessment of the volume that our infrastructure can support. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital and infrastructure constraints.

Unit volume grew 3.9% during the two months ended May 31, 2014 as the number of active dealers grew 11.6% and average volume per active dealer declined 7.2%.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

For the Two Months Ended May 31,

For the Five Months Ended May 31,

2014

2013

% Change

2014

2013

% Change

Consumer Loan unit volume

35,181

33,876

3.9

%

100,464

90,981

10.4

%

Active dealers (1)

4,557

4,084

11.6

%

5,612

4,954

13.3

%

Average volume per active dealer

7.7

8.3

-7.2

%

17.9

18.4

-2.7

%

(1) Active dealers are dealers who have received funding for at least one dealer loan or purchased loan during the period.

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers:

For the Two Months Ended May 31,

For the Five Months Ended May 31,

2014

2013

% Change

2014

2013

% Change

Consumer Loan unit volume from dealers active both periods

26,532

28,404

-6.6

%

80,878

81,188

-0.4

%

Dealers active both periods

2,758

2,758

--

3,570

3,570

--

Average volume per dealers active both periods

9.6

10.3

-6.6

%

22.7

22.7

-0.4

%

Consumer Loan unit volume from new dealers

1,120

1,412

-20.7

%

6,433

7,714

-16.6

%

New active dealers (1)

338

423

-20.1

%

972

1,101

-11.7

%

Average volume per new active dealers

3.3

3.3

0.0

%

6.6

7.0

-5.7

%

Attrition (2)

-16.2

%

-15.9

%

-10.8

%

-10.6

%

(1) New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.

(2) Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.

Notice to Investors

This release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of Credit Acceptance's common stock. The solicitation of offers to buy Credit Acceptance's common stock is only being made pursuant to the Offer to Purchase and related materials that Credit Acceptance has filed on Schedule TO with the Securities and Exchange Commission (the "SEC"). Shareholders are urged to read Credit Acceptance's Tender Offer Statement on Schedule TO (the "Statement") filed with the SEC in connection with the tender offer, which includes as exhibits the Offer to Purchase and the related Letter of Transmittal, as well as any amendments or supplements to the Statement when they become available, because they contain important information. Each of these documents has been or will be filed with the SEC, and shareholders may obtain them free of charge from the SEC at the SEC's Website ( http://www.sec.gov/) or from Georgeson, Inc., the Information Agent for the tender offer, toll free at (866) 729-6818.

Cautionary Statement Regarding Forward-Looking Information

Statements in this release that are not historical facts, such as those using terms like "may," "will," "should," "believe," "expect," "anticipate," "assume," "forecast," "estimate," "intend," "plan," "target" and those regarding our future results, plans and objectives, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A to our Form 10-K for the year ended December 31, 2013, filed with the SEC on February 14, 2014, other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

  • Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
  • We may be unable to execute our business strategy due to current economic conditions.
  • We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
  • The terms of our debt limit how we conduct our business.
  • A violation of the terms of our asset-backed secured financing facilities or revolving secured warehouse facilities could have a materially adverse impact on our operations.
  • The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity and results of operations.
  • Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations and adversely affect our financial condition.
  • Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
  • We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
  • Interest rate fluctuations may adversely affect our borrowing costs, profitability and liquidity.
  • Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition and results of operations.
  • We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
  • The regulation to which we are or may become subject could result in a material adverse effect on our business.
  • Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
  • Litigation we are involved in from time to time may adversely affect our financial condition, results of operations and cash flows.
  • Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
  • Our dependence on technology could have a material adverse effect on our business.
  • Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
  • We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
  • Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
  • The concentration of automotive dealers that participate in our program in several states could adversely affect us.
  • Failure to properly safeguard confidential consumer information could subject us to liability, decrease our profitability and damage our reputation.
  • A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of other security holders.
  • Reliance on our outsourced business functions could adversely affect our business.
  • Natural disasters, acts of war, terrorist attacks and threats or the escalation of military activity in response to these attacks or otherwise may negatively affect our business, financial condition and results of operations.

Other factors not currently anticipated by management may also materially and adversely affect our results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Description of Credit Acceptance Corporation

Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.

 CONTACT: Investor Relations: Douglas W. Busk 
           Senior Vice President and Treasurer
           (248)353-2700 Ext. 4432
           IR@creditacceptance.com
                

Credit Acceptance Announces Tender Offer

Southfield, Michigan, May 16, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today that we have commenced a tender offer to purchase up to 915,750 shares of our outstanding common stock at a price of $125.58 per share.

We anticipate that we will obtain all of the funds necessary to purchase shares tendered in the tender offer, and to pay related fees and expenses, by borrowing under our revolving secured line of credit facility and/or one or more of our revolving secured warehouse facilities. The tender offer is not conditioned upon the receipt of financing.

We have evaluated our operations, strategy and expectations for the future and believe that the tender offer is a prudent use of our financial resources given our business profile, assets and the current market price for our shares. As of May 12, 2014, we had $489.7 million in unused and available capacity on our revolving secured line of credit facility and our revolving secured warehouse facilities.

We believe that the tender offer represents a mechanism to provide all shareholders with the opportunity to tender all or a portion of their shares and, thereby, receive a return of the Company's capital if they so elect. This format of repurchase also provides a method for shareholders not participating to increase their relative percentage interest in Credit Acceptance and our future operations at no additional cost. As a result, we believe that investing in our own shares in this manner is an attractive use of capital and an efficient means to provide value to shareholders. The tender offer also provides liquidity to shareholders (particularly those with large shareholdings) by providing them the opportunity to sell all or a portion of their shares at a price of $125.58 per share without potential disruption to the share price and the usual transaction costs associated with market sales.

The tender offer will expire at 5:00 p.m., New York City Time, on Monday, June 16, 2014, unless extended by us. Tenders of shares must be made on or prior to the expiration of the tender offer and shares may be withdrawn at any time on or prior to the expiration of the tender offer. Our obligation to purchase shares in the tender offer is not conditioned upon any minimum number of shares being tendered. The tender offer is, however, subject to the conditions set forth in the Offer to Purchase and related Letter of Transmittal documents being sent to shareholders.

Under the tender offer, shareholders of Credit Acceptance common stock will be invited to choose how many shares they are willing to sell to us at $125.58 per share. If more than the maximum number of shares sought is tendered, tendering shareholders owning fewer than 100 shares, or "odd lot" holders, will have their shares purchased without proration and all other tendered shares will be purchased on a pro rata basis, subject to the conditional tender provisions described in the Offer to Purchase. Shareholders whose shares are purchased in the tender offer will be paid the purchase price net in cash, without interest, promptly after the expiration of the tender offer. Shareholders whose shares are not purchased in the tender offer will have their shares returned, free of charge, promptly after the expiration of the tender offer.

Donald Foss, our Chairman of the board, has indicated his non-binding intention to tender 4.4 million shares in the tender offer. Glenda Flanagan, one of our directors, has indicated that she may tender up to 28,000 shares in the tender offer. None of our other directors or officers have indicated their intent to tender shares in the tender offer. If the intention of our directors and officers changes materially, we will disclose the change in intention prior to the expiration of the tender offer.

As of May 1, 2014, Credit Acceptance had 22,509,684 shares outstanding. The last reported sale price of Credit Acceptance's common stock on the NASDAQ Global Select Market on May 15, 2014, which was the last trading day prior to the announcing of the offer, was $125.58 per share.

Georgeson, Inc. is the Information Agent for the offer and Computershare Trust Company, N.A. is the Depositary. The Offer to Purchase, Letter of Transmittal and related documents are being mailed to registered shareholders and will also be made available for distribution to beneficial owners of Credit Acceptance common stock. Questions related to the offer and requests for copies of the Offer to Purchase, the Letter of Transmittal and related documents may be directed to Georgeson, Inc. at (866) 729-6818.

Neither Credit Acceptance nor its Board of Directors is making any recommendation to any shareholder as to whether to tender or refrain from tendering their shares. Shareholders should carefully evaluate all information in the Offer to Purchase and the related Letter of Transmittal, should consult with their own financial and tax advisors, and should make their own decisions about whether to tender shares, and, if so, how many shares to tender.

This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of Credit Acceptance's common stock. The solicitation of offers to buy Credit Acceptance's common stock will only be made pursuant to the Offer to Purchase and related materials that Credit Acceptance will be distributing to its shareholders. Shareholders are urged to read Credit Acceptance's Tender Offer Statement on Schedule TO (the "Statement") filed with the Securities and Exchange Commission (the "SEC") in connection with the tender offer, which includes as exhibits the Offer to Purchase and the related Letter of Transmittal, as well as any amendments or supplements to the Statement when they become available, because they contain important information. Each of these documents has been or will be filed with the SEC, and shareholders may obtain them free of charge from the SEC at the SEC's Website ( http://www.sec.gov/) or from Georgeson, Inc., the Information Agent for the tender offer, toll free at (866) 729-6818.

Cautionary Statement Regarding Forward-Looking Information

Statements in this release that are not historical facts, such as those using terms like "may," "will," "should," "believe," "expect," "anticipate," "assume," "forecast," "estimate," "intend," "plan," "target" and those regarding our future results, plans and objectives, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A to our Form 10-K for the year ended December 31, 2013, filed with the SEC on February 14, 2014, other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

  • Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.

  • We may be unable to execute our business strategy due to current economic conditions.

  • We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.

  • The terms of our debt limit how we conduct our business.

  • A violation of the terms of our asset-backed secured financing facilities or revolving secured warehouse facilities could have a materially adverse impact on our operations.

  • The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity and results of operations.

  • Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations and adversely affect our financial condition.

  • Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.

  • We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.

  • Interest rate fluctuations may adversely affect our borrowing costs, profitability and liquidity.

  • Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition and results of operations.

  • We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.

  • The regulation to which we are or may become subject could result in a material adverse effect on our business.

  • Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.

  • Litigation we are involved in from time to time may adversely affect our financial condition, results of operations and cash flows.

  • Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.

  • Our dependence on technology could have a material adverse effect on our business.

  • Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.

  • We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.

  • Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.

  • The concentration of automotive dealers that participate in our program in several states could adversely affect us.

  • Failure to properly safeguard confidential consumer information could subject us to liability, decrease our profitability and damage our reputation.

  • A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of other security holders.

  • Reliance on our outsourced business functions could adversely affect our business.

  • Natural disasters, acts of war, terrorist attacks and threats or the escalation of military activity in response to these attacks or otherwise may negatively affect our business, financial condition and results of operations.

  • Other factors not currently anticipated by management may also materially and adversely affect our results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements whether as a result of new information, future events or otherwise, except as required by applicable law.

  • Description of Credit Acceptance Corporation

    Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com .

    CONTACT: Investor Relations: Douglas W. Busk 
             Senior Vice President and Treasurer
             (248)353-2700 Ext. 4432
             IR@creditacceptance.com
    

    Credit Acceptance Announces First Quarter 2014 Earnings

    Southfield, Michigan, April 29, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") today announced consolidated net income of $49.8 million, or $2.12 per diluted share, for the three months ended March 31, 2014 compared to consolidated net income of $60.6 million, or $2.48 per diluted share, for the same period in 2013.

    Adjusted net income, a non-GAAP financial measure, for the three months ended March 31, 2014 was $63.4 million, or $2.69 per diluted share, compared to $58.8 million, or $2.41 per diluted share, for the same period in 2013.

    Webcast Details

    We will host a webcast on April 29, 2014 at 5:00 p.m. Eastern Time to answer questions related to our first quarter results. The webcast can be accessed live by visiting the "Investor Relations" section of our website at creditacceptance.com or by dialing 877-303-2904. Additionally, a replay and transcript of the webcast will be archived in the "Investor Relations" section of our website.

    Senior Notes

    On January 22, 2014, we issued $300 million of 6.125% senior notes due 2021 (the "2021 notes") in a private offering exempt from registration under the Securities Act of 1933. On February 21, 2014, we used the net proceeds from the 2021 senior notes, together with borrowings under our revolving credit facilities, to redeem in full the $350.0 million outstanding principal amount of our 9.125% senior notes due 2017 (the "2017 notes").

    Under GAAP, the redemption of the 2017 notes was considered an extinguishment of debt. For the quarter ended March 31, 2014, our GAAP financial results included a pre-tax loss on extinguishment of debt of $21.8 million and additional interest expense of $1.4 million as a result of the one month lag from issuance of the 2021 notes to the redemption of the 2017 notes, which collectively reduced consolidated net income by $14.6 million or $0.62 per diluted share.

    For adjusted results, a non-GAAP financial measure, the issuance of the 2021 notes was considered a refinancing of the 2017 notes. The loss on extinguishment of debt and additional interest expense that was recognized for GAAP purposes for the quarter ended March 31, 2014 was deferred as a debt issuance cost and is being recognized ratably as interest expense over the term of the 2021 notes.

    Consumer Loan Performance

    Dealers assign retail installment contracts (referred to as "Consumer Loans") to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to achieve an acceptable return on capital. If Consumer Loan performance equals or exceeds our initial expectation, it is likely our target return on capital will be achieved.

    We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate of each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our forecast of Consumer Loan collection rates as of March 31, 2014, with the forecasts as of December 31, 2013, and at the time of assignment, segmented by year of assignment:

    Forecasted Collection Percentage as of

    Variance in Forecasted Collection Percentage from

    Consumer Loan
    Assignment Year

    March 31,
    2014

    December 31,
    2013

    Initial
    Forecast

    December 31,
    2013

    Initial
    Forecast

    2005

    73.7

    %

    73.7

    %

    74.0

    %

    0.0

    %

    -0.3

    %

    2006

    70.0

    %

    70.0

    %

    71.4

    %

    0.0

    %

    -1.4

    %

    2007

    68.0

    %

    67.9

    %

    70.7

    %

    0.1

    %

    -2.7

    %

    2008

    70.2

    %

    70.1

    %

    69.7

    %

    0.1

    %

    0.5

    %

    2009

    79.3

    %

    79.2

    %

    71.9

    %

    0.1

    %

    7.4

    %

    2010

    77.1

    %

    77.0

    %

    73.6

    %

    0.1

    %

    3.5

    %

    2011

    74.1

    %

    74.1

    %

    72.5

    %

    0.0

    %

    1.6

    %

    2012

    73.4

    %

    73.5

    %

    71.4

    %

    -0.1

    %

    2.0

    %

    2013

    73.3

    %

    73.3

    %

    72.0

    %

    0.0

    %

    1.3

    %

    Consumer Loans assigned in 2009 through 2013 have yielded forecasted collection results materially better than our initial estimates, while Consumer Loans assigned in 2006 and 2007 have yielded forecasted collection results materially worse than our initial estimates. For all other assignment years presented, actual results have been very close to our initial estimates. For the three months ended March 31, 2014, forecasted collection rates were generally consistent with expectations at the start of the period for all assignment years presented.

    Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability, even if collection rates are less than we currently forecast.

    The following table presents forecasted Consumer Loan collection rates, advance rates, the spread (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of March 31, 2014. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

    As of March 31, 2014

    Consumer Loan Assignment Year

    Forecasted
    Collection %

    Advance % (1)

    Spread %

    % of Forecast
    Realized (2)

    2005

    73.7

    %

    46.9

    %

    26.8

    %

    99.7

    %

    2006

    70.0

    %

    46.6

    %

    23.4

    %

    99.4

    %

    2007

    68.0

    %

    46.5

    %

    21.5

    %

    98.9

    %

    2008

    70.2

    %

    44.6

    %

    25.6

    %

    98.5

    %

    2009

    79.3

    %

    43.9

    %

    35.4

    %

    98.5

    %

    2010

    77.1

    %

    44.7

    %

    32.4

    %

    94.8

    %

    2011

    74.1

    %

    45.5

    %

    28.6

    %

    81.3

    %

    2012

    73.4

    %

    46.3

    %

    27.1

    %

    58.7

    %

    2013

    73.3

    %

    47.6

    %

    25.7

    %

    26.6

    %

    2014

    71.9

    %

    47.9

    %

    24.0

    %

    3.2

    %

    (1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.

    (2) Presented as a percentage of total forecasted collections.

    The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2010 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

    The spread between the forecasted collection rate and the advance rate declined during the 2005 through 2007 period as we increased advance rates during this period in response to a more difficult competitive environment. During 2008 and 2009, the spread increased as the competitive environment improved and we reduced advance rates. In addition, during 2009, the spread was positively impacted by better than expected Consumer Loan performance. During the 2010 through 2013 period, the spread decreased as we again increased advance rates in response to the competitive environment. The decline in the spread from 2013 to 2014 is primarily the result of the performance of 2013 Consumer Loans, which has exceeded our initial expectations.

    The following table presents forecasted Consumer Loan collection rates, advance rates, and the spread (the forecasted collection rate less the advance rate) as of March 31, 2014 for dealer loans and purchased loans separately. All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

    Consumer Loan Assignment Year

    Forecasted Collection %

    Advance % (1)

    Spread %

    Dealer loans

    2007

    67.9

    %

    45.8

    %

    22.1

    %

    2008

    70.7

    %

    43.3

    %

    27.4

    %

    2009

    79.3

    %

    43.5

    %

    35.8

    %

    2010

    77.1

    %

    44.4

    %

    32.7

    %

    2011

    74.0

    %

    45.2

    %

    28.8

    %

    2012

    73.4

    %

    46.1

    %

    27.3

    %

    2013

    73.3

    %

    47.1

    %

    26.2

    %

    2014

    72.0

    %

    47.5

    %

    24.5

    %

    Purchased loans

    2007

    68.2

    %

    49.1

    %

    19.1

    %

    2008

    69.5

    %

    46.7

    %

    22.8

    %

    2009

    79.4

    %

    45.3

    %

    34.1

    %

    2010

    77.1

    %

    46.3

    %

    30.8

    %

    2011

    74.4

    %

    47.7

    %

    26.7

    %

    2012

    73.9

    %

    48.5

    %

    25.4

    %

    2013

    74.3

    %

    51.1

    %

    23.2

    %

    2014

    71.4

    %

    51.6

    %

    19.8

    %

    (1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.

    The advance rates presented for each Consumer Loan assignment year change over time due to the impact of transfers between dealer and purchased loans. Under our portfolio program, certain events may result in dealers forfeiting their rights to dealer holdback. We transfer the dealer's Consumer Loans from the dealer loan portfolio to the purchased loan portfolio in the period this forfeiture occurs.

    Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

    Consumer Loan Volume

    The following table summarizes changes in Consumer Loan assignment volume in each of the last five quarters as compared to the same period in the previous year:

    Year over Year Percent Change

    Three Months Ended

    Unit Volume

    Dollar Volume (1)

    March 31, 2013

    -2.9

    %

    -0.4

    %

    June 30, 2013

    8.4

    %

    10.5

    %

    September 30, 2013

    11.0

    %

    15.9

    %

    December 31, 2013

    12.6

    %

    11.3

    %

    March 31, 2014

    14.3

    %

    16.2

    %

    (1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.

    Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our product, (2) the amount of capital available to fund new loans, and (3) our assessment of the volume that our infrastructure can support. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital and infrastructure constraints.

    Unit and dollar volumes grew 14.3% and 16.2%, respectively, during the first quarter of 2014 as the number of active dealers grew 16.1% while average volume per active dealer declined 1.5%.

    The following table summarizes the changes in Consumer Loan unit volume and active dealers:

    For the Three Months Ended March 31,

    2014

    2013

    % Change

    Consumer Loan unit volume

    65,283

    57,105

    14.3

    %

    Active dealers (1)

    5,058

    4,355

    16.1

    %

    Average volume per active dealer

    12.9

    13.1

    -1.5

    %

    (1) Active dealers are dealers who have received funding for at least one dealer loan or purchased loan during the period.

    The following table provides additional information on the changes in Consumer Loan unit volume and active dealers:

    For the Three Months Ended March 31,

    2014

    2013

    % Change

    Consumer Loan unit volume from dealers active both periods

    50,752

    49,930

    1.6

    %

    Dealers active both periods

    3,097

    3,097

    --

    Average volume per dealers active both periods

    16.4

    16.1

    1.6

    %

    Consumer Loan unit volume from new dealers

    3,082

    3,440

    -10.4

    %

    New active dealers (1)

    634

    678

    -6.5

    %

    Average volume per new active dealers

    4.9

    5.1

    -3.9

    %

    Attrition (2)

    -12.6

    %

    -12.4

    %

    (1) New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.

    (2) Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.

    Consumer Loans are assigned to us as either dealer loans through our portfolio program or purchased loans through our purchase program. The following table summarizes the portion of our Consumer Loan volume that was assigned to us as dealer loans:

    For the Three Months Ended March 31,

    2014

    2013

    Dealer loan unit volume as a percentage of total unit volume

    91.7

    %

    94.4

    %

    Dealer loan dollar volume as a percentage of total dollar volume (1)

    89.2

    %

    93.1

    %

    (1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.

    As of March 31, 2014 and December 31, 2013, the net dealer loans receivable balance was 88.7% and 89.0%, respectively, of the total net loans receivable balance.

    Adjusted Financial Results

    Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine incentive compensation. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent "Floating Yield Adjustment" section. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, adjusted net income plus interest expense after-tax, adjusted return on capital, adjusted revenue, operating expenses, and economic profit are all non-GAAP financial measures. These non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

    Adjusted financial results for the three months ended March 31, 2014, compared to the same period in 2013, include the following:

    For the Three Months Ended March 31,

    (In millions, except share and per share data)

    2014

    2013

    % Change

    Adjusted average capital

    $

    2,211.9

    $

    1,912.2

    15.7

    %

    Adjusted net income

    $

    63.4

    $

    58.8

    7.8

    %

    Adjusted interest expense after-tax

    $

    9.7

    $

    10.1

    -4.0

    %

    Adjusted net income plus interest expense after-tax

    $

    73.1

    $

    68.9

    6.1

    %

    Adjusted return on capital

    13.2

    %

    14.4

    %

    -8.3

    %

    Cost of capital

    5.8

    %

    5.6

    %

    3.6

    %

    Economic profit

    $

    40.8

    $

    42.3

    -3.5

    %

    GAAP diluted weighted average shares outstanding

    23,528,466

    24,426,127

    -3.7

    %

    Adjusted net income per diluted share

    $

    2.69

    $

    2.41

    11.6

    %

    Economic profit decreased 3.5% for the three months ended March 31, 2014, as compared to the same periods in 2013. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the decrease in economic profit for the three months ended March 31, 2014, as compared to the same period in 2013:

    (In millions)

    Year over Year Change in Economic Profit For the Three Months Ended
    March 31, 2014

    Decrease in adjusted return on capital

    $

    (6.6

    )

    Increase in cost of capital

    (1.5

    )

    Increase in adjusted average capital

    6.6

    Decrease in economic profit

    $

    (1.5

    )

    The decrease in economic profit for the three months ended March 31, 2014, as compared to the same period in 2013, was the result of the following:

    • A decrease in our adjusted return on capital of 120 basis points primarily as a result of a decline in the yield on our loan portfolio due to higher advance rates on new Consumer Loan assignments.
    • An increase in our cost of capital of 20 basis points primarily due to an increase in the average 30 year treasury rate, which is used in the average cost of equity calculation.
    • An increase in adjusted average capital of 15.7% due to growth in our loan portfolio primarily as a result of growth in new Consumer Loan assignments in recent years, which resulted in the dollar volume of new Consumer Loan assignments exceeding the principal collected on our loan portfolio. The growth in new Consumer Loan assignments in recent years was the result of an increase in active dealers, partially offset by a decline in volume per active dealer.

    The following table shows adjusted revenue and operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same periods in the prior year:

    For the Three Months Ended

    Mar. 31, 2014

    Dec. 31, 2013

    Sept. 30, 2013

    Jun. 30, 2013

    Mar. 31, 2013

    Dec. 31, 2012

    Sept. 30, 2012

    Jun. 30, 2012

    Adjusted revenue as a percentage of adjusted average capital (1)

    28.8

    %

    29.5

    %

    29.8

    %

    29.9

    %

    31.0

    %

    31.0

    %

    31.7

    %

    31.9

    %

    Operating expenses as a percentage of adjusted average capital (1)

    7.8

    %

    7.5

    %

    7.1

    %

    7.8

    %

    8.1

    %

    8.0

    %

    8.2

    %

    8.2

    %

    Adjusted return on capital (1)

    13.2

    %

    13.9

    %

    14.3

    %

    13.9

    %

    14.4

    %

    14.5

    %

    14.8

    %

    14.9

    %

    Percentage change in adjusted average capital compared to the same period in the prior year

    15.7

    %

    15.5

    %

    17.4

    %

    18.5

    %

    19.3

    %

    23.3

    %

    25.5

    %

    27.9

    %

    (1) Annualized

    A decrease in our adjusted return on capital of 70 basis points for the three months ended March 31, 2014, as compared to the three months ended December 31, 2013, is primarily the result of the following:

    • A decline in the yield on our loan portfolio decreased the adjusted return on capital by 30 basis points due to higher advance rates on new Consumer Loan assignments.
    • Increased growth in operating expenses decreased the adjusted return on capital by 20 basis points as operating expenses grew 7.7% while adjusted average capital grew 2.7%. The 7.7% increase ($3.1 million) in operating expenses included:
    • An increase in salaries and wages expense of $3.4 million, or 15.1%, comprised of the following:
    • An increase of $1.9 million in stock-based compensation expense primarily due to a change in the expected vesting period of performance-based stock awards and new stock awards granted during the first quarter of 2014.
    • An increase of $1.1 million in payroll taxes as a result of the seasonal impact of both taxes that are subject to income limitations and the taxes on the annual vesting of equity awards during the first quarter of the year.
    • An increase in sales and marketing expense of $1.1 million, or 12.4%, primarily as a result of an increase in sales commissions driven by higher Consumer Loan unit volume related to both seasonality and higher year-over-year growth rates.
    • A decrease in general and administrative expenses of $1.4 million, or 14.3%, primarily as a result of a decrease in legal fees.

    The following tables provide a reconciliation of non-GAAP measures to GAAP measures. All after-tax adjustments are calculated using a 37% tax rate as we estimate that to be our long term average effective tax rate. Certain amounts do not recalculate due to rounding.

    For the Three Months Ended

    (In millions, except share and per share data)

    Mar. 31,
    2014

    Dec. 31,
    2013

    Sept. 30,
    2013

    Jun. 30,
    2013

    Mar. 31,
    2013

    Dec. 31,
    2012

    Sept. 30,
    2012

    Jun. 30,
    2012

    Adjusted net income

    GAAP net income

    $

    49.8

    $

    65.9

    $

    65.1

    $

    61.5

    $

    60.6

    $

    59.9

    $

    52.9

    $

    56.6

    Floating yield adjustment (after-tax)

    (1.1

    )

    (0.9

    )

    0.1

    (0.6

    )

    (1.1

    )

    (0.2

    )

    2.8

    (1.9

    )

    Senior notes adjustment (after-tax) (1)

    14.1

    --

    --

    --

    --

    --

    --

    --

    Adjustment to record taxes at 37%

    0.6

    (0.7

    )

    (0.7

    )

    (0.2

    )

    (0.7

    )

    (2.4

    )

    (0.1

    )

    (0.4

    )

    Adjusted net income

    $

    63.4

    $

    64.3

    $

    64.5

    $

    60.7

    $

    58.8

    $

    57.3

    $

    55.6

    $

    54.3

    Adjusted net income per diluted share

    $

    2.69

    $

    2.73

    $

    2.72

    $

    2.53

    $

    2.41

    $

    2.30

    $

    2.23

    $

    2.09

    Diluted weighted average shares outstanding

    23,528,466

    23,575,786

    23,708,043

    24,017,273

    24,426,127

    24,926,004

    24,962,054

    25,979,872

    Adjusted revenue

    GAAP total revenue

    $

    176.9

    $

    175.3

    $

    172.7

    $

    169.4

    $

    164.7

    $

    159.3

    $

    155.7

    $

    151.8

    Floating yield adjustment

    (1.8

    )

    (1.4

    )

    --

    (0.9

    )

    (1.8

    )

    (0.3

    )

    4.4

    (2.9

    )

    Provision for credit losses

    (4.7

    )

    (4.6

    )

    (6.1

    )

    (5.4

    )

    (5.8

    )

    (6.2

    )

    (9.8

    )

    (2.7

    )

    Provision for claims

    (11.0

    )

    (10.3

    )

    (11.0

    )

    (10.5

    )

    (9.0

    )

    (8.1

    )

    (9.1

    )

    (9.0

    )

    Adjusted revenue

    $

    159.4

    $

    159.0

    $

    155.6

    $

    152.6

    $

    148.1

    $

    144.7

    $

    141.2

    $

    137.2

    Adjusted average capital

    GAAP average debt

    $

    1,529.5

    $

    1,427.4

    $

    1,404.4

    $

    1,384.4

    $

    1,273.1

    $

    1,241.2

    $

    1,202.8

    $

    1,126.4

    GAAP average shareholders' equity

    750.4

    717.7

    676.5

    646.3

    627.3

    612.2

    568.9

    585.1

    Senior notes adjustment (2)

    (77.6

    )

    --

    --

    --

    --

    --

    --

    --

    Floating yield adjustment

    9.6

    9.3

    10.0

    8.4

    11.8

    12.6

    10.0

    9.4

    Adjusted average capital

    $

    2,211.9

    $

    2,154.4

    $

    2,090.9

    $

    2,039.1

    $

    1,912.2

    $

    1,866.0

    $

    1,781.7

    $

    1,720.9

    Adjusted revenue as a percentage of adjusted average capital (3)

    28.8

    %

    29.5

    %

    29.8

    %

    29.9

    %

    31.0

    %

    31.0

    %

    31.7

    %

    31.9

    %

    Adjusted interest expense

    GAAP interest expense

    $

    16.0

    $

    16.7

    $

    16.1

    $

    16.2

    $

    16.0

    $

    16.3

    $

    16.3

    $

    15.6

    Senior notes adjustment (4)

    (0.6

    )

    -

    -

    -

    -

    -

    -

    -

    Adjusted interest expense (pre-tax)

    15.4

    16.7

    16.1

    16.2

    16.0

    16.3

    16.3

    15.6

    Adjustment to record tax effect at 37%

    (5.7

    )

    (6.2

    )

    (6.0

    )

    (6.0

    )

    (5.9

    )

    (6.1

    )

    (6.0

    )

    (5.8

    )

    Adjusted interest expense (after-tax)

    $

    9.7

    $

    10.5

    $

    10.1

    $

    10.2

    $

    10.1

    $

    10.2

    $

    10.3

    $

    9.8

    (1) Represents the after-tax impact of the $21.8 million loss on extinguishment of debt and $1.4 million of additional interest expense that were deferred as a debt issuance cost, less $0.8 million of debt issuance cost amortization associated with these expenses.

    (2) Represents an $89.3 million reduction in average debt to: (i) defer the impact of additional outstanding debt related to the one month lag from the issuance of the 2021 notes to the redemptions of the 2017 notes and (ii) recognize this impact ratably over the term of the 2021 notes. Also includes an $11.7 million increase in average equity related to the net income adjustments discussed above.

    (3) Annualized

    (4) Represents $1.4 million of additional interest expense that was deferred as a debt issuance cost, less $0.8 million of debt issuance cost amortization.

    For the Three Months Ended

    (In millions)

    Mar. 31,
    2014

    Dec. 31,
    2013

    Sept. 30,
    2013

    Jun. 30,
    2013

    Mar. 31,
    2013

    Dec. 31,
    2012

    Sept. 30,
    2012

    Jun. 30,
    2012

    Adjusted return on capital

    Adjusted net income

    $

    63.4

    $

    64.3

    $

    64.5

    $

    60.7

    $

    58.8

    $

    57.3

    $

    55.6

    $

    54.3

    Adjusted interest expense (after-tax)

    9.7

    10.5

    10.1

    10.2

    10.1

    10.2

    10.3

    9.8

    Adjusted net income plus interest expense
    (after-tax)

    $

    73.1

    $

    74.8

    $

    74.6

    $

    70.9

    $

    68.9

    $

    67.5

    $

    65.9

    $

    64.1

    Adjusted return on
    capital (1) (3)

    13.2

    %

    13.9

    %

    14.3

    %

    13.9

    %

    14.4

    %

    14.5

    %

    14.8

    %

    14.9

    %

    Economic profit

    Adjusted return on capital

    13.2

    %

    13.9

    %

    14.3

    %

    13.9

    %

    14.4

    %

    14.5

    %

    14.8

    %

    14.9

    %

    Cost of capital (2) (3)

    5.8

    %

    5.9

    %

    5.8

    %

    5.4

    %

    5.6

    %

    5.5

    %

    5.3

    %

    5.6

    %

    Adjusted return on capital in excess of cost of capital

    7.4

    %

    8.0

    %

    8.5

    %

    8.5

    %

    8.8

    %

    9.0

    %

    9.5

    %

    9.3

    %

    Adjusted average capital

    $

    2,211.9

    $

    2,154.4

    $

    2,090.9

    $

    2,039.1

    $

    1,912.2

    $

    1,866.0

    $

    1,781.7

    $

    1,720.9

    Economic profit

    $

    40.8

    $

    43.1

    $

    44.7

    $

    43.1

    $

    42.3

    $

    42.1

    $

    42.1

    $

    40.0

    Operating expenses

    GAAP salaries and wages

    $

    25.6

    $

    22.2

    $

    20.1

    $

    23.1

    $

    21.9

    $

    20.7

    $

    21.7

    $

    20.4

    GAAP general and administrative

    8.2

    9.5

    8.7

    8.3

    7.9

    9.0

    6.8

    7.3

    GAAP sales and marketing

    9.6

    8.5

    8.5

    8.5

    9.0

    7.7

    8.2

    7.5

    Operating expenses

    $

    43.4

    $

    40.2

    $

    37.3

    $

    39.9

    $

    38.8

    $

    37.4

    $

    36.7

    $

    35.2

    Operating expenses as a percentage of adjusted average capital (3)

    7.8

    %

    7.5

    %

    7.1

    %

    7.8

    %

    8.1

    %

    8.0

    %

    8.2

    %

    8.2

    %

    Percentage change in adjusted average capital compared to the same period in the prior year

    15.7

    %

    15.5

    %

    17.4

    %

    18.5

    %

    19.3

    %

    23.3

    %

    25.5

    %

    27.9

    %

    (1) Adjusted return on capital is defined as adjusted net income plus adjusted interest expense after-tax divided by adjusted average capital.

    (2) The cost of capital includes both a cost of equity and a cost of debt. The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt. The formula utilized for determining the cost of equity capital is as follows: (the average 30 year treasury rate + 5%) + [(1 - tax rate) x (the average 30 year treasury rate + 5% - pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)]. For the periods presented, the average 30 year treasury rate and the adjusted pre-tax average cost of debt were as follows:

    For the Three Months Ended

    Mar. 31,
    2014

    Dec. 31,
    2013

    Sept. 30,
    2013

    Jun. 30,
    2013

    Mar. 31,
    2013

    Dec. 31,
    2012

    Sept. 30,
    2012

    Jun. 30,
    2012

    Average 30 year treasury rate

    3.7

    %

    3.8

    %

    3.7

    %

    3.2

    %

    3.1

    %

    2.8

    %

    2.7

    %

    3.0

    %

    Adjusted pre-tax average cost of debt (3)

    4.4

    %

    4.7

    %

    4.6

    %

    4.7

    %

    5.0

    %

    5.2

    %

    5.4

    %

    5.6

    %

    (3) Annualized

    Floating Yield Adjustment

    The purpose of this adjustment is to modify the calculation of our GAAP-based finance charge revenue so that favorable and unfavorable changes in expected cash flows from loans receivable are treated consistently. To make the adjustment understandable, we must first explain how GAAP requires us to account for finance charge revenue, our primary revenue source.

    The finance charge revenue we will recognize over the life of the loan equals the cash inflows from our loan portfolio less cash outflows to acquire the loans. Our GAAP finance charge revenue is based on estimates of future cash flows and is recognized on a level-yield basis over the estimated life of the loan. With the level-yield approach, the amount of finance charge revenue recognized from a loan in a given period, divided by the loan asset, is a constant percentage. Under GAAP, favorable changes in expected cash flows are treated as increases to the yield and are recognized over time, while unfavorable changes are recorded as a current period expense. The non-GAAP methodology that we use (the "floating yield" method) is identical to the GAAP approach except that, under the "floating yield" method, all changes in expected cash flows (both positive and negative) are treated as yield adjustments and therefore impact earnings over time. The GAAP treatment always results in a lower carrying value of the loan receivable asset, but may result in either higher or lower earnings for any given period depending on the timing and amount of expected cash flow changes.

    We believe adjusted earnings, which include the floating yield adjustment, are a more accurate reflection of the performance of our business, since both favorable and unfavorable changes in estimated cash flows are treated consistently.

    Cautionary Statement Regarding Forward-Looking Information

    We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like "may," "will," "should," "believe," "expect," "anticipate," "assume," "forecast," "estimate," "intend," "plan," "target" and those regarding our future results, plans and objectives, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A to our Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on February 14, 2014, other risk factors discussed herein or listed from time to time in our reports filed with the Securities and Exchange Commission and the following:

    • Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
    • We may be unable to execute our business strategy due to current economic conditions.
    • We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
    • The terms of our debt limit how we conduct our business.
    • A violation of the terms of our asset-backed secured financing facilities or revolving secured warehouse facilities could have a materially adverse impact on our operations.
    • The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity and results of operations.
    • Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations and adversely affect our financial condition.
    • Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
    • We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
    • Interest rate fluctuations may adversely affect our borrowing costs, profitability and liquidity.
    • Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition and results of operations.
    • We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
    • The regulation to which we are or may become subject could result in a material adverse effect on our business.
    • Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
    • Litigation we are involved in from time to time may adversely affect our financial condition, results of operations and cash flows.
    • Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
    • Our dependence on technology could have a material adverse effect on our business.
    • Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
    • We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
    • Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
    • The concentration of our dealers in several states could adversely affect us.
    • Failure to properly safeguard confidential consumer information could subject us to liability, decrease our profitability and damage our reputation.
    • A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.
    • Reliance on our outsourced business functions could adversely affect our business.
    • Natural disasters, acts of war, terrorist attacks and threats or the escalation of military activity in response to these attacks or otherwise may negatively affect our business, financial condition and results of operations.

    Other factors not currently anticipated by management may also materially and adversely affect our results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements whether as a result of new information, future events or otherwise, except as required by applicable law.

    Description of Credit Acceptance Corporation

    Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.

    CREDIT ACCEPTANCE CORPORATION

    CONSOLIDATED STATEMENTS OF INCOME

    (UNAUDITED)

    (In millions, except share and per share data)

    For the Three Months Ended March 31,

    2014

    2013

    Revenue:

    Finance charges

    $

    152.8

    $

    142.9

    Premiums earned

    13.2

    12.0

    Other income

    10.9

    9.8

    Total revenue

    176.9

    164.7

    Costs and expenses:

    Salaries and wages

    25.6

    21.9

    General and administrative

    8.2

    7.9

    Sales and marketing

    9.6

    9.0

    Provision for credit losses

    4.7

    5.8

    Interest

    16.0

    16.0

    Provision for claims

    11.0

    9.0

    Loss on extinguishment of debt

    21.8

    --

    Total costs and expenses

    96.9

    69.6

    Income before provision for income taxes

    80.0

    95.1

    Provision for income taxes

    30.2

    34.5

    Net income

    $

    49.8

    $

    60.6

    Net income per share:

    Basic

    $

    2.12

    $

    2.49

    Diluted

    $

    2.12

    $

    2.48

    Weighted average shares outstanding:

    Basic

    23,463,380

    24,330,027

    Diluted

    23,528,466

    24,426,127

    CREDIT ACCEPTANCE CORPORATION

    CONSOLIDATED BALANCE SHEETS

    (In millions, except share and per share data)

    As of

    March 31, 2014

    December 31, 2013

    (Unaudited)

    ASSETS:

    Cash and cash equivalents

    $

    5.6

    $

    4.2

    Restricted cash and cash equivalents

    146.6

    111.3

    Restricted securities available for sale

    52.3

    53.6

    Loans receivable (including $7.8 and $7.5 from affiliates as of March 31, 2014 and December 31, 2013, respectively)

    2,518.1

    2,408.2

    Allowance for credit losses

    (200.1

    )

    (195.4

    )

    Loans receivable, net

    2,318.0

    2,212.8

    Property and equipment, net

    23.1

    22.3

    Income taxes receivable

    2.0

    1.1

    Other assets

    26.1

    28.1

    Total Assets

    $

    2,573.7

    $

    2,433.4

    LIABILITIES AND SHAREHOLDERS' EQUITY:

    Liabilities:

    Accounts payable and accrued liabilities

    $

    111.4

    $

    113.8

    Revolving secured line of credit

    115.9

    102.8

    Secured financing

    1,138.6

    935.6

    Mortgage note

    3.7

    3.8

    Senior notes

    300.0

    350.2

    Deferred income taxes, net

    184.9

    157.2

    Income taxes payable

    4.2

    19.9

    Total Liabilities

    1,858.7

    1,683.3

    Shareholders' Equity:

    Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued

    --

    --

    Common stock, $.01 par value, 80,000,000 shares authorized, 22,509,684 and 22,943,078 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively

    0.2

    0.2

    Paid-in capital

    77.7

    63.2

    Retained earnings

    637.2

    686.9

    Accumulated other comprehensive loss

    (0.1

    )

    (0.2

    )

    Total Shareholders' Equity

    715.0

    750.1

    Total Liabilities and Shareholders' Equity

    $

    2,573.7

    $

    2,433.4

     CONTACT: Investor Relations: Douglas W. Busk 
               Senior Vice President and Treasurer
               (248)353-2700 Ext. 4432
               IR@creditacceptance.com
                    

    Credit Acceptance Announces Timing of First Quarter 2014 Earnings Release and Webcast

    Southfield, Michigan, April 22, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today that we expect to issue a news release with our first quarter 2014 earnings on Tuesday, April 29, 2014, after the market closes.

    A webcast is scheduled for Tuesday, April 29, 2014, at 5:00 p.m. Eastern Time to discuss first quarter 2014 results. The webcast can be accessed live by visiting the "Investor Relations" section of our website at creditacceptance.com or by dialing 877-303-2904. Additionally, a replay and transcript of the webcast will be archived in the "Investor Relations" section of our website.

    Description of Credit Acceptance Corporation

    Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visitcreditacceptance.com.

     CONTACT: Investor Relations: Douglas W. Busk 
               Senior Vice President and Treasurer
               (248)353-2700 Ext. 4432
               IR@creditacceptance.com
                    

    Credit Acceptance Announces Completion of $299.0 Million Asset-Backed Financing

    Southfield, Michigan, April 16, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (the "Company", "Credit Acceptance", "we", "our", or "us") announced today the completion of a $299.0 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, we contributed loans having a net book value of approximately $374.7 million to a wholly-owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes:

    Note Class

    Amount

    Average Life

    Price

    Interest Rate

    A

    $231,000,000

    2.52 years

    99.99759

    %

    1.55

    %

    B

    $68,000,000

    3.19 years

    99.99378

    %

    2.29

    %

    C

    $775,000

    3.25 years

    --

    --

    The Class C Note does not bear interest and is being retained by us.

    The Financing will:

    • have an expected annualized cost of approximately 2.2% including the initial purchaser's fees and other costs;
    • revolve for 24 months after which it will amortize based upon the cash flows on the contributed loans; and
    • be used by us to repay outstanding indebtedness.

    We will receive 6.0% of the cash flows related to the underlying consumer loans to cover servicing expenses. The remaining 94.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest on the notes as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with our dealers and to preserve the dealers' rights to future payments of dealer holdback.

    The notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933.

    Description of Credit Acceptance Corporation

    Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit www.creditacceptance.com.

                        CONTACT:
                        Investor Relations: Douglas W. Busk
                        Senior Vice President and Treasurer
                        (248) 353-2700 Ext. 4432
                        IR@creditacceptance.com
                        

    Southfield, Michigan, March 27, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today the final results of our tender offer, which expired at 5:00 p.m., New York City time, on March 26, 2014. We commenced the tender offer on February 26, 2014 to purchase up to 637,420 shares of our outstanding common stock at a price of $133.35 per share, net to the seller in cash, without interest. Based on the final count by Computershare Trust Company, N.A., the Depositary for the tender offer, 5,048,026 shares of common stock were properly tendered and not properly withdrawn. Because more than the maximum 637,420 shares were tendered, we have accepted for purchase only a prorated portion of the shares tendered by each tendering shareholder, other than odd lot shareholders, as described in our Offer to Purchase. The proration factor used by us in accepting for purchase tendered shares was approximately 12.6%.

    We will promptly pay for 637,420 tendered shares of our common stock at a price of $133.35 per share, net to the seller in cash, without interest, at a total cost of approximately $85.0 million. We are financing the purchase of our securities in the tender offer by borrowing under our revolving secured line of credit facility.

    As a result of the completion of the tender offer, we have approximately 22.5 million shares of common stock outstanding. Georgeson, Inc. was the Information Agent for the tender offer.

    Description of Credit Acceptance Corporation

    Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.

                        CONTACT:
                        Investor Relations: Douglas W. Busk
                        Senior Vice President and Treasurer
                        (248) 353-2700 Ext. 4432
                        IR@creditacceptance.com
                        

    Southfield, Michigan, Feb. 26, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today that we have commenced a tender offer to purchase up to 637,420 shares of our outstanding common stock at a price of $133.35 per share.

    We anticipate that we will obtain all of the funds necessary to purchase shares tendered in the tender offer, and to pay related fees and expenses, by borrowing under our revolving secured line of credit facility and/or one or more of our revolving secured warehouse facilities. The tender offer is not conditioned upon the receipt of financing.

    We have evaluated our operations, strategy and expectations for the future and believe that the tender offer is a prudent use of our financial resources given our business profile, assets and the current market price for our shares. As of February 24, 2014, we had $503.3 million in unused and available capacity on our revolving secured line of credit facility and our revolving secured warehouse facilities.

    We believe that the tender offer represents a mechanism to provide all shareholders with the opportunity to tender all or a portion of their shares and, thereby, receive a return of the Company's capital if they so elect. This format of repurchase also provides a method for shareholders not participating to increase their relative percentage interest in Credit Acceptance and our future operations at no additional cost. As a result, we believe that investing in our own shares in this manner is an attractive use of capital and an efficient means to provide value to shareholders. The tender offer also provides liquidity to shareholders (particularly those with large shareholdings) by providing them the opportunity to sell all or a portion of their shares at a price of $133.35 per share, and if those shares are purchased in the offer to sell their shares for cash without potential disruption to the share price and the usual transaction costs associated with market sales.

    The tender offer will expire at 5:00 p.m., Eastern Standard Time, on Wednesday, March 26, 2014, unless extended by us. Tenders of shares must be made on or prior to the expiration of the tender offer and shares may be withdrawn at any time on or prior to the expiration of the tender offer. Our obligation to purchase shares in the tender offer is not conditioned upon any minimum number of shares being tendered. The tender offer is, however, subject to the conditions set forth in the Offer to Purchase and related Letter of Transmittal documents being sent to shareholders.

    Under the tender offer, shareholders of Credit Acceptance common stock will be invited to choose how many shares they are willing to sell to us at $133.35 per share. If more than the maximum number of shares sought is tendered, tendering shareholders owning fewer than 100 shares, or "odd lot" holders, will have their shares purchased without proration and all other tendered shares will be purchased on a pro rata basis, subject to the conditional tender provisions described in the Offer to Purchase. Shareholders whose shares are purchased in the tender offer will be paid the purchase price net in cash, without interest, promptly after the expiration of the tender offer. Shareholders whose shares are not purchased in the tender offer will have their shares returned, free of charge, promptly after the expiration of the tender offer.

    No directors or officers have advised us that they intend to tender shares in the offer. If the intention of our directors and officers changes materially, we will disclose the change in intention prior to the expiration of the offer.

    As of February 15, 2014, Credit Acceptance had 22,947,170 shares outstanding. The last reported sale price of Credit Acceptance's common stock on the NASDAQ Global Select Market on February 25, 2014, which was the last trading day prior to the announcing of the offer, was $133.35 per share.

    Georgeson, Inc. is the Information Agent for the offer and Computershare Trust Company, N.A. is the Depositary. The Offer to Purchase, Letter of Transmittal and related documents are being mailed to registered shareholders and will also be made available for distribution to beneficial owners of Credit Acceptance common stock. Questions related to the offer and requests for copies of the Offer to Purchase, the Letter of Transmittal and related documents may be directed to Georgeson, Inc. at (866) 729-6818.

    Neither Credit Acceptance nor its Board of Directors is making any recommendation to any shareholder as to whether to tender or refrain from tendering their shares. Shareholders should carefully evaluate all information in the Offer to Purchase and the related Letter of Transmittal, should consult with their own financial and tax advisors, and should make their own decisions about whether to tender shares, and, if so, how many shares to tender.

    This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of Credit Acceptance's common stock. The solicitation of offers to buy Credit Acceptance's common stock will only be made pursuant to the Offer to Purchase and related materials that Credit Acceptance will be distributing to its shareholders. Shareholders are urged to read Credit Acceptance's Tender Offer Statement on Schedule TO (the "Statement") filed with the Securities and Exchange Commission (the "SEC") in connection with the tender offer, which includes as exhibits the Offer to Purchase and the related Letter of Transmittal, as well as any amendments or supplements to the Statement when they become available, because they contain important information. Each of these documents has been or will be filed with the SEC, and shareholders may obtain them free of charge from the SEC at the SEC's Website (http://www.sec.gov/) or from Georgeson, Inc., the Information Agent for the tender offer, toll free at (866) 729-6818.

    Cautionary Statement Regarding Forward-Looking Information

    Statements in this release that are not historical facts, such as those using terms like "may," "will," "should," "believe," "expect," "anticipate," "assume," "forecast," "estimate," "intend," "plan," "target" and those regarding our future results, plans and objectives, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A to our Form 10-K for the year ended December 31, 2013, filed with the SEC on February 14, 2014, other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

    • Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
    • We may be unable to execute our business strategy due to current economic conditions.
    • We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
    • The terms of our debt limit how we conduct our business.
    • A violation of the terms of our asset-backed secured financing facilities or revolving secured warehouse facilities could have a materially adverse impact on our operations.
    • The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity and results of operations.
    • Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations and adversely affect our financial condition.
    • Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
    • We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
    • Interest rate fluctuations may adversely affect our borrowing costs, profitability and liquidity.
    • Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition and results of operations.
    • We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
    • The regulation to which we are or may become subject could result in a material adverse effect on our business.
    • Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
    • Litigation we are involved in from time to time may adversely affect our financial condition, results of operations and cash flows.
    • Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
    • Our dependence on technology could have a material adverse effect on our business.
    • Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
    • We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
    • Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
    • The concentration of automotive dealers that participate in our program in several states could adversely affect us.
    • Failure to properly safeguard confidential consumer information could subject us to liability, decrease our profitability and damage our reputation.
    • A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of other security holders.
    • Reliance on our outsourced business functions could adversely affect our business.
    • Natural disasters, acts of war, terrorist attacks and threats or the escalation of military activity in response to these attacks or otherwise may negatively affect our business, financial condition and results of operations.

    Other factors not currently anticipated by management may also materially and adversely affect our results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements whether as a result of new information, future events or otherwise, except as required by applicable law.

    Description of Credit Acceptance Corporation

    Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.

    CONTACT: Investor Relations: Douglas W. Busk 
             Senior Vice President and Treasurer
             (248)353-2700 Ext. 4432
             IR@creditacceptance.com