þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
MICHIGAN
(State or other jurisdiction of incorporation or organization)
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38-1999511
(I.R.S. Employer Identification No.)
|
|
25505 WEST TWELVE MILE ROAD
SOUTHFIELD, MICHIGAN
(Address of principal executive offices)
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48034-8339
(Zip Code)
|
Large accelerated filer o
|
Accelerated filer þ
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Non-accelerated filer o
(Do not check if a smaller reporting company)
|
Smaller reporting company o
|
PART I. — FINANCIAL INFORMATION
|
||||
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
|
||||
PART II. — OTHER INFORMATION
|
||||
(In thousands, except per share data)
|
As of
|
|||||||
September 30, 2012
|
December 31, 2011
|
|||||||
(Unaudited)
|
||||||||
ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
5,725
|
$
|
4,657
|
||||
Restricted cash and cash equivalents
|
167,706
|
104,679
|
||||||
Restricted securities available for sale
|
–
|
810
|
||||||
Loans receivable (including $5,634 and $4,949 from affiliates as of September 30, 2012 and December 31, 2011, respectively)
|
2,047,481
|
1,752,891
|
||||||
Allowance for credit losses
|
(170,763
|
)
|
(154,318
|
)
|
||||
Loans receivable, net
|
1,876,718
|
1,598,573
|
||||||
Property and equipment, net
|
21,863
|
18,472
|
||||||
Income taxes receivable
|
–
|
506
|
||||||
Other assets
|
31,310
|
30,901
|
||||||
Total Assets
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$
|
2,103,322
|
$
|
1,758,598
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY:
|
||||||||
Liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
98,131
|
$
|
95,858
|
||||
Revolving secured line of credit
|
115,800
|
43,900
|
||||||
Secured financing
|
791,850
|
599,281
|
||||||
Mortgage note
|
4,104
|
4,288
|
||||||
Senior notes
|
350,307
|
350,378
|
||||||
Deferred income taxes, net
|
135,334
|
123,449
|
||||||
Income taxes payable
|
9,991
|
1,493
|
||||||
Total Liabilities
|
1,505,517
|
1,218,647
|
||||||
Commitments and Contingencies - See Note 13
|
||||||||
Shareholders' Equity:
|
||||||||
Preferred stock, $.01 par value, 1,000 shares authorized, none issued
|
–
|
–
|
||||||
Common stock, $.01 par value, 80,000 shares authorized, 24,551 and 25,624 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively
|
246
|
256
|
||||||
Paid-in capital
|
49,455
|
38,801
|
||||||
Retained earnings
|
548,104
|
500,888
|
||||||
Accumulated other comprehensive income
|
–
|
6
|
||||||
Total Shareholders' Equity
|
597,805
|
539,951
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
2,103,322
|
$
|
1,758,598
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||
Revenue:
|
|||||||||||||
Finance charges
|
$ | 137,495 | $ | 117,905 | $ | 397,563 | $ | 338,238 | |||||
Premiums earned
|
12,206 | 10,462 | 34,987 | 29,195 | |||||||||
Other income
|
5,977 | 5,372 | 17,313 | 19,783 | |||||||||
Total revenue
|
155,678 | 133,739 | 449,863 | 387,216 | |||||||||
Costs and expenses:
|
|||||||||||||
Salaries and wages
|
21,720 | 15,929 | 61,530 | 47,402 | |||||||||
General and administrative
|
6,797 | 6,044 | 21,463 | 18,186 | |||||||||
Sales and marketing
|
8,129 | 5,587 | 23,478 | 17,768 | |||||||||
Provision for credit losses
|
9,759 | 4,550 | 17,716 | 22,394 | |||||||||
Interest
|
16,289 | 14,600 | 47,150 | 42,173 | |||||||||
Provision for claims
|
9,122 | 8,363 | 26,704 | 22,733 | |||||||||
Total costs and expenses
|
71,816 | 55,073 | 198,041 | 170,656 | |||||||||
Income before provision for income taxes
|
83,862 | 78,666 | 251,822 | 216,560 | |||||||||
Provision for income taxes
|
30,874 | 28,706 | 91,983 | 78,565 | |||||||||
Net income
|
$ | 52,988 | $ | 49,960 | 159,839 | 137,995 | |||||||
Net income per share:
|
|||||||||||||
Basic
|
$ | 2.13 | $ | 1.92 | $ | 6.24 | $ | 5.23 | |||||
Diluted
|
$ | 2.12 | $ | 1.91 | $ | 6.22 | $ | 5.19 | |||||
Weighted average shares outstanding:
|
|||||||||||||
Basic
|
24,908 | 26,033 | 25,629 | 26,397 | |||||||||
Diluted
|
24,962 | 26,136 | 25,706 | 26,573 |
(In thousands)
|
For the Three Months Ended September 30,
|
|||||||
2012
|
2011
|
|||||||
Net income
|
$
|
52,988
|
$
|
49,960
|
||||
Other comprehensive income, net of tax:
|
||||||||
Unrealized loss on derivatives qualifying as hedges
|
||||||||
Unrealized loss on cash flow hedge, net of tax of $0 and $0 for 2012 and 2011, respectively
|
–
|
–
|
||||||
Less: reclassification adjustment for loss on cash flow hedge included in net income, net of tax of $0 and $(18) for 2012 and 2011, respectively
|
–
|
31
|
||||||
Unrealized gain on available for sale securities
|
||||||||
Unrealized gain on securities, net of tax of $0 and $1 for 2012 and 2011, respectively
|
(4
|
)
|
(4
|
)
|
||||
Less: reclassification adjustment for gain on sale of securities included in net income, net of tax of $8 and $1 for 2012 and 2011, respectively
|
(13
|
)
|
(2
|
)
|
||||
Other comprehensive income
|
(17
|
)
|
25
|
|||||
Comprehensive income
|
$
|
52,971
|
$
|
49,985
|
(In thousands)
|
For the Nine Months Ended September 30,
|
|||||||
2012
|
2011
|
|||||||
Net income
|
$
|
159,839
|
$
|
137,995
|
||||
Other comprehensive income, net of tax:
|
||||||||
Unrealized loss on derivatives qualifying as hedges
|
||||||||
Unrealized loss on cash flow hedge, net of tax of $0 and $6 for 2012 and 2011, respectively
|
–
|
(10
|
)
|
|||||
Less: reclassification adjustment for loss on cash flow hedge included in net income, net of tax of $0 and $(71) for 2012 and 2011, respectively
|
–
|
121
|
||||||
Unrealized gain on available for sale securities
|
||||||||
Unrealized gain on securities, net of tax of $(8) and $(1) for 2012 and 2011, respectively
|
7
|
3
|
||||||
Less: reclassification adjustment for gain on sale of securities included in net income, net of tax of $8 and $1 for 2012 and 2011, respectively
|
(13
|
)
|
(2
|
)
|
||||
Other comprehensive income
|
(6
|
)
|
112
|
|||||
Comprehensive income
|
$
|
159,833
|
$
|
138,107
|
(In thousands)
|
For the Nine Months Ended September 30,
|
|||||||
2012
|
2011
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$
|
159,839
|
$
|
137,995
|
||||
Adjustments to reconcile cash provided by operating activities:
|
||||||||
Provision for credit losses
|
17,716
|
22,394
|
||||||
Depreciation
|
3,690
|
3,076
|
||||||
Amortization
|
5,126
|
4,346
|
||||||
Loss on retirement of property and equipment
|
10
|
28
|
||||||
Provision for deferred income taxes
|
11,884
|
8,763
|
||||||
Stock-based compensation
|
8,601
|
1,556
|
||||||
Change in operating assets and liabilities:
|
||||||||
Increase in accounts payable and accrued liabilities
|
2,273
|
15,951
|
||||||
Decrease in income taxes receivable
|
506
|
11,503
|
||||||
Increase in income taxes payable
|
8,498
|
448
|
||||||
Decrease (increase) in other assets
|
367
|
(3,703
|
)
|
|||||
Net cash provided by operating activities
|
218,510
|
202,357
|
||||||
Cash Flows From Investing Activities:
|
||||||||
Increase in restricted cash and cash equivalents
|
(63,027
|
)
|
(24,676
|
)
|
||||
Purchases of restricted securities available for sale
|
(100
|
)
|
(532
|
)
|
||||
Proceeds from sale of restricted securities available for sale
|
905
|
76
|
||||||
Maturities of restricted securities available for sale
|
–
|
454
|
||||||
Principal collected on Loans receivable
|
882,613
|
748,242
|
||||||
Advances to Dealers
|
(968,725
|
)
|
(888,602
|
)
|
||||
Purchases of Consumer Loans
|
(85,992
|
)
|
(94,212
|
)
|
||||
Accelerated payments of Dealer Holdback
|
(34,107
|
)
|
(37,275
|
)
|
||||
Payments of Dealer Holdback
|
(89,734
|
)
|
(58,734
|
)
|
||||
Net decrease in other loans
|
84
|
797
|
||||||
Purchases of property and equipment
|
(7,091
|
)
|
(3,569
|
)
|
||||
Net cash used in investing activities
|
(365,174
|
)
|
(358,031
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Borrowings under revolving secured line of credit
|
1,969,700
|
1,757,500
|
||||||
Repayments under revolving secured line of credit
|
(1,897,800
|
)
|
(1,794,800
|
)
|
||||
Proceeds from secured financing
|
1,426,650
|
600,000
|
||||||
Repayments of secured financing
|
(1,234,081
|
)
|
(385,293
|
)
|
||||
Principal payments under mortgage note
|
(184
|
)
|
(175
|
)
|
||||
Proceeds from sale of senior notes
|
–
|
106,000
|
||||||
Payments of debt issuance costs
|
(5,973
|
)
|
(6,849
|
)
|
||||
Repurchase of common stock
|
(112,946
|
)
|
(126,675
|
)
|
||||
Proceeds from stock options exercised
|
519
|
2,781
|
||||||
Tax benefits from stock-based compensation plans
|
1,847
|
3,027
|
||||||
Net cash provided by financing activities
|
147,732
|
155,516
|
||||||
Net increase (decrease) in cash and cash equivalents
|
1,068
|
(158
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
4,657
|
3,792
|
||||||
Cash and cash equivalents, end of period
|
$
|
5,725
|
$
|
3,634
|
||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the period for interest
|
$
|
49,790
|
$
|
37,677
|
||||
Cash paid during the period for income taxes
|
$
|
68,902
|
$
|
55,116
|
Quarter Ended
|
Portfolio Program
|
Purchase Program
|
||||
March 31, 2011
|
92.9
|
%
|
7.1
|
%
|
||
June 30, 2011
|
92.1
|
%
|
7.9
|
%
|
||
September 30, 2011
|
92.3
|
%
|
7.7
|
%
|
||
December 31, 2011
|
92.6
|
%
|
7.4
|
%
|
||
March 31, 2012
|
93.3
|
%
|
6.7
|
%
|
||
June 30, 2012
|
93.6
|
%
|
6.4
|
%
|
||
September 30, 2012
|
93.8
|
%
|
6.2
|
%
|
·
|
a down payment from the consumer;
|
·
|
a non-recourse cash payment (“advance”) from us; and
|
·
|
after the advance has been recovered by us, the cash from payments made on the Consumer Loan, net of certain collection costs and our servicing fee (“Dealer Holdback”).
|
·
|
First, to reimburse us for certain collection costs;
|
·
|
Second, to pay us our servicing fee, which generally equals 20% of collections;
|
·
|
Third, to reduce the aggregate advance balance and to pay any other amounts due from the Dealer to us; and
|
·
|
Fourth, to the Dealer as payment of Dealer Holdback.
|
Effective Period
|
Option A
|
Option B
|
||
Since June 1, 2011
|
Upfront, one-time fee of $9,850
|
Agreement to allow us to retain 50% of their first accelerated Dealer Holdback payment
|
||
From September 1, 2009 to May 31, 2011
|
Upfront, one-time fee of $9,850
|
Upfront, one-time fee of $1,950 and agreement to allow us to retain 50% of their first accelerated Dealer Holdback payment
|
·
|
the consumer and Dealer have signed a Consumer Loan contract;
|
·
|
we have received the original Consumer Loan contract and supporting documentation;
|
·
|
we have approved all of the related stipulations for funding; and
|
·
|
we have provided funding to the Dealer in the form of either an advance under the Portfolio Program or one-time purchase payment under the Purchase Program.
|
·
|
the aggregate amount of all cash advances paid;
|
·
|
finance charges;
|
·
|
Dealer Holdback payments;
|
·
|
accelerated Dealer Holdback payments; and
|
·
|
recoveries.
|
·
|
collections (net of certain collection costs); and
|
·
|
write-offs.
|
·
|
the aggregate amount of all amounts paid during the month of purchase to purchase Consumer Loans from Dealers;
|
·
|
finance charges; and
|
·
|
recoveries.
|
·
|
collections (net of certain collection costs); and
|
·
|
write-offs.
|
(In thousands)
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||
Net assumed written premiums
|
$
|
11,479
|
$
|
11,293
|
$
|
39,813
|
$
|
37,419
|
|||||
Net premiums earned
|
12,206
|
10,462
|
34,987
|
29,195
|
|||||||||
Provision for claims
|
9,122
|
8,363
|
26,704
|
22,733
|
|||||||||
Amortization of capitalized acquisition costs
|
342
|
288
|
952
|
747
|
(In thousands)
|
As of
|
||||||||
Balance Sheet location
|
September 30, 2012
|
December 31, 2011
|
|||||||
Trust assets
|
Restricted cash and cash equivalents
|
$
|
48,412
|
$
|
42,026
|
||||
Unearned premium
|
Accounts payable and accrued liabilities
|
37,161
|
32,335
|
||||||
Claims reserve (1)
|
Accounts payable and accrued liabilities
|
1,515
|
1,297
|
|
(1)
|
The claims reserve is estimated based on historical claims experience.
|
·
|
First, we determined that the trusts qualified as variable interest entities. The trusts have insufficient equity at risk as no parties to the trusts were required to contribute assets that provide them with any ownership interest.
|
·
|
Next, we determined that we have variable interests in the trusts. We have a residual interest in the assets of the trusts, which is variable in nature, given that it increases or decreases based upon the actual loss experience of the related service contracts. In addition, VSC Re is required to absorb any losses in excess of the trusts’ assets.
|
·
|
Next, we evaluated the purpose and design of the trusts. The primary purpose of the trusts is to provide third party administrators (“TPAs”) with funds to pay claims on vehicle service contracts and to accumulate and provide us with proceeds from investment income and residual funds.
|
·
|
Finally, we determined that we are the primary beneficiary of the trusts. We control the amount of premium written and placed in the trusts through Consumer Loan assignments under our Programs, which is the activity that most significantly impacts the economic performance of the trusts. We have the right to receive benefits from the trusts that could potentially be significant. In addition, VSC Re has the obligation to absorb losses of the trusts that could potentially be significant.
|
(In thousands)
|
As of
|
|||||
September 30, 2012
|
December 31, 2011
|
|||||
Cash related to secured financings
|
$ | 119,259 | $ | 62,536 | ||
Cash held in trusts for future vehicle service contract claims (1)
|
48,447 | 42,143 | ||||
Total restricted cash and cash equivalents
|
$ | 167,706 | $ | 104,679 |
|
(1)
|
The unearned premium and claims reserve associated with the trusts are included in accounts payable and accrued liabilities in the consolidated balance sheets. As of September 30, 2012, the outstanding cash balance includes $48,412 related to VSC Re and $35 related to a discontinued profit sharing arrangement. As of December 31, 2011, the outstanding cash balance includes $42,026 related to VSC Re and $117 related to a discontinued profit sharing arrangement.
|
(In thousands)
|
As of September 30, 2012
|
||||||||||||
Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Estimated Fair Value
|
||||||||||
Corporate bonds
|
$ | – | $ | – | $ | – | $ | – | |||||
(In thousands)
|
As of December 31, 2011
|
||||||||||||
Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Estimated Fair Value
|
||||||||||
Corporate bonds
|
$ | 804 | $ | 13 | $ | (7 | ) | $ | 810 |
(In thousands)
|
As of
|
|||||||||||
September 30, 2012
|
December 31, 2011
|
|||||||||||
Cost
|
Estimated Fair Value
|
Cost
|
Estimated Fair Value
|
|||||||||
Contractual Maturity
|
||||||||||||
Within one year
|
$ | – | $ | – | $ | 45 | $ | 44 | ||||
Over one year to five years
|
– | – | 759 | 766 | ||||||||
Total restricted securities available for sale
|
$ | – | $ | – | $ | 804 | $ | 810 |
(In thousands)
|
As of September 30, 2012
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Loans receivable
|
$ | 1,807,701 | $ | 239,780 | $ | 2,047,481 | |||||
Allowance for credit losses
|
(161,284 | ) | (9,479 | ) | (170,763 | ) | |||||
Loans receivable, net
|
$ | 1,646,417 | $ | 230,301 | $ | 1,876,718 | |||||
(In thousands)
|
As of December 31, 2011
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Loans receivable
|
$ | 1,506,539 | $ | 246,352 | $ | 1,752,891 | |||||
Allowance for credit losses
|
(141,712 | ) | (12,606 | ) | (154,318 | ) | |||||
Loans receivable, net
|
$ | 1,364,827 | $ | 233,746 | $ | 1,598,573 |
(In thousands)
|
For the Three Months Ended September 30, 2012
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
1,736,578
|
$
|
241,216
|
$
|
1,977,794
|
|||||
New Consumer Loan assignments (1)
|
293,379
|
25,238
|
318,617
|
||||||||
Principal collected on Loans receivable
|
(252,398
|
)
|
(32,617
|
)
|
(285,015
|
)
|
|||||
Accelerated Dealer Holdback payments
|
9,884
|
–
|
9,884
|
||||||||
Dealer Holdback payments
|
27,118
|
–
|
27,118
|
||||||||
Transfers (2)
|
(5,946
|
)
|
5,946
|
–
|
|||||||
Write-offs
|
(1,480
|
)
|
(26
|
)
|
(1,506
|
)
|
|||||
Recoveries (3)
|
582
|
23
|
605
|
||||||||
Net change in other loans
|
(16
|
)
|
–
|
(16
|
)
|
||||||
Balance, end of period
|
$
|
1,807,701
|
$
|
239,780
|
$
|
2,047,481
|
|||||
(In thousands)
|
For the Three Months Ended September 30, 2011
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
1,331,973
|
$
|
250,932
|
$
|
1,582,905
|
|||||
New Consumer Loan assignments (1)
|
278,395
|
30,717
|
309,112
|
||||||||
Principal collected on Loans receivable
|
(216,860
|
)
|
(36,970
|
)
|
(253,830
|
)
|
|||||
Accelerated Dealer Holdback payments
|
12,859
|
–
|
12,859
|
||||||||
Dealer Holdback payments
|
23,985
|
–
|
23,985
|
||||||||
Transfers (2)
|
(2,933
|
)
|
2,933
|
–
|
|||||||
Write-offs
|
(736
|
)
|
(68
|
)
|
(804
|
)
|
|||||
Recoveries (3)
|
442
|
21
|
463
|
||||||||
Net change in other loans
|
(259
|
)
|
–
|
(259
|
)
|
||||||
Balance, end of period
|
$
|
1,426,866
|
$
|
247,565
|
$
|
1,674,431
|
(In thousands)
|
For the Nine Months Ended September 30, 2012
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
1,506,539
|
$
|
246,352
|
$
|
1,752,891
|
|||||
New Consumer Loan assignments (1)
|
968,725
|
85,992
|
1,054,717
|
||||||||
Principal collected on Loans receivable
|
(774,361
|
)
|
(108,252
|
)
|
(882,613
|
)
|
|||||
Accelerated Dealer Holdback payments
|
34,107
|
–
|
34,107
|
||||||||
Dealer Holdback payments
|
89,734
|
–
|
89,734
|
||||||||
Transfers (2)
|
(16,150
|
)
|
16,150
|
–
|
|||||||
Write-offs
|
(2,483
|
)
|
(532
|
)
|
(3,015
|
)
|
|||||
Recoveries (3)
|
1,674
|
70
|
1,744
|
||||||||
Net change in other loans
|
(84
|
)
|
–
|
(84
|
)
|
||||||
Balance, end of period
|
$
|
1,807,701
|
$
|
239,780
|
$
|
2,047,481
|
|||||
(In thousands)
|
For the Nine Months Ended September 30, 2011
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
1,082,039
|
$
|
262,842
|
$
|
1,344,881
|
|||||
New Consumer Loan assignments (1)
|
888,602
|
94,212
|
982,814
|
||||||||
Principal collected on Loans receivable
|
(628,406
|
)
|
(119,836
|
)
|
(748,242
|
)
|
|||||
Accelerated Dealer Holdback payments
|
37,275
|
–
|
37,275
|
||||||||
Dealer Holdback payments
|
58,734
|
–
|
58,734
|
||||||||
Transfers (2)
|
(10,490
|
)
|
10,490
|
–
|
|||||||
Write-offs
|
(1,563
|
)
|
(207
|
)
|
(1,770
|
)
|
|||||
Recoveries (3)
|
1,472
|
64
|
1,536
|
||||||||
Net change in other loans
|
(797
|
)
|
–
|
(797
|
)
|
||||||
Balance, end of period
|
$
|
1,426,866
|
$
|
247,565
|
$
|
1,674,431
|
|
(1)
|
The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program.
|
|
(2)
|
Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance to Purchased Loans in the period this forfeiture occurs.
|
(In thousands)
|
For the Three Months Ended September 30, 2012
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
581,693
|
$
|
119,493
|
$
|
701,186
|
|||||
New Consumer Loan assignments (1)
|
127,728
|
10,790
|
138,518
|
||||||||
Finance charge income
|
(117,780
|
)
|
(19,715
|
)
|
(137,495
|
)
|
|||||
Forecast changes
|
6,880
|
1,265
|
8,145
|
||||||||
Transfers (2)
|
(2,580
|
)
|
4,240
|
1,660
|
|||||||
Balance, end of period
|
$
|
595,941
|
$
|
116,073
|
$
|
712,014
|
|||||
(In thousands)
|
For the Three Months Ended September 30, 2011
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
462,478
|
$
|
123,561
|
$
|
586,039
|
|||||
New Consumer Loan assignments (1)
|
122,010
|
14,125
|
136,135
|
||||||||
Finance charge income
|
(96,577
|
)
|
(21,328
|
)
|
(117,905
|
)
|
|||||
Forecast changes
|
5,211
|
2,791
|
8,002
|
||||||||
Transfers (2)
|
(1,349
|
)
|
2,182
|
833
|
|||||||
Balance, end of period
|
$
|
491,773
|
$
|
121,331
|
$
|
613,104
|
(In thousands)
|
For the Nine Months Ended September 30, 2012
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
508,046
|
$
|
120,082
|
$
|
628,128
|
|||||
New Consumer Loan assignments (1)
|
416,159
|
38,227
|
454,386
|
||||||||
Finance charge income
|
(337,231
|
)
|
(60,332
|
)
|
(397,563
|
)
|
|||||
Forecast changes
|
16,322
|
6,406
|
22,728
|
||||||||
Transfers (2)
|
(7,355
|
)
|
11,690
|
4,335
|
|||||||
Balance, end of period
|
$
|
595,941
|
$
|
116,073
|
$
|
712,014
|
|||||
(In thousands)
|
For the Nine Months Ended September 30, 2011
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
351,569
|
$
|
124,520
|
$
|
476,089
|
|||||
New Consumer Loan assignments (1)
|
395,111
|
46,627
|
441,738
|
||||||||
Finance charge income
|
(273,300
|
)
|
(64,938
|
)
|
(338,238
|
)
|
|||||
Forecast changes
|
23,440
|
6,659
|
30,099
|
||||||||
Transfers (2)
|
(5,047
|
)
|
8,463
|
3,416
|
|||||||
Balance, end of period
|
$
|
491,773
|
$
|
121,331
|
$
|
613,104
|
|
(1)
|
The Dealer Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related advances paid to Dealers. The Purchased Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Purchase Program, less the related one-time payments made to Dealers.
|
|
(2)
|
Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs.
|
(In thousands)
|
For the Three Months Ended September 30, 2012
|
||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||
Contractual net cash flows at the time of assignment (1)
|
$
|
454,859
|
$
|
50,278
|
$
|
505,137
|
|||
Expected net cash flows at the time of assignment (2)
|
421,107
|
36,028
|
457,135
|
||||||
Fair value at the time of assignment (3)
|
293,379
|
25,238
|
318,617
|
||||||
(In thousands)
|
For the Three Months Ended September 30, 2011
|
||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||
Contractual net cash flows at the time of assignment (1)
|
$
|
431,399
|
$
|
61,382
|
$
|
492,781
|
|||
Expected net cash flows at the time of assignment (2)
|
400,405
|
44,842
|
445,247
|
||||||
Fair value at the time of assignment (3)
|
278,395
|
30,717
|
309,112
|
(In thousands)
|
For the Nine Months Ended September 30, 2012
|
||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||
Contractual net cash flows at the time of assignment (1)
|
$
|
1,495,980
|
$
|
173,176
|
$
|
1,669,156
|
|||
Expected net cash flows at the time of assignment (2)
|
1,384,884
|
124,219
|
1,509,103
|
||||||
Fair value at the time of assignment (3)
|
968,725
|
85,992
|
1,054,717
|
||||||
(In thousands)
|
For the Nine Months Ended September 30, 2011
|
||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||
Contractual net cash flows at the time of assignment (1)
|
$
|
1,378,850
|
$
|
191,814
|
$
|
1,570,664
|
|||
Expected net cash flows at the time of assignment (2)
|
1,283,713
|
140,839
|
1,424,552
|
||||||
Fair value at the time of assignment (3)
|
888,602
|
94,212
|
982,814
|
|
(1)
|
The Dealer Loans amount represents the repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we would be required to make if we collected all of the contractual repayments. The Purchased Loans amount represents the repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Purchase Program.
|
|
(2)
|
The Dealer Loans amount represents the repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents the repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program.
|
|
(3)
|
The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program.
|
Forecasted Collection Percentage as of (1)
|
Variance in Forecasted Collection Percentage from
|
||||||||||||||||||||
Consumer Loan Assignment Year
|
September 30, 2012
|
June 30, 2012
|
December 31, 2011
|
Initial Forecast
|
June 30, 2012
|
December 31, 2011
|
Initial Forecast
|
||||||||||||||
2003
|
73.8
|
%
|
73.8
|
%
|
73.7
|
%
|
72.0
|
%
|
0.0
|
%
|
0.1
|
%
|
1.8
|
%
|
|||||||
2004
|
73.0
|
%
|
73.0
|
%
|
73.0
|
%
|
73.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
|||||||
2005
|
73.5
|
%
|
73.6
|
%
|
73.6
|
%
|
74.0
|
%
|
-0.1
|
%
|
-0.1
|
%
|
-0.5
|
%
|
|||||||
2006
|
70.0
|
%
|
70.0
|
%
|
70.0
|
%
|
71.4
|
%
|
0.0
|
%
|
0.0
|
%
|
-1.4
|
%
|
|||||||
2007
|
68.1
|
%
|
68.1
|
%
|
68.1
|
%
|
70.7
|
%
|
0.0
|
%
|
0.0
|
%
|
-2.6
|
%
|
|||||||
2008
|
70.3
|
%
|
70.3
|
%
|
70.0
|
%
|
69.7
|
%
|
0.0
|
%
|
0.3
|
%
|
0.6
|
%
|
|||||||
2009
|
79.5
|
%
|
79.6
|
%
|
79.4
|
%
|
71.9
|
%
|
-0.1
|
%
|
0.1
|
%
|
7.6
|
%
|
|||||||
2010
|
77.2
|
%
|
77.1
|
%
|
76.8
|
%
|
73.6
|
%
|
0.1
|
%
|
0.4
|
%
|
3.6
|
%
|
|||||||
2011
|
73.7
|
%
|
73.6
|
%
|
73.2
|
%
|
72.5
|
%
|
0.1
|
%
|
0.5
|
%
|
1.2
|
%
|
|||||||
2012 (2)
|
71.6
|
%
|
71.9
|
%
|
–
|
71.1
|
%
|
-0.3
|
%
|
–
|
0.5
|
%
|
(1)
|
Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest.
|
(2)
|
The forecasted collection rate for 2012 Consumer Loans as of September 30, 2012 includes both Consumer Loans that were in our portfolio as of June 30, 2012 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:
|
Forecasted Collection Percentage as of
|
|||||||||
2012 Consumer Loan Assignment Period
|
September 30, 2012
|
June 30, 2012
|
Variance
|
||||||
January 1, 2012 through June 30, 2012
|
72.0 | % | 71.9 | % | 0.1 | % | |||
July 1, 2012 through September 30, 2012
|
70.6 | % | – | – |
(In thousands)
|
As of September 30, 2012
|
||||||||||||||||||||||
Loan Pool Performance Meets or Exceeds Initial Estimates
|
Loan Pool Performance Less than Initial Estimates
|
||||||||||||||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
Dealer Loans
|
Purchased Loans
|
Total
|
||||||||||||||||||
Loans receivable
|
$ | 572,223 | $ | 196,367 | $ | 768,590 | $ | 1,235,479 | $ | 43,413 | $ | 1,278,892 | |||||||||||
Allowance for credit losses
|
– | – | – | (161,284 | ) | (9,479 | ) | (170,763 | ) | ||||||||||||||
Loans receivable, net
|
$ | 572,223 | $ | 196,367 | $ | 768,590 | $ | 1,074,195 | $ | 33,934 | $ | 1,108,129 | |||||||||||
(In thousands)
|
As of December 31, 2011
|
||||||||||||||||||||||
Loan Pool Performance Meets or Exceeds Initial Estimates
|
Loan Pool Performance Less than Initial Estimates
|
||||||||||||||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
Dealer Loans
|
Purchased Loans
|
Total
|
||||||||||||||||||
Loans receivable
|
$ | 511,926 | $ | 192,502 | $ | 704,428 | $ | 994,613 | $ | 53,850 | $ | 1,048,463 | |||||||||||
Allowance for credit losses
|
– | – | – | (141,712 | ) | (12,606 | ) | (154,318 | ) | ||||||||||||||
Loans receivable, net
|
$ | 511,926 | $ | 192,502 | $ | 704,428 | $ | 852,901 | $ | 41,244 | $ | 894,145 |
(In thousands)
|
For the Three Months Ended September 30, 2012
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
152,031
|
$
|
9,874
|
$
|
161,905
|
|||||
Provision for credit losses
|
10,151
|
(392
|
)
|
9,759
|
|||||||
Write-offs
|
(1,480
|
)
|
(26
|
)
|
(1,506
|
)
|
|||||
Recoveries (1)
|
582
|
23
|
605
|
||||||||
Balance, end of period
|
$
|
161,284
|
$
|
9,479
|
$
|
170,763
|
|||||
(In thousands)
|
For the Three Months Ended September 30, 2011
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
131,728
|
$
|
13,091
|
$
|
144,819
|
|||||
Provision for credit losses
|
4,723
|
(173
|
)
|
4,550
|
|||||||
Write-offs
|
(736
|
)
|
(68
|
)
|
(804
|
)
|
|||||
Recoveries (1)
|
442
|
21
|
463
|
||||||||
Balance, end of period
|
$
|
136,157
|
$
|
12,871
|
$
|
149,028
|
(In thousands)
|
For the Nine Months Ended September 30, 2012
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
141,712
|
$
|
12,606
|
$
|
154,318
|
|||||
Provision for credit losses
|
20,381
|
(2,665
|
)
|
17,716
|
|||||||
Write-offs
|
(2,483
|
)
|
(532
|
)
|
(3,015
|
)
|
|||||
Recoveries (1)
|
1,674
|
70
|
1,744
|
||||||||
Balance, end of period
|
$
|
161,284
|
$
|
9,479
|
$
|
170,763
|
|||||
(In thousands)
|
For the Nine Months Ended September 30, 2011
|
||||||||||
Dealer Loans
|
Purchased Loans
|
Total
|
|||||||||
Balance, beginning of period
|
$
|
113,227
|
$
|
13,641
|
$
|
126,868
|
|||||
Provision for credit losses
|
23,021
|
(627
|
)
|
22,394
|
|||||||
Write-offs
|
(1,563
|
)
|
(207
|
)
|
(1,770
|
)
|
|||||
Recoveries (1)
|
1,472
|
64
|
1,536
|
||||||||
Balance, end of period
|
$
|
136,157
|
$
|
12,871
|
$
|
149,028
|
|
(1)
|
Represents collections received on previously written off Loans.
|
(Dollars in thousands)
|
||||||||||||
Financings
|
Wholly-owned Subsidiary
|
Close Date
|
Maturity Date
|
Financing Amount
|
Interest Rate as of September 30, 2012
|
|||||||
Revolving Secured Line of Credit
|
n/a
|
06/15/2012
|
06/22/2015
|
$
|
235,000
|
At our option, either LIBOR plus 187.5 basis points or the prime rate plus 87.5 basis points
|
||||||
Warehouse Facility II (1)
|
CAC Warehouse Funding Corp. II
|
06/17/2011
|
06/17/2014
|
(2)
|
$
|
325,000
|
Commercial paper rate plus 275 basis points or LIBOR plus 375 basis points (3) (4)
|
|||||
Warehouse Facility III (1)
|
CAC Warehouse Funding III, LLC
|
06/29/2012
|
09/10/2015
|
(5)
|
$
|
75,000
|
LIBOR plus 160 basis points (4)
|
|||||
Warehouse Facility IV (1)
|
CAC Warehouse Funding LLC IV
|
08/19/2011
|
02/19/2014
|
(2)
|
$
|
75,000
|
LIBOR plus 275 basis points (4)
|
|||||
Term ABS 2010-1 (1)
|
Credit Acceptance Funding LLC 2010-1
|
11/04/2010
|
10/15/2012
|
(2)
|
$
|
100,500
|
Fixed rate
|
|||||
Term ABS 2011-1 (1)
|
Credit Acceptance Funding LLC 2011-1
|
10/06/2011
|
09/16/2013
|
(2)
|
$
|
200,500
|
Fixed rate
|
|||||
Term ABS 2012-1 (1)
|
Credit Acceptance Funding LLC 2012-1
|
03/29/2012
|
03/17/2014
|
(2)
|
$
|
201,250
|
Fixed rate
|
|||||
Term ABS 2012-2 (1)
|
Credit Acceptance Funding LLC 2012-2
|
09/20/2012
|
09/15/2014
|
(2)
|
$
|
252,000
|
Fixed rate
|
|||||
Senior Notes
|
n/a
|
(6)
|
02/01/2017
|
$
|
350,000
|
Fixed rate
|
|
(1)
|
Financing made available only to a specified subsidiary of the Company.
|
|
(2)
|
Represents the revolving maturity date. The outstanding balance will amortize after the maturity date based on the cash flows of the pledged assets.
|
|
(3)
|
The LIBOR rate is used if funding is not available from the commercial paper market.
|
|
(4)
|
Interest rate cap agreements are in place to limit the exposure to increasing interest rates.
|
|
(5)
|
Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on September 10, 2017 will be due.
|
|
(6)
|
The close dates associated with the issuance of $250.0 million and $100.0 million of the Senior Notes were on February 1, 2010 and March 3, 2011, respectively.
|
(In thousands)
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revolving Secured Line of Credit
|
||||||||||||||||
Maximum outstanding balance
|
$
|
139,000
|
$
|
165,400
|
$
|
187,300
|
$
|
165,400
|
||||||||
Average outstanding balance
|
100,133
|
113,098
|
98,876
|
108,262
|
||||||||||||
Warehouse Facility II
|
||||||||||||||||
Maximum outstanding balance
|
$
|
173,800
|
$
|
264,000
|
$
|
177,200
|
$
|
264,000
|
||||||||
Average outstanding balance
|
143,733
|
215,522
|
128,606
|
184,224
|
||||||||||||
Warehouse Facility III
|
||||||||||||||||
Maximum outstanding balance
|
$
|
62,000
|
$
|
75,000
|
$
|
73,000
|
$
|
75,000
|
||||||||
Average outstanding balance
|
51,423
|
73,587
|
60,760
|
47,436
|
||||||||||||
Warehouse Facility IV
|
||||||||||||||||
Maximum outstanding balance
|
$
|
39,200
|
$
|
43,500
|
$
|
39,600
|
$
|
43,500
|
||||||||
Average outstanding balance
|
37,809
|
41,895
|
37,847
|
41,895
|
(Dollars in thousands)
|
As of
|
|||||||
September 30, 2012
|
December 31, 2011
|
|||||||
Revolving Secured Line of Credit
|
||||||||
Balance outstanding
|
$
|
115,800
|
$
|
43,900
|
||||
Amount available for borrowing (1)
|
119,200
|
161,100
|
||||||
Interest rate
|
2.09
|
%
|
2.55
|
%
|
||||
Warehouse Facility II
|
||||||||
Balance outstanding
|
$
|
–
|
$
|
163,200
|
||||
Amount available for borrowing (1)
|
325,000
|
161,800
|
||||||
Loans pledged as collateral
|
–
|
242,119
|
||||||
Restricted cash and cash equivalents pledged as collateral
|
1,626
|
6,117
|
||||||
Interest rate
|
2.96
|
%
|
2.99
|
%
|
||||
Warehouse Facility III
|
||||||||
Balance outstanding
|
$
|
–
|
$
|
70,000
|
||||
Amount available for borrowing (1)
|
75,000
|
5,000
|
||||||
Loans pledged as collateral
|
–
|
91,601
|
||||||
Restricted cash and cash equivalents pledged as collateral
|
538
|
3,321
|
||||||
Interest rate
|
1.82
|
%
|
1.89
|
%
|
||||
Warehouse Facility IV
|
||||||||
Balance outstanding
|
$
|
37,600
|
$
|
37,500
|
||||
Amount available for borrowing (1)
|
37,400
|
37,500
|
||||||
Loans pledged as collateral
|
49,003
|
62,260
|
||||||
Restricted cash and cash equivalents pledged as collateral
|
2,843
|
2,188
|
||||||
Interest rate
|
2.97
|
%
|
3.05
|
%
|
||||
Term ABS 2009-1
|
||||||||
Balance outstanding
|
$
|
–
|
$
|
27,581
|
||||
Loans pledged as collateral
|
–
|
105,209
|
||||||
Restricted cash and cash equivalents pledged as collateral
|
–
|
13,526
|
||||||
Interest rate
|
–
|
5.68
|
%
|
|||||
Term ABS 2010-1
|
||||||||
Balance outstanding
|
$
|
100,500
|
$
|
100,500
|
||||
Loans pledged as collateral
|
123,609
|
125,541
|
||||||
Restricted cash and cash equivalents pledged as collateral
|
14,288
|
14,116
|
||||||
Interest rate
|
2.36
|
%
|
2.36
|
%
|
||||
Term ABS 2011-1
|
||||||||
Balance outstanding
|
$
|
200,500
|
$
|
200,500
|
||||
Loans pledged as collateral
|
244,531
|
248,167
|
||||||
Restricted cash and cash equivalents pledged as collateral
|
25,300
|
23,268
|
||||||
Interest rate
|
2.90
|
%
|
2.90
|
%
|
||||
Term ABS 2012-1
|
||||||||
Balance outstanding
|
$
|
201,250
|
$
|
–
|
||||
Loans pledged as collateral
|
246,756
|
–
|
||||||
Restricted cash and cash equivalents pledged as collateral
|
23,561
|
–
|
||||||
Interest rate
|
2.38
|
%
|
–
|
|||||
Term ABS 2012-2
|
||||||||
Balance outstanding
|
$
|
252,000
|
$
|
–
|
||||
Loans pledged as collateral
|
312,152
|
–
|
||||||
Restricted cash and cash equivalents pledged as collateral
|
51,103
|
–
|
||||||
Interest rate
|
1.63
|
%
|
–
|
|||||
Senior Notes
|
||||||||
Balance outstanding (2)
|
$
|
350,307
|
$
|
350,378
|
||||
Interest rate
|
9.13
|
%
|
9.13
|
%
|
(1)
|
Availability may be limited by the amount of assets pledged as collateral.
|
(2)
|
As of September 30, 2012 and December 31, 2011, the outstanding balance presented for the Senior Notes includes a net unamortized debt premium of $0.3 million and $0.4 million, respectively.
|
(Dollars in thousands)
|
|||||||
Term ABS Financings
|
Close Date
|
Net Book Value of Loans Contributed at Closing
|
Revolving Period
|
||||
Term ABS 2010-1
|
November 4, 2010
|
$
|
126,751
|
24 months (Through October 15, 2012)
|
|||
Term ABS 2011-1
|
October 6, 2011
|
$
|
250,827
|
24 months (Through September 16, 2013)
|
|||
Term ABS 2012-1
|
March 29, 2012
|
$
|
251,681
|
24 months (Through March 17, 2014)
|
|||
Term ABS 2012-2
|
September 20, 2012
|
$
|
315,120
|
24 months (Through September 15, 2014)
|
As of September 30, 2012
|
|||||||||||||||||
Facility
(in millions)
|
Facility Name
|
Purpose
|
Start
|
End
|
Notional (in millions)
|
Cap Interest Rate (1)
|
|||||||||||
$
|
325.0
|
Warehouse Facility II
|
Cap Floating Rate
|
07/2011
|
06/2013
|
$
|
325.0
|
6.75
|
%
|
||||||||
75.0
|
Warehouse Facility III
|
Cap Floating Rate
|
09/2010
|
09/2013
|
37.5
|
6.75
|
%
|
||||||||||
75.0
|
Warehouse Facility III
|
Cap Floating Rate
|
06/2012
|
07/2015
|
18.8
|
(2)
|
5.00
|
%
|
|||||||||
75.0
|
Warehouse Facility IV
|
Cap Floating Rate
|
08/2011
|
03/2014
|
75.0
|
5.50
|
%
|
As of December 31, 2011
|
|||||||||||||||
Facility
(in millions)
|
Facility Name
|
Purpose
|
Start
|
End
|
Notional (in millions)
|
Cap Interest Rate (1)
|
|||||||||
$
|
325.0
|
Warehouse Facility II
|
Cap Floating Rate
|
09/2010
|
06/2013
|
$
|
325.0
|
6.75
|
%
|
||||||
75.0
|
Warehouse Facility III
|
Cap Floating Rate
|
09/2010
|
09/2013
|
37.5
|
6.75
|
%
|
||||||||
75.0
|
Warehouse Facility IV
|
Cap Floating Rate
|
08/2011
|
03/2014
|
75.0
|
5.50
|
%
|
(1)
|
Rate excludes the spread over the LIBOR rate or the commercial paper rate, as applicable.
|
(2)
|
The notional amount increases to $56.3 million in September 2013 when the original Warehouse Facility III interest rate cap for $37.5 million ends.
|
(In thousands)
|
Fair Value as of
|
||||||||
Balance Sheet location
|
September 30, 2012
|
December 31, 2011
|
|||||||
Derivatives not designated as hedging instruments
|
|||||||||
Asset Derivatives
|
|||||||||
Interest rate caps
|
Other assets
|
$
|
18
|
$
|
16
|
||||
(In thousands)
|
||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships
|
(Loss) / Gain Recognized in OCI on Derivative (Effective Portion)
|
(Loss) / Gain Reclassified from Accumulated OCI into Income (Effective Portion)
|
||||||||||||||||
For the Three Months Ended September 30,
|
For the Three Months Ended September 30,
|
|||||||||||||||||
2012
|
2011
|
Location
|
2012
|
2011
|
||||||||||||||
Interest rate swap
|
$
|
–
|
$
|
–
|
Interest expense
|
$
|
–
|
$
|
(49
|
)
|
||||||||
(In thousands)
|
||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships
|
(Loss) / Gain Recognized in OCI on Derivative (Effective Portion)
|
(Loss) / Gain Reclassified from Accumulated OCI into Income (Effective Portion)
|
||||||||||||||||
For the Nine Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||||||||
2012
|
2011
|
Location
|
2012
|
2011
|
||||||||||||||
Interest rate swap
|
$
|
–
|
$
|
(16
|
)
|
Interest expense
|
$
|
–
|
$
|
(192
|
)
|
(In thousands)
|
||||||||||||||||||
Amount of (Loss) / Gain Recognized in Income on Derivatives
|
Amount of (Loss) / Gain Recognized in Income on Derivatives
|
|||||||||||||||||
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||||||||
Derivatives Not Designated as Hedging Instruments
|
Location
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Interest rate caps
|
Interest expense
|
$
|
(7
|
)
|
$
|
(61
|
)
|
$
|
(66
|
)
|
$
|
(202
|
)
|
(In thousands)
|
||||||||||||||||
As of September 30, 2012
|
As of December 31, 2011
|
|||||||||||||||
Carrying Amount
|
Estimated Fair Value
|
Carrying Amount
|
Estimated Fair Value
|
|||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
5,725
|
$
|
5,725
|
$
|
4,657
|
$
|
4,657
|
||||||||
Restricted cash and cash equivalents
|
167,706
|
167,706
|
104,679
|
104,679
|
||||||||||||
Restricted securities available for sale
|
–
|
–
|
810
|
810
|
||||||||||||
Net investment in Loans receivable
|
1,876,718
|
1,895,056
|
1,598,573
|
1,615,009
|
||||||||||||
Derivative instruments
|
18
|
18
|
16
|
16
|
||||||||||||
Liabilities
|
||||||||||||||||
Revolving secured line of credit
|
$
|
115,800
|
$
|
115,800
|
$
|
43,900
|
$
|
43,900
|
||||||||
Secured financing
|
791,850
|
801,226
|
599,281
|
598,622
|
||||||||||||
Mortgage note
|
4,104
|
4,104
|
4,288
|
4,288
|
||||||||||||
Senior notes
|
350,307
|
385,875
|
350,378
|
365,500
|
Level 1
|
Valuation is based upon quoted prices for identical instruments traded in active markets.
|
Level 2
|
Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
|
Level 3
|
Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates or assumptions that market participants would use in pricing the asset or liability.
|
(In thousands)
|
||||||||||||
As of September 30, 2012
|
||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total Fair Value
|
|||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
$ | 5,725 | $ | – | $ | – | $ | 5,725 | ||||
Restricted cash and cash equivalents
|
167,706 | – | – | 167,706 | ||||||||
Restricted securities available for sale
|
– | – | – | – | ||||||||
Net investment in Loans receivable
|
– | – | 1,895,056 | 1,895,056 | ||||||||
Derivative instruments
|
– | 18 | – | 18 | ||||||||
Liabilities
|
||||||||||||
Revolving secured line of credit
|
$ | – | $ | 115,800 | $ | – | $ | 115,800 | ||||
Secured financing
|
– | 801,226 | – | 801,226 | ||||||||
Mortgage note
|
– | 4,104 | – | 4,104 | ||||||||
Senior notes
|
385,875 | – | – | 385,875 | ||||||||
(In thousands)
|
||||||||||||
As of December 31, 2011
|
||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total Fair Value
|
|||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
$ | 4,657 | $ | – | $ | – | $ | 4,657 | ||||
Restricted cash and cash equivalents
|
104,679 | – | – | 104,679 | ||||||||
Restricted securities available for sale
|
810 | – | – | 810 | ||||||||
Net investment in Loans receivable
|
– | – | 1,615,009 | 1,615,009 | ||||||||
Derivative instruments
|
– | 16 | – | 16 | ||||||||
Liabilities
|
||||||||||||
Revolving secured line of credit
|
$ | – | $ | 43,900 | $ | – | $ | 43,900 | ||||
Secured financing
|
– | 598,622 | – | 598,622 | ||||||||
Mortgage note
|
– | 4,288 | – | 4,288 | ||||||||
Senior notes
|
365,500 | – | – | 365,500 |
(In thousands)
|
For the Three Months Ended September 30,
|
||||||||||
2012
|
2011
|
||||||||||
Affiliated
Dealer
activity
|
% of
consolidated
|
Affiliated
Dealer
activity
|
% of
consolidated
|
||||||||
Dealer Loan revenue
|
$
|
284
|
0.2
|
%
|
$
|
349
|
0.4
|
%
|
|||
New Consumer Loan assignments (1)
|
928
|
0.3
|
%
|
128
|
0.0
|
%
|
|||||
Accelerated Dealer Holdback payments
|
79
|
0.8
|
%
|
–
|
0.0
|
%
|
|||||
Dealer Holdback payments
|
692
|
2.6
|
%
|
652
|
2.7
|
%
|
(In thousands)
|
For the Nine Months Ended September 30,
|
||||||||||
2012
|
2011
|
||||||||||
Affiliated
Dealer
activity
|
% of
consolidated
|
Affiliated
Dealer
activity
|
% of
consolidated
|
||||||||
Dealer Loan revenue
|
$
|
849
|
0.2
|
%
|
$
|
1,330
|
0.5
|
%
|
|||
New Consumer Loan assignments (1)
|
2,662
|
0.3
|
%
|
788
|
0.1
|
%
|
|||||
Accelerated Dealer Holdback payments
|
149
|
0.4
|
%
|
24
|
0.1
|
%
|
|||||
Dealer Holdback payments
|
2,643
|
2.9
|
%
|
1,757
|
3.0
|
%
|
|
(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.
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
U.S. federal statutory rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||
State income taxes
|
1.7
|
%
|
1.5
|
%
|
1.6
|
%
|
1.9
|
%
|
||||
Changes in reserve for uncertain tax positions as a result of settlements and lapsed statutes and related interest
|
-0.4
|
%
|
-0.2
|
%
|
-0.4
|
%
|
-0.6
|
%
|
||||
Other
|
0.5
|
%
|
0.2
|
%
|
0.3
|
%
|
0.0
|
%
|
||||
Effective tax rate
|
36.8
|
%
|
36.5
|
%
|
36.5
|
%
|
36.3
|
%
|
(In thousands)
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
Weighted average shares outstanding:
|
||||||||||||
Common shares
|
24,337
|
25,605
|
25,074
|
25,991
|
||||||||
Vested restricted stock units
|
571
|
428
|
555
|
406
|
||||||||
Basic number of weighted average shares outstanding
|
24,908
|
26,033
|
25,629
|
26,397
|
||||||||
Dilutive effect of stock options
|
46
|
70
|
50
|
116
|
||||||||
Dilutive effect of restricted stock and restricted stock units
|
8
|
33
|
27
|
60
|
||||||||
Dilutive number of weighted average shares outstanding
|
24,962
|
26,136
|
25,706
|
26,573
|
(In thousands)
|
Number of Shares
|
|||||
For the Nine Months Ended September 30,
|
||||||
Restricted Stock
|
2012
|
2011
|
||||
Outstanding Beginning Balance
|
48 | 112 | ||||
Granted
|
199 | 9 | ||||
Vested
|
(37 | ) | (63 | ) | ||
Forfeited
|
(3 | ) | (7 | ) | ||
Outstanding Ending Balance
|
207 | 51 |
(In thousands, except per share data)
|
Nonvested
|
Vested
|
Total
|
||||||||||||||||
Restricted Stock Units
|
Number of Restricted Stock Units
|
Weighted Average Grant-Date Fair Value Per Share
|
Number of Restricted Stock Units
|
Weighted Average Grant-Date Fair Value Per Share
|
Number of Restricted Stock Units
|
||||||||||||||
Outstanding as of December 31, 2011
|
348
|
$
|
24.06
|
428
|
$
|
22.14
|
776
|
||||||||||||
Granted
|
313
|
106.32
|
–
|
–
|
313
|
(1
|
)
|
||||||||||||
Vested
|
(143
|
)
|
21.48
|
143
|
21.48
|
–
|
(2
|
)
|
|||||||||||
Forfeited
|
(8
|
)
|
15.80
|
–
|
–
|
(8
|
)
|
||||||||||||
Outstanding as of September 30, 2012
|
510
|
$
|
75.43
|
571
|
$
|
21.97
|
1,081
|
||||||||||||
(In thousands, except per share data)
|
Nonvested
|
Vested
|
Total
|
||||||||||||||||
Restricted Stock Units
|
Number of Restricted Stock Units
|
Weighted Average Grant-Date Fair Value Per Share
|
Number of Restricted Stock Units
|
Weighted Average Grant-Date Fair Value Per Share
|
Number of Restricted Stock Units
|
||||||||||||||
Outstanding as of December 31, 2010
|
521
|
$
|
19.99
|
270
|
$
|
22.94
|
791
|
||||||||||||
Granted
|
25
|
58.54
|
–
|
–
|
25
|
(3
|
)
|
||||||||||||
Vested
|
(158
|
)
|
20.99
|
158
|
20.99
|
–
|
(4
|
)
|
|||||||||||
Forfeited
|
(34
|
)
|
20.50
|
–
|
–
|
(34
|
)
|
||||||||||||
Outstanding as of September 30, 2011
|
354
|
$
|
22.07
|
428
|
$
|
22.14
|
782
|
||||||||||||
(1)
|
The distribution date of vested restricted stock units is February 18, 2019 for 3 restricted stock units. For 310 restricted stock units, the vested restricted stock units will be distributed in equal installments on December 31, 2022, 2023, 2024, 2025 and 2026.
|
(2)
|
The distribution date of vested restricted stock units is February 22, 2014 for 60 restricted stock units, February 22, 2016 for 77 restricted stock units and February 22, 2017 for 6 restricted stock units.
|
(3)
|
The distribution date of vested restricted stock units is February 22, 2018 for 5 restricted stock units and February 18, 2019 for 20 restricted stock units.
|
(4)
|
The distribution date of vested restricted stock units is February 22, 2014 for 60 restricted stock units, February 22, 2016 for 90 restricted stock units and February 22, 2017 for 8 restricted stock units.
|
(In thousands)
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
Restricted stock
|
$
|
1,101
|
$
|
113
|
$
|
2,370
|
$
|
493
|
||||
Restricted stock units
|
2,944
|
251
|
6,231
|
1,063
|
||||||||
Total
|
$
|
4,045
|
$
|
364
|
$
|
8,601
|
$
|
1,556
|
(In thousands)
|
||||||||||||
Year
|
Restricted Stock Units
|
Restricted Stock
|
Total Projected Expense
|
|||||||||
Remainder of 2012
|
$
|
2,294
|
$
|
913
|
$
|
3,207
|
||||||
2013
|
7,624
|
3,086
|
10,710
|
|||||||||
2014
|
5,263
|
2,350
|
7,613
|
|||||||||
2015
|
4,298
|
2,029
|
6,327
|
|||||||||
2016
|
3,639
|
1,862
|
5,501
|
|||||||||
Thereafter
|
7,060
|
8,722
|
15,782
|
|||||||||
Total
|
$
|
30,178
|
$
|
18,962
|
$
|
49,140
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Forecasted Collection Percentage as of
|
Variance in Forecasted Collection Percentage from
|
||||||||||||||||||||
Consumer Loan Assignment Year
|
September 30, 2012
|
June 30, 2012
|
December 31, 2011
|
Initial Forecast
|
June 30, 2012
|
December 31, 2011
|
Initial Forecast
|
||||||||||||||
2003
|
73.8
|
%
|
73.8
|
%
|
73.7
|
%
|
72.0
|
%
|
0.0
|
%
|
0.1
|
%
|
1.8
|
%
|
|||||||
2004
|
73.0
|
%
|
73.0
|
%
|
73.0
|
%
|
73.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
|||||||
2005
|
73.5
|
%
|
73.6
|
%
|
73.6
|
%
|
74.0
|
%
|
-0.1
|
%
|
-0.1
|
%
|
-0.5
|
%
|
|||||||
2006
|
70.0
|
%
|
70.0
|
%
|
70.0
|
%
|
71.4
|
%
|
0.0
|
%
|
0.0
|
%
|
-1.4
|
%
|
|||||||
2007
|
68.1
|
%
|
68.1
|
%
|
68.1
|
%
|
70.7
|
%
|
0.0
|
%
|
0.0
|
%
|
-2.6
|
%
|
|||||||
2008
|
70.3
|
%
|
70.3
|
%
|
70.0
|
%
|
69.7
|
%
|
0.0
|
%
|
0.3
|
%
|
0.6
|
%
|
|||||||
2009
|
79.5
|
%
|
79.6
|
%
|
79.4
|
%
|
71.9
|
%
|
-0.1
|
%
|
0.1
|
%
|
7.6
|
%
|
|||||||
2010
|
77.2
|
%
|
77.1
|
%
|
76.8
|
%
|
73.6
|
%
|
0.1
|
%
|
0.4
|
%
|
3.6
|
%
|
|||||||
2011
|
73.7
|
%
|
73.6
|
%
|
73.2
|
%
|
72.5
|
%
|
0.1
|
%
|
0.5
|
%
|
1.2
|
%
|
|||||||
2012 (1)
|
71.6
|
%
|
71.9
|
%
|
–
|
71.1
|
%
|
-0.3
|
%
|
–
|
0.5
|
%
|
(1)
|
The forecasted collection rate for 2012 Consumer Loans as of September 30, 2012 includes both Consumer Loans that were in our portfolio as of June 30, 2012 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:
|
Forecasted Collection Percentage as of
|
|||||||||
2012 Consumer Loan Assignment Period
|
September 30, 2012
|
June 30, 2012
|
Variance
|
||||||
January 1, 2012 through June 30, 2012
|
72.0
|
%
|
71.9
|
%
|
0.1
|
%
|
|||
July 1, 2012 through September 30, 2012
|
70.6
|
%
|
–
|
–
|
As of September 30, 2012
|
||||||||||||
Consumer Loan Assignment Year
|
Forecasted Collection %
|
Advance % (1)
|
Spread %
|
% of Forecast Realized (2)
|
||||||||
2003
|
73.8
|
%
|
43.4
|
%
|
30.4
|
%
|
99.6
|
%
|
||||
2004
|
73.0
|
%
|
44.0
|
%
|
29.0
|
%
|
99.5
|
%
|
||||
2005
|
73.5
|
%
|
46.9
|
%
|
26.6
|
%
|
99.4
|
%
|
||||
2006
|
70.0
|
%
|
46.6
|
%
|
23.4
|
%
|
98.8
|
%
|
||||
2007
|
68.1
|
%
|
46.5
|
%
|
21.6
|
%
|
97.8
|
%
|
||||
2008
|
70.3
|
%
|
44.6
|
%
|
25.7
|
%
|
96.1
|
%
|
||||
2009
|
79.5
|
%
|
43.9
|
%
|
35.6
|
%
|
93.1
|
%
|
||||
2010
|
77.2
|
%
|
44.7
|
%
|
32.5
|
%
|
73.8
|
%
|
||||
2011
|
73.7
|
%
|
45.5
|
%
|
28.2
|
%
|
43.9
|
%
|
||||
2012
|
71.6
|
%
|
45.9
|
%
|
25.7
|
%
|
13.5
|
%
|
|
(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.
|
Consumer Loan Assignment Year
|
Forecasted Collection %
|
Advance % (1)
|
Spread %
|
|||||||
Dealer Loans
|
2007
|
68.0 | % | 45.8 | % | 22.2 | % | |||
2008
|
70.8 | % | 43.3 | % | 27.5 | % | ||||
2009
|
79.6 | % | 43.5 | % | 36.1 | % | ||||
2010
|
77.2 | % | 44.4 | % | 32.8 | % | ||||
2011
|
73.7 | % | 45.4 | % | 28.3 | % | ||||
2012
|
71.6 | % | 45.5 | % | 26.1 | % | ||||
Purchased Loans
|
2007
|
68.4 | % | 49.1 | % | 19.3 | % | |||
2008
|
69.6 | % | 46.7 | % | 22.9 | % | ||||
2009
|
79.4 | % | 45.3 | % | 34.1 | % | ||||
2010
|
77.0 | % | 46.5 | % | 30.5 | % | ||||
2011
|
74.2 | % | 46.1 | % | 28.1 | % | ||||
2012
|
72.5 | % | 50.2 | % | 22.3 | % |
|
(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.
|
Year over Year Percent Change
|
||||||
Three Months Ended
|
Unit Volume
|
Dollar Volume (1)
|
||||
March 31, 2011
|
36.7 | % | 59.3 | % | ||
June 30, 2011
|
28.7 | % | 41.3 | % | ||
September 30, 2011
|
28.6 | % | 40.5 | % | ||
December 31, 2011
|
25.3 | % | 32.1 | % | ||
March 31, 2012
|
10.6 | % | 10.7 | % | ||
June 30, 2012
|
7.3 | % | 7.9 | % | ||
September 30, 2012
|
5.4 | % | 3.1 | % |
|
(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.
|
For the Nine Months Ended September 30,
|
|||||||
2012
|
2011
|
% Change
|
|||||
Consumer Loan unit volume
|
148,580
|
137,592
|
8.0
|
%
|
|||
Active Dealers (1)
|
4,781
|
3,603
|
32.7
|
%
|
|||
Average volume per active Dealer
|
31.1
|
38.2
|
-18.6
|
%
|
For the Nine Months Ended September 30,
|
|||||||||
2012
|
2011
|
% Change
|
|||||||
Consumer Loan unit volume from Dealers active both periods
|
118,827 | 128,491 | -7.5 | % | |||||
Dealers active both periods
|
2,841 | 2,841 | – | ||||||
Average volume per Dealers active both periods
|
41.8 | 45.2 | -7.5 | % | |||||
Consumer Loan unit volume from new Dealers
|
20,240 | 13,812 | 46.5 | % | |||||
New active Dealers (1)
|
1,556 | 1,021 | 52.4 | % | |||||
Average volume per new active Dealers
|
13.0 | 13.5 | -3.7 | % | |||||
Attrition (2)
|
-6.6 | % | -7.4 | % |
|
(1)
|
New active Dealers are Dealers who enrolled in our program and have received funding for their first 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 Loan during the comparable period of the prior year but did not receive funding for any Loans during the current period divided by prior year comparable period Consumer Loan unit volume.
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
Dealer Loan unit volume as a percentage of total unit volume
|
93.8
|
%
|
92.3
|
%
|
93.6
|
%
|
92.4
|
%
|
||||
Dealer Loan dollar volume as a percentage of total dollar volume (1)
|
92.1
|
%
|
90.1
|
%
|
91.8
|
%
|
90.4
|
%
|
|
(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.
|
(In thousands, except per share data)
|
For the Three Months Ended September 30,
|
|||||||||
2012
|
2011
|
% Change
|
||||||||
Revenue:
|
||||||||||
Finance charges
|
$
|
137,495
|
$
|
117,905
|
16.6
|
%
|
||||
Premiums earned
|
12,206
|
10,462
|
16.7
|
%
|
||||||
Other income
|
5,977
|
5,372
|
11.3
|
%
|
||||||
Total revenue
|
155,678
|
133,739
|
16.4
|
%
|
||||||
Costs and expenses:
|
||||||||||
Salaries and wages
|
21,720
|
15,929
|
36.4
|
%
|
||||||
General and administrative
|
6,797
|
6,044
|
12.5
|
%
|
||||||
Sales and marketing
|
8,129
|
5,587
|
45.5
|
%
|
||||||
Provision for credit losses
|
9,759
|
4,550
|
114.5
|
%
|
||||||
Interest
|
16,289
|
14,600
|
11.6
|
%
|
||||||
Provision for claims
|
9,122
|
8,363
|
9.1
|
%
|
||||||
Total costs and expenses
|
71,816
|
55,073
|
30.4
|
%
|
||||||
Income before provision for income taxes
|
83,862
|
78,666
|
6.6
|
%
|
||||||
Provision for income taxes
|
30,874
|
28,706
|
7.6
|
%
|
||||||
Net income
|
$
|
52,988
|
$
|
49,960
|
6.1
|
%
|
||||
Net income per share:
|
||||||||||
Basic
|
$
|
2.13
|
$
|
1.92
|
||||||
Diluted
|
$
|
2.12
|
$
|
1.91
|
||||||
Weighted average shares outstanding:
|
||||||||||
Basic
|
24,908
|
26,033
|
||||||||
Diluted
|
24,962
|
26,136
|
(In thousands)
|
Change
|
|||
Net income for the three months ended September 30, 2011
|
$
|
49,960
|
||
Increase in finance charges
|
19,590
|
|||
Increase in premiums earned
|
1,744
|
|||
Increase in other income
|
605
|
|||
Increase in operating expenses (1)
|
(9,086
|
)
|
||
Increase in provision for credit losses
|
(5,209
|
)
|
||
Increase in interest
|
(1,689
|
)
|
||
Increase in provision for claims
|
(759
|
)
|
||
Increase in provision for income taxes
|
(2,168
|
)
|
||
Net income for the three months ended September 30, 2012
|
$
|
52,988
|
|
(1)
|
Operating expenses consist of salaries and wages, general and administrative, and sales and marketing expenses.
|
(Dollars in thousands)
|
For the Three Months Ended September 30,
|
|||||||||||
2012
|
2011
|
Change
|
||||||||||
Average net Loans receivable balance
|
$
|
1,848,512
|
$
|
1,478,779
|
$
|
369,733
|
||||||
Average yield on our Loan portfolio
|
29.8
|
%
|
31.9
|
%
|
-2.1
|
%
|
(In thousands)
|
Year over Year Change
|
|||
Impact on finance charges:
|
For the Three Months Ended September 30, 2012
|
|||
Due to an increase in the average net Loans receivable balance
|
$
|
29,479
|
||
Due to a decrease in the average yield
|
(9,889
|
)
|
||
Total increase in finance charges
|
$
|
19,590
|
·
|
An increase in salaries and wages expense of $5.8 million, or 36.4%, which included a $3.7 million increase in stock-based compensation expense primarily attributable to the 15 year stock award granted to our Chief Executive Officer during the first quarter of the year and a $0.9 million increase in fringe benefits, primarily related to medical claims. Salaries and wages, excluding the increase in stock-based compensation and fringe benefits, increased $1.2 million including an increase of $0.9 million in loan servicing, $0.2 million for support functions and $0.1 million in loan originations.
|
·
|
An increase in sales and marketing expense of $2.5 million, or 45.5%, primarily as a result of the increase in the size of our field sales force.
|
(Dollars in thousands)
|
For the Three Months Ended September 30,
|
||||||
2012
|
2011
|
||||||
Interest expense
|
$
|
16,289
|
$
|
14,600
|
|||
Average outstanding debt balance
|
1,202,821
|
941,531
|
|||||
Average cost of debt
|
5.4
|
%
|
6.2
|
%
|
(In thousands, except per share data)
|
For the Nine Months Ended September 30,
|
|||||||||
2012
|
2011
|
% Change
|
||||||||
Revenue:
|
||||||||||
Finance charges
|
$
|
397,563
|
$
|
338,238
|
17.5
|
%
|
||||
Premiums earned
|
34,987
|
29,195
|
19.8
|
%
|
||||||
Other income
|
17,313
|
19,783
|
-12.5
|
%
|
||||||
Total revenue
|
449,863
|
387,216
|
16.2
|
%
|
||||||
Costs and expenses:
|
||||||||||
Salaries and wages
|
61,530
|
47,402
|
29.8
|
%
|
||||||
General and administrative
|
21,463
|
18,186
|
18.0
|
%
|
||||||
Sales and marketing
|
23,478
|
17,768
|
32.1
|
%
|
||||||
Provision for credit losses
|
17,716
|
22,394
|
-20.9
|
%
|
||||||
Interest
|
47,150
|
42,173
|
11.8
|
%
|
||||||
Provision for claims
|
26,704
|
22,733
|
17.5
|
%
|
||||||
Total costs and expenses
|
198,041
|
170,656
|
16.0
|
%
|
||||||
Income before provision for income taxes
|
251,822
|
216,560
|
16.3
|
%
|
||||||
Provision for income taxes
|
91,983
|
78,565
|
17.1
|
%
|
||||||
Net income
|
$
|
159,839
|
$
|
137,995
|
15.8
|
%
|
||||
Net income per share:
|
||||||||||
Basic
|
$
|
6.24
|
$
|
5.23
|
||||||
Diluted
|
$
|
6.22
|
$
|
5.19
|
||||||
Weighted average shares outstanding:
|
||||||||||
Basic
|
25,629
|
26,397
|
||||||||
Diluted
|
25,706
|
26,573
|
(In thousands)
|
Change
|
|||
Net income for the nine months ended September 30, 2011
|
$
|
137,995
|
||
Increase in finance charges
|
59,325
|
|||
Increase in premiums earned
|
5,792
|
|||
Decrease in other income
|
(2,470
|
)
|
||
Increase in operating expenses (1)
|
(23,115
|
)
|
||
Decrease in provision for credit losses
|
4,678
|
|||
Increase in interest
|
(4,977
|
)
|
||
Increase in provision for claims
|
(3,971
|
)
|
||
Increase in provision for income taxes
|
(13,418
|
)
|
||
Net income for the nine months ended September 30, 2012
|
$
|
159,839
|
|
(1)
|
Operating expenses consist of salaries and wages, general and administrative, and sales and marketing expenses.
|
(Dollars in thousands)
|
For the Nine Months Ended September 30,
|
|||||||||||
2012
|
2011
|
Change
|
||||||||||
Average net Loans receivable balance
|
$
|
1,759,025
|
$
|
1,378,784
|
$
|
380,241
|
||||||
Average yield on our Loan portfolio
|
30.1
|
%
|
32.7
|
%
|
-2.6
|
%
|
(In thousands)
|
Year over Year Change
|
|||
Impact on finance charges:
|
For the Nine Months Ended September 30, 2012
|
|||
Due to an increase in the average net Loans receivable balance
|
$
|
93,279
|
||
Due to a decrease in the average yield
|
(33,954
|
)
|
||
Total increase in finance charges
|
$
|
59,325
|
·
|
An increase in salaries and wages expense of $14.1 million, or 29.8%, which included a $7.0 million increase in stock-based compensation expense primarily attributable to the 15 year stock award granted to our Chief Executive Officer during the first quarter of the year and a $1.9 million increase in fringe benefits, primarily related to medical claims. Salaries and wages, excluding the increase in stock-based compensation and fringe benefits, increased $5.2 million including an increase of $3.2 million in loan servicing, $1.6 million for support functions and $0.4 million in loan originations.
|
·
|
An increase in sales and marketing expenses of $5.7 million, or 32.1%, primarily as a result of the increase in the size of the field sales force.
|
·
|
An increase in general and administrative expenses of $3.3 million, or 18.0%, primarily due to a $1.3 million increase in information technology expenses, an increase in legal expenses of $0.9 million and $0.9 million in higher taxes primarily as a result of a property tax refund recognized in the first quarter of 2011.
|
(Dollars in thousands)
|
For the Nine Months Ended September 30,
|
||||||
2012
|
2011
|
||||||
Interest expense
|
$
|
47,150
|
$
|
42,173
|
|||
Average outstanding debt balance
|
1,120,146
|
861,155
|
|||||
Average cost of debt
|
5.6
|
%
|
6.5
|
%
|
(In thousands)
|
||||
Year
|
Scheduled Principal Debt Maturities (1)
|
|||
Remainder of 2012
|
$
|
23,849
|
||
2013
|
146,594
|
|||
2014
|
443,207
|
|||
2015
|
298,104
|
|||
2016
|
–
|
|||
Thereafter
|
350,000
|
|||
Total
|
$
|
1,261,754
|
|
(1)
|
The principal maturities of certain financings are estimated based on forecasted collections.
|
·
|
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 Term ABS facilities or 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 operations are dependent on technology.
|
·
|
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.
|
·
|
Our Chairman and founder controls a significant percentage of our common stock, has the ability to significantly influence matters requiring shareholder approval and has 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.
|
CREDIT ACCEPTANCE CORPORATION
|
|||
(Registrant)
|
|||
By:
|
/s/ Kenneth S. Booth
|
||
Kenneth S. Booth
|
|||
Chief Financial Officer
|
|||
(Principal Financial Officer and Principal Accounting Officer)
|
|||
Date: November 1, 2012
|
Exhibit
No.
|
Description
|
||
4.75
|
Indenture dated as of September 20, 2012, between Credit Acceptance Auto Loan Trust 2012-2 and Wells Fargo Bank, National Association (incorporated by reference to an exhibit to the Company’s Current Report on Form 8-K, dated September 20, 2012)
|
||
4.76
|
Sale and Servicing Agreement dated as of September 20, 2012, among the Company, Credit Acceptance Auto Loan Trust 2012-2, Credit Acceptance Funding LLC 2012-2, and Wells Fargo Bank, National Association (incorporated by reference to an exhibit to the Company’s Current Report on Form 8-K, dated September 20, 2012)
|
||
4.77
|
Backup Servicing Agreement dated as of September 20, 2012, among the Company, Credit Acceptance Funding LLC 2012-2, Credit Acceptance Auto Loan Trust 2012-2, and Wells Fargo Bank, National Association (incorporated by reference to an exhibit to the Company’s Current Report on Form 8-K, dated September 20, 2012)
|
||
4.78
|
Amended and Restated Trust Agreement dated as of September 20, 2012, between Credit Acceptance Funding LLC 2012-2 and U.S. Bank Trust National Association (incorporated by reference to an exhibit to the Company’s Current Report on Form 8-K, dated September 20, 2012)
|
||
4.79
|
Sale and Contribution Agreement dated as of September 20, 2012, between the Company and Credit Acceptance Funding LLC 2012-2 (incorporated by reference to an exhibit to the Company’s Current Report on Form 8-K, dated September 20, 2012)
|
||
4.80
|
Amended and Restated Intercreditor Agreement dated September 20, 2012, among the Company, CAC Warehouse Funding Corporation II, CAC Warehouse Funding III, LLC, CAC Warehouse Funding LLC IV, Credit Acceptance Funding LLC 2012-2, Credit Acceptance Funding LLC 2012-1, Credit Acceptance Funding LLC 2011-1, Credit Acceptance Funding LLC 2010-1, Credit Acceptance Auto Loan Trust 2012-2, Credit Acceptance Auto Loan Trust 2012-1, Credit Acceptance Auto Loan Trust 2011-1, Credit Acceptance Auto Loan Trust 2010-1, Fifth Third Bank, as agent, Wells Fargo Bank, National Association, as agent, Bank of Montreal, as agent and Comerica Bank, as agent (incorporated by reference to an exhibit to the Company’s Current Report on Form 8-K, dated September 20, 2012)
|
||
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
32.1
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
32.2
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101(INS)
|
XBRL Instance Document. *
|
||
101(SCH)
|
XBRL Taxonomy Extension Schema Document. *
|
||
101(CAL)
|
XBRL Taxonomy Extension Calculation Linkbase Document. *
|
||
101(DEF)
|
XBRL Taxonomy Extension Definition Linkbase Document. *
|
||
101(LAB)
|
XBRL Taxonomy Extension Label Linkbase Document. *
|
||
101(PRE)
|
XBRL Taxonomy Extension Presentation Linkbase Document. *
|
*
|
Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.
|
Date: November 1, 2012
|
By:
|
/s/ Brett A. Roberts
|
|
Brett A. Roberts
|
|||
Chief Executive Officer
|
|||
(Principal Executive Officer)
|
Date: November 1, 2012
|
By:
|
/s/ Kenneth S. Booth
|
|
Kenneth S. Booth
|
|||
Chief Financial Officer
|
|||
(Principal Financial Officer)
|
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: November 1, 2012
|
By:
|
/s/ Brett A. Roberts
|
|
Brett A. Roberts
|
|||
Chief Executive Officer
|
|||
(Principal Executive Officer)
|
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: November 1, 2012
|
By:
|
/s/ Kenneth S. Booth
|
|
Kenneth S. Booth
|
|||
Chief Financial Officer
|
|||
(Principal Financial Officer)
|
Summary Of Significant Accounting Policies (Schedule Of Cost And Estimated Fair Values Of Debt Securities By Contractual Maturity) (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Summary Of Significant Accounting Policies [Line Items] | ||
Total restricted securities available for sale | $ 0 | $ 810 |
Cost [Member]
|
||
Summary Of Significant Accounting Policies [Line Items] | ||
Within one year | 0 | 45 |
Over one year to five years | 0 | 759 |
Total restricted securities available for sale | 0 | 804 |
Estimated Fair Value [Member]
|
||
Summary Of Significant Accounting Policies [Line Items] | ||
Within one year | 0 | 44 |
Over one year to five years | 0 | 766 |
Total restricted securities available for sale | $ 0 | $ 810 |
Derivative And Hedging Instruments (Schedule Of Effect Of Derivative Instruments Designated As Hedging Instruments In Consolidated Financial Statements) (Details) (Designated as Hedging Instrument [Member], Interest Rate Swap [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) / Gain Recognized in OCI on Derivative (Effective Portion) | $ 0 | $ 0 | $ 0 | $ (16) |
Interest Expense [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) / Gain Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ (49) | $ 0 | $ (192) |
Debt (Schedule Of General Information Of Financing Transaction) (Details) (USD $)
|
3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
Revolving Secured Line Of Credit [Member]
|
Sep. 30, 2012
Revolving Secured Line Of Credit [Member]
|
Jun. 30, 2012
Revolving Secured Line Of Credit [Member]
|
Mar. 31, 2012
Warehouse Facility II [Member]
|
Sep. 30, 2012
Warehouse Facility II [Member]
|
Sep. 30, 2012
Warehouse Facility III [Member]
|
Sep. 30, 2012
Warehouse Facility IV [Member]
|
Sep. 30, 2012
Term ABS 2010-1 [Member]
|
Sep. 30, 2012
Term ABS 2011-1 [Member]
|
Sep. 30, 2012
Term ABS 2012-1 [Member]
|
Sep. 30, 2012
Term ABS 2012-2 [Member]
|
Sep. 30, 2012
Senior Notes [Member]
|
Mar. 03, 2011
Senior Notes [Member]
|
Sep. 30, 2012
$250.0 Million Senior Notes [Member]
|
Feb. 01, 2010
$250.0 Million Senior Notes [Member]
|
Sep. 30, 2012
$100.0 Million Senior Notes [Member]
|
Mar. 03, 2011
$100.0 Million Senior Notes [Member]
|
Sep. 30, 2012
LIBOR [Member]
Revolving Secured Line Of Credit [Member]
|
Mar. 31, 2012
LIBOR [Member]
Revolving Secured Line Of Credit [Member]
|
Sep. 30, 2012
LIBOR [Member]
Warehouse Facility II [Member]
|
Sep. 30, 2012
LIBOR [Member]
Warehouse Facility III [Member]
|
Sep. 30, 2012
LIBOR [Member]
Warehouse Facility IV [Member]
|
Sep. 30, 2012
Prime Rate [Member]
Revolving Secured Line Of Credit [Member]
|
Mar. 31, 2012
Prime Rate [Member]
Revolving Secured Line Of Credit [Member]
|
Sep. 30, 2012
Commercial Paper Rate [Member]
Warehouse Facility II [Member]
|
||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||
Wholly-owned Subsidiary | n/a | CAC Warehouse Funding Corp. II | [1] | CAC Warehouse Funding III, LLC | [1] | CAC Warehouse Funding LLC IV | [1] | Credit Acceptance Funding LLC 2010-1 | [1] | Credit Acceptance Funding LLC 2011-1 | [1] | Credit Acceptance Funding LLC 2012-1 | [1] | Credit Acceptance Funding LLC 2012-2 | [1] | n/a | ||||||||||||||||||||||||||||||
Close Date | Jun. 15, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Close date, secured financings | Jun. 17, 2011 | [1] | Jun. 29, 2012 | [1] | Aug. 19, 2011 | [1] | Nov. 04, 2010 | [1] | Oct. 06, 2011 | [1] | Mar. 29, 2012 | [1] | Sep. 20, 2012 | [1] | Feb. 01, 2010 | Mar. 03, 2011 | ||||||||||||||||||||||||||||||
Maturity Date | Jun. 22, 2014 | Jun. 22, 2015 | ||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Sep. 10, 2013 | Jun. 17, 2014 | [1],[2] | Sep. 10, 2015 | [1],[3] | Feb. 19, 2014 | [1],[2] | Oct. 15, 2012 | [1],[2] | Sep. 16, 2013 | [1],[2] | Mar. 17, 2014 | [1],[2] | Sep. 15, 2014 | [1],[2] | Feb. 01, 2017 | ||||||||||||||||||||||||||||||
Financing Amount | $ 205,000,000 | $ 235,000,000 | $ 235,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Debt financing amount | $ 325,000,000 | [1] | $ 75,000,000 | [1] | $ 75,000,000 | [1] | $ 100,500,000 | [1] | $ 200,500,000 | [1] | $ 201,250,000 | [1] | $ 252,000,000 | [1] | $ 350,000,000 | $ 100,000,000 | $ 250,000,000 | $ 100,000,000 | ||||||||||||||||||||||||||||
Basis spread on variable rate | 1.875% | 2.25% | 3.75% | [1],[4],[5] | 1.60% | [1],[5] | 2.75% | [1],[5] | 0.875% | 1.25% | 2.75% | [1],[4],[5] | ||||||||||||||||||||||||||||||||||
|
Derivative And Hedging Instruments (Schedule Of Effect Of Derivative Instruments Not Designated As Hedging Instruments In Consolidated Statements Of Income) (Details) (Interest Expense [Member], Interest Rate Caps [Member], Not Designated as Hedging Instrument [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Interest Expense [Member] | Interest Rate Caps [Member] | Not Designated as Hedging Instrument [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) / Gain Recognized in Income on Derivatives | $ (7) | $ (61) | $ (66) | $ (202) |
Loans Receivable (Summary Of Changes In Allowance For Credit Losses) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Balance, beginning of period | $ 161,905 | $ 144,819 | $ 154,318 | $ 126,868 | ||||||
Provision for credit losses | 9,759 | 4,550 | 17,716 | 22,394 | ||||||
Write-offs | (1,506) | (804) | (3,015) | (1,770) | ||||||
Recoveries | 605 | [1] | 463 | [1] | 1,744 | [1] | 1,536 | [1] | ||
Balance, end of period | 170,763 | 149,028 | 170,763 | 149,028 | ||||||
Dealer Loans [Member]
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Balance, beginning of period | 152,031 | 131,728 | 141,712 | 113,227 | ||||||
Provision for credit losses | 10,151 | 4,723 | 20,381 | 23,021 | ||||||
Write-offs | (1,480) | (736) | (2,483) | (1,563) | ||||||
Recoveries | 582 | [1] | 442 | [1] | 1,674 | [1] | 1,472 | [1] | ||
Balance, end of period | 161,284 | 136,157 | 161,284 | 136,157 | ||||||
Purchased Loans [Member]
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Balance, beginning of period | 9,874 | 13,091 | 12,606 | 13,641 | ||||||
Provision for credit losses | (392) | (173) | (2,665) | (627) | ||||||
Write-offs | (26) | (68) | (532) | (207) | ||||||
Recoveries | 23 | [1] | 21 | [1] | 70 | [1] | 64 | [1] | ||
Balance, end of period | $ 9,479 | $ 12,871 | $ 9,479 | $ 12,871 | ||||||
|
Description Of Business (Percentage Of Consumer Loans Assigned Based On Unit Volumes) (Details)
|
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
|
Portfolio Program [Member]
|
|||||||
Description Of Business [Line Items] | |||||||
Percentage of new consumer loans | 93.80% | 93.60% | 93.30% | 92.60% | 92.30% | 92.10% | 92.90% |
Purchase Program [Member]
|
|||||||
Description Of Business [Line Items] | |||||||
Percentage of new consumer loans | 6.20% | 6.40% | 6.70% | 7.40% | 7.70% | 7.90% | 7.10% |
Debt (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
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Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of General Information Of Financing Transaction |
(1) Financing made available only to a specified subsidiary of the Company. (2) Represents the revolving maturity date. The outstanding balance will amortize after the maturity date based on the cash flows of the pledged assets. (3) The LIBOR rate is used if funding is not available from the commercial paper market. (4) Interest rate cap agreements are in place to limit the exposure to increasing interest rates. (5) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on September 10, 2017 will be due. (6) The close dates associated with the issuance of $250.0 million and $100.0 million of the Senior Notes were on February 1, 2010 and March 3, 2011, respectively.
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Schedule Of Additional Information Related To Debt Instruments |
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Summary Of Debt |
As of September 30, 2012 and December 31, 2011, the outstanding balance presented for the Senior Notes includes a net unamortized debt premium of $0.3 million and $0.4 million, respectively.
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Term ABS Financings [Member]
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Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of General Information Of Financing Transaction |
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Loans Receivable (Summary Of Changes In Accretable Yield) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
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Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Balance, beginning of period | $ 701,186 | $ 586,039 | $ 628,128 | $ 476,089 | ||||||||
New Consumer Loan assignments | 138,518 | [1] | 136,135 | [1] | 454,386 | [1] | 441,738 | [1] | ||||
Finance charge income | (137,495) | (117,905) | (397,563) | (338,238) | ||||||||
Forecast changes | 8,145 | 8,002 | 22,728 | 30,099 | ||||||||
Transfers | 1,660 | [2] | 833 | [2] | 4,335 | [2] | 3,416 | [2] | ||||
Balance, end of period | 712,014 | 613,104 | 712,014 | 613,104 | ||||||||
Dealer Loans [Member]
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Balance, beginning of period | 581,693 | 462,478 | 508,046 | 351,569 | ||||||||
New Consumer Loan assignments | 127,728 | [1] | 122,010 | [1] | 416,159 | [1] | 395,111 | [1] | ||||
Finance charge income | (117,780) | (96,577) | (337,231) | (273,300) | ||||||||
Forecast changes | 6,880 | 5,211 | 16,322 | 23,440 | ||||||||
Transfers | (2,580) | [2] | (1,349) | [2] | (7,355) | [2] | (5,047) | [2] | ||||
Balance, end of period | 595,941 | 491,773 | 595,941 | 491,773 | ||||||||
Purchased Loans [Member]
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Balance, beginning of period | 119,493 | 123,561 | 120,082 | 124,520 | ||||||||
New Consumer Loan assignments | 10,790 | [1] | 14,125 | [1] | 38,227 | [1] | 46,627 | [1] | ||||
Finance charge income | (19,715) | (21,328) | (60,332) | (64,938) | ||||||||
Forecast changes | 1,265 | 2,791 | 6,406 | 6,659 | ||||||||
Transfers | 4,240 | [2] | 2,182 | [2] | 11,690 | [2] | 8,463 | [2] | ||||
Balance, end of period | $ 116,073 | $ 121,331 | $ 116,073 | $ 121,331 | ||||||||
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Summary Of Significant Accounting Policies (Restricted Cash And Cash Equivalents) (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
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Dec. 31, 2011
|
---|---|---|
Summary Of Significant Accounting Policies [Line Items] | ||
Cash related to secured financings | $ 119,259 | $ 62,536 |
Cash held in trusts for future vehicle service contract claims | 48,447 | 42,143 |
Total restricted cash and cash equivalents | 167,706 | 104,679 |
VSC Re [Member]
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Summary Of Significant Accounting Policies [Line Items] | ||
Total restricted cash and cash equivalents | 48,412 | 42,026 |
Discontinued Profit Sharing Arrangement [Member]
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Summary Of Significant Accounting Policies [Line Items] | ||
Total restricted cash and cash equivalents | $ 35 | $ 117 |
Derivative And Hedging Instruments (Schedule Of Terms Of Interest Rate Cap Agreements) (Details) (USD $)
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Sep. 30, 2012
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Dec. 31, 2011
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---|---|---|---|---|---|---|---|---|---|---|---|---|
Warehouse Facility II [Member]
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Derivative [Line Items] | ||||||||||||
Debt financing amount | $ 325,000,000 | [1] | ||||||||||
Warehouse Facility II [Member] | 6.75% Cap Interest Rate [Member]
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Derivative [Line Items] | ||||||||||||
Start date | 07/2011 | 09/2010 | ||||||||||
End date | 06/2013 | 06/2013 | ||||||||||
Notional value | 325,000,000 | 325,000,000 | ||||||||||
Cap Interest Rate | 6.75% | [2],[3] | 6.75% | [2] | ||||||||
Debt financing amount | 325,000,000 | 325,000,000 | ||||||||||
Warehouse Facility III [Member]
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Derivative [Line Items] | ||||||||||||
Debt financing amount | 75,000,000 | [1] | ||||||||||
Notional amount in next fiscal year | 56,300,000 | |||||||||||
Warehouse Facility III [Member] | 6.75% Cap Interest Rate [Member]
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Derivative [Line Items] | ||||||||||||
Start date | 09/2010 | 09/2010 | ||||||||||
End date | 09/2013 | 09/2013 | ||||||||||
Notional value | 37,500,000 | 37,500,000 | ||||||||||
Cap Interest Rate | 6.75% | [2],[3] | 6.75% | [2] | ||||||||
Debt financing amount | 75,000,000 | 75,000,000 | ||||||||||
Warehouse Facility III [Member] | 5.00% Cap Interest Rate [Member]
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Derivative [Line Items] | ||||||||||||
Start date | 06/2012 | |||||||||||
End date | 07/2015 | |||||||||||
Notional value | 18,800,000 | [4] | ||||||||||
Cap Interest Rate | 5.00% | [2],[3] | ||||||||||
Debt financing amount | 75,000,000 | |||||||||||
Warehouse Facility IV [Member]
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Derivative [Line Items] | ||||||||||||
Debt financing amount | 75,000,000 | [1] | ||||||||||
Warehouse Facility IV [Member] | 5.5% Cap Interest Rate [Member]
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Derivative [Line Items] | ||||||||||||
Start date | 08/2011 | 08/2011 | ||||||||||
End date | 03/2014 | 03/2014 | ||||||||||
Notional value | 75,000,000 | 75,000,000 | ||||||||||
Cap Interest Rate | 5.50% | [2],[3] | 5.50% | [2] | ||||||||
Debt financing amount | $ 75,000,000 | $ 75,000,000 | ||||||||||
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Litigation And Contingent Liabilities (Details)
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3 Months Ended |
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Sep. 30, 2012
plaintiff
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Litigation And Contingent Liabilities [Abstract] | |
Number of dealers alleging damages | 6 |
Stock Repurchases (Details) (USD $)
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3 Months Ended | ||||||
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Sep. 30, 2012
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Mar. 26, 2012
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Jun. 30, 2012
Open Market [Member]
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Jun. 30, 2012
Tender Offer [Member]
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Mar. 31, 2011
Tender Offer [Member]
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Sep. 30, 2012
Senior Notes [Member]
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Mar. 03, 2011
Senior Notes [Member]
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Equity, Class of Treasury Stock [Line Items] | |||||||
Increase in number of shares authorized for repurchase | 1,000,000 | ||||||
Remaining number of shares authorized for repurchase | 976,129 | ||||||
Common stock repurchased, shares | 285,402 | 1,000,000 | 1,900,000 | ||||
Common stock repurchased, value | $ 27,000,000 | $ 84,500,000 | $ 125,000,000 | ||||
Tender offer, amount of shares for repurchase | 1,000,000 | 1,900,000 | |||||
Tender offer, share repurchase price per share | $ 84.45 | $ 65.625 | |||||
Senior notes principal amount | $ 350,000,000 | $ 100,000,000 |
Debt (Narrative) (Details) (USD $)
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9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
item
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Sep. 30, 2012
Warehouse Facilities [Member]
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Mar. 31, 2012
Revolving Secured Line Of Credit [Member]
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Sep. 30, 2012
Revolving Secured Line Of Credit [Member]
|
Jun. 30, 2012
Revolving Secured Line Of Credit [Member]
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Mar. 31, 2012
Warehouse Facility II [Member]
|
Sep. 30, 2012
Warehouse Facility II [Member]
|
Sep. 30, 2012
Warehouse Facility III [Member]
|
Sep. 30, 2012
Warehouse Facility IV [Member]
|
Sep. 30, 2012
Senior Notes [Member]
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Mar. 03, 2011
Senior Notes [Member]
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Mar. 31, 2011
$100.0 Million Senior Notes [Member]
|
Sep. 30, 2012
$100.0 Million Senior Notes [Member]
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Mar. 03, 2011
$100.0 Million Senior Notes [Member]
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Mar. 31, 2010
$250.0 Million Senior Notes [Member]
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Sep. 30, 2012
$250.0 Million Senior Notes [Member]
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Feb. 01, 2010
$250.0 Million Senior Notes [Member]
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Sep. 30, 2012
LIBOR [Member]
Revolving Secured Line Of Credit [Member]
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Mar. 31, 2012
LIBOR [Member]
Revolving Secured Line Of Credit [Member]
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Sep. 30, 2012
LIBOR [Member]
Warehouse Facility II [Member]
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Sep. 30, 2012
LIBOR [Member]
Warehouse Facility III [Member]
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Sep. 30, 2012
LIBOR [Member]
Warehouse Facility IV [Member]
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Sep. 30, 2012
Prime Rate [Member]
Revolving Secured Line Of Credit [Member]
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Mar. 31, 2012
Prime Rate [Member]
Revolving Secured Line Of Credit [Member]
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Sep. 30, 2012
Commercial Paper Rate [Member]
Warehouse Facility II [Member]
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Sep. 30, 2012
6.75% Cap Interest Rate [Member]
Warehouse Facility II [Member]
|
Dec. 31, 2011
6.75% Cap Interest Rate [Member]
Warehouse Facility II [Member]
|
Sep. 30, 2012
6.75% Cap Interest Rate [Member]
Warehouse Facility III [Member]
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Dec. 31, 2011
6.75% Cap Interest Rate [Member]
Warehouse Facility III [Member]
|
Sep. 30, 2012
5.00% Cap Interest Rate [Member]
Warehouse Facility III [Member]
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Sep. 30, 2012
5.5% Cap Interest Rate [Member]
Warehouse Facility IV [Member]
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Dec. 31, 2011
5.5% Cap Interest Rate [Member]
Warehouse Facility IV [Member]
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Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility | $ 205,000,000 | $ 235,000,000 | $ 235,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity Date | Jun. 22, 2014 | Jun. 22, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt financing amount | 475,000,000 | 325,000,000 | [1] | 75,000,000 | [1] | 75,000,000 | [1] | 350,000,000 | 100,000,000 | 100,000,000 | 250,000,000 | 325,000,000 | 325,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Percentage of net book value of loans | 80.00% | 80.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum hedging reserve | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cap Interest Rate | 6.75% | [2],[3] | 6.75% | [2] | 6.75% | [2],[3] | 6.75% | [2] | 5.00% | [2],[3] | 5.50% | [2],[3] | 5.50% | [2] | ||||||||||||||||||||||||||||||||||||||||||||||
Percentage of collections on contributed loans | 6.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of wholly owned subsidiaries acquiring financing | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes stated interest rate | 9.125% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Sep. 10, 2013 | Jun. 17, 2014 | [1],[4] | Sep. 10, 2015 | [1],[5] | Feb. 19, 2014 | [1],[4] | Feb. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Close date, secured financings | Jun. 17, 2011 | [1] | Jun. 29, 2012 | [1] | Aug. 19, 2011 | [1] | Mar. 03, 2011 | Feb. 01, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of price for senior notes issued | 106.00% | 97.495% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross proceeds | 106,000,000 | 243,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes yield to maturity | 7.83% | 9.625% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt covenants | $ 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate | 1.875% | 2.25% | 3.75% | [1],[6],[7] | 1.60% | [1],[7] | 2.75% | [1],[7] | 0.875% | 1.25% | 2.75% | [1],[6],[7] | ||||||||||||||||||||||||||||||||||||||||||||||||
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Description Of Business
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Description Of Business [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description Of Business | 2. DESCRIPTION OF BUSINESS
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.
We refer to automobile dealers who participate in our programs and who share our commitment to changing consumers’ lives as “Dealers”. Upon enrollment in our financing programs, the Dealer enters into a dealer servicing agreement with us that defines the legal relationship between Credit Acceptance and the Dealer. The dealer servicing agreement assigns the responsibilities for administering, servicing, and collecting the amounts due on retail installment contracts (referred to as “Consumer Loans”) from the Dealers to us. We are an indirect lender from a legal perspective, meaning the Consumer Loan is originated by the Dealer and assigned to us.
We have two programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, we advance money to Dealers (referred to as a “Dealer Loan”) in exchange for the right to service the underlying Consumer Loans. Under the Purchase Program, we buy the Consumer Loans from the Dealers (referred to as a “Purchased Loan”) and keep all amounts collected from the consumer. Dealer Loans and Purchased Loans are collectively referred to as “Loans”. The following table shows the percentage of Consumer Loans assigned to us based on unit volumes under each of the programs for each of the last seven quarters:
Portfolio Program
As payment for the vehicle, the Dealer generally receives the following:
We record the amount advanced to the Dealer as a Dealer Loan, which is classified within Loans receivable in our consolidated balance sheets. Cash advanced to the Dealer is automatically assigned to the Dealer’s open pool of advances. We generally require Dealers to group advances into pools of at least 100 Consumer Loans. At the Dealer’s option, a pool containing at least 100 Consumer Loans can be closed and subsequent advances assigned to a new pool. All advances within a Dealer’s pool are secured by the future collections on the related Consumer Loans assigned to the pool. For Dealers with more than one pool, the pools are cross-collateralized so the performance of other pools is considered in determining eligibility for Dealer Holdback. We perfect our security interest in the Dealer Loans by taking possession of the Consumer Loans, which list us as lien holder on the vehicle title.
The dealer servicing agreement provides that collections received by us during a calendar month on Consumer Loans assigned by a Dealer are applied on a pool-by-pool basis as follows:
If the collections on Consumer Loans from a Dealer’s pool are not sufficient to repay the advance balance and any other amounts due to us, the Dealer will not receive Dealer Holdback.
Dealers have an opportunity to receive an accelerated Dealer Holdback payment each time 100 Consumer Loans have been assigned to us. The amount paid to the Dealer is calculated using a formula that considers the forecasted collections and the advance balance on the related Consumer Loans.
Since typically the combination of the advance and the consumer’s down payment provides the Dealer with a cash profit at the time of sale, the Dealer’s risk in the Consumer Loan is limited. We cannot demand repayment of the advance from the Dealer except in the event the Dealer is in default of the dealer servicing agreement. Advances are made only after the consumer and Dealer have signed a Consumer Loan contract, we have received the original Consumer Loan contract and supporting documentation, and we have approved all of the related stipulations for funding. The Dealer can also opt to repurchase Consumer Loans that have been assigned to us under the Portfolio Program, at their discretion, for a fee.
For accounting purposes, the transactions described under the Portfolio Program are not considered to be loans to consumers. Instead, our accounting reflects that of a lender to the Dealer. The classification as a Dealer Loan for accounting purposes is primarily a result of (1) the Dealer’s financial interest in the Consumer Loan and (2) certain elements of our legal relationship with the Dealer.
Purchase Program
The Purchase Program differs from our Portfolio Program in that the Dealer receives a one-time payment from us at the time of assignment to purchase the Consumer Loan instead of a cash advance at the time of assignment and future Dealer Holdback payments. For accounting purposes, the transactions described under the Purchase Program are considered to be originated by the Dealer and then purchased by us.
Program Enrollment
Dealers may enroll in our program by choosing one of our two enrollment options (referred to as “Option A” and “Option B”). In recent years, the terms of Option A have remained consistent while the terms of Option B have varied. The following table summarizes the terms of our enrollment options:
For Dealers enrolling in our program, access to the Purchase Program is typically only granted after the first accelerated Dealer Holdback payment has been received under the Portfolio Program.
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Stock-Based Compensation Plans (Narrative) (Details)
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3 Months Ended | 9 Months Ended | |||||||
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Mar. 31, 2012
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Sep. 30, 2012
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Sep. 30, 2011
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total authorized shares for plan issuance | 2,000,000 | ||||||||
Number of additional shares autorized for issuance | 500,000 | ||||||||
Shares available for issuance | 342,300 | ||||||||
Awards granted | 313,000 | [1] | 25,000 | [2] | |||||
Value of common stock for each restricted stock unit | 1 | ||||||||
Weighted average recognition period | 3 years 6 months | ||||||||
Restricted Stock [Member] | Chief Executive Officer [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted | 190,000 | ||||||||
Restricted Stock Units (RSUs) [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Ten Year Vesting [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 10 years | ||||||||
Ten Year Vesting [Member] | Restricted Stock [Member] | Chief Executive Officer [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted | 90,000 | ||||||||
Ten Year Vesting [Member] | Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted | 310,000 | ||||||||
Five Year Vesting [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Five Year Vesting [Member] | Restricted Stock [Member] | Chief Executive Officer [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted | 100,000 | ||||||||
Maximum [Member] | Restricted Stock [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Minimum [Member] | Restricted Stock [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
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