Credit Acceptance Corp. has suspended its first-quarter earnings report due to the “adverse impact” the COVID-19 crisis has had on its business, according to an April 20 filing with the Securities and Exchange Commission.
The COVID-19 economic crisis has resulted in “many consumers delaying payments or re-allocating resources, leading to a significant decrease in our realized collections,” CAC reported. The Southfield, Mi.-based lender has halted involuntary repossessions.
New originations are also strained as a result of dealership closures and lack of consumer demand.
The subprime lender expects to file the quarterly report no later than June 25 — or 45 days after the original due date — taking advantage of a March 25 order issued by the SEC that allows some publicly traded companies to delay reporting to the regulator.
“Our management has had to devote significant time and attention to assessing the potential impact of COVID-19 and related events on our operations and financial position and developing operational and financial plans to address those matters, which has diverted management resources from completing tasks necessary to file the quarterly report by the original due date,” the filing read.
CAC’s auto portfolio topped $7 billion by yearend 2019, with 13,399 active dealers. Its stock (NYSE: CACC) was trading down 13.81% at $254 per share at market close. The company has a market capitalization of $4.61 billion.
