Credit Acceptance Posts 23% Boost in 3Q Earnings

Credit Acceptance Corp. reported net income of $65.1 million, or $2.75 per diluted share, for the three months ending Sept. 30. That compares with $52.9 million, or $2.12 per diluted share, for the same quarter last year.

CAC’s loan portfolio totaled $2.4 billion as of Sept. 30, up 15% year over year. The number of active dealers hit 4,573 at quarter’s end, up 18% from the 3,874 active dealers in 3Q12.

During an earnings call yesterday, CEO Brett Roberts said the company currently has 228 sales reps. The plan is to reach 250, but “we’re not going to see that in the near future,” he said, according to a transcript available at SeekingAlpha.com. For now, the company is backfilling some positions. “Because we increased the size of the sales force so rapidly, there is a little bit of attrition going on,” he said.

Meanwhile, Roberts expects increased productivity from the existing sales team.