SEC Filing | Credit Acceptance Corporation

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): MAY 25, 2004 CREDIT ACCEPTANCE CORPORATION (Exact Name of Registrant as Specified in its Charter) Commission File Number 000-20202 MICHIGAN 38-1999511 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 25505 W. TWELVE MILE ROAD, SUITE 3000 48034-8339 SOUTHFIELD, MICHIGAN (Zip Code) (Address of Principal Executive Offices) Registrant's telephone number, including area code: (248) 353-2700

ITEM 9. REGULATION FD DISCLOSURE. Credit Acceptance Corporation is furnishing materials, included as Exhibit 99.1 to this report, which were prepared for inclusion on its investor relations website. Credit Acceptance Corporation is not undertaking to update these materials. This report should not be deemed an admission as to the materiality of any information contained in the presentation. The information furnished in this report shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended. ITEM 12: RESULTS OF OPERATIONS AND FINANCIAL CONDITION. Refer to the information furnished under Item 9.

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CREDIT ACCEPTANCE CORPORATION (Registrant) By: /s/ Douglas W. Busk ----------------------- Douglas W. Busk Treasurer May 26, 2004

INDEX OF EXHIBITS EXHIBIT NO. DESCRIPTION 99.1 Website Materials added to website on or about May 25, 2004.

[CREDIT ACCEPTANCE LOGO] EXHIBIT 99.1 CREDIT ACCEPTANCE CORPORATION CONSOLIDATED INCOME STATEMENTS (Dollars in thousands, except per share data) Q1 02 Q2 02 Q3 02 Q4 02 ------------ ------------ ------------ ------------ REVENUE Finance charges $ 24,885 $ 25,522 $ 24,018 $ 23,319 Ancillary product income 3,599 3,820 5,500 3,518 Lease revenue 5,159 4,428 3,614 2,900 Premiums earned 1,440 1,054 1,001 1,017 Other income 3,775 3,765 8,535 3,465 ------------ ------------ ------------ ------------ Total revenue 38,858 38,589 42,668 34,219 ------------ ------------ ------------ ------------ COSTS AND EXPENSES Salaries and wages 7,504 7,448 7,184 6,906 General and administrative 5,717 6,383 5,789 6,662 Provision for credit losses 3,515 3,562 8,896 7,962 Sales and marketing 1,781 1,809 1,954 2,079 Interest 2,305 2,457 2,364 1,932 Stock-based compensation expense 482 565 535 490 United Kingdom asset impairment expense -- -- -- -- Other expense 3,504 3,136 2,841 2,049 ------------ ------------ ------------ ------------ Total costs and expenses 24,808 25,360 29,563 28,080 ------------ ------------ ------------ ------------ OPERATING INCOME 14,050 13,229 13,105 6,139 Foreign exchange gain (loss) 16 11 (25) (2) ------------ ------------ ------------ ------------ Income before provision for income taxes 14,066 13,240 13,080 6,137 Provision for income taxes 7,869 4,774 4,468 1,047 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ NET INCOME $ 6,197 $ 8,466 $ 8,612 $ 5,090 ============ ============ ============ ============ Net income per common share: Basic $ 0.15 $ 0.20 $ 0.20 $ 0.12 Diluted $ 0.14 $ 0.19 $ 0.20 $ 0.12 Weighted average shares outstanding: Basic 42,437,481 42,535,312 42,363,895 42,371,316 Diluted 43,497,889 43,821,716 43,122,046 42,852,646 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 ------------ ------------ ------------ ------------ ------------ REVENUE Finance charges $ 24,256 $ 26,431 $ 25,770 $ 26,668 $ 29,754 Ancillary product income 5,733 4,233 4,369 5,062 2,867 Lease revenue 2,336 1,784 1,251 1,061 647 Premiums earned 755 757 734 740 544 Other income 3,849 2,767 3,738 3,494 3,983 ------------ ------------ ------------ ------------ ------------ Total revenue 36,929 35,972 35,862 37,025 37,795 ------------ ------------ ------------ ------------ ------------ COSTS AND EXPENSES Salaries and wages 8,517 8,687 7,879 8,572 8,796 General and administrative 5,484 5,198 4,679 4,673 5,507 Provision for credit losses 4,188 2,863 2,303 1,105 15,068 Sales and marketing 2,177 2,483 1,886 1,948 2,543 Interest 1,596 1,401 2,267 2,793 2,600 Stock-based compensation expense 375 1,428 1,027 753 567 United Kingdom asset impairment expense -- 10,493 -- -- -- Other expense 1,647 1,376 1,182 551 457 ------------ ------------ ------------ ------------ ------------ Total costs and expenses 23,984 33,929 21,223 20,395 35,538 ------------ ------------ ------------ ------------ ------------ OPERATING INCOME 12,945 2,043 14,639 16,630 2,257 Foreign exchange gain (loss) 15 14 (1,066) (1,730) 151 ------------ ------------ ------------ ------------ ------------ Income before provision for income taxes 12,960 2,057 13,573 14,900 2,408 Provision for income taxes 4,367 1,049 4,755 5,138 878 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ NET INCOME $ 8,593 $ 1,008 $ 8,818 $ 9,762 $ 1,530 ============ ============ ============ ============ ============ Net income per common share: Basic $ 0.20 $ 0.02 $ 0.21 $ 0.23 $ 0.04 Diluted $ 0.20 $ 0.02 $ 0.20 $ 0.22 $ 0.04 Weighted average shares outstanding: Basic 42,328,841 42,321,170 42,315,027 42,040,063 39,791,700 Diluted 42,407,981 42,868,265 43,959,924 43,958,520 42,159,338 NOTE: Certain amounts have been reclassified to conform to the 2004 presentation.

[CREDIT ACCEPTANCE LOGO] EXHIBIT 99.1 CREDIT ACCEPTANCE CORPORATION CONSOLIDATED BALANCE SHEETS (Dollars in thousands) 3/31/2002 6/30/2002 9/30/2002 12/31/2002 --------- --------- --------- ---------- ASSETS Cash and cash equivalents $ 19,580 $ 20,694 $ 12,443 $ 13,466 Investments -- held to maturity 176 175 175 173 Loans receivable 781,067 790,798 789,788 772,614 Allowance for credit losses (14,917) (15,223) (17,568) (20,991) --------- --------- --------- --------- Loans receivable, net 766,150 775,575 772,220 751,623 Notes receivable, net 5,344 4,842 4,289 3,899 Lines of credit and floorplan receivables, net 11,417 11,441 9,464 8,105 Investment in Operating Leases, net 35,612 29,246 23,222 17,879 Property and equipment, net 19,649 19,802 20,532 19,951 Income taxes receivable -- -- -- -- Other assets 11,793 10,138 11,873 11,735 --------- --------- --------- --------- TOTAL ASSETS $ 869,721 $ 871,913 $ 854,218 $ 826,831 ========= ========= ========= ========= LIABILITIES Lines of credit $ 67,403 $ 91,272 $ 96,811 $ 43,555 Secured financing 108,364 65,101 30,257 58,153 Mortgage note 6,740 6,562 6,381 6,195 Capital lease obligations -- 556 1,029 1,938 Accounts payable and accrued liabilities 37,412 37,402 32,496 28,341 Dealer holdbacks, net 331,791 340,492 349,088 347,040 Deferred income taxes, net 12,237 17,331 16,618 10,058 Income taxes payable 7,125 5,781 2,489 6,094 --------- --------- --------- --------- TOTAL LIABILITIES 571,072 564,497 535,169 501,374 --------- --------- --------- --------- SHAREHOLDERS' EQUITY Common stock 422 417 417 423 Paid-in capital 129,317 124,322 124,693 124,772 Retained earnings 176,691 185,158 193,770 198,858 Accumulated other comprehensive income (loss) - cumulative translation adjustment (7,781) (2,481) 169 1,404 --------- --------- --------- --------- TOTAL S.H. EQUITY 298,649 307,416 319,049 325,457 --------- --------- --------- --------- TOTAL LIAB. & S.H. EQUITY $ 869,721 $ 871,913 $ 854,218 $ 826,831 ========= ========= ========= ========= 3/31/2003 6/30/2003 9/30/2003 12/31/2003 3/31/2004 --------- --------- --------- ---------- --------- ASSETS Cash and cash equivalents $ 6,372 $ 22,068 $ 15,450 $ 36,044 $ 17,595 Investments -- held to maturity 99 456 9,789 -- Loans receivable 813,991 853,139 871,900 875,417 956,867 Allowance for credit losses (22,929) (24,461) (14,883) (17,615) (34,521) --------- --------- --------- --------- --------- Loans receivable, net 791,062 828,678 857,017 857,802 922,346 Notes receivable, net 2,809 2,074 2,076 2,090 3,776 Lines of credit and floorplan receivables, net 6,349 5,781 5,210 4,472 3,458 Investment in Operating Leases, net 13,199 9,328 6,364 4,447 2,840 Property and equipment, net 20,057 18,355 18,294 18,503 18,598 Income taxes receivable -- -- -- 5,795 251 Other assets 10,427 11,440 11,179 14,627 13,973 --------- --------- --------- --------- --------- TOTAL ASSETS $ 850,374 $ 898,180 $ 925,379 $ 943,780 $ 982,837 ========= ========= ========= ========= ========= LIABILITIES Lines of credit $ 55,627 $ 8,305 $ -- $ -- $ 66,200 Secured financing 32,904 100,000 100,000 100,000 83,434 Mortgage note 6,005 5,813 5,618 5,418 5,216 Capital lease obligations 1,727 1,538 1,258 1,049 1,608 Accounts payable and accrued liabilities 31,428 33,034 33,858 33,117 35,284 Dealer holdbacks, net 371,509 397,682 420,759 423,861 466,779 Deferred income taxes, net 8,762 4,010 17,048 22,770 14,972 Income taxes payable 10,826 11,700 2,538 -- -- --------- --------- --------- --------- --------- TOTAL LIABILITIES 518,788 562,082 581,079 586,215 673,493 --------- --------- --------- --------- --------- SHAREHOLDERS' EQUITY Common stock 423 422 422 421 392 Paid-in capital 123,385 124,446 123,477 125,078 75,538 Retained earnings 207,451 208,459 217,277 227,039 228,569 Accumulated other comprehensive income (loss) - cumulative translation adjustment 327 2,771 3,124 5,027 4,845 --------- --------- --------- --------- --------- TOTAL S.H. EQUITY 331,586 336,098 344,300 357,565 309,344 --------- --------- --------- --------- --------- TOTAL LIAB. & S.H. EQUITY $ 850,374 $ 898,180 $ 925,379 $ 943,780 $ 982,837 ========= ========= ========= ========= ========= NOTE: Certain amounts have been reclassified to conform to the 2004 presentation.

[CREDIT ACCEPTANCE LOGO] EXHIBIT 99.1 CREDIT ACCEPTANCE CORPORATION UNITED STATES INCOME STATEMENTS (Dollars in thousands, except per share data) Q1 02 Q2 02 Q3 02 Q4 02 ------------ ------------ ------------ ------------ REVENUE Finance charges $ 19,582 $ 20,425 $ 18,954 $ 19,453 Ancillary product income 3,173 3,332 3,300 3,378 Premiums earned 1,440 1,054 1,001 1,017 Other income 2,457 2,560 7,270 2,335 ------------ ------------ ------------ ------------ Total revenue 26,652 27,371 30,525 26,183 ------------ ------------ ------------ ------------ COSTS AND EXPENSES Salaries and wages 5,962 5,982 5,878 5,923 General and administrative 3,964 5,043 4,464 5,717 Provision for credit losses 513 680 5,555 4,998 Sales and marketing 1,512 1,577 1,668 1,765 Interest 1,107 1,352 1,656 1,293 Stock-based compensation expense 390 458 426 412 Other expense 563 570 590 138 ------------ ------------ ------------ ------------ Total costs and expenses 14,011 15,662 20,237 20,246 ------------ ------------ ------------ ------------ OPERATING INCOME 12,641 11,709 10,288 5,937 Foreign exchange gain (loss) 17 (5) (14) (4) ------------ ------------ ------------ ------------ Income before provision for income taxes 12,658 11,704 10,274 5,933 Provision for income taxes 7,496 4,384 3,801 1,098 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ NET INCOME $ 5,162 $ 7,320 $ 6,473 $ 4,835 ============ ============ ============ ============ Net income per common share: Basic $ 0.12 $ 0.17 $ 0.15 $ 0.11 Diluted $ 0.12 $ 0.17 $ 0.15 $ 0.11 Weighted average shares outstanding: Basic 42,437,481 42,535,312 42,363,895 42,371,316 Diluted 43,497,889 43,821,716 43,122,046 42,852,646 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 ------------ ------------ ------------ ------------ ------------ REVENUE Finance charges $ 20,759 $ 23,195 $ 23,135 $ 24,505 $ 28,083 Ancillary product income 4,848 4,189 4,363 5,062 2,867 Premiums earned 755 757 734 740 544 Other income 2,987 2,403 2,466 2,835 3,135 ------------ ------------ ------------ ------------ ------------ Total revenue 29,349 30,544 30,698 33,142 34,629 ------------ ------------ ------------ ------------ ------------ COSTS AND EXPENSES Salaries and wages 7,290 7,199 6,741 7,591 7,952 General and administrative 4,517 4,352 3,940 3,955 4,855 Provision for credit losses 2,840 1,490 1,189 1,398 14,806 Sales and marketing 1,838 1,818 1,884 1,948 2,543 Interest 946 958 1,865 2,561 2,360 Stock-based compensation expense 296 1,353 962 704 522 Other expense 99 209 329 (91) 19 ------------ ------------ ------------ ------------ ------------ Total costs and expenses 17,826 17,379 16,910 18,066 33,057 ------------ ------------ ------------ ------------ ------------ OPERATING INCOME 11,523 13,165 13,788 15,076 1,572 Foreign exchange gain (loss) (11) (18) (1,082) (1,753) 166 ------------ ------------ ------------ ------------ ------------ Income before provision for income taxes 11,512 13,147 12,706 13,323 1,738 Provision for income taxes 4,032 4,444 4,564 4,634 635 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ NET INCOME $ 7,480 $ 8,703 $ 8,142 $ 8,689 $ 1,103 ============ ============ ============ ============ ============ Net income per common share: Basic $ 0.18 $ 0.21 $ 0.19 $ 0.21 $ 0.03 Diluted $ 0.18 $ 0.20 $ 0.19 $ 0.20 $ 0.03 Weighted average shares outstanding: Basic 42,328,841 42,321,170 42,315,027 42,040,063 39,791,700 Diluted 42,407,981 42,868,265 43,959,924 43,958,520 42,159,338 NOTE: Certain amounts have been reclassified to conform to the 2004 presentation.