-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ErqZ3vrzjmzRx8POHIwUGMPS8yAUMBJauBi4pT1MTIcmFCIIyWVIUQeyw9keaEPw J9nQ1VcfxNlQRPvmQWVdtw== 0000950124-05-001436.txt : 20050310 0000950124-05-001436.hdr.sgml : 20050310 20050310172336 ACCESSION NUMBER: 0000950124-05-001436 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050304 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050310 DATE AS OF CHANGE: 20050310 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT ACCEPTANCE CORPORATION CENTRAL INDEX KEY: 0000885550 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 381999511 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20202 FILM NUMBER: 05673249 BUSINESS ADDRESS: STREET 1: 25505 W TWELVE MILE RD STREET 2: STE 3000 CITY: SOUTHFIELD STATE: MI ZIP: 48034-8334 BUSINESS PHONE: 8103532700 MAIL ADDRESS: STREET 1: 25505 WEST TWELVE MILE ROAD STREET 2: SUITE 3000 CITY: SOUTHFIELD STATE: MI ZIP: 48034-8334 8-K 1 k93097e8vk.txt CURRENT REPORT, DATED MARCH 4, 2005 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): MARCH 4, 2005 CREDIT ACCEPTANCE CORPORATION (Exact Name of Registrant as Specified in its Charter) Commission File Number 000-20202 MICHIGAN 38-1999511 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) 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 ---------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written Communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On March 10, 2005, Credit Acceptance Corporation (the "Company") issued a press release announcing operational data for the three months and year ended December 31, 2004 and the restatement of tax amounts in prior periods. The press release, dated March 10, 2005, is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference. ITEM 4.02. NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS OR A RELATED AUDIT REPORT OR COMPLETED INTERIM REVIEW. On March 4, 2005, the Company's management, as authorized by the Audit Committee approved the restatement of its previously issued financial statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2003 and its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2004, June 30, 2004 and September 30, 2004. The Company's audit committee and independent registered public accounting firm, Deloitte & Touche LLP, have discussed the subject and this conclusion. As a result, these previously issued financial statements should no longer be relied upon. The nature and impact of the restatement are summarized in a press release issued by the Company on March 10, 2005, which is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. 99.1 Press Release dated March 10, 2005 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/ Kenneth S. Booth ----------------------------------- Kenneth S. Booth Chief Financial Officer March 10, 2005 INDEX OF EXHIBITS EXHIBIT NO. DESCRIPTION ---------- ------------------------------------------------------------- 99.1 Press Release dated March 10, 2005. EX-99.1 2 k93097exv99w1.txt PRESS RELEASE, DATED MARCH 10, 2005 EXHIBIT 99.1 SILVER TRIANGLE BUILDING 25505 WEST TWELVE MILE ROAD - SUITE 3000 SOUTHFIELD, MI 48034-8339 (248) 353-2700 www.creditacceptance.com NEWS RELEASE FOR IMMEDIATE RELEASE DATE: MARCH 10, 2005 - --------------------- INVESTOR RELATIONS: DOUGLAS W. BUSK TREASURER (248) 353-2700 EXT. 4432 IR@CREDITACCEPTANCE.COM NASDAQ SYMBOL: CACC CREDIT ACCEPTANCE ANNOUNCES: 2004 OPERATIONAL DATA AND RESTATEMENT OF TAX AMOUNTS SOUTHFIELD, MICHIGAN - MARCH 10, 2005 - CREDIT ACCEPTANCE CORPORATION (NASDAQ: CACC) Credit Acceptance Corporation (the "Company") announced that during the course of the 2004 year-end closing process, the Company determined that it had incorrectly accounted for income taxes in prior periods related primarily to its foreign subsidiaries. The restatement for these errors will decrease net income for the year ended December 31, 2003 by $2.3 million and increase net income for the three months ended June 30, 2004 by $2.7 million. The correction of these errors will have no impact on pre-tax income. The Company is still finalizing its financial statements for 2004. The Company expects to extend the filing date of its Form 10-K by filing a Form 12b-25 with the Securities and Exchange Commission. Loan originations grew 20.2% for the quarter and 26.8% for the year. The Company made no material changes in credit policy or pricing in the fourth quarter of 2004, other than routine changes designed to maintain current profitability levels. During the fourth quarter of 2004, collection rates were generally consistent with the Company's expectations. LOAN ORIGINATIONS (1)
(Dollars in thousands) THREE MONTHS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31, ------------------------------------ ----------------------------------- 2004 2003 % CHANGE 2004 2003 % CHANGE -------- -------- --------- -------- -------- --------- Loan originations $204,982 $170,481 20.2% $959,617 $756,893 26.8% Number of loans originated 16,471 13,847 18.9 75,955 62,334 21.9 Number of active dealer-partners (2) 1,028 763 34.7 1,215 916 32.6 Loans per active dealer-partner 16.0 18.1 (11.7) 62.5 68.1 (8.1) Average loan size $ 12.4 $ 12.3 1.1 $ 12.6 $ 12.1 4.0
(1) Loan origination information relates to the United States, the Company's only business segment that continues to originate new loans. (2) Active dealer-partners are dealer-partners who submitted at least one loan during the period. 1 ACCOUNTING FOR INCOME TAXES - --------------------------- As noted above, the Company discovered prior period errors related to accounting for income taxes related primarily to its foreign operations during the 2004 year-end closing process. As a result of these errors, the Company concluded that a deficiency in internal controls related to income taxes existed at December 31, 2004, and that such deficiency constituted a material weakness, as defined by the Public Company Accounting Oversight Board's Auditing Standard No. 2. As a result of the material weakness related to income taxes, management will be unable to conclude that the Company's internal controls over financial reporting were effective as of December 31, 2004. The Company is considering several options to remediate this material weakness in the first quarter of 2005. The Company expects to complete its testing and evaluation of internal controls over financial reporting and management's assessment of such internal controls prior to April 30, 2005. The Company will file an amended Form 10-K for the year ended December 31, 2003 and amended Form 10-Qs for the quarters ended March 31, 2004, June 30, 2004, and September 30, 2004 as soon as practicably possible. As a result of the errors related to income taxes, these previously issued financial statements and reports of independent auditors should no longer be relied upon. CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION - ---------------------------------------------------------- Certain statements in this release that are not historical facts, such as those using terms like "believes," "expects," "anticipates," "assumptions," "forecasts," "estimates" and those regarding the Company's future results, plans and objectives, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent the Company's outlook only as of the date of this release. While the Company believes that its forward-looking statements are reasonable, actual results could differ materially since the statements are based on current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include the following: - the Company's potential inability to accurately forecast and estimate the amount and timing of future collections, - increased competition from traditional financing sources and from non-traditional lenders, - the unavailability of funding at competitive rates of interest, - the Company's potential inability to continue to obtain third party financing on favorable terms, - the Company's potential inability to generate sufficient cash flow to service its debt and fund its future operations, - adverse changes in applicable laws and regulations, - adverse changes in economic conditions, - adverse changes in the automobile or finance industries or in the non-prime consumer finance market, - the Company's potential inability to maintain or increase the volume of automobile loans, - an increase in the amount or severity of litigation against the Company, - the loss of key management personnel or the inability to hire qualified personnel, - the effect of terrorist attacks and potential attacks, and - various other factors discussed in the Company's reports filed with the Securities and Exchange Commission. Other factors not currently anticipated by management may also materially and adversely affect the Company's results of operations. The Company does not undertake, and expressly disclaims any obligation, to update or alter its statements whether as a result of new information, future events or otherwise, except as required by applicable law. 2 DESCRIPTION OF CREDIT ACCEPTANCE CORPORATION - -------------------------------------------- Since 1972, Credit Acceptance has provided auto loans to consumers, regardless of their credit history. Our product is offered through a nationwide network of automobile dealers who benefit by selling vehicles to consumers who otherwise could not obtain financing, by repeat and referral sales generated by these same customers, and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing. Without our product, consumers are often unable to purchase a vehicle or they purchase an unreliable one and are not provided the opportunity to improve their credit standing. As we report to the three national credit reporting agencies, a significant number of our customers improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ National Market under the symbol CACC. For more information, visit www.creditacceptance.com. -----END PRIVACY-ENHANCED MESSAGE-----