-----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, O6OnGsI+A0vj9Tz9FQx+JnrOa3U42lrPPbSLnnWgT71Omj8K2kTrpRib6VjN1SX1 jD9gFz0DgLIu4oRPunXG8Q== 0000950124-05-005487.txt : 20050921 0000950124-05-005487.hdr.sgml : 20050921 20050921163117 ACCESSION NUMBER: 0000950124-05-005487 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050921 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050921 DATE AS OF CHANGE: 20050921 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: 051096099 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 k98622e8vk.txt CURRENT REPORT, DATED SEPTEMBER 21, 2005 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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): September 21, 2005 CREDIT ACCEPTANCE CORPORATION (Exact name of registrant as specified in its charter) Michigan 000-20202 38-1999511 - ------------------------------ -------------- ---------------------- (State or other jurisdiction Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 25505 West Twelve Mile Road, Suite 3000, 48034-8339 Southfield, Michigan - ---------------------------------------- --------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 248-353-2700 Not Applicable ---------------------------------------------------------- Former name or former address, if changed since last report 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 communication 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 7.01 REGULATION FD DISCLOSURE. Credit Acceptance Corporation is furnishing materials, included as Exhibit 99.1 to this report and incorporated herein by reference, 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 these materials. 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 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. 99.1 Materials added to website on or about September 21, 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 By: /s/ Douglas W. Busk --------------------------- Douglas W. Busk Treasurer September 21, 2005 EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION - ----------- --------------------------------------------- 99.1 Materials added to website on or about September 21, 2005.
EX-99.1 2 k98622exv99w1.txt MATERIALS ADDED TO WEBSITE EXHIBIT 99.1 1. CAC HAS 23,900 MORE LOANS AT 6/30/05 VS. 6/30/04. AT $12,000 PER LOAN, THE FACE AMOUNT WOULD BE ROUGHLY $286.8 MILLION. GIVEN AN ADVANCE RATE OF APPROXIMATELY 49%, LOAN ASSETS HAVE GROWN BY ABOUT $140.5 MILLION. CAC'S NET DEBT HAS INCREASED $30 MILLION OVER THE SAME 12 MONTH PERIOD. CAC ALSO BOUGHT BACK $50 MILLION WORTH OF STOCK. WE ESTIMATE THAT CAC HAS GENERATED ABOUT $50 MILLION OF ECONOMIC EARNINGS IN THAT SAME 12 MONTHS. WHAT ACCOUNTS FOR THE ADDITIONAL $110.4 MILLION OF CASH FLOWS INTO THE COMPANY THAT HAS FUNDED THE INCREASED ASSET BASE? Your calculation overstates the increase in loan assets. To calculate the increase in loan assets, the percentage increase in the number of loans should be applied to the average investment in loan assets, not the initial investment. The information necessary to calculate the average investment in loan assets will not be available until our restated financials are completed. 2. HOW MANY DEALERS PAID CAC A $599 MONTHLY FEE IN THE QTR ENDED 6/30/05 VS. HOW MANY DEALERS PAID THE MONTHLY FEE IN THE QUARTER ENDED 6/30/04, REGARDLESS IF THE DEALER ORIGINATED A LOAN DURING THE QUARTER?
THREE MONTHS ENDED JUNE 30, 2005 2004 ------ ------ Dealer-partners paying monthly CAPS fee (1), (2) 1,342 959
(1) Effective February 1, 2005 the monthly CAPS fee charged to dealer-partners was increased from $499 to $599 (2) Includes unique dealer-partners who paid at least one monthly CAPS fee during the quarter. 3. WHY DID YOU HIRE GRANT THORNTON AS YOUR AUDITOR VS. ONE OF THE REMAINING BIG 4 AUDITORS? DO YOU ANTICIPATE THAT GT WILL BE MORE RESPONSIVE TO THE NEEDS OF CAC THAN A BIG 4 FIRM WOULD, AND HAS YOUR ESTIMATED TIME FRAME OF SIX MONTHS FOR YOUR REQUIRED RESTATEMENTS CHANGED? We sought competitive bids from several firms. Upon meeting the representatives of the firms and reviewing their proposals, we felt that Grant Thornton was the best fit for the Company at this time due to a variety of factors including responsiveness and availability of national and local resources. At this point, we have no new information that would change our original statement related to the time frame to complete. 4. DOES THE SEC ACTION HAVE ANYTHING TO DO WITH THE 2002 CHANGE IN ACCOUNTING BY AMERICREDIT? No. Once it was apparent that Deloitte no longer agreed with the methodology the Company had been using since becoming a public registrant in 1992, the Company voluntarily sought guidance from the SEC. 5. WHY DOES THE SEC TAKE THE POSITION CACC IS A LENDER TO THE AUTO DEALERS? The SEC, in responding to a request for guidance by the Company, took the position that they saw no reason to disagree with Deloitte & Touche. After agreeing that the Company was a consumer lender for six years, Deloitte abruptly changed their position earlier this year and concluded we were really a lender to the dealer. It is not clear that the SEC would have viewed the Company's accounting as a consumer lender as inappropriate absent Deloitte's change of position. In fact, the SEC reviewed the Company's prior accounting on two different occasions without expressing such a view. Without getting into more detail than is necessary, the Company believes the facts support several different conclusions regarding the classification of our business for accounting purposes. The most important fact supporting the classification of the Company as a lender to the dealer is a clause within our dealer agreement that allows the dealer-partner to repurchase the consumer loans. This was viewed by both Deloitte and the SEC as evidence that the consumer loan was really the property of the dealer-partner. It is worth repeating the obvious conclusion that our classification for accounting purposes does not ultimately impact the cash flows available to shareholders or the value of our business. CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION Certain statements in this document 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 document. 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, - the Company's pending restatement of prior years financial statements, - 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. -----END PRIVACY-ENHANCED MESSAGE-----