Credit Acceptance Corporation

Good afternoon, everyone, and welcome to the Credit Acceptance Corporation's second quarter 2021 earnings call. Today's call is being recorded. A webcast and transcript of today's earnings call will be made available on Credit Acceptance's website. At this time, I'll now turn the call over to Credit Acceptance's Chief Treasury Officer, Doug Busk. Sir, you may now begin.

Thank you. Good afternoon and welcome to the Credit Acceptance Corporation's second quarter 2021 earnings call. As you read our news release posted on the investor relations section of our website at ir.creditexceptance.com, and as you listen to this conference call, please recognize that both contain forward-looking statements within the meaning of federal securities law. These forward-looking statements are subject to a number of risks and uncertainties many of which are beyond our control and which could cause actual results to differ materially from such statements. These risks and uncertainties include those spelled out in the cautionary statement regarding forward-looking information included in the news release. Consider all forward-looking statements in light of those and other risks and uncertainties. Additionally, I should mention that to comply with the SEC's Regulation G, please refer to the financial results section of our news release which provides tables showing how non-GAAP measures reconcile to GAAP measures. Our results for the quarter include unit and dollar volumes declined 28.7% and 20.5% respectively compared to the second quarter of 2020, an increase in forecasted collection rates for loans originated in 2017 through 2021. This resulted in a $104.5 million increase in the forecasted net cash flows from our loan portfolio. Adjusted net income, excluding a one-time reversal of stock compensation expense, increased 44% from the second quarter of 2020 to $221.4 million. Adjusted earnings per share, excluding a one-time reversal of stock compensation expense, increased 53% from the second quarter of 2020 to $13.18. Stacked for purchases of approximately 598,000 shares, 3.6% of the shares outstanding at the beginning of the quarter. At this time, Ken Booth, our Chief Executive Officer, Jay Martin, our Senior Vice President of Finance and Accounting, and I will take your questions.

Participants will now begin the question and answer session. To ask a question over the phone, you may press the star key followed by the number one. To withdraw your request, you may press the pound key. Again, that's star one to ask a question or the pound key to withdraw your request. First question is from the line of Mosh Orenbuck from Credit Suisse. Your line is now open.