Credit Acceptance Corporation

Thank you. Good afternoon and welcome to the Credit Acceptance Corporation third quarter 2021 earnings call. As you read our news release posted on the investor relations section of our website at ir.creditacceptance.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. 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 29.4% and 17.9% respectively compared to the third quarter of 2020. An increase in forecasted collection rates for loans originated in 2018 through 2021. This resulted in an $82.3 million increase in the forecasted net cash flows from our loan portfolio. Adjusted net income increased 31% from the third quarter of 2020 to $219.1 million. Adjusted earnings per share increased 48%. from the third quarter of 2020 to $13.84. Stacker purchases of approximately 1.3 million shares, 8% 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, Finance and Accounting, and I will take your questions.

Ladies and gentlemen, if you want to ask a question, please press star 1 on your telephone's keypad. Again, that's star one on your phone's keypad. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of David Shar from JMP Security. Your line is now open.

Hi, good afternoon. Thanks for taking my questions. I guess, first off, You know, obviously the entire industry is kind of struggling with the unique inventory issues and elevated used car values and affordability issues. So no surprise on the volume front. But I'm wondering if you can give a little color perhaps on your take on the health of the independent dealer network. And in particular, as we look at the decline in active dealers, once again, it's obviously reflecting industry forces. But is that decline entirely related to just the volume and affordability issues, or is there any attrition taking place among independent dealers that you're seeing right now?