Credit Acceptance Corporation

Good day, everyone, and welcome to the Credit Acceptance Corporation Fourth Quarter 2021 Earnings Conference 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 would like to turn the call over to Credit Acceptance Chief Treasury Officer, Doug Buss.

Thank you. Good afternoon, and welcome to the Credit Acceptance Corporation Fourth 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. 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 22.6% and 12.7% respectively compared to the fourth quarter of 2020. An increase in forecasted collection rates for loans originated in 2019 and 2020. This resulted in a $31.9 million increase in the forecasted net cash flows from our loan portfolio. Adjusted net income increased 12% from the fourth quarter of 2020 to $212.6 million. Adjusted earnings per share increased 33% from the fourth quarter of 2020 to $14.26. And stock repurchases of approximately 606,000 shares, 4.1% 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'd like to ask a question at this time, you will need to press the start and the one key on your touch-tone telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. And our first question coming from the line of Moshe Orange with Credit Suisse, your line is open.