Credit Acceptance Corporation

Good day, everyone, and welcome to the Credit Acceptance Corporation Third Quarter 2022 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 would like to turn the call over to Credit Acceptance Chief Treasury Officer Doug Busk.

Thank you. Good afternoon and welcome to the Credit Acceptance Corporation Third Quarter 2022 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 gap and adjusted results for the quarter include unit and dollar volumes grew 29.3 and 32.1% respectively as compared to the third quarter of 2021. A decrease in forecasted collection rates for loans originated in 2019 through 2022, which decreased forecasted net cash flows from our loan portfolio by $85 million or 0.9%. Adjusted net income decreased 18.5% from the third quarter of 2021 to $179 million. Adjusted earnings per share decreased 3.5% from the third quarter of 2021 to $13.36. Stack repurchases of approximately 54,000 shares, which represented 0.4% 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.

Thank you. At this time, we will conduct the question and answer session. To ask a question, you'll need to press star 1 1 on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question comes from the line of Moshe Orenbook from Credit Suisse. Your line is now open. Moshe, your line is now open.