Q4 2024 Credit Acceptance Corp Earnings Call
Speaker Change: Good day everyone and welcome to the Credit Acceptance Corporation fourth quarter 2024 earnings call.
Speaker Change: 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 at this time I will turn the call over to our Chief Executive Officer, Ken Booth.
Ken Booth: To discuss our fourth quarter results.
Speaker Change: Thanks, Jay overall.
Speaker Change: Overall, we had another mix quarter as it related to collections that originations two key drivers of our business.
Speaker Change: <unk> improved sequentially this quarter with only a 2022.
Speaker Change: Continuing to underperform, our expectations, while our other ventures for stable during the quarter overall.
Speaker Change: The decline of 0.3% or $31 million in forecasted net cash flows.
Speaker Change: During the quarter our growth slowed significantly. However, this was still our second highest Q4 units and dollar volume.
Speaker Change: Our loan portfolio is now at a new record high of $8 9 billion on an adjusted basis up 15% from last year.
Speaker Change: Our market share in our core segment of used vehicles financed by subprime consumers was six 1% year to date through November <unk>.
Speaker Change: Compared to four 8%.
Speaker Change: Same period in 2023.
Speaker Change: Our slower growth was slightly impacted by our Q3 scorecard changed and has resulted in lower advance rates.
Speaker Change: Beyond these two key drivers, we continued making progress during the quarter towards our mission of maximizing intrinsic value Empire.
Speaker Change: And positively changing the lives of our five key constituents dealers consumers team members investors and the communities we operate in.
We do this by providing a valuable product enables dealers to sell vehicles to consumers regardless of their credit yes.
Speaker Change: This allows dealers to make incremental sales to the roughly 55% of adults with other than prime credit.
Speaker Change: So these adults and enables them to obtain a vehicle to get their jobs.
Speaker Change: School et cetera. It also gives them the opportunity to improve our build their credit.
Speaker Change: Our customers are couples like Marita, and Stephen will experience financial challenges after they moved from the Midwest to the south for a fresh start.
Speaker Change: Their financial challenges took a toll on their credit and their transportation Steven's car broke downgrade long commute to work.
Speaker Change: Finance, new vehicle dealers have to turn them away due to their credit they had to rent cars at high cost so statements to get to work discourage but not defeated they founded dealership will approve them for our vehicles for credit acceptance.
The moment of relief and a turning point in their lives with a reliable vehicle to regain stability improve their credit score.
Speaker Change: To support along the way for Marine and Steven <unk> more than a lender where a jumpstart on their new life journey.
Speaker Change: And Mariana and Stephen discovering the benefits of our program don't add once the contract is signed we strive to support our consumers throughout the life of the contract as we have for many years, we are working with consumers impacted by Hurricanes and more recently, the wildfires, including suspending some of our collection efforts to allow those customers to prioritize their safety.
Speaker Change: Most urgent needs.
Speaker Change: During the quarter, we financed 78911 contracts for our dealers and consumers, we collected $1 3 billion overall and paid $65 million in portfolio profit portfolio profit expressed for our dealers.
Speaker Change: We added 902, new dealers for the quarter and now have our largest number of active dealers ever for a fourth quarter with 10149 dealers.
Speaker Change: From an initiative perspective, we've made progress towards improving product innovation and our go to market approach with the goal of supporting our dealers faster and more effectively than ever before as required teamwork.
Speaker Change: The detailed in an iterative process attempts to make improvement every step of the way.
Speaker Change: We also continue to invest in our technology team. We remain focused on modernizing both are key technology architecture, and how our teams performed work to support this goal.
Speaker Change: During the quarter, we received five awards from Newsweek Monster Fortune, the Detroit Free press and Computerworld, recognizing us as a great place to work, we continue to focus on making our amazing workplace even better.
Speaker Change: It makes 13 workplace awards for 2024, which is the most we've ever received.
Speaker Change: We support our team members are making a difference to what makes a difference let's makes a difference to them. During the Q4, we raised money collected food or stone soup.
Speaker Change: Hey.
Speaker Change: And our team members also came together over the holiday season, the pad 106000 meals to local food banks now J Martin and I will take your questions along with Doug <unk>, Our Chief Treasury Officer, J Bradley, our senior Vice President and Treasurer, and Jeff <unk>, Our Vice President and assistant Treasurer.
Speaker Change: Thank you at this time, if you would like to ask a question. Please press star one on your telephone.
Speaker Change: And then here an automated message advising your hands as rates.
Speaker Change: If you would like to remove yourself from the queue. Please press star one again.
Speaker Change: We also ask that you. Please wait for your name and company to be announce before you proceed with your question one moment, while we compile the Q&A roster.
Speaker Change: Our first question for today will be coming from the line of Moshe.
Speaker Change: Our inbox.
Speaker Change: Of TD Cowen Your line is open.
Speaker Change: Great. Thanks.
Speaker Change: Tim I'm, hoping that you could expand just a little bit on the comments about.
Speaker Change: The slowing growth.
Speaker Change: And how.
Speaker Change: How much of that you think as a result of changes that you made and is any of it a result of changes.
Speaker Change: Changes in the environment competition maybe.
Speaker Change: Just a question that out for us if you would.
Speaker Change: Yes, good question.
Speaker Change: Hard to tell exactly obviously, our volume per dealer declined about three 7%.
Speaker Change: Versus Q4 of 2023 and <unk>.
Speaker Change: That's a good indicator of maybe the competitive environment, but we also have the complication this time, where we have.
Speaker Change: Sure.
Speaker Change: Our scorecard, so it's hard to attribute to which are the two but.
Speaker Change: But I will say that Q4 of 2024 was our second highest unit.
Speaker Change: So we do feel good about where we're at.
Speaker Change: Gotcha.
Speaker Change: Got you and.
Speaker Change: One of the things I always use as a guide to think about adjusted the adjusted.
Speaker Change: Yield is how you.
Speaker Change: Performed kind of in the previous period, and usually Theres a pretty good correlation that you did have.
Speaker Change: Roughly I think $60 million reduction in collections last quarter, yet the adjusted yield went up.
Speaker Change: Anything that we should kind of be aware of like what drives that adjusted yield up in a period when.
Speaker Change: Collections levels are down.
Speaker Change: Yeah, So all things being equal that declined last quarter, you would think would have a negative impact on.
Speaker Change: On the floating yield the adjusted revenue as a percentage.
Speaker Change: Average cash flow going forward.
Speaker Change: Well, what what impacts the ultimate yield is the business we write in the subsequent periods in our overall composition of the portfolio.
Speaker Change: No.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: The yield that we recognize on the business. We wrote in the fourth quarter increased our overall yields so that more than offset the decline in forecasted collections, we saw the third quarter.
Speaker Change: Thank you.
Speaker Change: Thank you one moment to the next question.
And our next question will be coming from the line of John Rowan.
Speaker Change: Of Janney Montgomery Scott. Please go ahead.
John Rowan: Afternoon, guys.
John Rowan: When did you make the change to the scorecards.
John Rowan: The scorecard changes made during Q3.
John Rowan: When it first goes bad it takes a little while to take effect.
John Rowan: Having full effect till sometime in September.
John Rowan: Okay.
John Rowan: And I remember discussing that on the last quarter conference call with that.
John Rowan: Got it.
John Rowan: I guess it came in after iron.
John Rowan: Without the way you disclosed at the time of the call.
John Rowan: Last quarter.
John Rowan: Okay.
John Rowan: I don't know, if we did or not I would thought I did but I don't know if provident that much impact on Q3.
John Rowan: Okay.
John Rowan: I mean, John.
John Rowan: We've talked about we always adjust our forecast.
John Rowan: Both with the credit scorecard, and our ongoing forecast to reflect recent trends at all in performance.
John Rowan: Whether we specifically discussed this change or not I don't recall.
John Rowan: It's a common practice.
John Rowan: Well I mean, obviously unit volume was down was flat relatively year over year. It looks like subsequent to the quarter end youre down about 4%.
John Rowan: We're now 3% relative to the prior quarter, and obviously dollar volumes off more than that because of the increase in the advance rate.
John Rowan: The decrease in the advance rate I guess I'm just trying to.
John Rowan: Hone in on whether or not youre.
John Rowan: This is a reaction to kind of their chronic underperformance of the vintages over the last several years and whether your I don't know kind of right sizing.
John Rowan: Your buybacks.
John Rowan: Light of the current environment, which has been challenging to get the forecasting models correct.
John Rowan: I'm just trying to.
John Rowan: Yes understand.
John Rowan: Those are related that you basically go out and you got the advance rate.
John Rowan: Let a bunch of volume trade off.
John Rowan: Yes, I think we adjusted the scorecard to reflects trends that we've seen in the forecast.
John Rowan: That's part of it I think there's also a chance that the competitive environment a little more.
John Rowan: Difficult than it was before or two and then we're coming off our highest year ever so we got hurt.
John Rowan: Okay.
John Rowan: Okay and then just last question from me obviously, there was that there is a relatively large sequential decline in G&A expense is that just because of the the weaker volume growth or is that just something one time in that line item.
John Rowan: Sure.
John Rowan: Yes.
John Rowan: The decline in G&A expense is primarily related to legal expense.
John Rowan: Do see a fair amount of volatility in the past quarter to quarter just based on.
John Rowan: We're ongoing regulatory matters and legal matters.
John Rowan: We don't comment on those matters specifically.
John Rowan: Go into any more detail.
Speaker Change: And our five.
John Rowan: Got the clients primarily related.
John Rowan: Okay alright, thank you.
John Rowan: Thank you Andrew.
Speaker Change: As a reminder, if you would like to ask a question. Please press star one on your telephone.
Speaker Change: One moment for the next question.
Speaker Change: And our next question will be coming from the line of Rob.
Speaker Change: Wow.
Speaker Change: Economists research your line is open.
Speaker Change: Hi, guys.
Speaker Change: Couple of quarters in a row, where the revision to forecasted collections.
Speaker Change: Negative, but they are smaller negative.
Speaker Change: Absent any changes in the broader economy and things like that does that.
Speaker Change: Is that a signal that you think the worst is behind you in terms of downward revisions to the forecast.
Speaker Change: Our forecast at any point in time reflects our best estimate.
Speaker Change: So we do factor in other performance we've seen in the past with pointed out for the quarter. We did see a smaller decline in this quarter than we have more recent quarterly but you said it was down $31 million or 3%.
Speaker Change: If you start digging into us by cohort.
Speaker Change: Youll see that most of the decline was on the 22 business hard to say why that continues to keep declining but we do know our forecasting models performed during.
Speaker Change: <unk> relatively stable economic periods and there are less accurate during periods of volatility like we experienced.
Speaker Change: Correct.
Speaker Change: This cohort we also know others in our industry experienced similar worse performance on the 22 cohorts. So we don't believe the trend is unique to credit acceptance.
Speaker Change: I would point out at this point, the 22 businesses less material to our financial results, we originate at a lower volume that here, we have collected about 66% of what we ultimately expect reflex.
Speaker Change: Going forward, our financial result is going to be more heavily weighted on the 23% 24 cohorts, we wrote more business as those years on their last season.
Speaker Change: We're happy to report this quarter that are forecasted to stabilize.
Speaker Change: Lawrence.
Speaker Change: Okay.
Speaker Change: And you've also been pretty active in capital markets raised a lot of new capital in the past several quarters I mean, when you did that did you have a specific level of origination growth in mind I guess I'm wondering if origination growth is going to be a lot slower for a while.
Speaker Change: Given the scorecard changes or <unk>.
Speaker Change: Competitive dynamics whats the possibility that you are in a really meaningful excess capital position today.
Jay: Well Hey, Rob This is Jay briefly.
Jay: We know that tax time is always our busy season right and so.
Jay: We'd rather miss it on that side of it so.
Jay: I think we stated on last quarters call that we were going to be.
Jay: Be fairly conservative.
Jay: Going into the unknown as related to the election.
Jay: And what impact that might have on the capital markets. So.
Jay: But.
Jay: Any help with the solid cash position, but.
Jay: This is the right thing on the year to be in that position and we feel good about that going into our busy time and originations will pick up.
Jay: Okay. Thank you.
Speaker Change: Thank you there are no more questions in the queue and I would like to go ahead and turn the call back over.
Martin: To Mr. Martin for closing remarks. Please go ahead.
Martin: We would like to thank everyone for their support and for joining US on the conference call. Today. If you have any additional follow up questions. Please direct them to our Investor relations mailbox at IR at credit acceptance Dot Com, we look forward to talking to you again next quarter. Thank you.
Martin: Yes.
Speaker Change: Once again this does conclude today's conference. Thank you for your participation you may all disconnect.
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Speaker Change: Good day, everyone and welcome to the credit acceptance Corporation fourth quarter 2024 earnings calls.
Speaker Change: Today's call is being recorded a webcast and transcript of today's earnings call will be made available on credit acceptance websites. At this time I would like to turn the call over to credit acceptance Chief Financial Officer.
Jay Martin: Jay Martin Please go ahead.
Speaker Change: Thank you.
Speaker Change: Good afternoon, and welcome to the credit acceptance Corporation fourth quarter.
2024 earnings call as you read our news release posted on the Investor Relations section of our website.
Speaker Change: <unk> credit.
Speaker Change: Credit acceptance dot com and as you listen to this conference call. Please recognize that both contain forward looking statements within the meaning of federal Securities law.
Speaker Change: 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.
Speaker Change: 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.
Speaker Change: 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.
Speaker Change: non-GAAP measures reconcile to GAAP measures.
Speaker Change: At this time I will turn the call over to our Chief Executive Officer, Ken Booth discuss our fourth quarter results.
Speaker Change: Thanks Jay.
Speaker Change: Overall, we had another mid quarter as it related to collections that originations two key drivers of our business.
Speaker Change: Elections improved sequentially this quarter with only a 2022.
Speaker Change: Continuing to underperform, our expectations, while our other vintages were stable during the quarter overall.
Speaker Change: The decline of 0.3% or $31 million in forecasted net cash flows.
Speaker Change: During the quarter our growth slowed significantly. However, this was still our second highest Q4 unit and dollar volume.
Speaker Change: Our loan portfolio is now at a new record high of.
Speaker Change: <unk> eight 9 billion on adjusted basis of 15% from last year.
Speaker Change: Our market share in our core segment of used vehicles financed by some clients consumers was six 1% year to date through November <unk>.
Speaker Change: Compared to four 8% for the same period in 2023.
Speaker Change: Our slower growth was slightly impacted by our Q3 scorecard change that has resulted in lower advance rates.
Speaker Change: Beyond these two key drivers, we continued making progress during the quarter towards our mission of maximizing intrinsic value and positively changing the lives of our five key constituents dealers consumers team members investors and the communities we operate in.
Speaker Change: We do this by providing a valuable product that enables dealers to sell vehicles to consumers regardless of their credit history.
Speaker Change: This allows dealers to make incremental sales to the roughly 55% of adults with other than prime credit.
Speaker Change: So these adults and enables them to obtain a vehicle to get their jobs take their kids to school et cetera. It also gives them the opportunity to improve our build their credit.
Speaker Change: Our customers are couples like Marina and Stephen will experience financial challenges after they moved from the Midwest to the south for a fresh start.
Speaker Change: The financial challenge and took a toll on their credit and their transportation Steven's car broke down there is long commute to work. They tried to finance the new vehicle dealers have to turn them away due to their credit they had to rent cars at high cost so statements and get to work discourage but not defeated they founded dealership will approve them for vehicles.
Speaker Change: Credit acceptance.
Speaker Change: As a moment of relief and a turning point in their lives with a reliable vehicle to regain stability improve their credit support along the way from <unk>, Steven project more than a lender where a jumpstart on their new life journey.
And Mariana and Stephen discovered the benefits of our program don't down once the contract assignment, we strive to support our consumers throughout the life of the contract as we have for many years, we are working with consumers impacted by Hurricanes and more recently, the wildfires, including suspending some of our collection efforts to allow those customers to prioritize their safety.
Speaker Change: Most urgent needs.
Speaker Change: During the quarter, we financed 78911 contracts for our dealers and consumers, we collected $1 3 billion overall and paid $65 million in portfolio profit from portfolio profit expressed for our dealers.
Speaker Change: We added 902, new dealers for the quarter and now have our largest number of active dealers ever for a fourth quarter with 10149 dealers.
Speaker Change: From an initiative perspective, we've made progress towards improving product innovation and our go to market approach with the goal of supporting our view is faster and more effectively than ever before as required of teamwork.
Speaker Change: The detailed in an iterative process attempts to make improvement every step of the way.
Speaker Change: We also continue to invest in our technology team to remain focused on modernizing both are key technology architecture and how our teams performed work to support this goal.
Speaker Change: During the quarter, we received five awards from Newsweek Monster Fortune, the Detroit Free press and Computerworld, recognizing us as a great place to work, we continue to focus on making our amazing workplace even better.
Speaker Change: It makes 13 workplace awards for 2024, which is the most we've ever received.
Speaker Change: Which is part of our team members are making a difference to what makes a difference let's makes a difference to them. During the Q4, we raised money in selected food or stone suite.
Speaker Change: Hey.
Speaker Change: And our team members also came together over the holiday season, the pad 106000 meals to local food banks now J Martin and I will take your questions along with Doug <unk>, Our Chief Treasury Officer, J Bradley, our senior Vice President and Treasurer, and Jeff <unk>, Our Vice President and assistant Treasurer.
Speaker Change: Thank you at this time, if you would like to ask a question. Please press star one on your telephone you will.
Speaker Change: Then here an automated message advising your hands as rates.
Speaker Change: If you would like to remove yourself from the queue. Please press star one again.
Speaker Change: We also ask that you. Please wait for your name and company to be announce before you proceed with your question one moment, while we compile the Q&A roster.
Speaker Change: Our first question for today will be coming from the line of Moshe Ari.
Speaker Change: Our inbox of TD Cowen Your line is open.
Speaker Change: Great. Thanks.
Speaker Change: Tim I'm, hoping that you could expand just a little bit on the comments about.
Speaker Change: The slowing growth.
Speaker Change: And how.
Speaker Change: How much of that do you think as a result of changes that you made and is any of it a result of changes.
Speaker Change: Changes in the environment competition maybe.
Speaker Change: Question that out for us if you would.
Speaker Change: Yes, good question.
Speaker Change: Hard to tell exactly obviously, our volume per dealer declined about three 7%.
Speaker Change: First in Q4 of 2023 and <unk>.
Speaker Change: That's a good indicator of the maybe the competitive environment, but we also have the complication this time, where we have.
Speaker Change: Sure.
Speaker Change: Our scorecard, so it's hard to attribute to which on the two but I will say that Q4 of 2024 was our second highest unit.
Speaker Change: So we do feel good about where we're at.
Speaker Change: Gotcha.
Speaker Change: Got you and.
Speaker Change: Sure.
Speaker Change: One of the things I always use as a guide to think about adjusted the adjusted yield is how you.
Speaker Change: Performed kind of in the previous period, and usually Theres a pretty good correlation that you did have.
Speaker Change: Roughly I think $60 million reduction in collections last quarter, yet the adjusted yield went up.
Speaker Change: Anything that we should kind of be aware of like what drives that adjusted yield up in a period when collections.
Speaker Change: Collections levels are down.
Speaker Change: Yes, so all things being equal less decline last quarter, you would think would have a negative impact on the floating yield the adjusted revenue as a percentage.
Speaker Change: Average capital going forward.
Speaker Change: Well, what what impacts the ultimate yield is the business we write in the subsequent period and our overall composition of the portfolio.
Speaker Change: No.
Speaker Change: Yes.
Speaker Change: The yield that we.
Speaker Change: Recognize a business we wrote in the fourth quarter increased our overall yields so that more than offset the decline in forecasted collections, we saw the third quarter.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you one moment to the next question.
Speaker Change: And our next question will be coming from the line of John Rowan.
Speaker Change: Of Janney Montgomery Scott. Please go ahead.
John Rowan: Good afternoon guys.
Speaker Change: When did you make the change to the scorecards.
Speaker Change: The scorecard changes made during Q3.
Speaker Change: When it first goes bad it takes a little while to take effect.
Speaker Change: Having full effect till sometime in September.
Speaker Change: Okay, I, just I don't remember discussing that on the last quarter conference call with that.
Speaker Change: Got something.
Speaker Change: I guess it came in after iron.
Speaker Change: Was that something you disclosed at the time of the call.
Speaker Change: Last quarter.
Speaker Change: I don't know, if we did or not I would thought I did but I don't know how prevalent that much impact of Q3.
Speaker Change: Hi.
Speaker Change: John.
Speaker Change: We've talked about that we always adjust our forecast.
Both with the credit scorecard, and our ongoing forecast to reflect recent trends at all in performance.
Speaker Change: Whether we specifically discussed this change or not I don't recall.
Speaker Change: Mr Chairman practice.
Speaker Change: Well I mean, obviously unit volume was down was flat relatively year over year. It looks like subsequent to the quarter end youre down about 4%.
Speaker Change: I don't know, 3% relative to the prior quarter, and obviously dollar volumes off more than that because of the increase in the advance rate.
Speaker Change: The decrease in the advance rate I guess I'm just trying to.
Speaker Change: Hone in on whether or not youre.
Speaker Change: This is a reaction to kind of their chronic underperformance of the vintages over the last several years and whether your I don't know kind of right sizing.
Speaker Change: Your buybacks.
Speaker Change: Light of the current environment, which has been challenging to get the forecasting models correct.
Speaker Change: I'm just trying to.
Speaker Change: Yes understand.
Speaker Change: Those are related that you basically go out and you got the advance rate.
Speaker Change: You, let a bunch of volume trade off.
Speaker Change: Yes, I think we adjusted the scorecard to reflects trends that we've seen in the forecast.
Speaker Change: Yes.
Speaker Change: That's part of it I think there's also a chance that the competitive environment a little more.
Speaker Change: Difficult than it was before or two and then we're coming off our highest year ever so we got our comparables.
Speaker Change: Okay and then just last question from me obviously, there was that there is a relatively large sequential decline in G&A expense is that just because of the weaker volume growth or is that just something one time in that line item.
Speaker Change: Yes.
The decline in G&A expense is primarily related to legal expense, we do see a fair amount of volatility in the.
Speaker Change: <unk> quarter to quarter just based on.
Speaker Change: We're ongoing regulatory matters and legal matters.
Speaker Change: We don't comment on those matters specifically.
Speaker Change: Don't go into any more detail.
Speaker Change: And our five.
The clients primarily related.
Speaker Change: Right.
Speaker Change: Okay alright, thank you.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you would like to ask a question. Please press star one on your telephone.
Speaker Change: One moment for the next question.
Speaker Change: And our next question will be coming from the line of Rob.
Speaker Change: <unk>.
Speaker Change: Thomas Research your line is open.
Speaker Change: Hi, guys.
Speaker Change: A couple of quarters in a row, where the revision to forecasted collections are still negative, but they are smaller negative.
Speaker Change: Absent any changes in the broader economy and things like that does that.
Speaker Change: Is that a signal that you think the worst is behind you in terms of downward revisions to the forecast.
Speaker Change: While our forecast at any point in time reflects our best estimate.
Speaker Change: So we do factor in other performance, we've seen in the past with point out for the quarter.
Speaker Change: We did see a smaller decline in this quarter than we have more recent quarterly, but you said it was down $31 million or 3%.
Speaker Change: So if you start digging into us by cohort.
Speaker Change: Youll see that most of the decline was on the 22 business hard to say why that continues to keep declining but we do know our forecasting models performed during.
Speaker Change: <unk> relatively stable economic periods and there are less accurate during periods of volatility like we experienced.
Speaker Change: But this cohort we also know others in our industry experienced similar or worse performance on the 22 cohorts. So we don't believe the trends unique to credit acceptance.
Speaker Change: With point out at this point, the 22 businesses less material to our financial results, we originate at a lower volume that here with class is about 66% of what we ultimately expect reflects going forward. Our financial results are going to be more heavily weighted on the 'twenty three 'twenty four cohorts, we wrote more business as those.
Speaker Change: <unk> on their last season.
Speaker Change: We're happy to report this quarter that our forecast for stable.
Speaker Change: Months.
Speaker Change: Okay.
Speaker Change: And you've also been pretty active in capital markets raised a lot of new capital in the past several quarters I mean, when you did that did you have a specific level of origination growth in mind I guess Im wondering if origination growth is going to be a lot slower for a while.
Speaker Change: Given the scorecard changes or competitive.
Dynamics whats the possibility that you are in a really meaningful excess capital position today.
Jay Martin: Well Hey, Rob This is Jay briefly.
Jay Martin: We know that tax time is always our busy season right and so.
Jay Martin: We'd rather miss it on that side of it so we.
Jay Martin: I think we stated on last quarters call that we were going to be fairly conservative.
Jay Martin: Going into the unknown as related to the election.
And what impact that might have on the capital markets.
Jay Martin: Right.
Jay Martin: The solid cash position, but.
Jay Martin: That this is the right time of year.
Jay Martin: In that position and we feel good about that going into our busy times in originations will pick up.
Jay Martin: Okay. Thank you.
Speaker Change: Thank you there are no more questions in the queue and I would like to go ahead and turn the call back over.
Speaker Change: Mr. Martin for closing remarks. Please go ahead.
Speaker Change: We would like to thank everyone for their support and for joining US on the conference call. Today. If you have any additional follow up questions. Please direct them to our Investor relations mailbox at IR at credit acceptance Dot Com, we look forward to talking to you again next quarter. Thank you.
Speaker Change: Yes.
Speaker Change: Once again this does conclude today's conference. Thank you for your participation you may all disconnect.