Credit Acceptance Corp. created a new executive position this week and appointed an individual who has been with the company for 17 years to the position.
According to a filing with the Securities and Exchange Commission posted on Thursday, Credit Acceptance named Jonathan Lum as chief operating officer. Lum has been with the company since 2002 in a number of roles, starting in the finance department and moving up to accounting manager before being promoted to director of projects and support in 2007 and director of policy compliance in 2008.
Credit Acceptance promoted Lum to vice president of internal audit and compliance in 2009 and then to his most recent role of senior vice president of the dealer service center in 2011.
The executive move comes after Credit Acceptance finished the first quarter with consolidated net income of $164.4 million, or $8.65 per diluted share, representing a rise from $120.1 million, or $6.17 per diluted share for the same period in 2018.
The company reported its adjusted net income, a non-GAAP financial measure, for the three months that ended March 31 came in at $153.6 million, or $8.08 per diluted share, up from $118.9 million or $6.11 per diluted share a year earlier.
Credit Acceptance generated those Q1 figures even as originations remained nearly flat year-over-year. The company booked 112,844 contracts in Q1, up from 112,345.
The company’s active dealer network did rise by a notable amount in Q1. Credit Acceptance’s collection of stores that receive funding for at least one contract per quarter rose 9.9% year-over-year to 9,633.
“I think the first quarter is usually a good quarter for enrolling new dealers. We have a larger sales force than we had a year ago. So those are probably a couple of reasons why new dealer enrollments were pretty good,” Credit Acceptance chief executive officer Brett Roberts said during the company’s latest conference call.
“In general, our program works very well at a small independent dealer. It works very well with a larger franchise dealer. Sometimes the selling process can be different,” Roberts added later in the call. “The larger organizations typically there’s more people that need to sign off on a new lender, so it could be a little bit more complex. And then when you get into stores that have multiple locations and maybe a corporate office, there’s another selling process that occurs there. But other than that, the program works in all kinds of environments.”