We anticipate that we will obtain all of the
funds necessary to purchase shares tendered in the tender offer,
and to pay related fees and expenses, by borrowing under our
revolving secured line of credit facility and/or one or more of our
revolving secured warehouse facilities. The tender offer is
not conditioned upon the receipt of financing.
We have evaluated our operations, strategy and
expectations for the future and believe that the tender offer is a
prudent use of our financial resources given our business profile,
assets and the current market price for our shares. As of
We believe that the tender offer represents a
mechanism to provide all shareholders with the opportunity to
tender all or a portion of their shares and, thereby, receive a
return of the Company's capital if they so elect. This format of
repurchase also provides a method for shareholders not
participating to increase their relative percentage interest in
The tender offer will expire at
Under the tender offer, shareholders of
No directors or officers have advised us that
they intend to tender shares in the offer. If the intention
of our directors and officers changes materially, we will disclose
the change in intention prior to the expiration of the offer.
This press release is for informational purposes
only and is not an offer to buy or the solicitation of an offer to
sell any shares of
Cautionary Statement Regarding
Statements in this release that are not historical facts, such as those using terms like "may," "will," "should," "believe," "expect," "anticipate," "assume," "forecast," "estimate," "intend," "plan," "target" and those regarding our future results, plans and objectives, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A to our Form 10-K for the year ended
•Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.•We may be unable to execute our business strategy due to current economic conditions.•We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.•The terms of our debt limit how we conduct our business.•A violation of the terms of our asset-backed secured financing facilities or revolving secured warehouse facilities could have a materially adverse impact on our operations.•The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity and results of operations.•Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations and adversely affect our financial condition.•Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.•We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.•Interest rate fluctuations may adversely affect our borrowing costs, profitability and liquidity.•Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition and results of operations.•We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.•The regulation to which we are or may become subject could result in a material adverse effect on our business.•Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.•Litigation we are involved in from time to time may adversely affect our financial condition, results of operations and cash flows.•Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.•Our dependence on technology could have a material adverse effect on our business.•Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.•We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.•Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.•The concentration of automotive dealers that participate in our program in several states could adversely affect us.•Failure to properly safeguard confidential consumer information could subject us to liability, decrease our profitability and damage our reputation.•A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of other security holders.•Reliance on our outsourced business functions could adversely affect our business.•Natural disasters, acts of war, terrorist attacks and threats or the escalation of military activity in response to these attacks or otherwise may negatively affect our business, financial condition and results of operations.
Other factors not currently anticipated by management may also materially and adversely affect our results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Without our financing programs, consumers are
often unable to purchase a vehicle or they purchase an unreliable
one. Further, as we report to the three national credit
reporting agencies, an important ancillary benefit of our programs
is that we provide a significant number of our consumers with an
opportunity to improve their lives by improving their credit score
and move on to more traditional sources of financing.
CONTACT: Investor Relations:
Douglas W. BuskSenior Vice President and Treasurer (248) 353-2700 Ext. 4432 IR@creditacceptance.com