SOUTHFIELD, Mich. — After reducing loan volume throughout most of 2009, Credit Acceptance has begun to grow its originations. For the fourth quarter, the company posted 7.6 percent growth in unit origination volume and grew originations by 2.1 percent in terms of dollars.

Explaining its fourth quarter results, the company credited this renewed growth to the success in renewing debt facilities during the third quarter and securing additional financing during the fourth quarter and in February 2010.

"We are now in position to grow year-over-year unit volumes," officials explained. "We will continue to monitor unit volumes and will make additional pricing changes with an objective to maximize economic profit given the capital we have available.

"Future growth rates will depend on how unit volumes respond to pricing changes, which will be influenced to a large degree by how quickly competition returns to our market. During January 2010, unit volume declined by 5.3 percent, as compared to January 2009," they added.

Overall, the company announced consolidated net income of $40.3 million for the fourth quarter, compared with $18.6 million for the same period in 2008.

For the year, consolidated net income was $146.3 million, compared with $67.2 million for the same period in the previous year.

During the fourth quarter, Credit Acceptance completed a $110.5 million asset-backed secured financing, and on Feb. 1, 2010, it issued $250.0 million of first priority senior secured notes.

"The net proceeds from these financings were used to repay outstanding indebtedness under our revolving credit facility and our $325.0 million secured warehouse facility. After these repayments, we have over $450.0 million in available borrowing capacity," officials indicated.

"Our first priority is to ensure we have the available capacity to fund expected new consumer loan assignments. While the successful completion of these financings will improve our position in that regard, we intend to continue to work to (1) secure additional borrowing capacity, (2) increase the diversity of our funding sources, and (3) extend the term of one or more of our revolving credit facility and our revolving secured warehouse facilities," executives added.

"To the extent we determine our ability to fund expected new consumer loan assignments has been effectively provided for, we may then consider share repurchases or cash dividends, for which borrowed funds could be used if then available," they continued.