Financial Performance - CPS reported fourth quarter 2024 earnings of $5.1 million, or $0.21 per diluted share, compared to $7.2 million, or $0.29 per diluted share in Q4 2023[1][2][3]. - Revenues for Q4 2024 were $105.3 million, an increase of $13.3 million, or 14.5%, from $92.0 million in Q4 2023[2][3]. - Total revenues for the full year 2024 reached $393.5 million, up approximately $41.5 million, or 11.8%, from $352.0 million in 2023[3]. - Total operating expenses for Q4 2024 were $98.0 million, compared to $82.1 million in Q4 2023, while full year operating expenses increased to $366.1 million from $290.9 million[2][3]. Portfolio Growth - The total number of contracts purchased in 2024 was $1.682 billion, compared to $1.358 billion in 2023, reflecting strong growth in new loan originations[4][7]. - As of December 31, 2024, CPS's total portfolio balance was $3.491 billion, the highest in company history, up from $2.970 billion a year earlier[4][7]. Credit Quality - Annualized net charge-offs for Q4 2024 were 8.02% of the average portfolio, compared to 7.74% in Q4 2023, indicating a slight increase in credit losses[5][17]. - Delinquencies greater than 30 days were 14.85% of the total portfolio as of December 31, 2024, compared to 14.55% a year prior[5][17]. Future Outlook - The company anticipates continued positive trends in loan originations and operating efficiencies going into 2025[6]. - CPS will hold a conference call on February 26, 2025, to discuss its fourth quarter 2024 operating results[8]. Financial Metrics - Wholesale auction liquidation amounts as a percentage of the account balance at the time of sale are provided, indicating financial performance metrics[18]. - Annualized percentage of the average portfolio balance is highlighted, reflecting overall portfolio management efficiency[18]. - Total pre-tax expenses less provision for credit losses and interest expense are noted, which impacts net profitability[18].

Group 1 - Consumer Portfolio Services, Inc. (CPS) will hold a conference call on February 26, 2025, at 1:00 p.m. ET to discuss its fourth quarter 2024 operating results [1] - Participants can pre-register for the conference call through a provided link and will receive an email with dial-in options [2] - A replay of the conference call will be available for 12 months on the company's website starting two hours after the call concludes [2] Group 2 - Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories [3] - The company purchases retail installment sales contracts primarily from franchised automobile dealerships, secured by late model used vehicles and, to a lesser extent, new vehicles [3] - CPS funds these contract purchases primarily through the securitization markets and services the contracts over their lives [3]

Transaction Details - CPS closed its first term securitization in 2025, marking its 54th senior subordinate securitization since 2011 and the 37th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1] - Qualified institutional buyers purchased $442.4 million of asset-backed notes secured by $462.5 million in automobile receivables originated by CPS [2] - The sold notes consist of five classes with varying interest rates, average lives, prices, and ratings from Standard & Poor's and DBRS Morningstar [3] - The weighted average coupon on the notes is approximately 5.88% [3] Credit Enhancement and Payment Terms - The 2025-A transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 4.35% [4] - The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 8.50% of the original receivable pool balance, or 23.00% of the then outstanding pool balance [4] Company Overview - CPS is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories [6] - The company purchases retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles [6] - CPS funds these contract purchases on a long-term basis primarily through the securitization markets and services the contracts over their lives [6]

Group 1 - Consumer Portfolio Services, Inc. amended its two-year revolving credit agreement with Citibank, increasing the facility's capacity from $225 million to $335 million [1][2] - The loans under the amended credit agreement will be secured by automobile receivables that CPS currently holds or will acquire in the future [2] - CPS can borrow on a revolving basis until July 15, 2026, after which it has the option to repay the outstanding loans in full or allow them to amortize over a one-year period [2] Group 2 - Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories [3] - The company purchases retail installment sales contracts primarily from franchised automobile dealerships, secured by late model used vehicles and, to a lesser extent, new vehicles [3] - CPS funds these contract purchases on a long-term basis through the securitization markets and services the contracts over their lives [3]

Revenue and Income - Total revenues for the three months ended September 30, 2024, increased to $100,580, up 9.1% from $92,079 in the same period of 2023[8]. - Net income for the three months ended September 30, 2024, was $4,796, a decrease of 53.8% from $10,379 in the same period of 2023[10]. - Earnings per share (EPS) for the three months ended September 30, 2024, were $0.22 (basic) and $0.20 (diluted), down from $0.49 and $0.41, respectively, in the prior year[8]. - Net income for the nine months ended September 30, 2024, was $14,058,000, a decrease of 63.3% compared to $38,156,000 for the same period in 2023[12]. - Revenues for the nine months ended September 30, 2024 were $288.2 million, an increase of $28.2 million, or 10.8%, from $260.0 million in the prior year[156]. Interest and Expenses - Interest income rose to $93,158 for the three months ended September 30, 2024, compared to $83,261 in the prior year, reflecting a year-over-year increase of 10.8%[8]. - Interest expense for the three months ended September 30, 2024, was $50.1 million, compared to $37.9 million for the same period in 2023, representing an increase of 32.5%[77]. - Total operating expenses for the three months ended September 30, 2024, were $93.7 million, an increase of $15.8 million, or 20.4%, compared to $77.9 million in the prior period[139]. - Total operating expenses increased to $268.1 million for the nine months ended September 30, 2024, up $59.3 million or 28.4% from $208.8 million in the prior period[163]. Assets and Liabilities - Total finance receivables measured at fair value increased to $3,132,310 as of September 30, 2024, compared to $2,722,662 at December 31, 2023, representing a growth of 15.1%[6]. - Total liabilities increased to $3,177,601 as of September 30, 2024, from $2,629,078 at December 31, 2023, reflecting a rise of 20.9%[6]. - Total shareholders' equity at the end of the period was $285,091,000, an increase from $265,896,000 at the end of the same period in 2023, marking a growth of 7.2%[14]. - The total outstanding principal of securitization trust debt is $2,893,462,000 as of September 30, 2024, compared to $2,280,021,000 as of December 31, 2023[63]. Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2024, was $165,758,000, down from $181,918,000 in 2023, representing a decrease of 8.9%[12]. - Net cash used in investing activities increased significantly to $(536,835,000) for the nine months ended September 30, 2024, compared to $(275,752,000) in 2023, indicating a rise of 94.5%[12]. - The net cash provided by financing activities for the nine months ended September 30, 2024, was $524,698,000, a significant increase from $73,138,000 in 2023[12]. Credit Quality and Losses - The allowance for finance credit losses decreased to $(486) for the three months ended September 30, 2024, compared to $(2,869) in the prior year, indicating improved credit quality[6]. - The company reported a provision for credit losses of $(4,579,000) for the nine months ended September 30, 2024, compared to $(20,700,000) in 2023, indicating a significant improvement[12]. - Gross charge-offs for the three months ended September 30, 2024, total $544,000, down from $1,477,000 in the same period in 2023[59]. - The allowance for credit losses recorded a reduction of $994,000 for the three months ended September 30, 2024, compared to $2.0 million in the prior year[152]. Employee Costs - Employee costs for the three months ended September 30, 2024, were $24,162, an increase of 15.2% from $21,812 in the same period of 2023[8]. - Employee costs rose to $72.3 million during the nine months ended September 30, 2024, compared to $65.0 million for the same period in the prior year[164]. Securitization and Financing - Proceeds from the issuance of securitization trust debt were $1,453,921,000 for the nine months ended September 30, 2024, compared to $949,385,000 in 2023, reflecting an increase of 53.1%[12]. - The company renewed a two-year $200 million revolving credit agreement with Citibank, N.A., with $109.1 million outstanding under this facility as of September 30, 2024[71]. - The company completed a $50 million securitization of residual interests on March 22, 2024, with $50.0 million outstanding under this facility as of September 30, 2024[74]. Portfolio Performance - The managed portfolio at the end of September 30, 2024, was $3,521.3 million, reflecting a significant increase from previous periods[118]. - The total managed portfolio as of September 30, 2024, is $3,329,836 thousand, an increase from $2,943,332 thousand in September 30, 2023[182]. - The total number of contracts with extensions as of September 30, 2024, is 85,463, with a total amount of $1,348,902 thousand[182]. Tax and Compliance - The company reported an effective income tax rate of 30% for the three months ended September 30, 2024, compared to 27% for the same period in 2023[86]. - The company had no unrecognized tax benefits for uncertain tax positions as of September 30, 2024[82]. - The company was in compliance with all financial covenants as of September 30, 2024, including maintaining minimum levels of liquidity and net worth[39].

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $100.6 million, up 9% from $92.1 million in Q3 2023 [7] - Year-to-date revenues reached $288.2 million, an 11% increase from $260 million in the same period last year [7] - Pre-tax earnings for Q3 were $6.9 million, down from $14.2 million in Q3 2023 [11] - Net income for Q3 was $4.8 million, compared to $10.4 million in the same quarter last year [12] - Diluted earnings per share were $0.20, down from $0.41 in Q3 2023 [12] - Fair value portfolio increased to $3.1 billion, a 17% rise from $2.67 billion a year ago [13] - Expenses for Q3 were $93.7 million, up from $77.9 million in Q3 2023, primarily due to higher interest expenses [10] Business Line Data and Key Metrics Changes - Origination volume for Q3 was $446 million, a 38% increase from $322 million in Q3 2023 [8] - Year-to-date originations totaled $1.224 billion, a 16% increase from $1.056 billion last year [8] - Core operating expenses for Q3 were $44.6 million, a 6% increase from $42 million in Q3 2023 [14] - Core operating expenses as a percentage of the managed portfolio decreased to 5.4% from 5.7% year-over-year [15] Market Data and Key Metrics Changes - Annualized net charge-offs for Q3 were 7.53%, compared to 6.86% in Q3 2023 [26] - Delinquencies greater than 30 days were 14.04% of the total portfolio, up from 12.31% a year ago [27] - The company achieved a significant improvement in same-day funding, reaching 17.35% of deals funded, compared to 6.5% in 2023 [24] Company Strategy and Development Direction - The company is focused on maintaining strong credit standards while achieving growth, without loosening credit terms [18] - A multi-year initiative to increase large dealer group business has shown positive results, with a 40% increase in originations from Q1 to Q3 [21] - The company is leveraging AI to improve processing efficiency and reduce fraud losses, estimating nearly $4 million saved to date [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current economic environment, citing strong unemployment rates and a favorable backdrop for growth [39][41] - The company is positioned for substantial growth in the upcoming year, supported by a strong economy and expected interest rate reductions [40] - The health of the industry is viewed positively, with no new entrants and established players managing through past challenges [37] Other Important Information - The company has migrated its omnichannel collection system to the cloud, enhancing communication capabilities and efficiency [31] - The implementation of a new AI fraud score is expected to further reduce losses going forward [34] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating the conclusion of the teleconference without a detailed Q&A segment.

Financial Performance - Revenues for Q3 2024 were $100.6 million, an increase of $8.5 million, or 9.2%, compared to $92.1 million in Q3 2023[2] - Net income for Q3 2024 was $4.8 million, or $0.20 per diluted share, down from $10.4 million, or $0.41 per diluted share in Q3 2023[1][11] - For the nine months ended September 30, 2024, total revenues were $288.2 million, a 10.8% increase from $260.0 million in the same period of 2023[3] Portfolio and Contracts - Total portfolio balance reached $3.330 billion as of September 30, 2024, up from $2.943 billion a year earlier[4][13] - New contract purchases amounted to $445.9 million in Q3 2024, compared to $322.4 million in Q3 2023, reflecting a 38.3% increase[4][13] Operating Expenses - Total operating expenses for Q3 2024 were $93.7 million, an increase of $15.8 million, or 20.3%, from $77.9 million in Q3 2023[2][11] - Other operating expenses for 2024 were $(44.67) million, a decline of 5.4% compared to $(41.97) million in 2023[15] Credit and Delinquencies - Annualized net charge-offs for Q3 2024 were 7.32% of the average portfolio, compared to 6.86% in Q3 2023[5][14] - Delinquencies greater than 30 days were 14.04% of the total portfolio as of September 30, 2024, up from 13.31% a year earlier[5][14] - Provision for credit losses was $0.99 million in 2024, a decrease from $2.00 million in 2023[15] Interest Income and Expenses - Interest income for 2024 reached $93.16 million, an increase of 11.4% compared to $83.26 million in 2023[15] - Interest expense increased to $(50.06) million in 2024, up 6.1% from $(37.89) million in 2023[15] Margins and Other Income - Net interest margin decreased to 50.52 million in 2024, down 6.2% from 54.19 million in 2023[15] - Risk adjusted margin for 2024 was 51.52 million, a decrease of 6.3% from 56.19 million in 2023[15] - Other income for 2024 was $1.92 million, down from $2.82 million in 2023[15] Future Outlook - The company plans to hold a conference call on November 1, 2024, to discuss its Q3 2024 operating results[6] - The company remains committed to improving operating efficiencies and driving growth in future quarters[6]

Revenue and Income - Total revenues for the three months ended June 30, 2024, increased to $95,880, up 12.0% from $84,858 for the same period in 2023[7]. - Revenues for the six months ended June 30, 2024 were $187.6 million, an increase of $19.7 million, or 11.7%, from the prior year revenue of $168.0 million[131]. - Interest income for the six months ended June 30, 2024, was $172,655, representing a 6.0% increase from $162,699 in the prior year[7]. - Interest income for the three months ended June 30, 2024, was $88.367 million, compared to $82.637 million for the same period in 2023, representing an increase of 6.4%[65]. - The diluted earnings per share for the three months ended June 30, 2024, was $0.19, down from $0.55 in the same quarter of 2023[7]. - Net income for the three months ended June 30, 2024, decreased to $4,672, down 66.5% from $13,954 in the same quarter of 2023[8]. Expenses and Costs - Total operating expenses rose to $89.2 million, an increase of $22.9 million, or 34.6%, primarily due to higher interest expenses[118]. - Employee costs increased by $2.6 million, or 12.2%, to $23.7 million compared to $21.1 million in the same quarter of the prior year[120]. - Interest expense for the three months ended June 30, 2024, totaled $46.710 million, compared to $35.706 million for the same period in 2023[67]. - Interest expense for the six months ended June 30, 2024 was $88.7 million, compared to $68.5 million in the previous year, an increase of $20.2 million[137]. Assets and Liabilities - Total assets grew to $3,286,542 as of June 30, 2024, up from $2,903,746 at the end of 2023, reflecting a 13.2% increase[5]. - Cash and cash equivalents increased to $9,752 as of June 30, 2024, from $6,174 at the end of 2023[5]. - The total securitization trust debt outstanding as of June 30, 2024, was $2.753 billion, an increase from $2.280 billion at December 31, 2023[56]. - The company had approximately $2,939.8 million of debt outstanding, consisting primarily of $2,736.2 million of securitization trust debt, which increased by $470.8 million since December 31, 2023[175]. Credit Quality and Losses - The allowance for finance credit losses improved to $(684) as of June 30, 2024, compared to $(2,869) at the end of 2023[5]. - The provision for credit losses on finance receivables for the three months ended June 30, 2024, was $(1.95) million, compared to $(9.7) million for the same period in 2023, indicating improved credit quality[52]. - Gross charge-offs for the three months ended June 30, 2024, were $431,000, down from $1.897 million in the same period of 2023, showing a decrease of approximately 77.3%[53]. - Finance receivables placed on non-accrual status amounted to $442,000 as of June 30, 2024, down from $1.1 million at December 31, 2023[45]. Shareholder Equity and Stock Activity - Total shareholders' equity increased to $280,314,000 as of June 30, 2024, up from $255,197,000 at the end of 2023, reflecting an increase of about 9.9%[13]. - The company issued 1,248,000 shares upon the exercise of options and warrants during the three months ended June 30, 2024, compared to 1,718,000 shares in the same period of 2023, indicating a decrease of approximately 27.3%[13]. - A total of 1.297 million shares were repurchased in the six months ended June 30, 2024, at an average price of $8.61, compared to 1.784 million shares at an average price of $10.35 in the same period of 2023, reflecting a decrease in share repurchase volume[34]. Cash Flow and Investments - Net cash provided by operating activities for the six-month period ended June 30, 2024 was $96.0 million, a decrease of 20.5% compared to $120.7 million for the same period in 2023[166]. - Net cash used in investing activities increased to $317.8 million for the six months ended June 30, 2024, compared to $193.1 million in the prior year period, reflecting a 64.6% increase[166]. - The company reported net repayments on warehouse lines of credit of $150.7 million for the six months ended June 30, 2024, compared to net advances of $41.0 million in the prior year's period[168]. Compliance and Regulatory Matters - The company was in compliance with all financial covenants as of June 30, 2024[36]. - The company is currently evaluating the impact of new accounting standards issued by the FASB, which are not expected to have a material impact on its consolidated financial statements[39][40]. - The company maintained compliance with all covenants related to its securitization agreements as of June 30, 2024[58].

Group 1 - Consumer Portfolio Services, Inc. (CPS) will present at the 2024 Annual Gateway Conference on September 4 at 10:00 a.m. Pacific Time [1][2] - The conference will take place at the Four Seasons Hotel in San Francisco, CA, and will feature over 100 private and public companies [3][4] - CPS provides indirect automobile financing primarily to individuals with past credit issues or limited credit histories, focusing on retail installment sales contracts from franchised automobile dealerships [6] Group 2 - The Gateway Conference aims to connect growth-stage companies with investors, analysts, and partners, celebrating 25 years of fostering industry connections [3][4] - Gateway Group, the organizer of the conference, specializes in financial communications and digital media advisory for emerging growth companies [5]

Financial Data and Key Metrics Changes - Revenues for Q2 2024 were $95.9 million, a 5% increase from $91.7 million in Q1 2024 and a 13% increase from $84.9 million in Q2 2023 [5][6] - Expenses for Q2 2024 were $89.2 million, up 5% from $85.2 million in Q1 2024 and up 35% from $66.3 million in Q2 2023 [6][9] - Net income for Q2 2024 was $4.7 million, down from $14 million in Q2 2023, with earnings per share at $0.19 compared to $0.55 last year [9][10] - Finance receivables at fair value increased to $2.960 billion, a 6% increase from Q1 2024 and a 13% increase from $2.6 billion last year [10] Business Line Data and Key Metrics Changes - Loan originations in Q2 2024 were $431.9 million, a 25% increase from Q1 2024 and a 36% increase from $318.4 million in Q2 2023 [6][12] - The company reversed $2 million in credit losses from its legacy portfolio, compared to a reversal of $9.7 million in Q2 2023 [7] - The average FICO score increased to 578, reflecting a focus on upper-tier subprime loans [15] Market Data and Key Metrics Changes - The demand for subprime business remains strong, with 310,000 applications received in Q2 2024, a 10% increase year-over-year [12] - The company expanded its large dealer group base to 99, up from 76 in Q2 2023, representing a 62% increase over two years [13] Company Strategy and Development Direction - The company is transitioning from a phase of cautious observation to growth, with a focus on expanding sales and improving credit quality [3][4] - Management aims to grow the business significantly as interest rates are expected to decline, positioning the company for increased profitability [21][22] - The company is leveraging AI technologies to enhance operations, including a conversational AI voice bot for collections [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of their loan pools and noted that the industry is dealing with performance issues from 2022 and 2023 [20] - The company is focused on ensuring credit quality and preparing for growth as economic conditions improve [22][23] Other Important Information - The company achieved a record high in shareholders' equity at $280.3 million, up 10% from $255 million last year [10] - The company has reduced occupancy costs by renegotiating leases, contributing to overall cost management [19] Q&A Session Summary Question: What is the outlook for the company's growth? - Management indicated that they are building a strong foundation for growth and are optimistic about future performance as economic conditions improve [21][22]