CPS(CPSS) - 2024 Q2 - Quarterly Report

Revenue and Income - Total revenues for the three months ended June 30, 2024, increased to $95,880, up 12.0$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$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$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$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$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].