CPS(CPSS) - 2024 Q3 - Quarterly Report

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].