Welcome to our dedicated page for Consumer Port news (Ticker: CPSS), a resource for investors and traders seeking the latest updates and insights on Consumer Port stock.
Consumer Portfolio Services, Inc. (CPSS) delivers specialized auto financing solutions for subprime borrowers through nationwide dealer partnerships. This news hub provides investors and industry observers with essential updates about the company's operations and market position.
Access timely corporate announcements including quarterly earnings results, strategic initiatives, and regulatory developments. Our curated collection features press releases about contract acquisitions, securitization activities, and servicing operations that drive CPSS's business model.
Stay informed about key developments in subprime auto financing through verified updates on dealer network expansions, credit portfolio performance, and industry trends. Bookmark this page for direct access to primary source materials and objective reporting about CPSS's role in the specialty finance sector.
Consumer Portfolio Services (CPSS) has successfully closed a $65.0 million securitization of residual interests from previous securitizations. The transaction involves a qualified institutional buyer purchasing asset-backed notes secured by an 80% interest in a CPS majority owned affiliate that owns residual interests in five CPS securitizations issued from October 2023 through September 2024.
The majority owned affiliate interest encompasses 80% of the amounts in underlying spread accounts and 80% of the over-collateralization for each related securitization. Monthly payments will include interest at the coupon rate and potential principal payments to maintain a specified minimum collateral ratio. The transaction was executed as a private offering of securities, not registered under the Securities Act of 1933 or state securities laws.
Consumer Portfolio Services (CPSS) reported its Q4 and full-year 2024 financial results. Q4 revenues reached $105.3 million, up 14.5% year-over-year, while full-year revenues grew 11.8% to $393.5 million.
Q4 net income was $5.1 million ($0.21 per diluted share), with full-year net income at $19.2 million ($0.79 per diluted share). The company achieved record-high total portfolio balance of $3.491 billion. New contract purchases for 2024 totaled $1.682 billion, representing a 24% increase from 2023.
However, operating expenses increased significantly, with Q4 expenses at $98.0 million compared to $82.1 million in 2023. Delinquencies over 30 days rose to 14.85%, and net charge-offs increased to 8.02% in Q4 2024.
Consumer Portfolio Services (CPSS) has announced a conference call scheduled for Wednesday, February 26, 2025, at 1:00 p.m. ET to discuss their fourth quarter 2024 operating results. Participants can pre-register for the call through a provided link and will receive dial-in details via email. The company recommends joining fifteen minutes before the start time to avoid delays.
A replay of the call will be available for 12 months through the company's investor relations website. CPSS operates as an independent specialty finance company providing indirect automobile financing to individuals with past credit problems or credit histories, primarily through purchasing retail installment sales contracts from franchised dealerships for late model used and new vehicles.
Consumer Portfolio Services (CPSS) has successfully closed its first term securitization of 2025, marking its 54th senior subordinate securitization since 2011. The transaction involved qualified institutional buyers purchasing $442.4 million of asset-backed notes, secured by $462.5 million in automobile receivables.
The notes, issued by CPS Auto Receivables Trust 2025-A, are divided into five classes with ratings from Standard & Poor's and DBRS Morningstar. The weighted average coupon on the notes is approximately 5.88%. The transaction includes initial credit enhancement with a 1.00% cash deposit of the original receivable pool balance and 4.35% overcollateralization.
This marks CPSS's 37th consecutive securitization to receive a triple 'A' rating from at least two rating agencies on the senior class of notes.
Consumer Portfolio Services (CPSS) has announced an amendment to its two-year revolving credit agreement with Citibank, increasing the facility's capacity from $225 million to $335 million. The amendment, effective December 16, 2024, also applies to the subordinate third party lender announced last month.
The loans under this agreement will be secured by automobile receivables that CPS currently holds or will acquire from dealers. The company can borrow on a revolving basis through July 15, 2026, with options to either repay outstanding loans in full or allow them to amortize over a one-year period after that date.
Consumer Portfolio Services (CPSS) has partnered with SentiLink to enhance its fraud prevention capabilities. The collaboration, leveraging SentiLink's AI-driven identity verification and fraud detection technology, has already reduced fraud exposure by approximately $1 million per quarter. The system analyzes identity and fraud indicators to generate actionable reports, helping CPSS lend to verified borrowers and reduce lifetime portfolio losses. This technology implementation is particularly important given the rising fraud attempts in the subprime auto sector, supporting CPSS's growth strategy and risk management efforts.
Consumer Portfolio Services (CPSS) reported Q3 2024 earnings of $4.8 million, or $0.20 per diluted share. Revenues increased 9.2% to $100.6 million compared to $92.1 million in Q3 2023. The company achieved its highest-ever total portfolio balance of $3.330 billion. New contract purchases rose to $445.9 million, up from $322.4 million year-over-year. However, operating expenses increased to $93.7 million from $77.9 million, and pretax income decreased to $6.9 million from $14.2 million in Q3 2023. Delinquencies over 30 days increased to 14.04% from 13.31% year-over-year.
Consumer Portfolio Services (CPSS) announced it will host a conference call on Friday, November 1, 2024 at 1:00 p.m. ET to discuss its third quarter 2024 operating results. Participants can pre-register through the provided link and will receive dial-in details via email. A replay will be available for 12 months on the company's investor relations website. CPSS is an independent specialty finance company providing indirect automobile financing to individuals with past credit problems or credit histories.
Consumer Portfolio Services (Nasdaq: CPSS) has successfully integrated Informed.IQ's Dealer Verify tool into its loan origination process. This AI-driven solution enhances dealer experience by automatically verifying stipulations, improving capture rates, and reducing contracts-in-transit. Dealer Verify automates the collection and real-time verification of key consumer stipulations, enabling faster and more accurate loan processing.
The integration has significantly improved CPS's operational efficiency:
- Cut in-house processing time from over three days to under two
- Increased same-day funding percentage by 100%
- Boosted second-day funding percentage by 50%
CPS is expanding its operations with a network of over 12,000 approved dealerships across 47 states and plans to add more sales representatives by year-end to support increasing demand.
Consumer Portfolio Services (CPSS) has closed its fourth term securitization of 2024, totaling $416.82 million in asset-backed notes secured by $436.00 million in automobile receivables. This marks the company's 53rd senior subordinate securitization since 2011 and the 36th consecutive to receive a triple 'A' rating from at least two rating agencies on the senior class of notes.
The transaction, CPS Auto Receivables Trust 2024-D, consists of five note classes with varying interest rates and average lives. The weighted average coupon on the notes is approximately 5.52%. Initial credit enhancement includes a 1.00% cash deposit and 4.40% overcollateralization. The deal utilizes a pre-funding structure, with CPS selling $298.42 million of receivables at inception and planning to sell an additional $137.58 million in October 2024.
