CPS Announces First Quarter 2024 Earnings
Consumer Portfolio Services, Inc. announced earnings of $4.6 million, or $0.19 per diluted share, for the first quarter of 2024. Revenues were $91.7 million, up 10.4% from the prior year period. The company recorded increased operating expenses and a decrease in pretax income compared to 2023. CPS purchased $346.3 million of new contracts in Q1 2024.
Revenue increased by 10.4% year over year, reaching $91.7 million in Q1 2024.
New contract purchases amounted to $346.3 million in the first quarter of 2024.
Receivables grew to $3.021 billion as of March 31, 2024, indicating a rise from the previous year.
Pretax income decreased to $6.6 million in Q1 2024 from $18.4 million in the same period in 2023.
Net income dropped to $4.6 million in the first quarter of 2024 from $13.8 million in Q1 2023.
Operating expenses increased to $85.2 million in Q1 2024 compared to $64.7 million in the prior year period.
- Revenues of
$91.7 million compared to$83.1 million in the prior year period - Pretax income of
$6.6 million - Net income of
$4.6 million , or$0.19 per diluted share - New contract purchases of
$346.3 million
LAS VEGAS, NV, May 10, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of
Revenues for the first quarter of 2024 were
During the first quarter of 2024, CPS purchased
Annualized net charge-offs for the first quarter of 2024 were
"Our increasing origination volumes are showing themselves in the form of revenue increases year over year,” said Charles E. Bradley Jr., Chief Executive Officer. “Despite the persistent inflationary pressures on our margins, we stand poised to continue our growth, with a focus on efficiently servicing our portfolio as it grows to new highs.”
Conference Call
CPS announced that it will hold a conference call on May 14, 2024 at 1:00 p.m. ET to discuss its first quarter 2024 operating results.
Those wishing to participate can pre-register for the conference call at the following link https://register.vevent.com/register/BIb847966685a54a42ad3f147d8676d40d. Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the schedule start time. A replay will be available beginning two hours after conclusion of the call for 12 months via the Company’s website at https://ir.consumerportfolio.com/investor-relations.
About Consumer Portfolio Services, Inc.
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. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
Forward-looking statements in this news release include the Company's recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are forward-looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such estimates may be adversely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company’s realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company's business is concentrated. Any or all of such factors also may affect the Company’s future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect future performance.
Investor Relations Contact
Danny Bharwani, Chief Financial Officer
949-753-6811
Consumer Portfolio Services, Inc. and Subsidiaries | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
2024 | 2023 | ||||||||||||||
Revenues: | |||||||||||||||
Interest income | $ | 84,288 | $ | 80,062 | |||||||||||
Mark to finance receivables measured at fair value | 5,000 | - | |||||||||||||
Other income | 2,456 | 3,038 | |||||||||||||
91,744 | 83,100 | ||||||||||||||
Expenses: | |||||||||||||||
Employee costs | 24,416 | 22,033 | |||||||||||||
General and administrative | 13,753 | 11,396 | |||||||||||||
Interest | 41,968 | 32,759 | |||||||||||||
Provision for credit losses | (1,635 | ) | (9,000 | ) | |||||||||||
Other expenses | 6,685 | 7,481 | |||||||||||||
85,187 | 64,669 | ||||||||||||||
Income before income taxes | 6,557 | 18,431 | |||||||||||||
Income tax expense | 1,967 | 4,608 | |||||||||||||
Net income | $ | 4,590 | $ | 13,823 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.22 | $ | 0.68 | |||||||||||
Diluted | $ | 0.19 | $ | 0.54 | |||||||||||
Number of shares used in computing earnings | |||||||||||||||
per share: | |||||||||||||||
Basic | 21,143 | 20,418 | |||||||||||||
Diluted | 24,602 | 25,392 | |||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||||
(In thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
March 31, | December 31, | ||||||||||||||
2024 | 2023 | ||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 13,249 | $ | 6,174 | |||||||||||
Restricted cash and equivalents | 137,706 | 119,257 | |||||||||||||
Finance receivables measured at fair value | 2,791,373 | 2,722,662 | |||||||||||||
Finance receivables | 18,781 | 27,553 | |||||||||||||
Allowance for finance credit losses | (1,890 | ) | (2,869 | ) | |||||||||||
Finance receivables, net | 16,891 | 24,684 | |||||||||||||
Deferred tax assets, net | 3,485 | 3,736 | |||||||||||||
Other assets | 43,822 | 27,233 | |||||||||||||
$ | 3,006,526 | $ | 2,903,746 | ||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||
Accounts payable and accrued expenses | $ | 79,122 | $ | 62,544 | |||||||||||
Warehouse lines of credit | 249,522 | 234,025 | |||||||||||||
Residual interest financing | 98,968 | 49,875 | |||||||||||||
Securitization trust debt | 2,277,676 | 2,265,446 | |||||||||||||
Subordinated renewable notes | 22,140 | 17,188 | |||||||||||||
2,727,428 | 2,629,078 | ||||||||||||||
Shareholders' equity | 279,098 | 274,668 | |||||||||||||
$ | 3,006,526 | $ | 2,903,746 | ||||||||||||
Operating and Performance Data ($ in millions) | |||||||||||||||
At and for the | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
2024 | 2023 | ||||||||||||||
Contracts purchased | $ | 346.3 | $ | 415.2 | |||||||||||
Contracts securitized | $ | 300.6 | $ | 362.9 | |||||||||||
Total portfolio balance (1) | $ | 3,021.2 | $ | 2,881.8 | |||||||||||
Average portfolio balance (1) | $ | 2,993.8 | $ | 2,856.6 | |||||||||||
Delinquencies (1) | |||||||||||||||
31+ Days | 9.98 | % | 8.26 | % | |||||||||||
Repossession Inventory | 2.41 | % | 1.66 | % | |||||||||||
Total Delinquencies and Repo. Inventory | 12.39 | % | 9.92 | % | |||||||||||
Annualized Net Charge-offs as % of Average Portfolio (1) | 7.84 | % | 5.20 | % | |||||||||||
Recovery rates (1), (2) | 33.3 | % | 41.8 | % | |||||||||||
For the | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
2024 | 2023 | ||||||||||||||
% (4) | % (4) | ||||||||||||||
Interest income | $ | 84.29 | 11.3 | % | $ | 80.06 | 11.2 | % | |||||||
Mark to finance receivables measured at fair value | 5.00 | 0.7 | % | - | 0.0 | % | |||||||||
Other income | 2.46 | 0.3 | % | 3.04 | 0.4 | % | |||||||||
Interest expense | (41.97 | ) | -5.6 | % | (32.76 | ) | -4.6 | % | |||||||
Net interest margin | 49.78 | 6.7 | % | 50.34 | 7.0 | % | |||||||||
Provision for credit losses | 1.64 | 0.2 | % | 9.00 | 1.3 | % | |||||||||
Risk adjusted margin | 51.41 | 6.9 | % | 59.34 | 8.3 | % | |||||||||
Other operating expenses (5) | (44.85 | ) | -6.0 | % | (40.91 | ) | -5.7 | % | |||||||
Pre-tax income | $ | 6.56 | 0.9 | % | $ | 18.43 | 2.6 | % | |||||||
(1) Excludes third party portfolios. | |||||||||||||||
(2) Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale. | |||||||||||||||
(3) Numbers may not add due to rounding. | |||||||||||||||
(4) Annualized percentage of the average portfolio balance. Percentages may not add due to rounding. | |||||||||||||||
(5) Total pre-tax expenses less provision for credit losses and interest expense. |
![](https://ml.globenewswire.com/media/YzBiZDMxZjktYTZlMS00ZWU2LWJiODUtYWE0ZmJiYjczZjU5LTEwMjkwNDY=/tiny/Consumer-Portfolio-Services-In.png)
FAQ
What were Consumer Portfolio Services, Inc.'s Q1 2024 earnings?
Consumer Portfolio Services, Inc. announced earnings of $4.6 million, or $0.19 per diluted share, for the first quarter of 2024.
How much were the total operating expenses in Q1 2024 for CPS?
Total operating expenses for the first quarter of 2024 were $85.2 million compared to $64.7 million for the 2023 period.
What is the stock symbol for Consumer Portfolio Services, Inc.?
The stock symbol for Consumer Portfolio Services, Inc. is CPSS.