CPS Announces Second Quarter 2024 Earnings
Consumer Portfolio Services (CPSS) reported Q2 2024 earnings with revenues of $95.9 million, up 13% year-over-year. Net income was $4.7 million, or $0.19 per diluted share, compared to $14.0 million, or $0.55 per share, in Q2 2023. Pretax income decreased to $6.7 million from $18.6 million last year. New contract purchases surged to $431.9 million, a 36% increase from Q2 2023. The company's receivables totaled $3.173 billion as of June 30, 2024. Annualized net charge-offs rose to 7.26% from 6.29% in Q2 2023, while delinquencies increased to 13.29% from 11.72% year-over-year. Despite challenges, CPSS achieved its largest securitization in company history, focusing on controlled growth and operational efficiency.
Consumer Portfolio Services (CPSS) ha riportato i risultati del secondo trimestre 2024 con ricavi di 95,9 milioni di dollari, in aumento del 13% rispetto allo stesso periodo dell'anno precedente. L'utile netto è stato di 4,7 milioni di dollari, ovvero 0,19 dollari per azione diluita, rispetto ai 14,0 milioni di dollari, o 0,55 dollari per azione, nel secondo trimestre 2023. Il reddito prima delle tasse è calato a 6,7 milioni di dollari rispetto ai 18,6 milioni dell'anno scorso. Gli acquisti di nuovi contratti sono aumentati a 431,9 milioni di dollari, con un incremento del 36% rispetto al secondo trimestre 2023. Le crediti dell'azienda ammontavano a 3,173 miliardi di dollari al 30 giugno 2024. Le perdite nette annualizzate sono aumentate al 7,26% rispetto al 6,29% nel secondo trimestre 2023, mentre le insolvenze sono salite al 13,29% rispetto all'11,72% anno su anno. Nonostante le sfide, CPSS ha raggiunto la sua maggiore cartolarizzazione nella storia dell'azienda, concentrandosi su una crescita controllata e un'efficienza operativa.
Consumer Portfolio Services (CPSS) reportó los resultados del segundo trimestre de 2024 con ingresos de 95.9 millones de dólares, un aumento del 13% respecto al año anterior. La utilidad neta fue de 4.7 millones de dólares, o 0.19 dólares por acción diluida, en comparación con 14.0 millones de dólares, o 0.55 dólares por acción, en el segundo trimestre de 2023. Los ingresos antes de impuestos disminuyeron a 6.7 millones de dólares desde 18.6 millones del año pasado. Las compras de nuevos contratos se dispararon a 431.9 millones de dólares, un aumento del 36% en comparación con el segundo trimestre de 2023. Las cuentas por cobrar de la compañía totalizaron 3.173 millones de dólares hasta el 30 de junio de 2024. Las cancelaciones netas anualizadas aumentaron al 7.26% desde el 6.29% en el segundo trimestre de 2023, mientras que las morosidades aumentaron al 13.29% desde el 11.72% interanualmente. A pesar de los desafíos, CPSS logró su mayor titulización en la historia de la empresa, enfocándose en un crecimiento controlado y en la eficiencia operativa.
소비자 포트폴리오 서비스(Consumer Portfolio Services, CPSS)는 2024년 2분기 실적을 발표했으며, 매출은 9,590만 달러로 전년 대비 13% 증가했습니다. 순이익은 470만 달러, 즉 희석 주당 0.19달러로, 2023년 2분기의 1,400만ドル, 즉 주당 0.55달러와 비교됩니다. 세전 소득은 작년의 1,860만 달러에서 670만 달러로 감소했습니다. 신규 계약 구매는 4억 3,190만 달러로 급증했으며, 이는 2023년 2분기 대비 36% 증가한 수치입니다. 회사의 채권 총액은 2024년 6월 30일 기준으로 31억 7,300만 달러에 달합니다. 연간 순 대손상각률은 2023년 2분기 6.29%에서 7.26%로 증가했으며, 연체율은 11.72%에서 13.29%로 증가했습니다. CPSS는 어려움에도 불구하고 회사 역사상 가장 큰 자산 유동화에 성공했으며, 통제를 통한 성장과 운영 효율성에 집중하고 있습니다.
Consumer Portfolio Services (CPSS) a annoncé ses résultats du deuxième trimestre 2024 avec des revenus de 95,9 millions de dollars, en hausse de 13 % par rapport à l'année précédente. Le bénéfice net s'est élevé à 4,7 millions de dollars, soit 0,19 dollar par action diluée, contre 14,0 millions de dollars, soit 0,55 dollar par action, au deuxième trimestre 2023. Le bénéfice avant impôt a diminué à 6,7 millions de dollars contre 18,6 millions l'année dernière. Les achats de nouveaux contrats ont fortement augmenté pour atteindre 431,9 millions de dollars, soit une hausse de 36 % par rapport au deuxième trimestre 2023. Les créances de l'entreprise totalisaient 3,173 milliards de dollars au 30 juin 2024. Les pertes nettes annualisées ont augmenté à 7,26 % contre 6,29 % au deuxième trimestre 2023, tandis que les retards de paiement ont augmenté à 13,29 % contre 11,72 % d'une année sur l'autre. Malgré les défis, CPSS a réalisé sa plus grande titrisation de l'histoire de l'entreprise, en se concentrant sur une croissance contrôlée et une efficacité opérationnelle.
Die Consumer Portfolio Services (CPSS) berichteten über die Ergebnisse des zweiten Quartals 2024 mit Einnahmen von 95,9 Millionen Dollar, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht. Der Nettogewinn betrug 4,7 Millionen Dollar, oder 0,19 Dollar pro verwässerter Aktie, im Vergleich zu 14,0 Millionen Dollar, oder 0,55 Dollar pro Aktie, im zweiten Quartal 2023. Das Vorsteuerergebnis ging von 18,6 Millionen Dollar im letzten Jahr auf 6,7 Millionen Dollar zurück. Die Käufe neuer Verträge stiegen auf 431,9 Millionen Dollar, ein Anstieg von 36% im Vergleich zum zweiten Quartal 2023. Die Forderungen des Unternehmens beliefen sich zum 30. Juni 2024 auf 3,173 Milliarden Dollar. Die annualisierten Nettoausfälle stiegen von 6,29% im zweiten Quartal 2023 auf 7,26%, während die Rückstände von 11,72% auf 13,29% im Jahresvergleich anstiegen. Trotz der Herausforderungen erreichte die CPSS die größte Verbriefung in der Unternehmensgeschichte und konzentrierte sich auf kontrolliertes Wachstum und betriebliche Effizienz.
- Revenue increased by 13% year-over-year to $95.9 million
- New contract purchases grew by 36% to $431.9 million compared to Q2 2023
- Total receivables increased to $3.173 billion, up from $2.910 billion in June 2023
- Company closed its largest securitization in history
- Net income decreased to $4.7 million from $14.0 million in Q2 2023
- Pretax income fell to $6.7 million from $18.6 million year-over-year
- Annualized net charge-offs increased to 7.26% from 6.29% in Q2 2023
- Delinquencies rose to 13.29% from 11.72% compared to June 2023
Insights
CPS's Q2 2024 results present a mixed picture. While revenues increased by
The company's growth in new contract purchases is impressive, up
Annualized net charge-offs increased to
The reduction in the reversal of provision for credit losses (
Investors should closely monitor CPS's ability to maintain growth while managing credit risk in the coming quarters. The company's focus on "controlled growth and improving operating efficiency" will be important in navigating the challenging balance between expansion and maintaining portfolio quality.
CPS's Q2 2024 results reflect broader trends in the subprime auto lending market. The substantial increase in new contract purchases (
However, the rising delinquencies and charge-offs are concerning. The increase in delinquencies to
The company's largest securitization in its history is a notable achievement, demonstrating investor confidence in CPS's portfolio despite the challenging environment. This ability to access capital markets effectively is important for maintaining growth and liquidity.
Looking ahead, several factors could impact CPS's performance:
- Interest rate environment: If rates continue to rise, it could pressure CPS's margins and potentially lead to higher delinquencies.
- Used car prices: Any significant drop in used car values could increase loss severity on repossessed vehicles.
- Economic conditions: A potential recession could further stress CPS's borrower base, leading to higher defaults.
Investors should watch for CPS's ability to maintain its growth trajectory while effectively managing credit risk in this evolving market landscape. The company's performance relative to peers in the subprime auto lending space will be a key indicator of its competitive position and risk management capabilities.
- Revenues of
$95.9 million compared to$84.9 million in the prior year period - Pretax income of
$6.7 million - Net income of
$4.7 million , or$0.19 per diluted share - New contract purchases of
$431.9 million , compared to$318.4 million in the prior year period
LAS VEGAS, NV, July 30, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of
Revenues for the second quarter of 2024 were
For the six months ended June 30, 2024 total revenues were
During the second quarter of 2024, CPS purchased
Annualized net charge-offs for the second quarter of 2024 were
"During our second quarter, origination volumes outpaced last year’s second quarter by
Conference Call
CPS originally announced on July 29, 2024, that it will hold a conference call on July 31, 2024 at 1:00 p.m. ET to discuss its second quarter 2024 operating results. A modification has now been made to the start time. The call will now start at 3:00 p.m. ET. No other changes to the call were made.
Those wishing to participate can pre-register for the conference call at the following link https://register.vevent.com/register/BI5a2c5e2c2a8946a5896de7685ccf8ea1. 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 | Six months ended | |||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| Interest income | $ | 88,367 | $ | 82,637 | $ | 172,655 | $ | 162,699 | ||||||||||||||
| Mark to finance receivables measured at fair value | 5,500 | - | 10,500 | - | ||||||||||||||||||
| Other income | 2,013 | 2,221 | 4,469 | 5,259 | ||||||||||||||||||
| 95,880 | 84,858 | 187,624 | 167,958 | |||||||||||||||||||
| Expenses: | ||||||||||||||||||||||
| Employee costs | 23,725 | 21,147 | 48,141 | 43,180 | ||||||||||||||||||
| General and administrative | 13,260 | 11,783 | 27,013 | 23,180 | ||||||||||||||||||
| Interest | 46,710 | 35,706 | 88,678 | 68,465 | ||||||||||||||||||
| Provision for credit losses | (1,950 | ) | (9,700 | ) | (3,585 | ) | (18,700 | ) | ||||||||||||||
| Other expenses | 7,463 | 7,318 | 14,148 | 14,798 | ||||||||||||||||||
| 89,208 | 66,254 | 174,395 | 130,923 | |||||||||||||||||||
| Income before income taxes | 6,672 | 18,604 | 13,229 | 37,035 | ||||||||||||||||||
| Income tax expense | 2,000 | 4,650 | 3,967 | 9,258 | ||||||||||||||||||
| Net income | $ | 4,672 | $ | 13,954 | $ | 9,262 | $ | 27,777 | ||||||||||||||
| Earnings per share: | ||||||||||||||||||||||
| Basic | $ | 0.22 | $ | 0.67 | $ | 0.44 | $ | 1.35 | ||||||||||||||
| Diluted | $ | 0.19 | $ | 0.55 | $ | 0.38 | $ | 1.09 | ||||||||||||||
| Number of shares used in computing earnings per share: | ||||||||||||||||||||||
| Basic | 21,263 | 20,866 | 21,203 | 20,643 | ||||||||||||||||||
| Diluted | 24,263 | 25,373 | 24,433 | 25,384 | ||||||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| June 30, | December 31, | |||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Cash and cash equivalents | $ | 9,752 | $ | 6,174 | ||||||||||||||||||
| Restricted cash and equivalents | 256,859 | 119,257 | ||||||||||||||||||||
| Finance receivables measured at fair value | 2,960,375 | 2,722,662 | ||||||||||||||||||||
| Finance receivables | 12,714 | 27,553 | ||||||||||||||||||||
| Allowance for finance credit losses | (684 | ) | (2,869 | ) | ||||||||||||||||||
| Finance receivables, net | 12,030 | 24,684 | ||||||||||||||||||||
| Deferred tax assets, net | 2,418 | 3,736 | ||||||||||||||||||||
| Other assets | 45,108 | 27,233 | ||||||||||||||||||||
| $ | 3,286,542 | $ | 2,903,746 | |||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||
| Accounts payable and accrued expenses | $ | 66,393 | $ | 62,544 | ||||||||||||||||||
| Warehouse lines of credit | 82,175 | 234,025 | ||||||||||||||||||||
| Residual interest financing | 99,079 | 49,875 | ||||||||||||||||||||
| Securitization trust debt | 2,736,225 | 2,265,446 | ||||||||||||||||||||
| Subordinated renewable notes | 22,356 | 17,188 | ||||||||||||||||||||
| 3,006,228 | 2,629,078 | |||||||||||||||||||||
| Shareholders' equity | 280,314 | 274,668 | ||||||||||||||||||||
| $ | 3,286,542 | $ | 2,903,746 | |||||||||||||||||||
| Operating and Performance Data ($ in millions) | ||||||||||||||||||||||
| At and for the | At and for the | |||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Contracts purchased | $ | 431.88 | $ | 318.39 | $ | 778.19 | $ | 733.54 | ||||||||||||||
| Contracts securitized | $ | 657.09 | $ | 369.86 | 957.71 | 732.73 | ||||||||||||||||
| Total portfolio balance (1) | $ | 3,173.28 | $ | 2,910.29 | $ | 3,173.28 | $ | 2,910.29 | ||||||||||||||
| Average portfolio balance (1) | $ | 3,122.28 | $ | 2,903.99 | 3,058.05 | 2,880.29 | ||||||||||||||||
| Delinquencies (1) | ||||||||||||||||||||||
| 31+ Days | 10.87 | % | 10.25 | % | ||||||||||||||||||
| Repossession Inventory | 2.42 | % | 1.47 | % | ||||||||||||||||||
| Total Delinquencies and Repo. Inventory | 13.29 | % | 11.72 | % | ||||||||||||||||||
| Annualized Net Charge-offs as % of Average Portfolio (1) | 7.26 | % | 6.29 | % | 7.55 | % | 5.75 | % | ||||||||||||||
| Recovery rates (1), (2) | 30.9 | % | 43.7 | % | 32.1 | % | 42.8 | % | ||||||||||||||
| For the | For the | ||||||||||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| $ (3) | % (4) | $ (3) | % (4) | $ (3) | % (4) | $ (3) | % (4) | ||||||||||||||||||
| Interest income | $ | 88.37 | 11.3 | % | $ | 82.64 | 11.4 | % | $ | 172.66 | 11.3 | % | $ | 162.70 | 11.3 | % | |||||||||
| Mark to finance receivables measured at fair value | 5.50 | 0.7 | % | - | 0.0 | % | 10.50 | 0.7 | % | - | 0.0 | % | |||||||||||||
| Other income | 2.01 | 0.3 | % | 2.22 | 0.3 | % | 4.47 | 0.3 | % | 5.26 | 0.4 | % | |||||||||||||
| Interest expense | (46.71 | ) | -6.0 | % | (35.71 | ) | -4.9 | % | (88.68 | ) | -5.8 | % | (68.47 | ) | -4.8 | % | |||||||||
| Net interest margin | 49.17 | 6.3 | % | 49.15 | 6.8 | % | 98.95 | 6.5 | % | 99.49 | 6.9 | % | |||||||||||||
| Provision for credit losses | 1.95 | 0.2 | % | 9.70 | 1.3 | % | 3.59 | 0.2 | % | 18.70 | 1.3 | % | |||||||||||||
| Risk adjusted margin | 51.12 | 6.5 | % | 58.85 | 8.1 | % | 102.53 | 6.7 | % | 118.19 | 8.2 | % | |||||||||||||
| Other operating expenses (5) | (44.45 | ) | -5.7 | % | (40.25 | ) | -5.5 | % | (89.30 | ) | -5.8 | % | (81.16 | ) | -5.6 | % | |||||||||
| Pre-tax income | $ | 6.67 | 0.9 | % | $ | 18.60 | 2.6 | % | $ | 13.23 | 0.9 | % | $ | 37.04 | 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. | |||||||||||||||||||||||||
FAQ
What was Consumer Portfolio Services' (CPSS) revenue in Q2 2024?
How much did CPSS's net income change in Q2 2024 compared to Q2 2023?
What was the value of new contracts purchased by CPSS in Q2 2024?
How did CPSS's delinquency rate change in Q2 2024?
