CPS Announces Third Quarter 2024 Earnings
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) ha riportato un utile di $4,8 milioni nel terzo trimestre del 2024, pari a $0,20 per azione diluita. I ricavi sono aumentati del 9,2%, raggiungendo $100,6 milioni rispetto ai $92,1 milioni del Q3 2023. L'azienda ha raggiunto il più alto saldo totale di portafoglio mai registrato, pari a $3,330 miliardi. Gli acquisti di nuovi contratti sono aumentati a $445,9 milioni, rispetto ai $322,4 milioni dell'anno precedente. Tuttavia, le spese operative sono cresciute a $93,7 milioni, passando dai $77,9 milioni, e il reddito ante imposte è diminuito a $6,9 milioni, rispetto ai $14,2 milioni del Q3 2023. Le insolvenze superiori ai 30 giorni sono aumentate al 14,04%, rispetto al 13,31% dell'anno precedente.
Consumer Portfolio Services (CPSS) reportó ganancias de $4.8 millones en el tercer trimestre de 2024, o $0.20 por acción diluida. Los ingresos aumentaron un 9.2% a $100.6 millones en comparación con $92.1 millones en el Q3 2023. La compañía alcanzó su saldo total de cartera más alto de la historia, con $3.330 millones. Las compras de nuevos contratos aumentaron a $445.9 millones, subiendo desde $322.4 millones interanualmente. Sin embargo, los gastos operativos aumentaron a $93.7 millones, desde $77.9 millones, y el ingreso antes de impuestos disminuyó a $6.9 millones desde $14.2 millones en el Q3 2023. Las morosidades superiores a 30 días aumentaron al 14.04% desde el 13.31% interanualmente.
Consumer Portfolio Services (CPSS)는 2024년 3분기 수익으로 480만 달러, 또는 희석 주당 0.20 달러를 보고했습니다. 수익은 2023년 3분기의 9210만 달러와 비교하여 9.2% 증가한 1억 600만 달러에 도달했습니다. 회사는 33억 3000만 달러의 최대 포트폴리오 잔액을 달성했습니다. 새로운 계약 구매는 작년 3억 2240만 달러에서 4억 4590만 달러로 증가했습니다. 그러나 운영 비용은 7790만 달러에서 9370만 달러로 증가했으며, 세전 소득은 2023년 3분기의 1420만 달러에서 690만 달러로 감소했습니다. 30일 이상 연체된 비율은 작년 13.31%에서 14.04%로 증가했습니다.
Consumer Portfolio Services (CPSS) a rapporté un bénéfice de 4,8 millions de dollars au troisième trimestre 2024, soit 0,20 dollar par action diluée. Les revenus ont augmenté de 9,2 %, atteignant 100,6 millions de dollars contre 92,1 millions de dollars au troisième trimestre 2023. L'entreprise a atteint le plus haut niveau de solde total de portefeuille jamais enregistré, soit 3,330 milliards de dollars. Les achats de nouveaux contrats ont augmenté à 445,9 millions de dollars, contre 322,4 millions de dollars d'une année sur l'autre. Cependant, les dépenses opérationnelles ont augmenté à 93,7 millions de dollars contre 77,9 millions de dollars, et le revenu imposable a diminué à 6,9 millions de dollars contre 14,2 millions de dollars au troisième trimestre 2023. Les impayés de plus de 30 jours ont augmenté à 14,04 % contre 13,31 % d'une année sur l'autre.
Consumer Portfolio Services (CPSS) berichtete im 3. Quartal 2024 von einem Gewinn in Höhe von 4,8 Millionen Dollar, was 0,20 Dollar pro verwässerter Aktie entspricht. Die Einnahmen stiegen um 9,2% auf 100,6 Millionen Dollar im Vergleich zu 92,1 Millionen Dollar im 3. Quartal 2023. Das Unternehmen erzielte den höchsten Gesamtportfolio-Saldo seiner Geschichte von 3,330 Milliarden Dollar. Der Kauf neuer Verträge stieg auf 445,9 Millionen Dollar, von 322,4 Millionen Dollar im Jahresvergleich. Die Betriebskosten hingegen stiegen auf 93,7 Millionen Dollar von 77,9 Millionen Dollar, und das Ergebnis vor Steuern sank auf 6,9 Millionen Dollar von 14,2 Millionen Dollar im 3. Quartal 2023. Die über 30 Tage überfälligen Forderungen stiegen auf 14,04% von 13,31% im Jahresvergleich.
- Revenue growth of 9.2% year-over-year to $100.6 million
- Record portfolio balance of $3.330 billion
- New contract purchases increased 38.3% year-over-year to $445.9 million
- Operating expenses increased 20.3% to $93.7 million
- Pretax income declined 51.4% to $6.9 million
- Net charge-offs increased to 7.32% from 6.86% year-over-year
- Delinquencies rose to 14.04% from 13.31% year-over-year
Insights
CPS's Q3 2024 results show mixed signals. While revenue increased by
The rising delinquency and charge-off trends are significant red flags. The
- Revenues of
$100.6 million compared to$92.1 million in the prior year period - Net income of
$4.8 million , or$0.20 per diluted share - Total portfolio balance of
$3.33 0 billion, highest in company history - New contract purchases of
$445.9 million , compared to$322.4 million in the prior year period
LAS VEGAS, NV, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of
Revenues for the third quarter of 2024 were
For the nine months ended September 30, 2024 total revenues were
During the third quarter of 2024, CPS purchased
Annualized net charge-offs for the third quarter of 2024 were
“New loan origination volumes have outpaced the prior quarter for a fourth consecutive quarter. This positions us well for future quarters,” said Charles E. Bradley Jr., Chief Executive Officer. “With our operating efficiencies improving, we remain committed to driving the company forward in any environment.”
Conference Call
CPS announced that it will hold a conference call on November 1, 2024 at 1:00 p.m. ET to discuss its third quarter 2024 operating results.
Those wishing to participate can pre-register for the conference call at the following link https://register.vevent.com/register/BIaadcdbbe0a7849aa918eac85c86475ff. 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 | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Interest income | $ | 93,158 | $ | 83,261 | $ | 265,812 | $ | 245,960 | |||||||||||||||
| Mark to finance receivables measured at fair value | 5,500 | 6,000 | 16,000 | 6,000 | |||||||||||||||||||
| Other income | 1,922 | 2,818 | 6,391 | 8,077 | |||||||||||||||||||
| 100,580 | 92,079 | 288,203 | 260,037 | ||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Employee costs | 24,162 | 21,812 | 72,303 | 64,991 | |||||||||||||||||||
| General and administrative | 13,276 | 13,045 | 40,288 | 36,224 | |||||||||||||||||||
| Interest | 50,056 | 37,889 | 138,735 | 106,354 | |||||||||||||||||||
| Provision for credit losses | (994 | ) | (2,000 | ) | (4,579 | ) | (20,700 | ) | |||||||||||||||
| Other expenses | 7,229 | 7,115 | 21,376 | 21,915 | |||||||||||||||||||
| 93,729 | 77,861 | 268,123 | 208,784 | ||||||||||||||||||||
| Income before income taxes | 6,851 | 14,218 | 20,080 | 51,253 | |||||||||||||||||||
| Income tax expense | 2,055 | 3,839 | 6,022 | 13,097 | |||||||||||||||||||
| Net income | $ | 4,796 | $ | 10,379 | $ | 14,058 | $ | 38,156 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.22 | $ | 0.49 | $ | 0.66 | $ | 1.83 | |||||||||||||||
| Diluted | $ | 0.20 | $ | 0.41 | $ | 0.58 | $ | 1.51 | |||||||||||||||
| Number of shares used in computing earnings per share: | |||||||||||||||||||||||
| Basic | 21,343 | 21,154 | 21,250 | 20,815 | |||||||||||||||||||
| Diluted | 24,153 | 25,218 | 24,340 | 25,331 | |||||||||||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| September 30, | December 31, | ||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 8,071 | $ | 6,174 | |||||||||||||||||||
| Restricted cash and equivalents | 270,981 | 119,257 | |||||||||||||||||||||
| Finance receivables measured at fair value | 3,132,310 | 2,722,662 | |||||||||||||||||||||
| Finance receivables | 8,274 | 27,553 | |||||||||||||||||||||
| Allowance for finance credit losses | -486 | -2,869 | |||||||||||||||||||||
| Finance receivables, net | 7,788 | 24,684 | |||||||||||||||||||||
| Deferred tax assets, net | 1,565 | 3,736 | |||||||||||||||||||||
| Other assets | 41,977 | 27,233 | |||||||||||||||||||||
| $ | 3,462,692 | $ | 2,903,746 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||||||||
| Accounts payable and accrued expenses | $ | 72,626 | $ | 62,544 | |||||||||||||||||||
| Warehouse lines of credit | 105,783 | 234,025 | |||||||||||||||||||||
| Residual interest financing | 99,127 | 49,875 | |||||||||||||||||||||
| Securitization trust debt | 2,875,777 | 2,265,446 | |||||||||||||||||||||
| Subordinated renewable notes | 24,288 | 17,188 | |||||||||||||||||||||
| 3,177,601 | 2,629,078 | ||||||||||||||||||||||
| Shareholders' equity | 285,091 | 274,668 | |||||||||||||||||||||
| $ | 3,462,692 | $ | 2,903,746 | ||||||||||||||||||||
| Operating and Performance Data ($ in millions) | |||||||||||||||||||||||
| At and for the | At and for the | ||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Contracts purchased | $ | 445.95 | $ | 322.42 | $ | 1,224.13 | $ | 1,055.96 | |||||||||||||||
| Contracts securitized | $ | 298.42 | $ | 312.68 | 1,256.13 | 1,045.42 | |||||||||||||||||
| Total portfolio balance (1) | $ | 3,329.84 | $ | 2,943.33 | $ | 3,329.84 | $ | 2,943.33 | |||||||||||||||
| Average portfolio balance (1) | $ | 3,278.34 | $ | 2,934.75 | 3,131.48 | 2,898.44 | |||||||||||||||||
| Delinquencies (1) | |||||||||||||||||||||||
| 31+ Days | 11.25 | % | 11.74 | % | |||||||||||||||||||
| Repossession Inventory | 2.79 | % | 1.57 | % | |||||||||||||||||||
| Total Delinquencies and Repo. Inventory | 14.04 | % | 13.31 | % | |||||||||||||||||||
| Annualized Net Charge-offs as % of Average Portfolio (1) | 7.32 | % | 6.86 | % | 7.47 | % | 6.12 | % | |||||||||||||||
| Recovery rates (1), (2) | 29.1 | % | 37.8 | % | 31.1 | % | 41.1 | % | |||||||||||||||
| For the | For the | ||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| $ (3) | % (4) | $ (3) | % (4) | $ (3) | % (4) | $ (3) | % (4) | ||||||||||||||||
| Interest income | $ | 93.16 | 11.4 | % | $ | 83.26 | 11.3 | % | $ | 265.81 | 11.3 | % | $ | 245.96 | 11.3 | % | |||||||
| Mark to finance receivables measured at fair value | 5.50 | 0.7 | % | 6.00 | 0.8 | % | 16.00 | 0.7 | % | 6.00 | 0.3 | % | |||||||||||
| Other income | 1.92 | 0.2 | % | 2.82 | 0.4 | % | 6.39 | 0.3 | % | 8.08 | 0.4 | % | |||||||||||
| Interest expense | (50.06 | ) | -6.1 | % | (37.89 | ) | -5.2 | % | (138.74 | ) | -5.9 | % | (106.35 | ) | -4.9 | % | |||||||
| Net interest margin | 50.52 | 6.2 | % | 54.19 | 7.4 | % | 149.47 | 6.4 | % | 153.68 | 7.1 | % | |||||||||||
| Provision for credit losses | 0.99 | 0.1 | % | 2.00 | 0.3 | % | 4.58 | 0.2 | % | 20.70 | 1.0 | % | |||||||||||
| Risk adjusted margin | 51.52 | 6.3 | % | 56.19 | 7.7 | % | 154.05 | 6.6 | % | 174.38 | 8.0 | % | |||||||||||
| Other operating expenses (5) | (44.67 | ) | -5.4 | % | (41.97 | ) | -5.7 | % | (133.97 | ) | -5.7 | % | (123.13 | ) | -5.7 | % | |||||||
| Pre-tax income | $ | 6.85 | 0.8 | % | $ | 14.22 | 1.9 | % | $ | 20.08 | 0.9 | % | $ | 51.25 | 2.4 | % | |||||||
| (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 CPSS's earnings per share in Q3 2024?
How much did CPSS's revenue grow in Q3 2024?
What was CPSS's total portfolio balance as of September 30, 2024?
What was CPSS's delinquency rate in Q3 2024?
