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Consumer Portfolio Services Inc (CPSS) is a specialized finance company dedicated to providing indirect automobile financing to individuals who face challenges such as past credit problems, low incomes, or limited credit histories. Founded in 1991, the company has built a robust portfolio by purchasing retail installment sales contracts from automobile dealerships. These contracts are primarily secured by late-model used vehicles, with a minor portion involving new vehicles.
The company's core business involves acquiring these contracts from franchised and select independent dealerships across the United States. By doing so, CPSS offers an alternative financing solution for customers who are often referred to as sub-prime due to their credit profiles. This approach not only aids consumers in securing vehicle financing but also supports dealerships in closing sales that might otherwise be unattainable.
CPSS funds its contract purchases primarily through the securitization markets, ensuring long-term stability and sustainability. The company then services these contracts over their entire lifespan, maintaining a steady revenue stream and fostering lasting relationships with its customers. As of June 2015, CPSS has purchased over $11.8 billion in contracts and is currently servicing a managed portfolio worth approximately $1.8 billion, encompassing around 140,000 customers.
Headquartered in Irvine, California, CPSS operates additional servicing branches in Florida, Illinois, Nevada, and Virginia, strategically positioned to optimize operational efficiency and customer service. With a dedicated workforce of approximately 900 employees and dealer relationships spanning across 48 states, CPSS stands as a significant player in the U.S. specialty finance sector.
Consumer Portfolio Services (CPSS) announced the closing of its third term securitization in 2021, marking its 40th senior subordinate securitization since 2011. This transaction involved the sale of $291 million in asset-backed notes secured by $300 million in automobile receivables. Notably, it is the 23rd consecutive securitization to receive a triple 'A' rating from at least two agencies. The weighted average coupon on the notes is approximately 1.55%. The transaction enhances CPS's financing for future receivables, with a pre-funding structure in place.
Consumer Portfolio Services (CPSS) reported a net income of $5.2 million, or $0.21 per diluted share, for Q1 2021, reflecting a significant decrease from $10.8 million or $0.45 per diluted share in Q1 2020. Revenues declined by 10.8% to $63.1 million, down from $70.8 million a year earlier. However, pretax income rose 155.3% to $7.9 million. The company purchased $205 million in new contracts, showcasing a robust recovery in originations. Charge-offs decreased to 6.3% of the average portfolio, and delinquencies improved to 7.77%.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) has announced a conference call scheduled for May 11, 2021, at 1:00 p.m. ET to discuss its first quarter 2021 operating results. Interested participants can join by calling 877 312-5502 or 253 237-1131 for international calls, with a conference ID of 7645419. A replay will be available from May 11 to May 18, with dial-in numbers provided for both domestic and international listeners. The call will also be broadcast live on the company's website.
Consumer Portfolio Services (Nasdaq: CPSS) has successfully closed its second term securitization for 2021, totaling $240 million in asset-backed notes secured by automobile receivables. This marks the 39th securitization since 2011, maintaining a commendable record of receiving a triple 'A' rating from at least two agencies. The transaction includes five classes of notes with a weighted average coupon of 1.65%. Initial credit enhancement is set at 1% of the original receivable pool, and CPS plans to sell an additional $84.5 million in receivables in May 2021.
Consumer Portfolio Services, Inc. (CPSS) reported a net income of $4.1 million or $0.17 per diluted share for Q4 2020, compared to $29,000 in 2019. Total revenues decreased by 27.2% to $62.4 million. For the full year, net income reached $21.7 million or $0.90 per share, up from $5.4 million in 2019. The company purchased $743 million in new contracts in 2020. The annualized net charge-offs improved to 5.18% of the portfolio, and delinquencies dropped to 12.08% from 15.46% a year prior.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) will hold a conference call on February 24, 2021, at 1:00 p.m. ET to review its fourth quarter 2020 operational results. Participants can dial in at 877-312-5502 or 253-237-1131 for international access. A replay will be available from February 24 to March 3, 2021, and can be accessed using the same conference identification number, 3998868. CPS specializes in providing indirect automobile financing for individuals with credit challenges, purchasing retail installment sales contracts from dealerships secured by late-model used vehicles.
Consumer Portfolio Services (Nasdaq: CPSS) announced the closing of its first term securitization of 2021, marking its 38th senior subordinate securitization since 2011. The transaction involved the sale of $230.5 million in asset-backed notes backed by $245.0 million in auto receivables. Notably, this is the 21st consecutive securitization to receive a triple 'A' rating. The securitization includes a pre-funding structure, projecting future sales of approximately $60.6 million in receivables.
Consumer Portfolio Services (CPSS) renewed its two-year revolving credit agreement with Citibank on December 18, 2020. This agreement allows CPS to secure loans against automobile receivables, either currently held or to be purchased. CPS can borrow on a revolving basis until December 18, 2022, with options for full repayment or amortization afterward.
The renewal supports CPS's strategy of maintaining three $100 million warehouse lines with multi-year revolving commitments, enhancing its financing capabilities.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) announced its board of directors has unanimously rejected an unsolicited acquisition offer from Auto Experience Inc. (AEI), stating the proposed price of $135 million significantly undervalues the company. After thorough consideration, the board concluded that accepting AEI's proposal would not serve the best interests of CPS shareholders. Furthermore, the board expressed doubts regarding the credibility of AEI's interest, emphasizing CPS’s strong long-term prospects.
Consumer Portfolio Services (CPSS) reported a net income of $3.8 million or $0.16 per diluted share for Q3 2020, up from $1.8 million in Q3 2019. Total revenues for Q3 2020 were $70.7 million, down 17.4% from $85.5 million in the same period last year. However, operating expenses decreased by 21.7% to $64.8 million. For the nine months ended September 30, 2020, revenues were $208.7 million, down 19.7% year-over-year. The company also purchased $174 million in new contracts during Q3 2020.
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