Financial Data and Key Metrics Changes - Revenues for Q2 2024 were $95.9 million, a 5% increase from $91.7 million in Q1 2024 and a 13% increase from $84.9 million in Q2 2023 [5][6] - Expenses for Q2 2024 were $89.2 million, up 5% from $85.2 million in Q1 2024 and up 35% from $66.3 million in Q2 2023 [6][9] - Net income for Q2 2024 was $4.7 million, down from $14 million in Q2 2023, with earnings per share at $0.19 compared to $0.55 last year [9][10] - Finance receivables at fair value increased to $2.960 billion, a 6% increase from Q1 2024 and a 13% increase from $2.6 billion last year [10] Business Line Data and Key Metrics Changes - Loan originations in Q2 2024 were $431.9 million, a 25% increase from Q1 2024 and a 36% increase from $318.4 million in Q2 2023 [6][12] - The company reversed $2 million in credit losses from its legacy portfolio, compared to a reversal of $9.7 million in Q2 2023 [7] - The average FICO score increased to 578, reflecting a focus on upper-tier subprime loans [15] Market Data and Key Metrics Changes - The demand for subprime business remains strong, with 310,000 applications received in Q2 2024, a 10% increase year-over-year [12] - The company expanded its large dealer group base to 99, up from 76 in Q2 2023, representing a 62% increase over two years [13] Company Strategy and Development Direction - The company is transitioning from a phase of cautious observation to growth, with a focus on expanding sales and improving credit quality [3][4] - Management aims to grow the business significantly as interest rates are expected to decline, positioning the company for increased profitability [21][22] - The company is leveraging AI technologies to enhance operations, including a conversational AI voice bot for collections [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of their loan pools and noted that the industry is dealing with performance issues from 2022 and 2023 [20] - The company is focused on ensuring credit quality and preparing for growth as economic conditions improve [22][23] Other Important Information - The company achieved a record high in shareholders' equity at $280.3 million, up 10% from $255 million last year [10] - The company has reduced occupancy costs by renegotiating leases, contributing to overall cost management [19] Q&A Session Summary Question: What is the outlook for the company's growth? - Management indicated that they are building a strong foundation for growth and are optimistic about future performance as economic conditions improve [21][22]

Financial Performance - Revenues for Q2 2024 were $95.9 million, a 13.0% increase from $84.9 million in Q2 2023[2] - Net income for Q2 2024 was $4.7 million, or $0.19 per diluted share, compared to $14.0 million, or $0.55 per diluted share in Q2 2023[11] - Total revenues for the six months ended June 30, 2024, were $187.6 million, an increase of approximately $19.7 million, or 11.7% from the prior year[22] - Pre-tax income for the six months ended June 30, 2024, was $13.2 million, down from $37.0 million in the same period of 2023[22] Operating Expenses - Total operating expenses for Q2 2024 were $89.2 million, up from $66.3 million in Q2 2023[2] - Total operating expenses for the six months ended June 30, 2024, were $174.4 million, compared to $130.9 million for the same period in 2023[22] - Interest expense increased to $(46.71) million in June 2024 from $(35.71) million in June 2023, an increase of 30.0%[32] - Other operating expenses increased to $(44.45) million in June 2024 from $(40.25) million in June 2023, an increase of 10.5%[32] Credit Quality - Annualized net charge-offs for Q2 2024 were 7.26% of the average portfolio, compared to 6.29% in Q2 2023[3] - Delinquencies greater than 30 days were 13.29% of the total portfolio as of June 30, 2024, up from 11.72% as of June 30, 2023[3] - Provision for credit losses decreased to $1.95 million in June 2024 from $9.70 million in June 2023, a reduction of 80.0%[32] - Risk adjusted margin decreased to 51.12 million in June 2024 from 58.85 million in June 2023, a decline of 13.1%[32] Portfolio and Contracts - Total portfolio balance increased to $3,173.28 million in June 2024, up from $2,910.29 million in June 2023, representing an increase of 9.0%[31] - Average portfolio balance increased to $3,122.28 million in June 2024 from $2,903.99 million in June 2023, an increase of 7.6%[31] - New contract purchases in Q2 2024 totaled $431.9 million, compared to $318.4 million in Q2 2023[12] - Contracts purchased increased to $431.88 million in June 2024 from $318.39 million in June 2023, an increase of 35.5%[31] - Contracts securitized rose to $657.09 million in June 2024, up from $369.86 million in June 2023, representing an increase of 77.6%[31] Interest Income - Interest income for June 2024 was $88.37 million, an increase of 6.6% compared to $82.64 million in June 2023[32] - Net interest margin remained stable at 49.17 million in June 2024, slightly up from 49.15 million in June 2023[32] Securitization - The company closed its largest securitization in history during Q2 2024, with origination volumes up 36% year-over-year[23]

LAS VEGAS, NV, July 30, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) ("CPS" or the "Company") today announced earnings of $4.7 million, or $0.19 per diluted share, for its second quarter ended June 30, 2024. This compares to a net income of $14.0 million, or $0.55 per diluted share, in the second quarter of 2023. During the second quarter of 2024, CPS purchased $431.9 million of new contracts compared to $346.3 million during the first quarter of 2024 and $318.4 million during t ...

About Consumer Portfolio Services, Inc. 949-753-6811 Las Vegas, Nevada, July 29, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) ("CPS" or the "Company") today announced that it will hold a conference call on Wednesday, July 31, 2024 at 1:00 p.m. ET to discuss its second quarter 2024 operating results. Investor Relations Contact Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit p ...

LAS VEGAS, Nevada, July 11, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) ("CPS" or the "Company") today announced that on July 11, 2024, it renewed its two-year revolving credit agreement with Citibank, N.A. Loans under the renewed credit agreement will be secured by automobile receivables that CPS now holds or will purchase from dealers in the future. CPS may borrow on a revolving basis through July 15, 2026, after which CPS will have the option to repay the outstanding loans i ...

In the transaction, qualified institutional buyers purchased $436.31 million of asset-backed notes secured by $460.00 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2024-C, consist of five classes. Ratings of the notes were provided by Standard & Poor's and DBRS Morningstar, and were based on the structure of the transaction, the historical performance of similar receivables and CPS's experience as a servicer. The weighted average coupon on the note ...

CPS ANNOUNCES FIRST QUARTER 2024 EARNINGS LAS VEGAS, NV, May 10, 2024 (GlobeNewswire) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) ("CPS" or the "Company") today announced earnings of $4.6 million, or $0.19 per diluted share, for its first quarter ended March 31, 2024. This compares to a net income of $13.8 million, or $0.54 per diluted share, in the first quarter of 2023. Revenues for the first quarter of 2024 were $91.7 million, an increase of $8.6 million, or 10.4%, compared to $83.1 million for t ...

Revenue and Income - Revenues for the three months ended March 31, 2024, were $91.7 million, an increase of $8.6 million, or 10.4%, from $83.1 million in the prior year[115]. - Interest income increased by $4.2 million, or 5.3%, to $84.3 million, driven by a 4.8% increase in the average balance of the loan portfolio[116]. - The average interest yield on the loan portfolio increased from 11.2% in the prior year to 11.3% in the current year[116]. - The net interest yield decreased to 4.9% for the three months ended March 31, 2024, compared to 6.1% in the prior year[128]. Operating Expenses - Total operating expenses for the three months ended March 31, 2024, were $85.2 million, an increase of $20.5 million, or 31.7%, compared to $64.7 million in the prior period[120]. - Employee costs rose to $24.4 million for the three months ended March 31, 2024, compared to $22.0 million in the same quarter of the previous year[121]. - Interest expense for the three months ended March 31, 2024, was $42.0 million, representing 49.3% of total operating expenses[122]. - Sales expenses decreased to $4.9 million during the three months ended March 31, 2024, down from $5.7 million in the same quarter in 2023[134]. Portfolio and Contracts - The managed portfolio outstanding increased to $3,021.2 million as of March 31, 2024, compared to $2,881.8 million in the prior year[121]. - Contracts purchased in dollar terms for the three months ended March 31, 2024, were $346.3 million, down from $415.2 million in the prior year[121]. - The company originated $16.1 million under a third-party program for the three months ended March 31, 2024, with a managed portfolio including $222.2 million of such receivables[100]. - The total managed portfolio, excluding third-party portfolios, was $3,021.2 million as of March 31, 2024, compared to $2,881.8 million as of March 31, 2023[153]. Debt and Financing - The company issued $280.9 million in new securitization trust debt in Q1 2024, compared to $324.8 million in Q1 2023[161]. - Total debt outstanding as of March 31, 2024, was approximately $2,648.3 million, including $2,277.7 million in securitization trust debt[168]. - The company had unrestricted cash of $13.2 million and $150.5 million in available borrowings under warehouse credit facilities as of March 31, 2024[164]. - The company experienced net repayments on warehouse lines of credit of $17.2 million in Q1 2024, compared to net proceeds of $7,000 in the prior year[161]. Credit Losses and Delinquencies - The company recorded a reduction to provision for credit losses of $1.6 million for the three months ended March 31, 2024, compared to $9.0 million in the same period in 2023[131]. - Total delinquencies as a percentage of gross servicing portfolio increased to 10.6% as of March 31, 2024, compared to 10.0% in the prior year[140]. - Annualized net charge-offs as a percentage of average servicing portfolio increased to 7.8% for the three months ended March 31, 2024, up from 5.2% for the same period in 2023[144]. - The company does not recognize interest income for contracts that are greater than 90 days past due, indicating a focus on managing delinquency[154]. Cash Flow - Net cash provided by operating activities for the three-month period ended March 31, 2024, was $52.7 million, a decrease of 19% compared to $65.1 million for the same period in 2023[158]. - Net cash used in investing activities was $108.6 million for the three months ended March 31, 2024, compared to $121.2 million in the prior year period[159]. - Net cash provided by financing activities for Q1 2024 was $81.5 million, up from $62.3 million in Q1 2023[161]. Extensions and Performance - The average number of extensions granted per month increased to 6,760 in the three months ended March 31, 2024, compared to 6,089 in the same period of 2023[152]. - As of March 31, 2024, 91.8% of accounts granted extensions in 2023 were either paid in full or active and performing[150]. - The company has been able to reduce extensions since 2019 by being more selective in granting them, despite rising delinquency rates[153].

Revenues of $91.7 million compared to $83.1 million in the prior year periodPretax income of $6.6 millionNet income of $4.6 million, or $0.19 per diluted shareNew 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 $4.6 million, or $0.19 per diluted share, for its first quarter ended March 31, 2024. This compares to a net income of $13.8 million, or $0.54 per diluted share, i ...

LAS VEGAS, Nevada, April 23, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (NASDAQ:CPSS) ("CPS" or the "Company") announced the closing of its second term securitization in 2024 on Tuesday April 23, 2024. The transaction is CPS's 51st senior subordinate securitization since the beginning of 2011 and the 34th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes. In the transaction, qualified institutional buyers purchased $319.9 ...