Financial Performance - Pretax income for Q4 2023 was $9.8 million, down from $18.3 million in Q4 2022, while total revenues increased to $92.0 million, a 10.8% rise from $83.0 million in Q4 2022[6][17]. - For the full year 2023, total revenues reached $352.0 million, up 6.8% from $329.7 million in 2022, with net income of $45.3 million or $1.80 per diluted share compared to $86.0 million or $3.23 per diluted share in 2022[2][17]. - Total operating expenses for the full year 2023 were $290.9 million, compared to $213.5 million in 2022, reflecting increased costs in employee and interest expenses[2][11]. - The net interest margin for Q4 2023 was 51.70%, down from 54.15% in Q4 2022, indicating a decline in profitability from interest income[11][14]. Contract Activity - The company reported new contract purchases of $1.358 billion for 2023, with the largest managed portfolio balance in its history at $3.2 billion as of December 31, 2023[2][18]. - The company purchased $301.8 million of new contracts in Q4 2023, down from $428.1 million in Q4 2022, indicating a decrease in contract acquisition activity[18]. Portfolio and Asset Management - Annualized net charge-offs for Q4 2023 were 7.74% of the average portfolio, an increase from 5.83% in Q4 2022, while delinquencies greater than 30 days were 14.55% of the total portfolio[7][14]. - The average portfolio balance for 2023 was $2.913 billion, up from $2.539 billion in 2022, showing growth in the company's financing activities[14]. - The company’s recovery rates for the year were reported at 39.2%, down from 52.3% in the previous year, reflecting challenges in asset recovery[15]. Cash and Equity Position - Cash and cash equivalents decreased to $6,174 million from $13,490 million year-over-year, a decline of approximately 54.1%[25]. - Shareholders' equity rose to $274,668 million compared to $228,389 million, an increase of about 20.3%[25]. Debt and Liabilities - Accounts payable and accrued expenses increased to $62,544 million from $55,421 million, reflecting a rise of approximately 12.1%[25]. - Securitization trust debt increased to $2,265,446 million from $2,108,744 million, a growth of about 7.4%[25]. - Warehouse lines of credit decreased to $234,025 million from $285,328 million, a decline of approximately 17.9%[25]. Other Financial Metrics - Finance receivables measured at fair value increased to $2,722,662 million from $2,476,617 million, representing a growth of about 9.9%[25]. - Net finance receivables improved to $24,684 million from $70,551 million, a decrease of approximately 65.0%[25]. - The allowance for finance credit losses improved to $(2,869) million from $(21,753) million, indicating a significant reduction in provisions[25]. - Deferred tax assets, net decreased to $3,736 million from $10,177 million, a decline of approximately 63.3%[25]. - Other assets decreased to $27,233 million from $32,634 million, a reduction of about 16.6%[25]. Upcoming Events - The company plans to hold a conference call on March 18, 2024, to discuss its Q4 2023 operating results[4][20].

Pretax income of $9.8 million for the fourth quarter and $61.1 million for 2023Revenues of $92.0 million for the fourth quarter and $352.0 million for 2023Net income of $45.3 million, or $1.80 per diluted share for 2023New contract purchases of $1.358 billion for the full year 2023Largest managed portfolio balance in company history, $3.2 billion LAS VEGAS, NV, March 15, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (NASDAQ:CPSS) ("CPS" or the "Company") today announced earnings of $7.2 million ...

LAS VEGAS, Nevada, March 14, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (NASDAQ:CPSS) ("CPS" or the "Company") today announced that it will hold a conference call on Monday, March 18, 2024 at 1:00 p.m. ET to discuss its fourth quarter 2023 operating results. Those wishing to participate can pre-register for the conference call at the following link https://register.vevent.com/register/BI280eff9814e7495fb11dd11c31078155. Registered participants will receive an email containing conference call ...

FORM 10-K For the fiscal year ended December 31, 2023 For the transition period from to California 33-0459135 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Securities registered pursuant to Section 12(b) of the Act: Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required ...

LAS VEGAS, Nevada, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (NASDAQ:CPSS) ("CPS" or the "Company") announced the closing of its first term securitization in 2024 on Wednesday, January 24, 2024. The transaction is CPS's 50th senior subordinate securitization since the beginning of 2011 and the 33rd consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes. The transaction also marks the 100th securitization in the compa ...

Financial Data and Key Metrics Changes - Revenue for the quarter was $92.1 million, an 8% increase from $84.9 million in the second quarter of 2023 and a 2% increase from $90.3 million in the third quarter of last year [5] - Year-to-date revenues were $260 million, a 5% increase from $246.7 million in the same period of 2022 [5] - Expenses for the current quarter were $77.9 million, a 17% increase from $66.3 million in the second quarter of 2023 and a 39% increase from $56 million in the third quarter of last year [4] - Net income was $10.4 million in the current quarter, down 59% from $25.4 million last year [29] - Diluted earnings per share were $0.41 this quarter, compared to $0.95 last year [30] Business Line Data and Key Metrics Changes - The fair value portfolio grew to $2.7 billion, yielding 11.3% in the current period [6] - The markup in revenues for the quarter was $6 million, down from $8.1 million in Q3 of 2022 [7] - Core operating expenses were $42 million in the current quarter, an increase of 8% from $38.5 million last year [32] Market Data and Key Metrics Changes - The average amount financed for the quarter was $20,100, down $900 quarter-over-quarter and down $3,000 from Q3 of 2022 [44] - The average APR in Q3 was 21%, slightly lower than the previous quarter but higher than 18% in Q3 of 2022 [40] - The approval rate for applications ticked down to 51%, significantly lower than 70% in Q3 of 2022 due to tightened credit standards [43] Company Strategy and Development Direction - The company is focusing on improving collection tactics and has hired 96 new collectors to enhance performance [53] - A new Gen 8 Originations Model was launched, utilizing machine learning and updated data to better score applicants [55] - The company plans to grow when the market conditions are favorable, particularly after assessing the performance of the 2022 and 2023 vintages [60][62] Management's Comments on Operating Environment and Future Outlook - Management noted that while inflation and rising interest rates are challenges, the unemployment rate remains low, which is a positive indicator for business [49] - The company is optimistic about the future, expecting a strong performance in the first half of 2024 [58][63] - Management believes the company is in a strong position compared to competitors, having maintained profitability through various economic cycles [15][62] Other Important Information - The company reported a 48% decrease in pre-tax earnings for the current quarter compared to last year [24] - Shareholders' equity reached an all-time high of $265.9 million, supported by 48 consecutive quarters of pre-tax profitability [31] Q&A Session Summary Question: How is the company addressing the challenges posed by inflation and interest rates? - Management acknowledged that inflation is affecting customer performance and higher interest rates are cutting margins, but they remain optimistic about future performance [65][66]

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Consumer Portfolio Services, Inc. as of September 30, 2023, and for the three and nine-month periods then ended, along with detailed notes on accounting policies [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets increased to $2.88 billion from $2.75 billion at year-end 2022, primarily driven by a rise in Finance receivables measured at fair value, while total liabilities grew to $2.61 billion from $2.52 billion, and shareholders' equity increased to $265.9 million from $228.4 million Condensed Consolidated Balance Sheet Data (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$2,880,848** | **$2,752,768** | | Finance receivables measured at fair value | $2,671,540 | $2,476,617 | | Finance receivables, net | $34,265 | $70,551 | | **Total Liabilities** | **$2,614,952** | **$2,524,379** | | Warehouse lines of credit | $240,384 | $285,328 | | Securitization trust debt | $2,243,284 | $2,108,744 | | **Total Shareholders' Equity** | **$265,896** | **$228,389** | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended September 30, 2023, net income was $10.4 million, a decrease from $25.4 million in the prior-year period, with the nine-month net income at $38.2 million, down from $71.8 million year-over-year, primarily due to a significant increase in interest expense Statement of Operations Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $92,079 | $90,305 | $260,037 | $246,689 | | Interest Expense | $37,889 | $23,483 | $106,354 | $58,654 | | Total Expenses | $77,861 | $55,961 | $208,784 | $148,801 | | Net Income | $10,379 | $25,413 | $38,156 | $71,848 | | Diluted EPS | $0.41 | $0.95 | $1.51 | $2.61 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, net cash provided by operating activities was $181.9 million, net cash used in investing activities was $275.8 million primarily for finance receivables, and net cash provided by financing activities was $73.1 million, reflecting debt proceeds offset by repayments and stock purchases Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $181,918 | $164,744 | | Net cash used in investing activities | ($275,752) | ($566,524) | | Net cash provided by financing activities | $73,138 | $397,938 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical details on accounting policies, including the use of fair value for finance receivables acquired since 2018, debt structures, legal proceedings, and fair value measurement methodologies, with a key subsequent event being a $286.1 million securitization in October 2023 - The company specializes in purchasing and servicing sub-prime retail automobile contracts, which it finances through securitizations and warehouse credit facilities[107](index=107&type=chunk) - Finance receivables acquired since January 1, 2018, are accounted for at fair value, with interest income recognized on a level yield basis, meaning no separate provision for credit losses is made for this portfolio[130](index=130&type=chunk)[131](index=131&type=chunk) - Subsequent to the quarter end, on October 24, 2023, the company executed a securitization, selling **$286.1 million** of asset-backed notes secured by **$306.7 million** in automobile receivables[70](index=70&type=chunk) - The company is involved in various legal proceedings, including a wage and hour claim settled by agreement in August 2023 (pending court approval), and a civil investigative demand from Massachusetts, for which a probable loss contingency of **$3.8 million** has been recorded[190](index=190&type=chunk)[226](index=226&type=chunk)[210](index=210&type=chunk) Debt Outstanding (in thousands) | Debt Type | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Securitization trust debt | $2,257,832 | $2,122,918 | | Warehouse lines of credit | $241,471 | $287,878 | | Residual interest financing | $50,000 | $50,000 | | Subordinated renewable notes | $19,163 | $25,263 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, including business overview, financing strategies, and a comparative analysis of operating results for the three and nine-month periods ended September 30, 2023 and 2022 [Overview](index=27&type=section&id=Overview) The company is a specialty finance firm that purchases and services sub-prime auto contracts, primarily from franchised dealers, having originated approximately $21.0 billion in contracts since 1991, with its business model relying on warehouse facilities and securitizations, and a managed portfolio growing to $3.18 billion as of September 30, 2023 Contract Purchases and Managed Portfolio (in thousands) | Period | Contracts Purchased in Period | Managed Portfolio at Period End | | :--- | :--- | :--- | | 2022 | $1,845,385 | $3,001,308 | | Nine months ended Sep 30, 2023 | $1,055,957 | $3,181,758 | - The company also originates and services contracts for a third-party, originating **$92.0 million** under this program in the first nine months of 2023[75](index=75&type=chunk) [Results of Operations - Three Months Ended Sep 30, 2023](index=29&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20Sep%2030%2C%202023) For Q3 2023, revenues increased 2.0% to $92.1 million, driven by a 10.8% increase in the average loan portfolio balance, but total operating expenses surged 39.1% to $77.9 million, primarily due to a $14.4 million increase in interest expense, leading to a significant drop in pre-tax income to $14.2 million from $34.3 million in Q3 2022, despite a $2.0 million reduction to the provision for credit losses Q3 2023 vs Q3 2022 Performance (in millions) | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $92.1 | $90.3 | +2.0% | | Interest Expense | $37.9 | $23.5 | +61.3% | | Total Operating Expenses | $77.9 | $56.0 | +39.1% | | Income Before Tax | $14.2 | $34.3 | -58.6% | - The annualized average rate on securitization trust debt rose to **5.4%** from **3.6%** YoY, and the rate on warehouse debt increased to **10.9%** from **7.7%** YoY, driving the surge in interest expense[219](index=219&type=chunk)[3](index=3&type=chunk) - Contract purchases decreased to **$322.4 million** in Q3 2023 from **$468.2 million** in Q3 2022[7](index=7&type=chunk) [Results of Operations - Nine Months Ended Sep 30, 2023](index=33&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20Sep%2030%2C%202023) For the nine months ended September 30, 2023, revenues grew 5.4% to $260.0 million, while operating expenses increased 40.3% to $208.8 million, primarily due to interest expense nearly doubling to $106.4 million from $58.7 million, resulting in pre-tax income falling to $51.3 million from $97.9 million, despite a $20.7 million reduction in the provision for credit losses Nine Months 2023 vs 2022 Performance (in millions) | Metric | 9M 2023 | 9M 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $260.0 | $246.7 | +5.4% | | Interest Expense | $106.4 | $58.7 | +81.3% | | Total Operating Expenses | $208.8 | $148.8 | +40.3% | | Income Before Tax | $51.3 | $97.9 | -47.6% | - Interest expense on securitization trust debt increased by **$39.5 million**, and on warehouse credit lines by **$8.6 million**, due to higher average balances and significantly higher interest rates[13](index=13&type=chunk)[242](index=242&type=chunk) - A reduction to the provision for credit losses of **$20.7 million** was recorded, as previous estimates for future losses exceeded actual incurred losses[245](index=245&type=chunk) [Credit Experience](index=38&type=section&id=Credit%20Experience) The company's credit performance is detailed through delinquency, repossession, and net charge-off data, with total delinquencies at 11.7% as of September 30, 2023, and an annualized net charge-off rate of 6.9% for Q3 2023, emphasizing payment extensions as a key loss mitigation tool Delinquency Experience (% of gross servicing portfolio amount) | Metric | Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2022 | | :--- | :--- | :--- | :--- | | Total Delinquencies | 11.7% | 9.7% | 11.2% | | Total Delinquencies & Repossessions | 13.3% | 10.9% | 12.7% | - The annualized net charge-off rate for the total owned portfolio was **6.9%** for Q3 2023, compared to **4.9%** for Q3 2022[268](index=268&type=chunk)[290](index=290&type=chunk) - The company views its extension program as effective, with **69.1%** of accounts granted extensions in 2019 either paid in full or active and performing as of September 30, 2023[270](index=270&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash from operations, securitization proceeds, and warehouse credit facilities, with $8.3 million in unrestricted cash and $159.6 million available under warehouse facilities as of September 30, 2023, and total debt outstanding of approximately $2.55 billion - Primary sources of cash are securitizations, warehouse credit facilities, and customer payments, with primary uses being purchasing auto contracts and servicing debt[297](index=297&type=chunk) - As of September 30, 2023, the company had **$8.3 million** in unrestricted cash and **$159.6 million** available under warehouse credit facilities, though available borrowings are limited by eligible collateral of approximately **$19.6 million**[25](index=25&type=chunk) - Total debt outstanding was approximately **$2.55 billion** at September 30, 2023, primarily composed of securitization trust debt[26](index=26&type=chunk) - Net cash from financing activities decreased to **$73.1 million** for the nine months ended Sep 30, 2023, from **$397.9 million** in the prior year, mainly due to lower new securitization debt issuance and net repayments on warehouse lines versus net advances in 2022[42](index=42&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures are effective, with no material changes to internal controls over financial reporting during the most recently completed fiscal quarter - The CEO and CFO have concluded that the company's disclosure controls and procedures are effective for timely recording, processing, and reporting of material information[28](index=28&type=chunk) - No material changes were made to internal controls over financial reporting during the most recent fiscal quarter[28](index=28&type=chunk) [PART II — OTHER INFORMATION](index=45&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the information on legal proceedings detailed in Note 8 to the Unaudited Condensed Consolidated Financial Statements - Information regarding legal proceedings is provided in Note 8 to the financial statements and is incorporated here by reference[280](index=280&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section highlights material risks to the company, including substantial indebtedness of $2.55 billion as of September 30, 2023, which could limit financial flexibility, and a potential rescission liability of up to $5.3 million related to past sales of subordinated renewable notes - The company has substantial indebtedness of approximately **$2.55 billion** as of September 30, 2023, which poses risks such as limiting financial flexibility and increasing vulnerability to adverse economic conditions[302](index=302&type=chunk)[30](index=30&type=chunk) - The company faces potential rescission liability for certain subordinated renewable notes sold after its registration statement expired, with approximately **$5.3 million** of such notes outstanding as of October 31, 2023, which could require repurchase[304](index=304&type=chunk)[31](index=31&type=chunk) [Issuer Purchases of Equity Securities](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of 2023, the company repurchased a total of 61,685 shares of its common stock at an average price of $9.59 per share under a publicly announced program, with approximately $1.9 million remaining for future purchases as of September 30, 2023 Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jul 2023 | 10,257 | $11.31 | | Aug 2023 | – | $– | | Sep 2023 | 51,428 | $9.25 | | **Total** | **61,685** | **$9.59** | - As of September 30, 2023, approximately **$1.9 million** remained available for share repurchases under the authorized program[308](index=308&type=chunk)[34](index=34&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which include CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 1350, as well as Inline XBRL documents - The exhibits filed with the report include Rule 13a-14(a) certifications for the CEO and CFO, Section 1350 certifications, and various Inline XBRL documents[309](index=309&type=chunk)[52](index=52&type=chunk)[36](index=36&type=chunk) [Signatures](index=49&type=section&id=Signatures) The report is duly signed and authorized by the company's Chief Executive Officer, Charles E. Bradley, Jr., and its Executive Vice President and Chief Financial Officer, Denesh Bharwani, on November 9, 2023 - The report was signed on November 9, 2023, by Charles E. Bradley, Jr. (Principal Executive Officer) and Denesh Bharwani (Principal Financial Officer)[289](index=289&type=chunk)[48](index=48&type=chunk)[37](index=37&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Commission file number: 1-11416 CONSUMER PORTFOLIO SERVICES, INC. (Exact name of registrant as specified in its charter) California 33-0459135 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 3800 Howard Hughes Parkway, Suite 1400, ...

Consumer Portfolio Services, Inc. (NASDAQ:CPSS) Q2 2023 Earnings Conference Call August 3, 2023 3:00 PM ET Company Participants Charles Bradley - Chief Executive Officer Danny Bharwani - Chief Financial Officer Mike Lavin - President and Chief Operating Officer Conference Call Participants Operator Good day everyone and welcome to the Consumer Portfolio Services' 2023 Second Quarter Operating Results Conference Call. Today's call is being recorded. Before we begin, management has asked me to inform you tha ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 3800 Howard Hughes Parkway, Suite 1400, Las Vegas, Nevada 89169 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including Area Code: (949) 753-6800 Former name, former address and former fiscal year, if changed since last report: N/A Securitie ...