Group 1 - Consumer Portfolio Services, Inc. (CPS) will present at the 2024 Annual Gateway Conference on September 4 at 10:00 a.m. Pacific Time [1][2] - The conference will take place at the Four Seasons Hotel in San Francisco, CA, and will feature over 100 private and public companies [3][4] - CPS provides indirect automobile financing primarily to individuals with past credit issues or limited credit histories, focusing on retail installment sales contracts from franchised automobile dealerships [6] Group 2 - The Gateway Conference aims to connect growth-stage companies with investors, analysts, and partners, celebrating 25 years of fostering industry connections [3][4] - Gateway Group, the organizer of the conference, specializes in financial communications and digital media advisory for emerging growth companies [5]

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 ...

Core Points - Consumer Portfolio Services, Inc. (CPS) has renewed its two-year revolving credit agreement with Citibank, N.A. on July 11, 2024 [1] - The renewed credit agreement allows CPS to secure loans against automobile receivables, which it currently holds or will acquire from dealers in the future [2] - CPS can borrow on a revolving basis until July 15, 2026, after which it has the option to either repay the outstanding loans in full or allow them to amortize over a one-year period [2] Company Overview - Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit issues or limited credit histories [3] - The company primarily purchases retail installment sales contracts from franchised automobile dealerships, secured by late model used vehicles and, to a lesser extent, new vehicles [3] - CPS funds these contract purchases on a long-term basis through the securitization markets and services the contracts throughout their duration [3]

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 ...