CPS(US:CPSS)2025-11-10 21:25Financial Performance - For the three months ended September 30, 2025, the company's revenues were $108.4 million, an increase of $7.8 million, or 7.8%, from $100.6 million in the prior year[114]. - Interest income for the same period increased by $14.0 million, or 15.0%, to $107.2 million, driven by a 14.2% increase in the average balance of the loan portfolio[115]. - Revenues for the nine months ended September 30, 2025, were $325.1 million, an increase of $36.9 million, or 12.8%, from the prior year revenue of $288.2 million[137]. - Interest income for the nine months ended September 30, 2025, increased by $48.7 million, or 18.3%, to $314.5 million from $265.8 million in the prior year[138]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $101.4 million, an increase of $7.7 million, or 8.2%, primarily due to higher interest expenses[118]. - Total operating expenses were $304.3 million for the nine months ended September 30, 2025, compared to $268.1 million for the prior period, an increase of $36.2 million, or 13.5%[142]. - Interest expense for the three months ended September 30, 2025, was $59.1 million, representing 58.3% of total operating expenses, compared to $50.1 million, or 53.4%, in the previous year[120]. - Interest expense for the nine months ended September 30, 2025, was $172.7 million, an increase of $34.0 million or 24.5% from $138.7 million in the previous year[145]. Portfolio Management - The company originated a total of approximately $24.3 billion of automobile contracts from inception through September 30, 2025[97]. - The managed portfolio at the end of September 30, 2025, was $3,892.9 million, reflecting an increase from $3,665.7 million at the end of 2024[97]. - Managed portfolio outstanding rose to $3,760.3 million as of September 30, 2025, up from $3,329.8 million in the prior year, indicating a 12.9% increase[144]. - The gross servicing portfolio increased to $3,760,315 thousand as of September 30, 2025, up from $3,329,836 thousand a year earlier, representing a growth of 12.9%[162]. Delinquency and Credit Losses - Total delinquencies rose to 25,479 contracts, amounting to $418,008 thousand, compared to 23,483 contracts and $374,715 thousand in the previous year, indicating an increase of 8.5% in contracts and 11.5% in amount[162]. - The percentage of total delinquencies as a percentage of the gross servicing portfolio was 11.99% as of September 30, 2025, compared to 11.12% a year prior, reflecting a deterioration in delinquency rates[162]. - The company recorded a reduction to provision for credit losses of $712,000 for the three months ended September 30, 2025, compared to $994,000 in the prior year[133]. - The company recorded a reduction to provision for credit losses of $2.5 million for the nine months ended September 30, 2025, compared to $4.6 million in the prior year[156]. Debt and Liquidity - As of September 30, 2025, the company had approximately $3,435.2 million of debt outstanding, which includes $2,916.4 million of securitization trust debt, an increase of 12.3% since December 31, 2024[191]. - The company issued $1,280.7 million in new securitization trust debt during the first nine months of 2025, compared to $1,453.9 million for the same period in 2024, representing a decrease of 11.9%[184]. - As of September 30, 2025, the company had unrestricted cash of $8.1 million and $271.0 million in aggregate available borrowings under its two warehouse credit facilities[187]. - The company’s liquidity is affected by the performance of securitized pools, which determines the level of cash releases from those pools[188]. Extensions and Repossession - The average number of extensions granted per month increased to 8,725 in the nine months ended September 30, 2025, compared to 7,342 in the same period of 2024, showing a rise of 18.9%[174]. - Total contracts with extensions reached 95,438, amounting to $1,590,560 thousand as of September 30, 2025, compared to 85,463 contracts and $1,348,901 thousand in the previous year, indicating a growth of 11.6% in contracts[162]. - The total amount in repossession was $106,907 thousand as of September 30, 2025, compared to $92,939 thousand a year earlier, reflecting an increase of 15.0%[162]. - The average monthly extensions as a percentage of average outstandings was 4.2% for the nine months ended September 30, 2025, up from 3.9% in the previous year[174].