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].
CPS(CPSS) - 2023 Q4 - Annual Results