Group 1 - Consumer Portfolio Services, Inc. (CPS) announced the closing of its third term securitization in 2025, marking its 56th senior subordinate securitization since 2011 and the 39th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1][2] - The transaction involved qualified institutional buyers purchasing $418.33 million of asset-backed notes secured by $433.50 million in automobile receivables originated by CPS, issued by CPS Auto Receivables Trust 2025-C [2] - The securitization notes consist of five classes with varying amounts, interest rates, and ratings, with a weighted average coupon of approximately 5.43% [3] Group 2 - The 2025-C transaction features initial credit enhancement including a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.50%, with agreements requiring accelerated principal payments to achieve specified overcollateralization levels [4] - CPS is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories, primarily funding contract purchases through securitization markets [6]

Core Insights - AutoNation, Inc. reported second quarter 2025 revenue of $7.0 billion, an 8% increase year-over-year, while diluted EPS decreased to $2.26 from $3.20, and adjusted EPS rose to $5.46 from $3.99 [1][7][10] Financial Performance - Revenue for the second quarter of 2025 was $6,974.4 million, up from $6,480.4 million in the same period last year, reflecting an 8% increase [3][21] - Gross profit increased by 10% to $1,275.4 million from $1,163.1 million [3][21] - Operating income decreased by 21% to $217.6 million from $275.0 million [3][21] - Net income fell by 34% to $86.4 million compared to $130.2 million a year ago [3][21] - Adjusted operating income for the quarter was $369.3 million, a 16% increase from $318.5 million [4] - Adjusted net income rose by 29% to $209.2 million from $162.5 million [4] Segment Performance - Same-store revenue increased by 8% to $6.9 billion, driven by higher new vehicle unit sales and increased average selling prices [8][12] - New vehicle revenue was $3.4 billion, up 9%, while used vehicle revenue increased by 4% to $2.0 billion [8] - After-sales revenue grew by 12% to $1.2 billion, and customer financial services revenue rose by 13% to $363 million [8] - Same-store gross profit increased by 10% to $1.3 billion [8] Capital Allocation and Liquidity - Cash used in operating activities for the first half of 2025 was $230 million, with auto loans receivable net increasing by $695 million [5] - AutoNation repurchased 1.5 million shares for $254 million, with over $607 million remaining under its repurchase authorization [6] - As of June 30, 2025, AutoNation had $1.8 billion in liquidity, including $63 million in cash [9] Market Position and Strategy - The company experienced double-digit growth in customer financial services and after-sales, alongside improved new vehicle market share [2] - The successful completion of a $700 million asset-backed securitization for its auto loan portfolio at a fixed interest rate of 4.90% [9]

Group 1 - The core announcement is about Consumer Portfolio Services, Inc. closing its second term securitization in 2025, marking its 55th senior subordinate securitization since 2011 and the 38th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1][2] - The securitization involved the sale of $419.95 million in asset-backed notes secured by $439.29 million in automobile receivables, with the notes issued by CPS Auto Receivables Trust 2025-B [2] - The transaction consists of five classes of notes with varying interest rates and ratings, with a weighted average coupon of approximately 5.96% [3] Group 2 - Initial credit enhancement for the 2025-B transaction includes a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 4.40%, with agreements requiring accelerated principal payments to achieve specified overcollateralization levels [4] - Consumer Portfolio Services, Inc. specializes in providing indirect automobile financing to individuals with past credit issues or limited credit histories, primarily funding through securitization markets [6]