Q3 2024 Consumer Portfolio Services Inc Earnings Call Transcript
Key Points
- Consumer Portfolio Services Inc (CPSS) reported a 9% increase in quarterly revenues, reaching $100.6 million compared to $92.1 million in the same quarter last year.
- The company achieved a 38% increase in origination volume for the quarter, with $446 million in new contracts compared to $322 million in the third quarter of the previous year.
- CPSS's fair value portfolio grew to $3.1 billion, yielding 11.3%, which is a positive indicator of portfolio performance.
- The company has successfully reduced its problematic paper from 2022 and early 2023 to less than 33% of the portfolio, indicating improved credit quality.
- CPSS has implemented AI technologies to enhance efficiency, reducing funding time to an all-time low of 1.79 days and increasing same-day funding to 17.35% of deals.
- Pre-tax earnings for the quarter decreased to $6.9 million from $14.2 million in the same quarter last year, indicating a decline in profitability.
- Net income for the quarter was $4.8 million, significantly lower than the $10.4 million reported in the third quarter of the previous year.
- The company's net interest margin decreased by 7% compared to the same quarter last year, reflecting a decline in profitability from interest-related activities.
- Annualized net charge-offs increased to 7.53% of the portfolio, up from 6.86% in the third quarter of the previous year, indicating higher credit losses.
- Delinquencies greater than 30 days rose to 14.04% of the total portfolio, compared to 12.31% in the same quarter last year, suggesting increased credit risk.
Good day, everyone and welcome to the Consumer Portfolio Services 2024 third-quarter, operating results conference call. Today's call is being recorded. Before we begin, management has asked me to inform you that this conference call may contain forward-looking statements. Any statements made during this call that are not statements of historical facts may be deemed forward-looking statements, statements regarding current or historical valuation of receivables because dependent on estimates of future events are also forward-looking statements. All such forward-looking statements are subject to risks that could cause actual results to differ materially from those projected.
I refer you to the company's annual report filed March 15, for further clarification. The company assumes no obligation to update publicly any forward-looking statements whether as a result of new information, further events or otherwise. With us here is Mr. Charles Bradley, Chief Executive Officer; Mr. Danny Bharwani, Chief Financial Officer; and Mr. Mike Lavin, President and Chief Operating Officer of Consumer Portfolio
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