Q4 2024 Consumer Portfolio Services Inc Earnings Call Transcript
Key Points
- Consumer Portfolio Services Inc (CPSS) reported a 14% increase in fourth-quarter revenues compared to the previous year, driven by strong growth in loan originations.
- Loan originations for the year reached $1.68 billion, marking a 24% increase from 2023, indicating robust demand and effective sales strategies.
- The company's fair value portfolio increased to $3.5 billion, yielding 11.3%, showcasing improved credit performance and portfolio growth.
- CPSS achieved a record portfolio balance of $3.41 billion by the end of 2024, reflecting successful expansion efforts.
- The company has strengthened its operational capabilities by hiring 42 new sales reps and expanding into new territories, setting the stage for future growth in 2025.
- Pre-tax earnings for the quarter decreased by 24% compared to the same period last year, indicating challenges in maintaining profitability.
- Net income for the year dropped significantly to $19.2 million from $45.3 million in 2023, reflecting financial pressures.
- Interest expenses continue to rise due to higher rates and increased securitization debt, impacting overall financial performance.
- Auction recoveries remain low at around 30%, affected by macroeconomic issues such as inflation and higher car values.
- The company's return on managed assets decreased to 0.9% for the year, down from 2.1% in 2023, highlighting efficiency challenges.
Good day everyone and welcome to the Consumer Portfolio Services 2024, Fourth 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 evaluation of receivables because dependent on estimates of future events also are forward-looking statements. All such forward-looking statements are subject to risk 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
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