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CPS Announces First Quarter 2023 Earnings

  • Revenues of $83.1 million compared to $74.4 million in the prior year period
  • Pretax income of $18.4 million
  • Net income of $13.8 million, or $0.54 per diluted share
  • New contract purchases of $415.2 million

LAS VEGAS, NV, April 26, 2023 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $13.8 million, or $0.54 per diluted share, for its first quarter ended March 31, 2023. This compares to a net income of $21.1 million, or $0.75 per diluted share, in the first quarter of 2022.

Revenues for the first quarter of 2023 were $83.1 million, an increase of $8.7 million, or 11.7%, compared to $74.4 million for the first quarter of 2022. Total operating expenses for the first quarter of 2023 were $64.7 million compared to $45.0 million for the 2022 period.   Pretax income for the first quarter of 2023 was $18.4 million compared to pretax income of $29.3 million in the first quarter of 2022.

During the first quarter of 2023, CPS purchased $415.2 million of new contracts compared to $428.1 million during the fourth quarter of 2022 and $410.0 million during the first quarter of 2022. The Company's receivables totaled $2.882 billion as of March 31, 2023, an increase from $2.795 billion as of December 31, 2022 and an increase from $2.324 billion as of March 31, 2022.

Annualized net charge-offs for the first quarter of 2023 were 5.20% of the average portfolio as compared to 3.29% for the first quarter of 2022. Delinquencies greater than 30 days (including repossession inventory) were 9.92% of the total portfolio as of March 31, 2023, as compared to 8.59% as of March 31, 2022.

We had a strong start to the year,” said Charles E. Bradley, Chief Executive Officer. “Revenues for the quarter increased by 12% and our loan portfolio balance is higher by 24% over last year. Credit performance is holding up well despite the economic headwinds.”

Conference Call

CPS announced that it will hold a conference call on Thursday, April 27, 2023 at 2:00 p.m. ET to discuss its first quarter 2023 operating results.

Those wishing to participate can pre-register for the conference call at the following link Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the schedule start time. A replay will be available beginning two hours after conclusion of the call for 12 months via the Company’s website at

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.

Forward-looking statements in this news release include the Company's recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are forward-looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such estimates may be adversely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company’s realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company's business is concentrated. Any or all of such factors also may affect the Company’s future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect future performance.

Investor Relations Contact

Danny Bharwani, Chief Financial Officer


Consumer Portfolio Services, Inc. and Subsidiaries 
Condensed Consolidated Statements of Operations 
(In thousands, except per share data) 
   Three months ended  
   March 31,  
    2023    2022   
Interest income  $80,062   $70,060   
Mark to finance receivables measured at fair value -    2,400   
Other income   3,038    1,906   
    83,100    74,366   
Employee costs   22,033    22,152   
General and administrative   11,396    8,231   
Interest   32,759    16,400   
Provision for credit losses   (9,000)   (9,400)  
Other expenses   7,481    7,655   
    64,669    45,038   
Income before income taxes   18,431    29,328   
Income tax expense   4,608    8,213   
     Net income  $13,823   $21,115   
Earnings per share:        
     Basic  $0.68   $0.99   
     Diluted  $0.54   $0.75   
Number of shares used in computing earnings        
   per share:        
     Basic   20,418    21,221   
     Diluted   25,392    28,197   
Condensed Consolidated Balance Sheets 
(In thousands) 
   March 31,  December 31   
    2023    2022   
Cash and cash equivalents  $10,188   $13,490   
Restricted cash and equivalents   158,895    149,299   
Finance receivables measured at fair value   2,575,117    2,476,617   
Finance receivables   69,533    92,304   
Allowance for finance credit losses   (14,728)   (21,753)  
Finance receivables, net   54,805    70,551   
Deferred tax assets, net   9,792    10,177   
Other assets   27,825    32,634   
   $2,836,622   $2,752,768   
Liabilities and Shareholders' Equity:        
Accounts payable and accrued expenses  $59,825   $55,421   
Warehouse lines of credit   285,809    285,328   
Residual interest financing   49,686    49,623   
Securitization trust debt   2,175,068    2,108,744   
Subordinated renewable notes   23,443    25,263   
    2,593,831    2,524,379   
Shareholders' equity   242,791    228,389   
   $2,836,622   $2,752,768   
Operating and Performance Data ($ in millions)        
   At and for the  
   Three months ended  
   March 31,  
    2023    2022   
Contracts purchased  $415.15   $409.96   
Contracts securitized   362.87    330.00   
Total portfolio balance (5)  $2,881.84   $2,324.35   
Average portfolio balance (5)   2,856.60    2,273.48   
Delinquencies (5)        
31+ Days   8.26%   7.45%  
Repossession Inventory   1.66%   1.14%  
Total Delinquencies and Repo. Inventory   9.92%   8.59%  
Annualized Net Charge-offs as % of Average Portfolio (5)   5.20%   3.29%  
Recovery rates (2)   41.8%   61.4%  
   For the 
   Three months ended 
   March 31, 
    2023   2022  
   $ (3)% (4) $ (3)% (4) 
Interest income  $80.06 11.2% $70.06 12.3% 
Mark to finance receivables measured at fair value - -   2.40 0.4% 
Other income   3.04 0.4%  1.91 0.3% 
Interest expense   (32.76)-4.6%  (16.40)-2.9% 
Net interest margin   50.34 7.0%  57.97 10.2% 
Provision for credit losses   9.00 1.3%  9.40 1.7% 
Risk adjusted margin   59.34 8.3%  67.37 11.9% 
Core operating expenses   (40.91)-5.7%  (38.04)-6.7% 
Pre-tax income  $18.43 2.6% $29.33 5.2% 
(1) Includes allowance for finance credit losses and allowance for repossession inventory. 
(2) Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale.
(3) Numbers may not add due to rounding.        
(4) Annualized percentage of the average portfolio balance. Percentages may not add due to rounding.
(5) Excludes third party portfolios.        

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