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Consumer Portfolio Services Inc (CPSS) is a specialized finance company dedicated to providing indirect automobile financing to individuals who face challenges such as past credit problems, low incomes, or limited credit histories. Founded in 1991, the company has built a robust portfolio by purchasing retail installment sales contracts from automobile dealerships. These contracts are primarily secured by late-model used vehicles, with a minor portion involving new vehicles.
The company's core business involves acquiring these contracts from franchised and select independent dealerships across the United States. By doing so, CPSS offers an alternative financing solution for customers who are often referred to as sub-prime due to their credit profiles. This approach not only aids consumers in securing vehicle financing but also supports dealerships in closing sales that might otherwise be unattainable.
CPSS funds its contract purchases primarily through the securitization markets, ensuring long-term stability and sustainability. The company then services these contracts over their entire lifespan, maintaining a steady revenue stream and fostering lasting relationships with its customers. As of June 2015, CPSS has purchased over $11.8 billion in contracts and is currently servicing a managed portfolio worth approximately $1.8 billion, encompassing around 140,000 customers.
Headquartered in Irvine, California, CPSS operates additional servicing branches in Florida, Illinois, Nevada, and Virginia, strategically positioned to optimize operational efficiency and customer service. With a dedicated workforce of approximately 900 employees and dealer relationships spanning across 48 states, CPSS stands as a significant player in the U.S. specialty finance sector.
Consumer Portfolio Services (CPSS) has closed its fourth term securitization of 2024, totaling $416.82 million in asset-backed notes secured by $436.00 million in automobile receivables. This marks the company's 53rd senior subordinate securitization since 2011 and the 36th consecutive to receive a triple 'A' rating from at least two rating agencies on the senior class of notes.
The transaction, CPS Auto Receivables Trust 2024-D, consists of five note classes with varying interest rates and average lives. The weighted average coupon on the notes is approximately 5.52%. Initial credit enhancement includes a 1.00% cash deposit and 4.40% overcollateralization. The deal utilizes a pre-funding structure, with CPS selling $298.42 million of receivables at inception and planning to sell an additional $137.58 million in October 2024.
Consumer Portfolio Services (Nasdaq: CPSS) is set to present at the 2024 Annual Gateway Conference in San Francisco on September 4 at 10:00 a.m. PT. The event, held at the Four Seasons Hotel, will feature a live webcast of CPS's presentation, which will also be available for replay. CPS executives will be available for one-on-one meetings throughout the conference, offering investors and analysts direct access to the company's management team.
This presentation provides an opportunity for CPS to showcase its business strategies and financial performance to a wider audience of potential investors and industry professionals. Interested parties can request an invitation or schedule meetings by emailing conference@gateway-grp.com.
Consumer Portfolio Services (CPSS) reported Q2 2024 earnings with revenues of $95.9 million, up 13% year-over-year. Net income was $4.7 million, or $0.19 per diluted share, compared to $14.0 million, or $0.55 per share, in Q2 2023. Pretax income decreased to $6.7 million from $18.6 million last year. New contract purchases surged to $431.9 million, a 36% increase from Q2 2023. The company's receivables totaled $3.173 billion as of June 30, 2024. Annualized net charge-offs rose to 7.26% from 6.29% in Q2 2023, while delinquencies increased to 13.29% from 11.72% year-over-year. Despite challenges, CPSS achieved its largest securitization in company history, focusing on controlled growth and operational efficiency.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) has announced a conference call to discuss its second quarter 2024 operating results. The call is scheduled for Wednesday, July 31, 2024, at 1:00 p.m. ET. Participants can pre-register for the call using a provided link and will receive dial-in details via email. To avoid delays, participants are encouraged to dial in fifteen minutes before the start time. A replay of the call will be available for 12 months on the company's investor relations website.
CPS is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or credit histories. The company purchases retail installment sales contracts primarily from franchised automobile dealerships, secured by late model used vehicles and, to a lesser extent, new vehicles. CPS funds these purchases through securitization markets and services the contracts over their lives.
Consumer Portfolio Services (CPS) announced the renewal of its two-year revolving credit agreement with Citibank, N.A., effective July 11, 2024. This $200 million credit facility will be secured by automobile receivables that CPS owns or will purchase in the future. The agreement allows CPS to borrow on a revolving basis until July 15, 2026, after which it can either repay the outstanding loans in full or let them amortize over one year. CPS provides automobile financing to individuals with poor or credit histories, purchasing installment sales contracts from dealerships and securing them through the securitization market.
Consumer Portfolio Services (CPS) announced the closing of a $436.31 million senior subordinate asset-backed securitization on June 26, 2024. This marks CPS's third term securitization in 2024 and its 52nd since 2011. The transaction involves asset-backed notes secured by $460 million in automobile receivables.
The notes, issued by CPS Auto Receivables Trust 2024-C, include five classes with a weighted average coupon of 6.56%. The transaction received a triple “A” rating on the senior class from Standard & Poor's and DBRS Morningstar.
Initial credit enhancement includes a 1% cash deposit and 5.15% overcollateralization. The securitization uses a pre-funding structure, with $319.85 million in receivables sold initially and an additional $140.15 million to be sold in July 2024.
Consumer Portfolio Services, Inc. announced earnings of $4.6 million, or $0.19 per diluted share, for the first quarter of 2024. Revenues were $91.7 million, up 10.4% from the prior year period. The company recorded increased operating expenses and a decrease in pretax income compared to 2023. CPS purchased $346.3 million of new contracts in Q1 2024.
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