Consumer Port Stock Price, News & Analysis

Consumer Portfolio Services (Nasdaq: CPSS) has partnered with Prodigal to enhance its collections and servicing operations with AI technology. This collaboration aims to improve efficiency by automating routine tasks, which frees up agents to focus on customer interactions. Prodigal's AI solution is expected to reduce after-call wrap time and improve overall productivity, ultimately leading to increased revenue. CPS continues its commitment to advancing FinTech initiatives and enhancing the auto lending experience through innovative technology.

Consumer Portfolio Services (CPSS) partners with Informed.IQ to enhance its auto lending process through AI and machine learning. This collaboration aims to automate income calculations, credit stipulation collection, and documentation, ultimately improving efficiency and customer experience. By leveraging Informed's technology, CPS anticipates larger origination volumes and reduced risks, including fraud. The initiative supports CPS's strategic focus on digital transformation and inclusive lending practices, positioning it competitively amidst regulatory scrutiny in the financial sector.

Consumer Portfolio Services (Nasdaq: CPSS) announced the closing of its third term securitization in 2022, marking the company's 44th senior subordinate securitization since 2011. The transaction involved the sale of $391.6 million in asset-backed notes backed by $440.0 million in automobile receivables. This securitization received a triple 'A' rating from two agencies, Standard & Poor's and DBRS Morningstar. The weighted average coupon on the notes is approximately 6.02%. Additionally, initial credit enhancements include a cash deposit of 1.00% and overcollateralization of 11.00%.

Consumer Portfolio Services (CPSS) reported significant growth in its second-quarter results for 2022, achieving a net income of $25.3 million, or $0.91 per diluted share, up from $9.7 million, or $0.39 per diluted share, in the same period last year. Pretax income surged to $34.2 million, a 147% increase year-over-year. Revenues hit $82.0 million, compared to $66.8 million in 2021, while new contract purchases increased by 33.7% to $548.1 million. Operating expenses fell to $47.8 million from $52.9 million in 2021, enhancing overall profitability.

Consumer Portfolio Services (Nasdaq: CPSS) will hold a conference call on July 26, 2022, at 1:00 p.m. ET to discuss second quarter 2022 operating results. Participants can pre-register for the call via a provided link. The company, focused on providing indirect automobile financing to individuals with credit issues, purchases retail installment sales contracts primarily from franchised dealerships. The financing is mainly funded through the securitization market, supporting the growth of its portfolio.

On July 15, 2022, Consumer Portfolio Services (Nasdaq: CPSS) announced the renewal of its revolving credit agreement with Citibank, increasing its borrowing capacity from $100 million to $200 million. This agreement allows CPS to secure loans against automobile receivables until July 2024, with options for repayment or amortization thereafter. CPS specializes in providing auto financing to individuals with challenging credit histories, and this funding will support their operations and growth.

Consumer Portfolio Services (Nasdaq: CPSS) announced an increase in its credit agreement with Ares Agent Services, raising its capacity from $100 million to $200 million. This amended agreement allows CPS to secure loans against automobile receivables that it holds or will originate in the future. CPS can borrow on a revolving basis until January 31, 2024, with the option for repayment or amortization until January 31, 2028. The company specializes in indirect automobile financing for individuals with credit challenges.

Consumer Portfolio Services (Nasdaq: CPSS) announced the successful closing of its second term securitization in 2022, marking its 43rd overall since 2011. The securitization involved $395.6 million in asset-backed notes backed by $430 million in automobile receivables. This transaction received a triple ‘A’ rating from major agencies and features a weighted average coupon of approximately 4.83%. Additionally, the initial credit enhancement includes a cash deposit and overcollateralization. CPS aims to sell an additional $144.2 million of receivables in May 2022.

Consumer Portfolio Services, Inc. (CPSS) reported its best quarterly results since inception, with a net income of $21.1 million, or $0.75 per diluted share, for Q1 2022, up from $5.2 million in Q1 2021. Revenues increased by 17.8% to $74.4 million, while operating expenses decreased by 18.4% to $45.0 million. Notably, the company purchased $410 million in new contracts, a record high. Despite a rise in delinquencies to 8.52%, annualized net charge-offs improved to 3.3%. The strong metrics in credit performance boost the company's outlook for 2022.