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Consumer Portfolio Services reports developments tied to its specialty auto finance business, which purchases and services retail installment sales contracts from automobile dealers and provides indirect financing to borrowers with limited credit histories or past credit problems.
Company news commonly covers quarterly earnings, contract purchase volume, portfolio balances, delinquencies and net charge-offs, as well as asset-backed securitizations backed by automobile receivables. Updates also address warehouse credit facilities, residual-interest securitizations, forward flow arrangements, dealer relationships, and loan and collections systems used to originate and service auto contracts.
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.
Consumer Portfolio Services (Nasdaq: CPSS) announced a conference call scheduled for April 19, 2022, at 1:00 p.m. ET to discuss its Q1 2022 operating results. Participants can join by calling 877-312-5502 (international: 253-237-1131), with a replay available until April 26, 2022. The company specializes in indirect auto financing for individuals with credit challenges, purchasing retail installment sales contracts from dealerships, primarily funded through securitization markets.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) announced the nomination of Stephen H. Deckoff and James E. Walker III for election to its Board of Directors. This recommendation follows discussions with Black Diamond Capital Management, which owns approximately 22% of CPSS's outstanding shares. CEO Charles E. Bradley, Jr. endorsed the nominees, citing his long-standing acquaintance with them. The annual shareholders' meeting is anticipated in July 2022, with further details to be disclosed in the upcoming proxy materials.
Consumer Portfolio Services (CPSS) reported strong financial results for Q4 2021, with net income of $19.0 million ($0.71 per diluted share), up from $4.1 million ($0.17) in Q4 2020. Q4 revenues increased 11.1% to $69.4 million. Total operating expenses dropped 19.5% to $202.1 million for the year, leading to a pretax income of $65.7 million. New contract purchases reached $1.146 billion for 2021, a 54% increase year-over-year. The company also noted improved credit performance, with annualized net charge-offs at 2.57% compared to 5.18% in Q4 2020.
Consumer Portfolio Services (CPSS) announced a conference call on February 15, 2022, at 1:00 p.m. ET to discuss Q4 2021 operating results. Participants can join by calling 877 312-5502 (international: 253 237-1131) about 10 minutes before the start time, using conference ID 9319729. A replay will be available from February 15 to February 22, 2022, by calling 855 859-2056 (international: 404 537-3406). The call will also be streamed live on the company’s website, www.consumerportfolio.com.
Consumer Portfolio Services (Nasdaq: CPSS) has announced the renewal of its two-year revolving credit agreement with Ares Agent Services, effective February 2, 2022. This agreement allows CPS to secure loans backed by automobile receivables, with borrowing available until January 31, 2024. Post-revolving period, CPS has options for full repayment or amortization until January 31, 2028. The CEO, Charles E. Bradley, Jr., stated the renewal aligns with the company's strategy of maintaining substantial warehouse lines.
Consumer Portfolio Services (Nasdaq: CPSS) has successfully closed its first term securitization of 2022, marking its 42nd senior subordinate securitization since 2011. The transaction involved the sale of $316.8 million in asset-backed notes, backed by $330.0 million in automobile receivables. The notes received a triple “A” rating from two agencies and are structured with five classes of notes, featuring an average coupon rate of approximately 2.54%. Additionally, the securitization includes credit enhancements to support principal payments.
Consumer Portfolio Services (CPSS) has successfully closed its fourth term securitization in 2021, marking its 41st since 2011. The transaction involved the sale of $349.2 million in asset-backed notes backed by $360.0 million of automobile receivables. All notes received a triple 'A' rating from Moody's and DBRS Morningstar. The weighted average coupon on the notes is approximately 2.09%, and the transaction features initial credit enhancements of 4.00%. A pre-funding structure allows for the sale of additional receivables, facilitating long-term financing.
Consumer Portfolio Services (CPSS) reported a significant rise in third-quarter earnings for 2021, achieving net income of $13.7 million or $0.52 per diluted share, a 232% increase from the prior year. The company's pretax income soared to $19.5 million, up from $5.9 million in Q3 2020. However, total revenues decreased to $68.6 million, down from $70.7 million year-over-year. New contract purchases reached $327 million, a 14% rise compared to the previous quarter. CPS also repurchased approximately 2 million shares of its common stock, reaffirming its commitment to shareholders.