Welcome to our dedicated page for Consumer Port news (Ticker: CPSS), a resource for investors and traders seeking the latest updates and insights on Consumer Port stock.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) is an independent specialty finance company focused on indirect automobile financing, and its news flow reflects developments across auto finance, funding, governance, and technology. The company regularly issues earnings announcements that detail revenues, operating expenses, pretax income, net income, receivables balances, delinquency rates, and net charge-offs for its auto loan portfolio. These earnings releases also discuss risk adjusted margins, recovery rates on repossessed vehicles, and trends in new contract purchases.
CPSS news frequently covers asset-backed securitizations of subprime automotive receivables. The company reports on term securitizations in which it sells receivables to a trust that issues multiple classes of asset-backed notes, with information on note amounts, interest rates, credit enhancement levels, and ratings from agencies such as Standard & Poor’s and DBRS Morningstar. These transactions illustrate how CPS funds its receivables through the securitization markets.
Another category of CPSS news involves credit facilities and funding agreements. The company announces revolving credit agreements secured by automobile receivables, including details on maximum facility sizes, advance rates against eligible receivables, interest rate formulas, and funding termination dates. Such releases provide insight into CPS’s access to warehouse funding and its capital structure.
CPS also issues news about strategic partnerships and technology. For example, it has announced a forward flow program with Valley Strong Credit Union that focuses on prime credit borrowers and leverages CPS’s AI enabled auto finance platform and proprietary AI enhanced loan and collections systems. This type of news highlights CPS’s efforts to serve borrowers across the credit spectrum and to support dealer partners.
Governance and shareholder matters can also appear in CPSS-related news, including statements from significant shareholders about proxy proposals and equity incentive plans. Together, these news items provide a view into CPSS’s financial performance, funding activities, risk profile, governance decisions, and use of technology in auto finance. Investors tracking CPSS news can monitor earnings, securitizations, credit facilities, and strategic initiatives affecting the company’s specialty finance operations.
Consumer Portfolio Services (CPSS) renewed its two-year revolving credit agreement with Citibank on December 18, 2020. This agreement allows CPS to secure loans against automobile receivables, either currently held or to be purchased. CPS can borrow on a revolving basis until December 18, 2022, with options for full repayment or amortization afterward.
The renewal supports CPS's strategy of maintaining three $100 million warehouse lines with multi-year revolving commitments, enhancing its financing capabilities.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) announced its board of directors has unanimously rejected an unsolicited acquisition offer from Auto Experience Inc. (AEI), stating the proposed price of $135 million significantly undervalues the company. After thorough consideration, the board concluded that accepting AEI's proposal would not serve the best interests of CPS shareholders. Furthermore, the board expressed doubts regarding the credibility of AEI's interest, emphasizing CPS’s strong long-term prospects.
Consumer Portfolio Services (CPSS) reported a net income of $3.8 million or $0.16 per diluted share for Q3 2020, up from $1.8 million in Q3 2019. Total revenues for Q3 2020 were $70.7 million, down 17.4% from $85.5 million in the same period last year. However, operating expenses decreased by 21.7% to $64.8 million. For the nine months ended September 30, 2020, revenues were $208.7 million, down 19.7% year-over-year. The company also purchased $174 million in new contracts during Q3 2020.
Consumer Portfolio Services, Inc. (CPSS) will hold a conference call on October 20, 2020, at 1:00 p.m. ET to discuss its third quarter 2020 results. Interested participants can join by calling 877-312-5502 for domestic or 253-237-1131 for international calls, 10 minutes prior to the start. A replay will be available from October 20 to October 27, and the call will be streamed live on the company’s website, www.consumerportfolio.com. CPSS specializes in indirect automobile financing for individuals with limited credit histories.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) has received a non-binding, unsolicited offer to acquire the company from Auto Experience Inc. (AEI) valued at $135 million. CPS asserts that AEI's press release misrepresents the proposal's terms, which are contingent on various conditions. The CPS Board will carefully evaluate the offer, considering AEI's ability to fulfill the proposal and its fiduciary duties to shareholders. CPS advises investors to critically review any future communications from AEI and rely on official filings with the U.S. Securities and Exchange Commission.
Auto Experience has proposed to acquire Consumer Portfolio Services (CPSS) in an all-cash deal valued at $135 million. This acquisition aims to enhance CPSS’s operations using advanced technology and digital capabilities. The proposal is set at $6.18 per share, nearly doubling CPSS’s closing price of $3.35 on October 7, 2020. Auto Experience's CEO, Samuel M. Ellis, believes that this transaction presents substantial growth opportunities for CPSS and its shareholders, leveraging Auto Experience's experience in automobile financing.
Consumer Portfolio Services (CPSS) announced the closing of its third term securitization in 2020, marking the 37th since 2011 and the 20th consecutive securitization receiving a triple 'A' rating from at least two agencies. The transaction raised $252.2 million from qualified institutional buyers backed by $260 million in automobile receivables. The securitization features a weighted average coupon of approximately 2.39% and initial credit enhancements. CPS plans an additional sale of about $63.7 million in receivables in October 2020 to support long-term financing.
Consumer Portfolio Services (CPSS) reported a net income of $3.0 million, equating to $0.13 per diluted share, for Q2 2020, compared to $1.8 million or $0.08 per diluted share in Q2 2019. Revenue saw a significant drop of 22% year-over-year to $67.3 million. Operating expenses decreased by 25% to $62.6 million. Despite pretax income rising 67.6% to $4.6 million, the company recorded pretax charges of $12.6 million due to pandemic-related losses. Total receivables decreased to $2.326 billion, with an annualized net charge-off rate of 7.39%.
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) will hold a conference call on July 22, 2020, at 1:00 p.m. ET to discuss its Q2 2020 operating results. Participants can call 877-312-5502 or 253-237-1131 (international) to join. A replay will be available from July 22 to July 29 by calling 855-859-2056 or 404-537-3406 (international). The call will also be broadcast live and accessible for 90 days via the company’s website at www.consumerportfolio.com.
Consumer Portfolio Services (Nasdaq: CPSS) announced the successful closing of its second term securitization in 2020, marking its 36th senior subordinate securitization since 2011. This transaction received a triple 'A' rating for the 19th consecutive time from multiple agencies. Qualified buyers purchased $202.3 million in asset-backed notes secured by $221.9 million in automobile receivables. The notes feature an average coupon of approximately 4.09% and initial credit enhancement, ensuring the transaction's stability and investor confidence.
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