Consumer Portfolio Services Reports Third Quarter Gains

Consumer Portfolio Services ( (CPSS) ) has released its Q3 earnings. Here is a breakdown of the information Consumer Portfolio Services presented to its investors.

Consumer Portfolio Services, Inc. is an independent specialty finance company that focuses on providing indirect automobile financing to individuals with past credit problems or limited credit histories, primarily through the purchase of retail installment sales contracts from automobile dealerships.

In its third-quarter earnings report for 2024, Consumer Portfolio Services reported a net income of $4.8 million, marking a diluted earnings per share of $0.20. The company’s revenues for the quarter amounted to $100.6 million, representing a 9.2% increase from the previous year, alongside record-breaking contract purchases and portfolio balances.

Key highlights from the earnings report include an increase in new contract purchases to $445.9 million, up from $322.4 million in the previous year, and the highest total portfolio balance in the company’s history at $3.330 billion. However, despite these achievements, the company saw a decline in pre-tax income to $6.9 million compared to $14.2 million in the prior year, and an increase in operating expenses which rose to $93.7 million from $77.9 million.

The company also reported annualized net charge-offs of 7.32% and a slight increase in delinquencies over 30 days to 14.04% as of September 30, 2024. Despite these challenges, CEO Charles E. Bradley Jr. expressed optimism about future quarters, citing improvements in operating efficiencies and sustained growth in loan origination volumes.

Looking forward, Consumer Portfolio Services aims to leverage its improved operating efficiencies to continue driving growth and stability, despite the challenges posed by economic conditions and potential regulatory changes affecting consumer credit.