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CPS Announces Fourth Quarter and Full Year 2023 Earnings
来源: Nasdaq GlobeNewswire / 15 3月 2024 14:00:37 America/New_York
- Pretax income of $9.8 million for the fourth quarter and $61.1 million for 2023
- Revenues of $92.0 million for the fourth quarter and $352.0 million for 2023
- Net income of $45.3 million, or $1.80 per diluted share for 2023
- New contract purchases of $1.358 billion for the full year 2023
- Largest managed portfolio balance in company history, $3.2 billion
LAS VEGAS, NV, March 15, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $7.2 million, or $0.29 per diluted share, for its fourth quarter ended December 31, 2023. This compares to a net income of $14.1 million, or $0.59 per diluted share, in the fourth quarter of 2022.
Revenues for the fourth quarter of 2023 were $92.0 million, an increase of $9 million, or 10.8%, compared to $83.0 million for the fourth quarter of 2022. Total operating expenses for the fourth quarter of 2023 were $82.1 million compared to $64.7 million for the 2022 period. Pretax income for the fourth quarter of 2023 was $9.8 million compared to pretax income of $18.3 million in the fourth quarter of 2022.
For the twelve months ended December 31, 2023 total revenues were $352.0 million compared to $329.7 million for the twelve months ended December 31, 2022, an increase of approximately $22.3 million, or 6.8%. Total expenses for the twelve months ended December 31, 2023 were $290.9 million, compared to $213.5 million for the twelve months ended December 31, 2022. Pretax income for the twelve months ended December 31, 2023 was $61.1 million, compared to $116.2 million for the twelve months ended December 31, 2022. Net income for the twelve months ended December 31, 2023 was $45.3 million, or $1.80 per diluted share. This compares to net income of $86.0 million, or $3.23 per diluted share for the twelve months ended December 31, 2022.
During the fourth quarter of 2023, CPS purchased $301.8 million of new contracts compared to $322.4 million during the third quarter of 2023 and $428.1 million during the fourth quarter of 2022. The Company's receivables totaled $2.970 billion as of December 31, 2023, an increase from $2.943 billion as of September 30, 2023 and an increase from $2.795 billion as of December 31, 2022. Including receivables we service for third parties, our total managed portfolio increased from $3.001 billion at December 31, 2022 to $3.195 billion at December 31, 2023.
Annualized net charge-offs for the fourth quarter of 2023 were 7.74% of the average portfolio as compared to 5.83% for the fourth quarter of 2022. Delinquencies greater than 30 days (including repossession inventory) were 14.55% of the total portfolio as of December 31, 2023, as compared to 12.68% as of December 31, 2022.
“We reported solid results for the fourth quarter and for the full year 2023” said Charles E. Bradley Jr., Chief Executive Officer. “Strong loan originations led to continued revenue growth and brought our managed portfolio to new record high levels.”
Conference Call
CPS announced that it will hold a conference call on Monday, March 18, 2024 at 1:00 p.m. ET to discuss its fourth quarter 2023 operating results.
Those wishing to participate can pre-register for the conference call at the following link https://register.vevent.com/register/BI280eff9814e7495fb11dd11c31078155. Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the schedule start time. A replay will be available beginning two hours after conclusion of the call for 12 months via the Company’s website at https://ir.consumerportfolio.com/investor-relations.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
Forward-looking statements in this news release include the Company's recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are forward-looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such estimates may be adversely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company’s realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company's business is concentrated. Any or all of such factors also may affect the Company’s future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect future performance.
Investor Relations Contact
Danny Bharwani, Chief Financial Officer
949-753-6811
Consumer Portfolio Services, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three months ended Twelve months ended December 31, December 31, 2023 2022 2023 2022 Revenues: Interest income $ 83,260 $ 79,690 $ 329,219 $ 305,237 Mark to finance receivables measured at fair value 6,000 - 12,000 15,283 Other income 2,718 3,330 10,795 9,189 91,978 83,020 352,014 329,709 Expenses: Employee costs 23,157 20,868 88,148 84,282 General and administrative 13,777 11,699 50,001 37,618 Interest 40,277 28,870 146,631 87,524 Provision for credit losses (1,600 ) (4,700 ) (22,300 ) (28,100 ) Other expenses 6,523 7,978 28,437 32,192 82,134 64,715 290,917 213,516 Income before income taxes 9,844 18,305 61,097 116,193 Income tax expense 2,657 4,170 15,754 30,210 Net income $ 7,187 $ 14,135 $ 45,343 $ 85,983 Earnings per share: Basic $ 0.34 $ 0.69 $ 2.17 $ 4.10 Diluted $ 0.29 $ 0.59 $ 1.80 $ 3.23 Number of shares used in computing earnings per share: Basic 21,136 20,341 20,896 20,958 Diluted 24,879 23,828 25,218 26,589 Condensed Consolidated Balance Sheets (In thousands) (Unaudited) December 31, December 31, 2023 2022 Assets: Cash and cash equivalents $ 6,174 $ 13,490 Restricted cash and equivalents 119,257 149,299 Finance receivables measured at fair value 2,722,662 2,476,617 Finance receivables 27,553 92,304 Allowance for finance credit losses (2,869 ) (21,753 ) Finance receivables, net 24,684 70,551 Deferred tax assets, net 3,736 10,177 Other assets 27,233 32,634 $ 2,903,746 $ 2,752,768 Liabilities and Shareholders' Equity: Accounts payable and accrued expenses $ 62,544 $ 55,421 Warehouse lines of credit 234,025 285,328 Residual interest financing 49,875 49,623 Securitization trust debt 2,265,446 2,108,744 Subordinated renewable notes 17,188 25,263 2,629,078 2,524,379 Shareholders' equity 274,668 228,389 $ 2,903,746 $ 2,752,768 Operating and Performance Data ($ in millions) At and for the At and for the Three months ended Twelve months ended December 31, December 31, 2023 2022 2023 2022 Contracts purchased $ 301.80 $ 428.08 $ 1,357.75 $ 1,854.39 Contracts securitized 306.70 337.38 1,352.11 1,537.38 Total portfolio balance (1) $ 2,970.07 $ 2,795.38 $ 2,970.07 $ 2,795.38 Average portfolio balance (1) 2,958.95 2,764.80 2,913.57 2,539.11 Delinquencies (1) 31+ Days 12.29 % 11.20 % Repossession Inventory 2.26 % 1.48 % Total Delinquencies and Repo. Inventory 14.55 % 12.68 % Annualized Net Charge-offs as % of Average Portfolio (1) 7.74 % 5.83 % 6.53 % 4.53 % Recovery rates (1), (2) 34.3 % 43.6 % 39.2 % 52.3 % For the For the Three months ended Twelve months ended December 31, December 31, 2023 2022 2023 2022 $ (3 ) % (4) $ (3 ) % (4) $ (3 ) % (4) $ (3 ) % (4) Interest income $ 83.26 11.3 % $ 79.69 11.5 % $ 329.22 11.3 % $ 305.24 12.0 % Mark to finance receivables measured at fair value 6.00 0.8 % - 0.0 % 12.00 0.4 % 15.28 0.6 % Other income 2.72 0.4 % 3.33 0.5 % 10.80 0.4 % 9.19 0.4 % Interest expense (40.28 ) -5.4 % (28.87 ) -4.2 % (146.63 ) -5.0 % (87.52 ) -3.4 % Net interest margin 51.70 7.0 % 54.15 7.8 % 205.38 7.0 % 242.19 9.5 % Provision for credit losses 1.60 0.2 % 4.70 0.7 % 22.30 0.8 % 28.10 1.1 % Risk adjusted margin 53.30 7.2 % 58.85 8.5 % 227.68 7.8 % 270.29 10.6 % Core operating expenses (43.46 ) -5.9 % (40.55 ) -5.9 % (166.59 ) -5.7 % (154.09 ) -6.1 % Pre-tax income $ 9.84 1.3 % $ 18.30 2.6 % $ 61.10 2.1 % $ 116.19 4.6 % (1) Excludes third party portfolios. (2) Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale. (3) Numbers may not add due to rounding. (4) Annualized percentage of the average portfolio balance. Percentages may not add due to rounding.