Consumer Portfolio Services Reports Strong Q3 Earnings Growth
Consumer Portfolio Services Reports Significant Q3 Earnings Growth
Consumer Portfolio Services, Inc. (NASDAQ: CPSS) has issued its third-quarter earnings report, showcasing substantial growth and a promising financial outlook. The report reveals revenues of $100.6 million for the quarter, reflecting a 9.2% increase from $92.1 million in the same period last year.
Highlights from the Quarterly Report
In addition to an impressive revenue growth, CPS reported a net income of $4.8 million, equivalent to $0.20 per diluted share. This represents a notable achievement for the company, now boasting a total portfolio balance of $3.33 billion, the highest in its history.
Details on Contract Purchases
During the third quarter, CPS acquired new contracts amounting to $445.9 million. This is a clear increase from $322.4 million in the same quarter of the previous year and reflects a solid growth trajectory compared to $431.9 million in contract purchases recorded in the prior quarter.
Operating Expenses and Income Analysis
While revenues have risen sharply, the total operating expenses for the quarter also increased, reaching $93.7 million compared to $77.9 million from last year. Despite this rise in expenses, the firm reported a pretax income of $6.9 million, although it is a decrease from $14.2 million recorded in Q3 of the previous year.
Financial Performance Overview
Examining the nine-month period ending September 30, 2024, the company amassed total revenues of $288.2 million, up from $260 million during the same timeframe last year. Operating expenses for this nine-month period reached $268.1 million, an increase from $208.8 million last year, with a pretax income of $20.1 million versus $51.3 million in the previous year, primarily due to higher expenses.
Charge-Off and Delinquency Rates
The annualized net charge-offs for Q3 2024 amounted to 7.32% of the average portfolio, a slight uptick from 6.86% reported in Q3 2023. Delinquencies exceeding 30 days were reported at 14.04% as of September 30, 2024, indicating a rise compared to 13.31% from a year prior.
CEO's Insights on Future Strategies
Charles E. Bradley Jr., CEO of CPS, expressed optimism regarding the company's growth trajectory, stating, "New loan origination volumes have outpaced the prior quarter for a fourth consecutive quarter. This positions us well for future quarters." He emphasized on the company's continual improvements in operating efficiencies as it navigates through various market environments.
Conference Call Announcements
An upcoming conference call is scheduled for November 1, 2024, at 1:00 p.m. ET, wherein executives from CPS will detail the quarterly performance to investors and analysts. Participants may pre-register for this call to ensure they receive relevant dial-in information.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. specializes in indirect automobile financing, particularly catering to individuals with prior credit challenges or limited credit histories. The company primarily purchases retail installment sales contracts from franchised auto dealerships, providing funding for these acquisitions mainly through securitization markets.
Frequently Asked Questions
What were the revenue figures for CPS in Q3 2024?
In Q3 2024, CPS reported revenues of $100.6 million, a 9.2% increase from the previous year's $92.1 million.
How did the net income change compared to last year?
CPS reported a net income of $4.8 million for Q3 2024, compared to $10.4 million in the third quarter of the previous year.
What is the current total portfolio balance for CPS?
The total portfolio balance for CPS reached $3.33 billion as of September 30, 2024, marking a record high for the company.
What guidance did the CEO provide for future performance?
The CEO indicated that the company’s loan origination volumes have improved for four consecutive quarters, positioning CPS for sustained growth.
When is the next conference call for CPS?
The next conference call is scheduled for November 1, 2024, to discuss the third-quarter operating results with investors and analysts.
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