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CPSS
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CPS Announces Fourth Quarter and Full Year 2024 Earnings

1. Q4 revenues rose 14.5% to $105.3M; net income dropped to $5.1M. 2. Full-year revenues increased 11.8% to $393.5M; net income fell from $45.3M. 3. New contract purchases hit $1.682B with 24% loan origination growth; outlook remains positive. 4. Total portfolio balance reached a record $3.491B; delinquencies edged up slightly.

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Why Neutral?

While revenue and contract growth signal strength, the decline in net income and margin pressures temper enthusiasm. Similar earnings reports in specialty finance have led to muted immediate price reactions due to cost pressures offsetting top‐line gains.

How important is it?

The report delivers significant data on revenue growth, portfolio expansion, and cost increases, directly impacting CPSS’s valuation. However, the margin compression and lower net income reduce the overall bullish case, making the net impact balanced but important for near-term trading.

Why Short Term?

Earnings reports typically influence stock prices in the short-run. Investors often react immediately during post-announcement trading despite potential long-term fundamentals.

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February 25, 2025 16:31 ET  | Source: Consumer Portfolio Services, Inc. Revenues of $105.3 million for the fourth quarter and $393.5 million for 2024Net income of $19.2 million, or $0.79 per diluted share for 2024Total portfolio balance of $3.491 billion, highest in company historyNew contract purchases of $1.682 billion for the full year 2024 LAS VEGAS, NV, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $5.1 million, or $0.21 per diluted share, for its fourth quarter ended December 31, 2024. Revenues for the fourth quarter of 2024 were $105.3 million, an increase of $13.3 million, or 14.5%, compared to $92.0 million for the fourth quarter of 2023. Total operating expenses for the fourth quarter of 2024 were $98.0 million compared to $82.1 million for the 2023 period.   Pretax income for the fourth quarter of 2024 was $7.4 million compared to pretax income of $9.8 million in the fourth quarter of 2023. For the twelve months ended December 31, 2024 total revenues were $393.5 million compared to $352.0 million for the twelve months ended December 31, 2023, an increase of approximately $41.5 million, or 11.8%. Total operating expenses for the twelve months ended December 31, 2024 were $366.1 million, compared to $290.9 million for the twelve months ended December 30, 2023. Pretax income for the twelve months ended December 31, 2024 was $27.4 million, compared to $61.1 million for the twelve months ended December 31, 2023. Net income for the twelve months ended December 31, 2024 was $19.2 million compared to $45.3 million for the twelve months ended December 31, 2023. During the fourth quarter of 2024, CPS purchased $457.8 million of new contracts compared to $445.9 million during the third quarter of 2024 and $301.8 million during the fourth quarter of 2023. The total number of contracts purchased for 2024 totaled $1.682 billion compared to $1.358 billion in 2023. The Company's receivables totaled $3.491 billion as of December 31, 2024, an increase from $3.330 billion as of September 31, 2024 and an increase from $2.970 billion as of December 31, 2023. Annualized net charge-offs for the fourth quarter of 2024 were 8.02% of the average portfolio as compared to 7.74% for the fourth quarter of 2023. Delinquencies greater than 30 days (including repossession inventory) were 14.85% of the total portfolio as of December 31, 2024, compared to 14.55% as of December 31, 2023. “New loan originations grew by 24% in 2024 over the prior year, leading to solid top line revenue growth,” said Charles E. Bradley, Chief Executive Officer. “With positive trends in loan originations and operating efficiencies, we remain optimistic in all aspects of our business going into 2025.” Conference Call CPS announced that it will hold a conference call on February 26, 2025 at 1:00 p.m. ET to discuss its fourth quarter 2024 operating results. Those wishing to participate can pre-register for the conference call at the following link https://register.vevent.com/register/BI34e818cf84a24e118241657af74dd2d4. 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 SubsidiariesCondensed Consolidated Statements of Operations(In thousands, except per share data)(Unaudited)         Three months ended Twelve months ended December 31, December 31,  2024   2023   2024   2023 Revenues:       Interest income$98,150  $83,260  $363,962  $329,219 Mark to finance receivables measured at fair value 5,000   6,000   21,000   12,000 Other income 2,153   2,718   8,544   10,795   105,303   91,978   393,506   352,014 Expenses:       Employee costs 23,889   23,157   96,192   88,148 General and administrative 14,422   13,777   54,710   50,001 Interest 52,522   40,277   191,257   146,631 Provision for credit losses (728)  (1,600)  (5,307)  (22,300)Other expenses 7,847   6,523   29,223   28,437   97,952   82,134   366,075   290,917 Income before income taxes 7,351   9,844   27,431   61,097 Income tax expense 2,206   2,657   8,228   15,754 Net income$5,145  $7,187  $19,203  $45,343         Earnings per share:       Basic$0.24  $0.34  $0.90  $2.17 Diluted$0.21  $0.29  $0.79  $1.80         Number of shares used in computing earnings per share:       Basic 21,412   21,136   21,292   20,896 Diluted 24,274   24,879   24,325   25,218                  Condensed Consolidated Balance Sheets(In thousands)(Unaudited)     December 31, December 31,  2024   2023 Assets:   Cash and cash equivalents$11,713  $6,174 Restricted cash and equivalents 125,684   119,257 Finance receivables measured at fair value 3,313,767   2,722,662     Finance receivables 5,420   27,553 Allowance for finance credit losses (433)  (2,869)Finance receivables, net 4,987   24,684         Deferred tax assets, net 1,010   3,736 Other assets 36,707   27,233  $3,493,868  $2,903,746     Liabilities and Shareholders' Equity:   Accounts payable and accrued expenses$70,151  $62,544 Warehouse lines of credit 410,898   234,025 Residual interest financing 99,176   49,875 Securitization trust debt 2,594,384   2,265,446 Subordinated renewable notes 26,489   17,188   3,201,098   2,629,078     Shareholders' equity 292,770   274,668  $3,493,868  $2,903,746          Operating and Performance Data ($ in millions)   At and for the At and for the  Three months ended Twelve months ended  December 31, December 31,   2024   2023   2024   2023          Contracts purchased $457.81  $301.80  $1,681.94  $1,357.75 Contracts securitized $298.42  $306.70   1,256.13   1,352.11          Total portfolio balance (1) $3,490.96  $2,970.07  $3,490.96  $2,970.07 Average portfolio balance (1) $3,445.52  $2,958.95   3,209.99   2,913.57                   Delinquencies (1)        31+ Days  12.11%  12.29%    Repossession Inventory  2.74%  2.26%    Total Delinquencies and Repo. Inventory  14.85%  14.55%             Annualized Net Charge-offs as % of Average Portfolio (1)  8.02%  7.74%  7.62%  6.53%         Recovery rates (1), (2)  27.2%  34.3%  30.1%  39.2%           For the For the Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023  $ (3)  % (4)  $ (3)  % (4)  $ (3)  % (4)  $ (3)  % (4)Interest income$98.15  11.4% $83.26  11.3% $363.96  11.3% $329.22  11.3%Mark to finance receivables measured at fair value 5.00  0.6%  6.00  0.8%  21.00  0.7%  12.00  0.4%Other income 2.15  0.2%  2.72  0.4%  8.54  0.3%  10.80  0.4%Interest expense (52.52) -6.1%  (40.28) -5.4%  (191.26) -6.0%  (146.63) -5.0%Net interest margin 52.78  6.1%  51.70  7.0%  202.25  6.3%  205.38  7.0%Provision for credit losses 0.73  0.1%  1.60  0.2%  5.31  0.2%  22.30  0.8%Risk adjusted margin 53.51  6.2%  53.30  7.2%  207.56  6.5%  227.68  7.8%Other operating expenses (5) (46.16) -5.4%  (43.46) -5.9%  (180.13) -5.6%  (166.59) -5.7%Pre-tax income$7.35  0.9% $9.84  1.3% $27.43  0.9% $61.10  2.1%            (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.(5) Total pre-tax expenses less provision for credit losses and interest expense. 

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