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Consumer Portfolio Services Inc. (CPSS+1.05%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations in purchasing and servicing retail automobile contracts. The company focuses on sub-prime customers who have limited credit histories or past credit problems.
For the year ended December 31, 2024, Consumer Portfolio Services reported total revenues of $393.5 million, an increase from $352.0 million in the previous year. This increase was primarily due to higher interest income from an increased balance of finance receivables measured at fair value.
Net income for the year was $19.2 million, down from $45.3 million in 2023. The decrease in net income was attributed to higher interest expenses and lower reductions in provision for credit losses.
The company completed four securitizations in 2024, totaling $1.5 billion in notes sold. These securitizations are structured as secured financings and are used to finance the company's portfolio of automobile contracts.
As of December 31, 2024, Consumer Portfolio Services had total assets of $3.5 billion, compared to $2.9 billion at the end of 2023. The company's liabilities were $3.2 billion, up from $2.6 billion in the previous year.
The company reported an allowance for finance credit losses of $433,000 as of December 31, 2024, reflecting a decrease from $2.9 million at the end of 2023. This reduction was due to better than expected credit performance.
Consumer Portfolio Services continues to rely on warehouse credit facilities and securitization transactions for funding its operations. The company had $541.7 million in outstanding debt under these facilities as of the end of 2024.
The filing also discusses various risks, including the company's dependence on capital markets for funding, competition in the sub-prime auto finance industry, and regulatory compliance challenges.
The company does not anticipate paying dividends on its common stock in the near future, as it intends to retain earnings for operational use.
Consumer Portfolio Services maintains a focus on managing credit risk and optimizing its securitization structures to ensure liquidity and financial stability.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Consumer Portfolio Services Inc. annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.