Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced earnings of $19.0 million, or $0.71 per
diluted share, for its fourth quarter ended December 31, 2021. This
compares to a net income of $4.1 million, or $0.17 per diluted
share, in the fourth quarter of 2020. The results for the fourth
quarter of 2021 include a net tax benefit of $680,000 related to
revaluation of the Company’s net operating losses and other tax
adjustments. Without the benefit, net income would have been $18.3
million, or $0.68 per diluted share.
Revenues for the fourth quarter of 2021 were
$69.4 million, an increase of $7.0 million, or 11.1%, compared to
$62.4 million for the fourth quarter of 2020. Total operating
expenses for the fourth quarter of 2021 were $45.0 million compared
to $56.0 million for the 2020 period. Pretax income for
the fourth quarter of 2021 was $24.4 million compared to pretax
income of $6.5 million in the fourth quarter of 2020.
For the twelve months ended December 31, 2021
total revenues were $267.8 million compared to $271.2 million for
the twelve months ended December 31, 2020, a decrease of
approximately $3.4 million, or 1.2%. Total expenses for the twelve
months ended December 31, 2021 were $202.1 million, a decrease of
$48.9 million, or 19.5%, compared to $251.0 million for the twelve
months ended December 31, 2020. Pretax income for the twelve months
ended December 31, 2021 was $65.7 million, compared to $20.1
million for the twelve months ended December 31, 2020. Net income
for the twelve months ended December 31, 2021 was $47.5 million, or
$1.84 per diluted share. This compares to net income of $21.7
million, or $0.90 per diluted share for the twelve months ended
December 31, 2020. Results for the twelve months ended December
31,2021 include a net tax benefit of $680,000 related to
revaluation of the Company’s net operating losses and other tax
adjustments. Without the benefit, net income for 2021 would have
been $46.8 million, or $1.82 per diluted share. Results for the
twelve months ended December 31, 2020 include a net tax benefit of
$8.8 million related to the revaluation of the Company’s net
operating losses and other tax adjustments. Without this tax
benefit, net income and net income per diluted share for the twelve
months ended December 31, 2020 would have been $12.9 million and
$0.54 per share, respectively.
During the fourth quarter of 2021, CPS purchased
$328.0 million of new contracts compared to $326.8 million during
the third quarter of 2021 and $166.7 million during the fourth
quarter of 2020. The Company's receivables totaled $2.209 billion
as of December 31, 2021, an increase from $2.161 billion as of
September 30, 2021 and an increase from $2.175 billion as of
December 31, 2020.
Annualized net charge-offs for the fourth
quarter of 2021 were 2.57% of the average portfolio as compared to
5.18% for the fourth quarter of 2020. Delinquencies greater than 30
days (including repossession inventory) were 10.53% of the total
portfolio as of December 31, 2021, as compared to 12.08% as of
December 31, 2020.
“We are excited to report the best full year
financial results in the history of CPS,” said Charles E. Bradley,
President and Chief Executive Officer. “We originated $1.1
billion in new finance receivables, a 54% increase over 2020 and a
14% increase over 2019. Our credit performance remains
strong, and the capital markets continue to be receptive to our
quarterly securitizations.”
Conference Call
CPS announced that it will hold a conference
call on February 15, 2022, at 1:00 p.m. ET to discuss its quarterly
operating results. Those wishing to participate by telephone may
dial-in at 877 312-5502 or 253 237-1131 approximately 10 minutes
prior to the scheduled time. The conference identification number
is 9319729.
A replay of the conference call will be available between
February 15, 2022 and February 22, 2022, beginning two hours after
conclusion of the call, by dialing 855 859-2056 or 404 537-3406 for
international participants, with conference identification number
9319729. A broadcast of the conference call will also be available
live and for 90 days after the call via the Company’s web site at
www.consumerportfolio.com.
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 pandemic-related
markdown of carrying value for the portion of its portfolio
accounted for at fair value, its pandemic-related charge to the
provision for credit losses for the its legacy portfolio, 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 (in
addition to risks relating to the COVID-19 pandemic and to the
economy generally) 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. The accuracy of such estimates
may also be affected by the effects of the COVID-19 pandemic and of
governmental responses to said pandemic, which have included
prohibitions on certain means of enforcement of receivables, and
may include additional restrictions, yet unknown, in the future.
Any or all 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
Jeffrey P. Fritz, Chief Financial Officer844 878-2777
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, |
|
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
$ |
67,715 |
|
|
|
$ |
67,710 |
|
|
|
$ |
266,266 |
|
|
|
$ |
294,982 |
|
|
Mark to finance receivables measured at fair value |
|
- |
|
|
|
|
(6,477 |
) |
|
|
|
(4,417 |
) |
|
|
|
(29,528 |
) |
|
Other
income |
|
|
|
1,650 |
|
|
|
|
1,201 |
|
|
|
|
5,962 |
|
|
|
|
5,707 |
|
|
|
|
|
|
69,365 |
|
|
|
|
62,434 |
|
|
|
|
267,811 |
|
|
|
|
271,161 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs |
|
|
|
22,756 |
|
|
|
|
19,372 |
|
|
|
|
80,534 |
|
|
|
|
80,198 |
|
|
General and
administrative |
|
|
|
11,582 |
|
|
|
|
7,630 |
|
|
|
|
34,616 |
|
|
|
|
31,981 |
|
|
Interest |
|
|
|
16,980 |
|
|
|
|
22,962 |
|
|
|
|
75,239 |
|
|
|
|
101,338 |
|
|
Provision
for credit losses |
|
|
|
(13,000 |
) |
|
|
|
- |
|
|
|
|
(14,590 |
) |
|
|
|
14,113 |
|
|
Other
expenses |
|
|
|
6,667 |
|
|
|
|
5,996 |
|
|
|
|
26,266 |
|
|
|
|
23,411 |
|
|
|
|
|
|
44,985 |
|
|
|
|
55,960 |
|
|
|
|
202,065 |
|
|
|
|
251,041 |
|
|
Income
before income taxes |
|
|
|
24,380 |
|
|
|
|
6,474 |
|
|
|
|
65,746 |
|
|
|
|
20,120 |
|
|
Income tax
expense (benefit) |
|
|
|
5,415 |
|
|
|
|
2,331 |
|
|
|
|
18,222 |
|
|
|
|
(1,557 |
) |
|
Net income |
|
|
$ |
18,965 |
|
|
|
$ |
4,143 |
|
|
|
$ |
47,524 |
|
|
|
$ |
21,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.88 |
|
|
|
$ |
0.18 |
|
|
|
$ |
2.11 |
|
|
|
$ |
0.96 |
|
|
Diluted |
|
|
$ |
0.71 |
|
|
|
$ |
0.17 |
|
|
|
$ |
1.84 |
|
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares used in computing earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
21,661 |
|
|
|
|
22,555 |
|
|
|
|
22,562 |
|
|
|
|
22,611 |
|
|
Diluted |
|
|
|
26,813 |
|
|
|
|
24,537 |
|
|
|
|
25,780 |
|
|
|
|
24,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
|
|
|
(In
thousands) |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
$ |
29,928 |
|
|
|
$ |
13,466 |
|
|
|
|
|
|
|
|
Restricted
cash and equivalents |
|
|
|
146,620 |
|
|
|
|
130,686 |
|
|
|
|
|
|
|
|
Finance
receivables measured at fair value |
|
|
|
1,749,098 |
|
|
|
|
1,523,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
receivables |
|
|
|
232,390 |
|
|
|
|
492,133 |
|
|
|
|
|
|
|
|
Allowance
for finance credit losses |
|
|
|
(56,206 |
) |
|
|
|
(80,790 |
) |
|
|
|
|
|
|
|
Finance
receivables, net |
|
|
|
176,184 |
|
|
|
|
411,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
assets, net |
|
|
|
19,575 |
|
|
|
|
28,512 |
|
|
|
|
|
|
|
|
Other
assets |
|
|
|
38,173 |
|
|
|
|
38,162 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,159,578 |
|
|
|
$ |
2,145,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
|
$ |
43,648 |
|
|
|
$ |
43,112 |
|
|
|
|
|
|
|
|
Warehouse
lines of credit |
|
|
|
105,610 |
|
|
|
|
118,999 |
|
|
|
|
|
|
|
|
Residual
interest financing |
|
|
|
53,682 |
|
|
|
|
25,426 |
|
|
|
|
|
|
|
|
Securitization trust debt |
|
|
|
1,759,972 |
|
|
|
|
1,803,673 |
|
|
|
|
|
|
|
|
Subordinated
renewable notes |
|
|
|
26,459 |
|
|
|
|
21,323 |
|
|
|
|
|
|
|
|
|
|
|
|
1,989,371 |
|
|
|
|
2,012,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
170,207 |
|
|
|
|
133,362 |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,159,578 |
|
|
|
$ |
2,145,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
and Performance Data ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At and for the |
|
|
At and for the |
|
|
|
|
Three months
ended |
|
|
Twelve months
ended |
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts
purchased |
|
|
$ |
327.98 |
|
|
|
$ |
166.71 |
|
|
|
$ |
1,146.32 |
|
|
|
$ |
742.58 |
|
|
Contracts
securitized |
|
|
|
360.00 |
|
|
|
|
- |
|
|
|
|
1,145.00 |
|
|
|
|
741.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio balance |
|
|
$ |
2,209.43 |
|
|
|
$ |
2,174.97 |
|
|
|
$ |
2,209.43 |
|
|
|
$ |
2,174.97 |
|
|
Average
portfolio balance |
|
|
|
2,190.16 |
|
|
|
|
2,202.22 |
|
|
|
|
2,147.61 |
|
|
|
|
2,315.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for finance credit losses as % of fin. receivables |
|
|
|
24.19 |
% |
|
|
|
16.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate
allowance as % of fin. receivables (1) |
|
|
|
24.53 |
% |
|
|
|
18.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
31+
Days |
|
|
|
9.50 |
% |
|
|
|
10.43 |
% |
|
|
|
|
|
|
|
Repossession Inventory |
|
|
|
1.03 |
% |
|
|
|
1.65 |
% |
|
|
|
|
|
|
|
Total
Delinquencies and Repo. Inventory |
|
|
|
10.53 |
% |
|
|
|
12.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Net Charge-offs as % of Average Portfolio |
|
|
|
|
|
|
|
|
|
|
Legacy
portfolio |
|
|
|
0.11 |
% |
|
|
|
6.96 |
% |
|
|
|
7.71 |
% |
|
|
|
11.72 |
% |
|
Fair Value
portfolio |
|
|
|
2.89 |
% |
|
|
|
4.61 |
% |
|
|
|
3.09 |
% |
|
|
|
4.33 |
% |
|
Total
portfolio |
|
|
|
2.57 |
% |
|
|
|
5.18 |
% |
|
|
|
4.70 |
% |
|
|
|
6.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery
rates (2) |
|
|
|
63.3 |
% |
|
|
|
41.9 |
% |
|
|
|
54.5 |
% |
|
|
|
38.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the |
|
For the |
|
|
|
Three months
ended |
|
Twelve months
ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
$ (3) |
|
% (4) |
|
$ (3) |
|
% (4) |
|
$ (3) |
|
% (4) |
|
$ (3) |
|
% (4) |
Interest income |
|
|
$ |
67.72 |
|
12.4 |
% |
|
$ |
67.71 |
|
12.3 |
% |
|
$ |
266.27 |
|
12.4 |
% |
|
$ |
294.98 |
|
12.7 |
% |
Mark to finance receivables measured at fair value |
|
- |
|
0.0 |
% |
|
|
(6.48 |
) |
-1.2 |
% |
|
|
(4.42 |
) |
-0.2 |
% |
|
|
(29.53 |
) |
-1.3 |
% |
Other
income |
|
|
|
1.65 |
|
0.3 |
% |
|
|
1.20 |
|
0.2 |
% |
|
|
5.96 |
|
0.3 |
% |
|
|
5.71 |
|
0.2 |
% |
Interest
expense |
|
|
|
(16.98 |
) |
-3.1 |
% |
|
|
(22.96 |
) |
-4.2 |
% |
|
|
(75.24 |
) |
-3.5 |
% |
|
|
(101.34 |
) |
-4.4 |
% |
Net interest
margin |
|
|
|
52.39 |
|
9.6 |
% |
|
|
39.47 |
|
7.2 |
% |
|
|
192.57 |
|
9.0 |
% |
|
|
169.82 |
|
7.3 |
% |
Provision
for credit losses |
|
|
|
13.00 |
|
2.4 |
% |
|
|
- |
|
0.0 |
% |
|
|
14.59 |
|
0.7 |
% |
|
|
(14.11 |
) |
-0.6 |
% |
Risk
adjusted margin |
|
|
|
65.39 |
|
11.9 |
% |
|
|
39.47 |
|
7.2 |
% |
|
|
207.16 |
|
9.6 |
% |
|
|
155.71 |
|
6.7 |
% |
Core
operating expenses |
|
|
|
(41.01 |
) |
-7.5 |
% |
|
|
(33.00 |
) |
-6.0 |
% |
|
|
(141.42 |
) |
-6.6 |
% |
|
|
(135.59 |
) |
-5.9 |
% |
Pre-tax
income |
|
|
$ |
24.38 |
|
4.5 |
% |
|
$ |
6.47 |
|
1.2 |
% |
|
$ |
65.75 |
|
3.1 |
% |
|
$ |
20.12 |
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes allowance
for finance credit losses and allowance for repossession
inventory. |
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Portfolio Servi... (NASDAQ:CPSS)
Historical Stock Chart
From May 2024 to Jun 2024
Consumer Portfolio Servi... (NASDAQ:CPSS)
Historical Stock Chart
From Jun 2023 to Jun 2024