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CPS Announces First Quarter 2022 Earnings
ソース: Nasdaq GlobeNewswire / 18 4 2022 16:35:00 America/New_York
- Pretax income of $29.3 million, compared to $7.9 million in the prior year period
- Net income of $21.1 million, or $0.75 per diluted share
- New contract purchases of $410.0 million
- Each of the above represent all-time quarterly records since our inception in 1991
LAS VEGAS, NV, April 18, 2022 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $21.1 million, or $0.75 per diluted share, for its first quarter ended March 31, 2022. This compares to net income of $5.2 million, or $0.21 diluted share, in the first quarter of 2021.
Revenues for the first quarter of 2022 were $74.4 million, an increase of $11.3 million, or 17.8%, compared to $63.1 million for the first quarter of 2021. Total operating expenses for the first quarter of 2022 were $45.0 million compared to $55.2 million for the 2021 period for a decrease of $10.1 million, or 18.4%. Pretax income for the first quarter of 2022 was $29.3 million compared to pretax income of $7.9 million in the first quarter of 2021, an increase of 269.2%.
During the first quarter of 2022, CPS purchased $410.0 million of new contracts compared to $328.0 million during the fourth quarter of 2021 and $205.5 million during the first quarter of 2021. The Company's receivables totaled $2.324 billion as of March 31, 2022, an increase from $2.209 billion as of December 31, 2021 and $2.119 billion as of March 31, 2021.
Annualized net charge-offs for the first quarter of 2022 were 3.3% of the average portfolio as compared to 6.3% for the first quarter of 2021. Delinquencies greater than 30 days (including repossession inventory) were 8.52% of the total portfolio as of March 31, 2022, as compared to 7.77% as of March 31, 2021.
“I’m proud to report on the best quarterly results in the 31-year history of the Company”, said Charles E. Bradley, Jr., President and Chief Executive Officer. “Our first quarter originations volume was 25% greater than the fourth quarter of 2021 and approximately double the volume from the first quarter of 2021. We continue to see strong metrics in credit performance and are looking forward to the remainder of 2022.”
Conference Call
CPS announced that it will hold a conference call on Tuesday, April 19, 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 3771614.
A replay of the conference call will be available between April 19 and April 26, beginning two hours after conclusion of the call, by dialing 855 859-2056 or 404 537-3406 for international participants, with conference identification number 3771614. 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, low incomes 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, as yet unknown, in the future. 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
Jeffrey P. Fritz, Chief Financial Officer
844 878-2777Consumer Portfolio Services, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three months ended March 31, 2022 2021 Revenues: Interest income $ 70,060 $ 66,093 Mark to finance receivables measured at fair value 2,400 (4,417 ) Other income 1,906 1,436 74,366 63,112 Expenses: Employee costs 22,152 20,159 General and administrative 8,231 7,748 Interest 16,400 20,946 Provision for credit losses (9,400 ) - Other expenses 7,655 6,315 45,038 55,168 Income before income taxes 29,328 7,944 Income tax expense 8,213 2,780 Net income $ 21,115 $ 5,164 Earnings per share: Basic $ 0.99 $ 0.23 Diluted $ 0.75 $ 0.21 Number of shares used in computing earnings per share: Basic 21,221 22,741 Diluted 28,197 24,967 Condensed Consolidated Balance Sheets (In thousands) (Unaudited) March 31, December 31, 2022 2021 Assets: Cash and cash equivalents $ 21,726 $ 29,928 Restricted cash and equivalents 164,550 146,620 Finance receivables measured at fair value 1,903,857 1,749,098 Finance receivables 186,745 232,390 Allowance for finance credit losses (45,001 ) (56,206 ) Finance receivables, net 141,744 176,184 Deferred tax assets, net 18,913 19,575 Other assets 26,760 38,173 $ 2,277,550 $ 2,159,578 Liabilities and Shareholders' Equity: Accounts payable and accrued expenses $ 56,988 $ 43,648 Warehouse lines of credit 147,026 105,610 Residual interest financing 49,434 53,682 Securitization trust debt 1,813,478 1,759,972 Subordinated renewable notes 26,756 26,459 2,093,682 1,989,371 Shareholders' equity 183,868 170,207 $ 2,277,550 $ 2,159,578 Operating and Performance Data ($ in millions) At and for the Three months ended March 31, 2022 2021 Contracts purchased $ 409.96 $ 205.48 Contracts securitized 330.00 245.00 Total portfolio balance $ 2,324.35 $ 2,119.07 Average portfolio balance 2,273.48 2,138.66 Allowance for finance credit losses as % of fin. receivables 24.10 % 17.88 % Aggregate allowance as % of fin. receivables (1) 24.50 % 19.06 % Delinquencies 31+ Days 7.39 % 6.34 % Repossession Inventory 1.13 % 1.43 % Total Delinquencies and Repo. Inventory 8.52 % 7.77 % Annualized Net Charge-offs as % of Average Portfolio Legacy portfolio 0.84 % 12.63 % Fair Value portfolio 3.53 % 4.61 % Total portfolio 3.29 % 6.30 % Recovery rates (2) 61.4 % 43.3 % For the Three months ended March 31, 2022 2021 $ (3) % (4) $ (3) % (4) Interest income $ 70.06 12.3 % $ 66.09 12.4 % Mark to finance receivables measured at fair value 2.40 0.4 % (4.42 ) -0.8 % Other income 1.91 0.3 % 1.44 0.3 % Interest expense (16.40 ) -2.9 % (20.95 ) -3.9 % Net interest margin 57.97 10.2 % 42.17 7.9 % Provision for credit losses 9.40 1.7 % - 0.0 % Risk adjusted margin 67.37 11.9 % 42.17 7.9 % Core operating expenses (38.04 ) -6.7 % (34.22 ) -6.4 % Pre-tax income $ 29.33 5.2 % $ 7.94 1.5 % (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.