Consumer Portfolio Services, Inc. Q1 FY2025 earnings call

• Strong originations in Q1, up over $100 million year-over-year. - Focus on growth in a credit-conscious way, with delinquencies and charge-offs down. - Second quarter securitization completed successfully. - Sales and originations saw a 31.5% year-over-year increase, with portfolio assets under management at $3.45 billion, up from $3 billion year-over-year. - Growth due to experienced sales reps hired, strategic credit moves, and relationships with dealer groups. - Credit performance improved with total DQ and annualized net charge-offs down year-over-year, outperforming industry competitors. - Launched AI voice agent with success, moving to Phase II implementation for inbound calls, chats, and text messages. - Unique servicing strategy with best collectors on hardest accounts. - Managed portfolio relative to head count at an all-time best, driving down OpEx. - Unemployment rate as a barometer, currently at 4.2% with prediction to increase to 4.6% by year end 2026.

Revenues for the first quarter were $106.9 million, a 17% increase from $91.7 million in Q1 2024. Expenses were $100.1 million, a 17% increase from $85.2 million last year. Pretax earnings were $6.8 million, a 3% increase from $6.6 million last year. Net income was $4.7 million, a 2% increase from $4.6 million last year. Diluted earnings per share were $0.19, flat from Q1 2024. Unrestricted and restricted cash was $183.5 million, greater than $151 million last year. Finance receivables at fair value were $3.45 billion, 24% higher than $2.79 billion in Q1 2024. Securitization debt was $2.74 billion, 20% higher than $2.27 billion in Q1 2024. Shareholders' equity was $298.4 million, a record high, 7% higher than $279.1 million last year.

• Continue to grow in a credit-conscious manner. - Expect securitization market to remain strong. - Hoping for interest rates to come down to take advantage of growth and better P&L performance. - Portfolio growth to continue with creditworthy paper. - Trend of improving credit performance to continue.

• Uncertain economy and market noise. - Interest rate fluctuations. - Uncertainty in the securitization market. - Macroeconomic headwinds including unemployment rate changes.