Consumer Portfolio Services, Inc. · NASDAQ:CPSS
Consumer Portfolio Services — Q1 2025 Earnings Presentation
19 slides from Consumer Portfolio Services's earnings presentation, May 13, 2025
Slide 1: The Subprime Source Since 1991
The Subprime Source Since 1991 March 2025 Investor Presentation
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-looking statements in this presentation include the Company’s expectations of growth and the Company's recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted f
Slide 3: Company Overview
COMPANY OVERVIEW Consumer Portfolio Services specializes in purchasing and servicing automobile contracts originated by licensed motor vehicle dealers in the sale of new and used automobiles, light trucks and passenger vans. Through our purchases, we provide indirect financing to dealers for sub-pri
Slide 4: The CPS Advantage
THE CPS ADVANTAGE CPS is a leader in Machine Learning (ML) and Artificial Intelligence (AI). • Industry leading disciplined modeling framework: Linear/Logistic Regression, Neural Network, Decision Tree, Ensemble Model, Time Series, Machine Learning, Random Forest Proprietary • Continuous model train
Slide 5: Leadership
LEADERSHIP CPS’ senior management team consists of 13 executives that are led by Brad, Mike and Danny. Each has significant industry experience and, on average, 25 years with CPS. Combined, senior management has over 300 years of auto lending experience just at CPS. Charles “Brad” Bradley Mike Lavin
Slide 6: Market
MARKET Dynamics Footprint • $1.5 trillion auto loans outstanding at Q4 Large Total Addressable 2024(1) Market (TAM) • ~15% of auto financings in Q4 2024 were sub- prime(1) • Capital-intensive 10% High Barrier to Entry 5% • Highly regulated industry 6% Small, Fragmented • Few dominant players Market
Slide 7: Product Offering
PRODUCT OFFERING Avg. Amount Household Avg. Time on Program (1) Avg. Yield Financed Income Job (years) Avg. FICO % of Purchases Meta 13.88% $26,065 $103,997 9.1 657 3% Preferred 16.09% $26,278 $90,599 7.2 586 17% Super Alpha 18.49% $25,160 $80,504 5.9 563 20% Alpha Plus 20.99% $22,535 $80,784 5.1 55
Slide 8: Origination Characteristics
ORIGINATION CHARACTERISTICS Payment to Income FICO Loan to Value 590 12.0% 130.0% 585 11.5% 125.0% 580 11.0% 575 120.0% 10.5% 570 115.0% 565 10.0% 110.0% 560 9.5% 555 105.0% 9.0% 550 100.0% 8.5% 545 Amount Financed Original Term APR 71.5 $25,000 25.0% 71.0 $20,000 70.5 20.0% 70.0 $15,000 69.5 15.0%
Slide 9: Demand for Our Lending Programs
DEMAND FOR OUR LENDING PROGRAMS 13,100 Applications vs. Funded Loans 48% Approved 3,500,000 Average Dealer Approval Network 3,000,000 Rate 2,500,000 Answers 2,000,000 Selective Within 1,500,000 Funding Seconds to 1,000,000 Dealers 500,000 Strong Auto 0 Demand for Decisioning our Lending Proprietary
Slide 10: Who Is Our Customer?
WHO IS OUR CUSTOMER? 41 Years Old on Average 34.7% 5 Years Average Average Job Debt to Time Income $73,193 Average CPS 7 Years Average Household Income Customer Length at Residence 10.8% 8 Years Average Credit Payment to History on Income Average 23.5% Homeowners Amounts for CPS programs for contrac
Slide 11: What Do Our Customers Drive?
WHAT DO OUR CUSTOMERS DRIVE? ORIGINATING DEALERSHIP Independent, 30% VEHICLE TYPE New, 9% Certified Pre- Owned, 18% Factory VEHICLE MAKE Franchised, 70% Domestic, Pre-Owned, 49% 73% Imports , 51% Charts show data of CPS programs for contracts purchased for the three months ended March 31, 2025. 11
Slide 12: Portfolio Performance
PORTFOLIO PERFORMANCE 22.00% 20.00% 18.00% 16.00% 14.00% CNL Percentage 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 Months Seasoned 2016- Q1 2016-Q2 2016-Q3 2016-Q4 2017- Q1 2017-
Slide 13: Economic Model
ECONOMIC MODEL Quarter Ended (1) Three Months Ended (1) March 31, 2025 March 31, 2024 December 31, 2024 Interest Income 11.4% 11.3% 11.4% Mark to Fin. Recs. at FV 0.4% 0.7% 0.6% Servicing and Other Income 0.2% 0.3% 0.2% Interest Expense (6.1%) (5.6%) (6.1%) Net Interest Margin 5.9% 6.7% 6.1% Provisi
Slide 14: Summary Balance Sheet
SUMMARY BALANCE SHEET Summary Balance Sheet ($ in millions) (1) March 31, 2025 December 31, 2024 Assets Cash $ 29.9 $ 11.7 Restricted cash 153.6 125.7 Finance receivables, net of allowance 2.9 5.0 Finance receivables, measured at fair value 3,449.1 3,313.8 Deferred tax assets, net 0.8 1.0 Other asse
Slide 15: Summary Statement of Operations
SUMMARY STATEMENT OF OPERATIONS Summary Statement of Operations ($ in millions) (1) Three Months Ended March 31, 2025 March 31, 2024 Interest income $ 101.9 $ 84.3 Mark to finance receivables at fair value 3.5 5.0 Other income 1.4 2.5 Total Revenues 106.9 91.7 Employee costs 25.0 24.4 General and ad
Slide 16: Selected Financial Data
SELECTED FINANCIAL DATA Three Months Ended ($ in millions) March 31, 2025 March 31, 2024 Auto contract purchases $ 451.2 $ 346.3 Total portfolio $ 3,614.6 $ 3,021.2 Risk-adjusted margin (1) $ 52.9 $ 51.4 Core operating expenses (2) $ Amount $ 46.1 $ 44.9 % of avg. managed portfolio 5.2% 6.0% Pretax
Slide 17: Shareholder Value
SHAREHOLDER VALUE $40,000 Pre-tax Income $ in Thousands - Left Axis Book Value per Share in $ - Right Axis $15.00 $14.00 $35,000 $13.00 $12.00 Growing $30,000 $11.00 Shareholder $10.00 Value $25,000 $9.00 $8.00 $20,000 $7.00 $6.00 $15,000 $5.00 $4.00 $10,000 $3.00 NASDAQ Listed $5,000 $2.00 Stock- T
Slide 18: Investment Outlook
INVESTMENT OUTLOOK Continuous Strong macroeconomic AI-driven Originations Strong Fundamentals Growth factors Scorecard • 942k applications in Q1 • Raised Wtd. Avg APRs in • Improves efficiency and • Decreased leverage on 2025 vs. 821k in Q1 2024 originations from 17.72% customer satisfaction the por
Slide 19: Reference to Public Reports
REFERENCE TO PUBLIC REPORTS Any person considering an investment in securities issued by CPS is urged to review the materials filed by CPS with the U.S. Securities and Exchange Commission ("Commission"). Such materials may be found by inquiring of the Commission‘s EDGAR search page www.sec.gov/edgar
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