Consumer Portfolio Services Files 2023 10-K

TL;DR

CPS filed its 2023 10-K. Shows financials for 2023, 2022, 2021. Focus on preferred/common stock.

AI Summary

Consumer Portfolio Services, Inc. filed its 2023 10-K on March 15, 2024, detailing its financial performance for the fiscal year ending December 31, 2023. The company, headquartered in Irvine, CA, operates in the finance services sector. The filing includes financial data for the years 2023, 2022, and 2021, with specific mentions of preferred stock and common stock equity.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of Consumer Portfolio Services' financial health and operational performance for the past fiscal year, crucial for investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not inherently indicate new or elevated risks.

Key Numbers

• FY 2023 — Fiscal Year (Reporting period for the 10-K)
• 2023-12-31 — Fiscal Year End Date (End of the reporting period)
• 20240315 — Filing Date (Date the 10-K was submitted to the SEC)

Key Players & Entities

• CONSUMER PORTFOLIO SERVICES, INC. (company) — Filer of the 10-K
• 19500 JAMBOREE ROAD, IRVINE, CA 92612 (location) — Business and Mail Address
• 2023-12-31 (date) — Fiscal Year End
• 20240315 (date) — Filing Date

FAQ

Key Financial Figures

• $11.67 — ice of the registrant's common stock of $11.67 per share reported by Nasdaq as of that
• $21.3 billion — have purchased a total of approximately $21.3 billion of automobile contracts from dealers. I
• $822.3 million — n, we acquired a total of approximately $822.3 million of automobile contracts in mergers and
• $19.1 billion — 9 term securitizations of approximately $19.1 billion in automobile contracts. We depend upon
• $200 million — each with a maximum borrowing amount of $200 million. Sub-Prime Auto Finance Industry Auto

Filing Documents

• cps_i10k-123123.htm (10-K) — 2158KB
• cps_ex2301.htm (EX-23.1) — 1KB
• cps_ex3101.htm (EX-31.1) — 9KB
• cps_ex3102.htm (EX-31.2) — 9KB
• cps_ex3200.htm (EX-32) — 4KB
• cps_ex97.htm (EX-97.1) — 14KB
• 0001683168-24-001499.txt ( ) — 9524KB
• cpss-20231231.xsd (EX-101.SCH) — 70KB
• cpss-20231231_cal.xml (EX-101.CAL) — 67KB
• cpss-20231231_def.xml (EX-101.DEF) — 235KB
• cpss-20231231_lab.xml (EX-101.LAB) — 519KB
• cpss-20231231_pre.xml (EX-101.PRE) — 435KB
• cps_i10k-123123_htm.xml (XML) — 1688KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 30 Item 1C. Cybersecurity 30 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 32 Information about Our Executive Officers 32 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 34 Item 6. [Reserved] 34 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 54 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 54 Item 9A.

Controls and Procedures

Controls and Procedures 54 Item 9B. Other Information 55 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 55 PART III Item 10. Directors, Executive Officers and Corporate Governance 56 Item 11.

Executive Compensation

Executive Compensation 58 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 69 Item 13. Certain Relationships and Related Transactions, and Director Independence 70 Item 14. Principal Accountant Fees and Services 71 PART IV Item 15. Exhibits, Financial Statement Schedules 72 Item 16. Form 10-K Summary 72 Index to Financial Statements F-1 i Cautionary Note Regarding Forward-Looking Statements Discussions of certain matters contained in this report may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the " Securities Act " ) and Section 21E of the Exchange Act, and as such, may involve risks and uncertainties. You can generally identify forward-looking statements as statements containing the words " will, " " would, " " believe, " " may, " " could, " " expect, " " anticipate, " " intend, " " estimate, " " assume, " "plans," "goals, "strategy," "future," "likely," "should" or other similar expressions. Examples of forward-looking charge-offs and recovery rates; the willingness or ability of obligors to pay pursuant to contractual terms; our ability to enforce rights under contracts; our ability to and rates at which we plan to acquire automobile contracts; the anticipated levels of recoveries upon sale of repossessed vehicles; revenues or expenses; provisions for credit losses; expected industry and general economic trends; accrued losses for legal contingencies; anticipated deferred tax assets; estimates of taxable income; our ability to service and repay our debt; the structuring of securitization transactions as secured financings and the effects of such structures on financial items and future profitability; or the effect of the change in structure on our profitability and the duration of the period in which our profitability would be affected by the change in secu

Forward-looking statements

Forward-looking statements are neither historical facts nor guarantees of performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, plans and strategies, projections, anticipated events and trends, the economy and other uncertain conditions. Because forward-looking statements relate to the future, they involve risks, uncertainties and assumptions. Actual results may differ from expectations due to many factors beyond our ability to control or predict, including those described herein, and in any documents incorporated by reference in this report. Therefore, you should not rely on any of these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to publicly update any forward-looking information. You are advised to consult any additional disclosure we make in our periodic reports filed with the SEC. ii PART I

Business

Item 1. Business Overview We are a specialty finance company. Our business is to purchase and service retail automobile contracts originated primarily by franchised automobile dealers and, to a lesser extent, by select independent dealers in the United States in the sale of new and used automobiles, light trucks and passenger vans. Through our automobile contract purchases, we provide indirect financing to the customers of dealers who have limited credit histories or past credit problems, who we refer to as sub-prime customers. We serve as an alternative source of financing for dealers, facilitating sales to customers who otherwise might not be able to obtain financing from traditional sources, such as commercial banks, credit unions and the captive finance companies affiliated with major automobile manufacturers. In addition to purchasing installment purchase contracts directly from dealers, we also have (i) originated vehicle purchase money loans by lending directly to consumers and have (ii) acquired installment purchase contracts in four merger and acquisition transactions, and (iii) purchased immaterial amounts of vehicle purchase money loans from non-affiliated lenders. In this report, we refer to all of such contracts and loans as "automobile contracts." We were incorporated and began our operations in March 1991. From inception through December 31, 2023, we have purchased a total of approximately $21.3 billion of automobile contracts from dealers. In addition, we acquired a total of approximately $822.3 million of automobile contracts in mergers and acquisitions in 2002, 2003, 2004 and 2011. Contract purchase volumes and managed portfolio levels for the five years ended December 31, 2023 are shown in the table below. Managed portfolio comprises both contracts we owned and those we were servicing for third parties. Contract Purchases and Outstanding Managed Portfolio $ in thousands Year Contracts Purchased in Period Managed Portfolio at Period End

View Full Filing

View this 10-K filing on SEC EDGAR