The following is a summary of the Consumer Portfolio Services, Inc (CPSS) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 2024 revenues reached $100.6 million, a 9% increment from the previous year's $92.1 million.

• Net income for Q3 2024 was $4.8 million compared to $10.4 million in Q3 2023.

• Originations in Q3 2024 surged by 38% YOY, underscoring robust revenue growth.

• The fair value portfolio is now valued at $3.1 billion, yielding 11.3%, reflecting better performance.

• Pre-tax earnings and EPS showed a decline YOY but the company managed a 17% increase in the fair value portfolio.

Business Progress:

• Strategic emphasis on high-quality credit management and reduction of problematic loans, with less than a third of the portfolio now considered at risk.

• Enhanced securitization efforts have capitalized on favorable interest rates, strengthening financial execution.

• There's significant focus and results on growing large dealer group business and organically expanding dealer network through strong sales force recruitment.

Opportunities:

• Continuation of market-driven growth, supported by a strong economic backdrop and low unemployment rates.

• The company's effective use of AI for optimizing operations presents an opportunity for efficiency and loss reduction.

Risks:

• Challenges in maintaining loan quality and managing defaults amid expansion.

• Increased expenses primarily due to heightened interest expenses driven by larger securitization and credit line debt.

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