The following is a summary of the Consumer Portfolio Services, Inc. (CPSS) Q4 2023 Earnings Call Transcript:
Financial Performance:
Consumer Portfolio Services reported Q4 revenue of $92 million, an 11% increase from Q4 2022.
Full-year revenues also increased by 7% to $352 million.
Expenses saw a significant rise of 27% for Q4 and a 36% increase for the full year.
Pre-tax earnings and net income were down by 46% for the fourth quarter and 47% for the year overall.
Annualized net charge-offs increased to 7.74% from 5.83% compared to the same quarter in the previous year.
The total managed portfolio increased to $3.195 billion from $3 billion at the end of 2022.
Shareholders' equity reached the highest-ever value of $274.7 million, 20% higher than in 2022.
Business Progress:
Throughout 2023, focus was on assessing performance issues from 2022 and improving the model for optimal performance.
Actions included tightening credit, expanding collection team, and introducing a 'back-end profit program'.
A Generation 8 machine learning-based AI model and AI-backed document review were implemented to improve operational efficiency.
A 25% increase in recurring payment sign-ups occurred due to a new customer outreach program.
Growth and expansion are expected in 2024 given the strong relative position and early adjustments compared to competitors, underpinned by a positive economic outlook, low rates, and low unemployment.
Operational efficiency was shown by reducing accounts per collector and increasing real estate savings by leveraging remote work.
More details: Consumer Portfolio Services IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.