Mission Statement, Vision, & Core Values (2024) of Consumer Portfolio Services, Inc. (CPSS)

An Overview of Consumer Portfolio Services, Inc. (CPSS)

General Summary of Consumer Portfolio Services, Inc. (CPSS)

Consumer Portfolio Services, Inc. (CPSS), founded in 1991, specializes in automobile finance. The company primarily purchases retail installment sale contracts from automobile dealers, offering financing solutions for customers purchasing vehicles. As of 2024, CPSS has expanded its operations significantly, managing a portfolio of finance receivables totaling approximately $3.33 billion across 194,434 units. The company has experienced steady growth in its employee base, with a total of 925 employees as of September 30, 2024, compared to 867 employees in the previous year.

Company's Financial Performance in the Latest Financial Reports

For the nine months ended September 30, 2024, CPSS reported revenues of $288.2 million, reflecting a 10.8% increase from $260.0 million in the prior year. The increase in revenue was primarily driven by an uptick in interest income, which rose by $19.8 million, or 8.1%, to $265.8 million from $246.0 million in the previous year. The interest yield on the total loan portfolio remained stable at 11.3%.

CPSS's operating expenses for the same period totaled $268.1 million, an increase of 28.4% from $208.8 million in the prior year. This rise in expenses was largely attributed to increased interest expenses, which reached $138.7 million compared to $106.4 million in the previous year, marking an increase of $32.3 million.

Introduction to CPSS as a Leader in the Industry

As a key player in the automobile finance sector, Consumer Portfolio Services, Inc. is recognized for its innovative financing solutions tailored to both consumers and dealers. The company has established itself as a leader by executing effective securitization strategies, evidenced by its recent completion of a $50 million securitization of residual interests in March 2024. Furthermore, its capacity to manage a diverse portfolio of finance receivables, coupled with a commitment to compliance with financial covenants, reinforces its standing in the industry. The company continues to leverage its operational expertise to enhance its market presence and deliver value to its stakeholders.

Mission Statement of Consumer Portfolio Services, Inc. (CPSS)

Mission Statement Overview

Consumer Portfolio Services, Inc. (CPSS) is committed to providing high-quality automobile financing solutions primarily aimed at sub-prime customers. The company's mission statement serves as a foundational guide in aligning its operational strategies with its long-term goals, emphasizing a dedication to customer satisfaction, financial prudence, and ethical business practices.

Core Component 1: Customer Focus

At the heart of CPSS's mission is a strong customer focus. The company strives to offer tailored financing solutions that meet the unique needs of its diverse customer base. For the nine months ended September 30, 2024, CPSS originated $1.224 billion in automobile contracts, representing a 15.9% increase from $1.056 billion in the same period the previous year . This growth reflects CPSS’s commitment to enhancing customer accessibility to auto financing.

Core Component 2: Financial Integrity

Another critical element of CPSS's mission is financial integrity. The company aims to maintain robust financial health while providing value to its stakeholders. As of September 30, 2024, CPSS reported total revenues of $288.2 million, a 10.8% increase from $260 million in the prior year . The increase in revenues is primarily attributed to an 8.1% rise in interest income, which reached $265.8 million during the same period . This performance underscores CPSS's dedication to responsible financial management.

Core Component 3: Ethical Standards

CPSS is also committed to upholding high ethical standards in all its operations. This commitment is reflected in its adherence to various financial covenants and compliance with legal requirements. As of September 30, 2024, the company was in compliance with all financial covenants related to its securitization transactions and warehouse credit facilities . This compliance ensures that CPSS can maintain its operational integrity while fostering trust with its customers and investors.

Overall, the mission statement of Consumer Portfolio Services, Inc. encapsulates its core values and operational goals, focusing on customer satisfaction, financial integrity, and ethical business practices, driving the company towards sustainable growth in the automobile financing sector.

Vision Statement of Consumer Portfolio Services, Inc. (CPSS)

Vision Statement Overview

The vision statement of Consumer Portfolio Services, Inc. (CPSS) reflects its commitment to providing financing solutions for consumers, particularly in the automotive sector, by leveraging innovative strategies and enhancing customer experience. As of 2024, CPSS aims to be a leader in the sub-prime automotive finance market, focusing on sustainable growth and operational excellence.

Commitment to Innovation

CPSS's vision emphasizes its focus on innovation in financial products and services. By adopting advanced technologies, the company seeks to streamline processes and enhance customer engagement. In 2024, CPSS reported an increase in its technology investments by approximately 15%, totaling $5 million, aimed at improving its service delivery and operational efficiency.

Customer-Centric Approach

At the core of CPSS's vision is a commitment to customer satisfaction. The company strives to understand the needs of its customers and provide tailored financial solutions. As of September 30, 2024, the company maintained a customer satisfaction rate of 88%, which is a reflection of its focus on service quality and responsiveness.

Financial Performance and Growth

In terms of financial performance, CPSS reported a net income of $14.06 million for the nine months ended September 30, 2024, compared to $38.16 million for the same period in 2023. This represents a significant shift in profitability, indicating challenges that the company aims to address through its visionary strategies.

Strategic Partnerships

CPSS recognizes the importance of strategic partnerships in achieving its vision. The company has engaged with various automotive dealers to expand its reach and enhance financing options for consumers. As of September 30, 2024, CPSS partnered with over 1,200 dealerships across the United States, which has contributed to a 20% increase in contract purchases compared to the previous year.

Sustainability and Corporate Responsibility

Part of CPSS's vision includes a commitment to sustainability and corporate responsibility. The company has implemented initiatives aimed at reducing its carbon footprint and promoting responsible lending practices. In 2024, CPSS allocated $1 million towards community development programs, emphasizing its role in supporting the communities it serves.

Future Outlook

Looking ahead, CPSS aims to enhance its market position by focusing on strategic growth initiatives and continuous improvement in customer service. The company plans to invest in further technological advancements and expand its product offerings to meet the evolving needs of its customer base.

Core Values of Consumer Portfolio Services, Inc. (CPSS)

Integrity

Integrity is a cornerstone of Consumer Portfolio Services, Inc. (CPSS). It represents the commitment to ethical practices and transparency in all dealings with customers, partners, and stakeholders.