Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 80

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 80
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 cash from operating activities is generally
provided by net income from operations adjusted for significant non-cash items such as our provision for credit losses and marks to finance
receivables measured at fair value.

Net cash used in investing activities
was $194.1 million for the three months ended March 31, 2025, compared to $108.6 million in the prior year period. Net cash used in investing
activities generally relates to new purchases of automobile contracts net of principal payments and other proceeds received during the
period. Purchases of finance receivables excluding acquisition fees were $449.6 million and $328.9 million during the first three months
of 2025 and 2024, respectively.

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Net cash provided by financing
activities for the three months ended March 31, 2025, was $166.3 million compared to $81.5 million in the prior year period. Cash provided
by financing activities is primarily related to the issuance of securitization trust debt, reduced by the amount of repayment of securitization
trust debt and net proceeds or repayments on our warehouse lines of credit and other debt. In the first three months of 2025, we issued
$442.4 million in new securitization trust debt compared to $280.9 million for the same period in 2024. We repaid $293.0 million in securitization
trust debt in the three months ended March 31, 2025, compared to repayments of securitization trust debt of $268.7 million in the prior
year period. In the three months ended March 31, 2025, we had net repayments on warehouse lines of credit of $45.8 million, compared to
net advances from warehouse lines of credit of $17.2 million in the prior year’s period.

We purchase automobile contracts
from dealers for a cash price approximately equal to their principal amount, adjusted for an acquisition fee which may either increase
or decrease the automobile contract purchase price. Those automobile contracts generate cash flow, however, over a period of years. We
have been dependent on warehouse credit facilities to purchase automobile contracts and our securitization transactions for long term
financing of our contracts. In addition, we have accessed other sources, such as residual financings and subordinated debt in order to
finance our continuing operations.

The acquisition of automobile
contracts for subsequent financing in securitization transactions, and