Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 573

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 2
Chunk 573
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 Employee costs and general and administrative expenses are incurred as applications and automobile contracts
are received, processed and serviced. Factors that affect margins and net income include changes in the automobile and automobile finance
market environments, and macroeconomic factors such as interest rates and changes in the unemployment level.

Employee costs include base
salaries, commissions and bonuses paid to employees, and certain expenses related to the accounting treatment of outstanding stock options,
and are one of our most significant operating expenses. These costs (other than those relating to stock options) generally fluctuate with
the level of applications and automobile contracts processed and serviced, which can be measured by our managed portfolio outstanding.

Other operating expenses consist
largely of facilities expenses, telephone and other communication services, credit services, computer services, sales and advertising
expenses, and depreciation and amortization.

Total operating expenses were
$366.1 million for the year ended December 31, 2024, compared to $290.9 million for the prior year, an increase of $75.2 million, or 25.8%.
The increase is primarily due to increases in interest expense, employee costs and the amount of reductions to provision for credit losses
expenses.

Employee costs increased by
$8.0 million or 9.1%, to $96.2 million during the year ended December 31, 2024, representing 26.3% of total operating expenses. Employee
costs were $88.1 million in the prior year, or 30.3% of total operating expenses. The increase in employee costs can be attributed to
the increase in our outstanding managed portfolio.

The table below summarizes
our employees by category as well as contract purchases and units in our managed portfolio as of, and for the years ended, December 31,
2024 and 2023:

    December 31, 2024  
    December 31, 2023 

    Amount  
    Amount 

    ($ in millions) 
  
    Contracts purchased (dollars) 
    $1,681.9  
    $1,357.8 
  
    Contracts purchased (units) 
     77,009  
     65,137 
  
    Managed portfolio outstanding (dollars) 
    $3,491.0  
    $2,970.1 
  
    Managed portfolio outstanding (units) 
     201,441  
     179,198 

    Number of Originations staff