Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 135

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 135
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 origination
and servicing fees we earned from third party receivables. These fees were $1.4 million for the quarter ended March 31, 2025, compared
to $2.1 million in the prior year period. 

Expenses.  Our operating expenses
consist largely of interest expense, employee costs, sales and general and administrative expenses. Interest expense is significantly
affected by the volume of automobile contracts we purchased during the trailing 12-month period and the use of our warehouse facilities
and asset-backed securitizations to finance those contracts. Employee costs and general and administrative expenses are incurred
as applications and automobile contracts are received, processed and serviced. Factors that affect profit 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 purchased and serviced.

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
$100.1 million for the three months ended March 31, 2025, compared to $85.2 million for the prior period, an increase of $14.9 million,
or 17.5%. The increase is primarily due to increases in interest expense and to a lesser extent, increases to sales costs.

 30 

Employee costs were $25.0 million
during the three months ended March 31, 2025, compared to $24.4 million for the same quarter in the prior year, an increase of $617,000,
or 2.5%. The table below summarizes our employees by category as well as contract purchases and units in our managed portfolio as of,
and for the three-month periods ended, March 31, 2025, and 2024:

    Three Months Ended March 31, 

    2025  
    2024 

    (Dollars in millions) 
  
    Contracts purchased (dollars) 
    $451.2  
    $346.3 
  
    Contracts purchased (units) 
     20,707