Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 53

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 other operating activities. Our primary sources
of cash have been cash flows from the proceeds from term securitization transactions and other sales of automobile contracts, amounts
borrowed under various revolving credit facilities (also sometimes known as warehouse credit facilities), customer payments of principal
and interest on finance receivables, fees for origination of automobile contracts, and releases of cash from securitization transactions
and their related spread accounts. Our primary uses of cash have been the purchases of automobile contracts, repayment of amounts borrowed
under lines of credit, securitization transactions and otherwise, operating expenses such as employee, interest, occupancy expenses and
other general and administrative expenses, the establishment of spread accounts and initial overcollateralization, if any, the increase
of credit enhancement to required levels in securitization transactions, and income taxes. There can be no assurance that internally generated
cash will be sufficient to meet our cash demands. The sufficiency of internally generated cash will depend on the performance of securitized
pools (which determines the level of releases from those pools and their related spread accounts), the rate of expansion or contraction
in our managed portfolio, and the terms upon which we are able to acquire and borrow against automobile contracts.

Net cash provided by operating
activities for the three-month period ended March 31, 2025, was $73.9 million, an increase of $24.2 million, compared to net cash provided
by operating activities for the three-month period ended March 31, 2024, of $52.7 million. Net 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.

 38 

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