Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 174

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 174
---
crease in the overall level of sales of automobiles and light trucks. Similar periods of losses began in the quarter ended March 31,
1999 through the quarter ended December 31, 2000 and also from the quarter ended September 30, 2003 through the quarter ended March 31,
2005.

We expect to earn quarterly
profits during 2025; however, there can be no assurance as to that expectation. Our expectation of profitability is a forward-looking
statement. We discuss the assumptions underlying that expectation under the caption “Cautionary Note Regarding Forward-Looking Statements”
in this report. We identify important factors that could cause actual results to differ, generally in the “Risk Factors” section
of this report, and also under the caption “Cautionary Note Regarding Forward-Looking Statements.” One reason for our expectation
is that we have had positive net income in each of the thirteen fiscal years ended December 31, 2024, although not in every quarter within
that period.

Our Results of Operations Will Depend on Our Ability
to Secure and Maintain Adequate Credit and Warehouse Financing on Favorable Terms.

We depend on various financing
sources, including credit facilities, our securitization program and other secured and unsecured debt issuances, to finance our business
operations. Historically, our primary sources of day-to-day liquidity have been our warehouse credit facilities, in which we sell and
contribute automobile contracts, as often as twice a week, to special-purpose subsidiaries, where they are "warehoused" until
they are financed on a long-term basis through the issuance and sale of asset-backed notes. Upon sale of the notes, funds advanced under
one or more warehouse credit facilities are repaid from the proceeds. Our current short-term funding capacity is $535 million, comprising
two credit facilities. Both warehouse credit facilities have a revolving period during which we may receive advances secured by contributed
automobile contracts, followed by an amortization period during which no further advances may be made, but prior to which outstanding
advances are due and payable. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations –
Liquidity and Capital Resources – Liquidity”.

Our access to financing sources
depends upon our financial position, general market conditions, availability of bank liquidity, the bank regulatory environment, our compliance
with covenants imposed under our financing agreements, the credit quality of the collateral we can pledge to support secured financings,
and other factors beyond our control.