Consumer Portfolio Services, Inc. (NASDAQ:CPSS) Q4 2018 Earnings Conference Call - Final Transcript

Feb 13, 2019 • 01:00 pm ET


Consumer Portfolio Services, Inc. (NASDAQ:CPSS) Q4 2018 Earnings Conference Call - Final Transcript


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Charles Bradley

at the industry, everybody is still hanging around and waiting for the consolidation to happen. There is a lots of talk out there about what's going to happen. People are all waiting around to see these big companies make decisions. All the private equity-backed companies are still there. There has been a few smaller companies or portfolios in the sort of $100 million, less than $200 million range, that are beginning to triple out, but there are really big ones that are what everyboby is waiting for, because once the big companies, either the PE companies decide what they're going to do, whether they are going to establish market value or not, that also will be the trigger for all other companies to make their decisions.

And so, we think -- I think in 2016, '17 a lot of people, including myself said gee, it's going to be consolidation industry, but in 2018 the companies involved started saying they were going to do something. So to the extent that's true, then better -- they are talking better than us. And so, the fact that some of these companies are saying they're going to make some decisions and try and do something's, hopefully will then start the ball rolling for everyone.

And our whole goal is to be sitting in the right spot at the right time to take advantage of that even when some of these large companies go away or maybe we can purchase one or any of those things to the extent they get some stunning valuation that tide will flow all boats including us. So that would be okay as well. But nonetheless hopefully 2019 sees finally the shake out of some of these folks in the industry and again with what we've done in the last couple years, we are in a great spot for that.

In terms of the big picture, there has been a little bit in the news about delinquencies being up across the industry, about subprime debt or auto debt being up. I don't think that it's somewhat interesting, I guess, that's maybe the result of people growing and being aggressive. I think the bottom line for us and what we certainly care about, and probably even the industry is unemployment. Unemployment is really the answer to everything in terms of performance. If we have a recession, unemployment goes up that affects our production, our performance, everything. But today unemployment doesn't seem to be factor at all. So we're not overly worried about that. We think our delinquencies are fine and the delinquency trends across the industry, might it be interesting for some other folks but not for us.

So, I think 2018 is done behind us, 2019 started. We have high hopes for 2019 and again, we will be talking to you soon after, see how that works out. So we will open up for questions.