Consumer Portfolio Services, Inc. (NASDAQ:CPSS) Q2 2020 Earnings Conference Call - Final Transcript
Jul 22, 2020 • 11:00 am ET
Good day, everyone, and welcome to the Consumer Portfolio Services 2020 Second Quarter Operating Results Conference Call. Today's call is being recorded.
Before we begin, management has asked me to inform you that this conference call may contain forward-looking statements. Any statements made during this call are not the statements of historical facts, may be deemed forward-looking statements. Statements regarding current or historical valuation of receivables, because dependent on estimates of future events, also are forward-looking statements.
All such forward-looking statements are subject to risks, could cause actual results to differ materially from those projected. I refer you to the Company's annual report filed March 16th and its quarterly report filed May 5th for further clarification. The Company assumes no obligation to update publicly any forward-looking statements whether as a result of new information, further events or otherwise.
With us here now is Mr. Charles Bradley, Chief Executive Officer; and Mr. Jeff Fritz, Chief Financial Officer of Consumer Portfolio Services.
I will now turn the call over to Mr. Bradley.
Charles E. Bradley, Jr.
I must note, I wonder how people on the conference call set up business get their job sometimes. But nonetheless, oh my god. So it's been an interesting quarter. Certainly, this is the real COVID quarter because our first quarter ended in March and March really showed no signs. This quarter has been a rollercoaster of not knowing what's going to happen, whether things good or bad are going to happen.
The good news is the quarter started out very well. We went from starting on April, with wondering whether we could do any more securitizations. We had to postpone our securitization. But the market recovered exceedingly quickly and we were able to get off the securitization without any problems, and actually very good pricing. So that was a very big accomplishment.
Everybody is worried about the volumes. Our volumes are off a bit. However, we're still functioning and everything's going pretty well. I think generally people are being quite conservative right now, both in terms of how long this is all going to last, whether there's going to be a liquidity issue and everybody is sort of trying to maintain their liquidity and being cautious, and as our we.
Collections was another big challenge. Our motto always is, you can sleep in your car, you can't drive your house, but it really shows with the government checks and the unemployment benefits, our customers are using that money and they're paying us. People wondered how that would all work, but our collection efforts and our results have been really good this quarter even though we're in the midst of all these problems. So that's another huge highlight of what's going on.
The earnings were good, was the best earnings since fourth quarter of 2018. We're hoping that trend will continue. So at the end of the day, we don't really know what's going to happen. So we're going to move cautiously, preserve liquidity, we're buying a little tighter, we're getting good