Acquiring Growth
Nonprime lender Consumer Portfolio Services today released its third-quarter results. Though improved from 3Q08, the finance company lost $4.3 million on $52.8 million of revenue. Capital constraints have hammered CPS’s origination volume — $506,000 in 3Q09 versus $33.6 million in 3Q08.
In the past few weeks, though, CPS secured a $50 million credit facility and took over servicing a $146 million portfolio owned by a subsidiary of CompuCredit Corp.
During a call this afternoon to discuss earnings, CEO Charles Bradley Jr. said that while it’ll take a while for CPS’s originations to return to prior levels, the current credit crisis opens the door for acquisitions — of loan portfolios and entire companies.
“Six months ago, we wouldn’t even be looking at those deals,” Bradley said. “Today, we think there are more of them.”
What do you think?
In the past few weeks, though, CPS secured a $50 million credit facility and took over servicing a $146 million portfolio owned by a subsidiary of CompuCredit Corp.
During a call this afternoon to discuss earnings, CEO Charles Bradley Jr. said that while it’ll take a while for CPS’s originations to return to prior levels, the current credit crisis opens the door for acquisitions — of loan portfolios and entire companies.
“Six months ago, we wouldn’t even be looking at those deals,” Bradley said. “Today, we think there are more of them.”
What do you think?
Tags: acquisition, bradley, cps, growth, nonprime, originations
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