IRVINE, Calif., March 31, 2011 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq:CPSS) ("CPS" or the "Company") today announced operating results for its fourth quarter ended December 31, 2010.
Operating results for the fourth quarter of 2010 included revenues of $35.3 million, a decrease of approximately $11.4 million, or 24.5%, compared to $46.7 million for the fourth quarter of 2009. Total operating expenses for the fourth quarter of 2010 were $37.4 million, a decrease of $47.9 million, or 56.1%, as compared to $85.3 million for the 2009 period. Pretax loss for the fourth quarter of 2010 was $2.2 million compared to pretax loss of $38.6 million in the fourth quarter of 2009.
Net loss for the fourth quarter of 2010 was $14.5 million, or $0.84 per diluted share, compared to net loss of $46.4 million, or $2.55 per diluted share, for the year-ago quarter. Net loss for the fourth quarter of 2010 includes income tax expense of $12.4 million, or $0.71 per diluted share, which represents an addition to the valuation allowance against the Company's deferred tax asset. Net loss for the fourth quarter of 2009 includes income tax expense of $7.8 million, or $0.43 per diluted share, which represents an addition to the valuation allowance against the Company's deferred tax asset.
For the year ended December 31, 2010 total revenues were $155.2 million compared to $223.9 million for the year ended December 31, 2009, a decrease of approximately $68.7 million, or 30.7%. Total expenses for the year ended December 31, 2010 were $172.0 million, a decrease of $101.3 million, or 37.1%, as compared to $273.3 million for the year ended December 31, 2009. Pretax loss for the year ended December 31, 2010 was $16.8 million, compared to pretax loss of $49.4 million for the year ended December 31, 2009.
Net loss for the year ended December 31, 2010 was $33.8 million, or $1.94 per diluted share, compared to net loss of $57.2 million, or $3.07 per diluted share, for the year ended December 31, 2009. Net loss for the year of 2010 includes income tax expense of $17.0 million, or $0.97 per diluted share, which represents additions to the valuation allowance against the Company's deferred tax asset. Net loss for the year of 2009 includes income tax expense of $7.8 million, or $0.42 per diluted share, which represents additions to the valuation allowance against the Company's deferred tax asset.
During the fourth quarter of 2010, CPS purchased $33.6 million of contracts from dealers as compared to $35.3 million during the third quarter of 2010 and $6.1 million during the fourth quarter of 2009. The Company's managed receivables totaled $756.2 million as of December 31, 2010, a decrease of $438.5 million, or 36.7%, from $1,194.7 million as of December 31, 2009, as follows ($ in millions):
Annualized net charge-offs for 2010 were 9.04% of the average owned portfolio as compared to 11.02% in 2009. Delinquencies greater than 30 days (including repossession inventory) were 9.16% of the total owned portfolio as of December 31, 2010, as compared to 8.76% as of December 31, 2009.
"2010 and the last few months have been very productive for the Company," said Charles E. Bradley, Jr., Chairman and Chief Executive Officer. "We have established two new credit facilities for $200 million in new warehouse funding, raised $20 million in incremental growth capital and completed our first term securitization since early 2008. In addition, our new contract purchase initiatives within the dealership community are gaining traction. We purchased over $110 million in new contracts in 2010 vs. nominal amounts in 2009 and maintained attractive yields and credit metrics."
"Our two primary objectives for 2011 will be to increase new contract purchases to the point where our total managed portfolio starts growing again and to complete multiple term securitization transactions. We feel both of these goals are attainable and will mark important milestones in our rebuilding efforts from the impact we have felt from the Great Recession."
Conference Call
CPS announced that it will hold a conference call on Monday, April 4, 2011, at 1:30 p.m. ET to discuss its quarterly operating results. Those wishing to participate by telephone may dial-in at 877 312-5502 or 253 237-1131 approximately 10 minutes prior to the scheduled time.
A replay will be available between April 4, 2011 and April 10, 2011, beginning two hours after conclusion of the call, by dialing 800 642-1687 or 706 645-9291 for international participants, with conference identification number 56806276. A broadcast of the conference call will also be available live and for 30 days after the call via the Company's web site at .
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems, low incomes or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
Forward-looking statements in this news release include the Company's recorded revenue, expense and provision for credit losses, because these items are dependent on the Company's estimates of future losses. The accuracy of such estimates may be adversely affected by various factors, which include (in addition to risks relating to the economy generally) the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company's ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company's rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company's realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company's business is concentrated. All of such factors also may affect the Company's future financial results, as to which there can be no assurance.
Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to provision for credit losses may affect future performance.
CONTACT: Investor Relations Contact Robert E. Riedl, Chief Investment Officer 949 753-6800