IRVINE, Calif., May 23, 2011 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq:CPSS) ("CPS" or the "Company") today announced operating results for its first quarter ended March 31, 2011.
Operating results for the first quarter of 2011 included revenues of $32.4 million, a decrease of approximately $12.2 million, or 27.3%, compared to $44.6 million for the first quarter of 2010. Total operating expenses for the first quarter of 2011 were $36.6 million, a decrease of $15.9 million, or 30.3%, as compared to $52.5 million for the 2010 period. Pretax loss for the first quarter of 2011 was $4.2 million compared to pretax loss of $7.9 million in the first quarter of 2010. Net loss for the first quarter of 2011 was $4.2 million, or $0.23 per diluted share, compared to net loss of $7.9 million, or $0.44 per diluted share, for the year-ago quarter.
During the first quarter of 2011, CPS purchased $50.0 million of contracts from dealers as compared to $33.6 million during the fourth quarter of 2011 and $17.4 million during the first quarter of 2010. The Company's managed receivables totaled $679.7 million as of March 31, 2011, a decrease of $364.4 million, or 34.9%, from $1,044.1 million as of March 31, 2010, as follows ($ in millions):
Annualized net charge-offs for the first quarter of 2011 were 9.32% of the average owned portfolio as compared to 12.19% in 2010. Delinquencies greater than 30 days (including repossession inventory) were 5.82% of the total owned portfolio as of March 31, 2011, as compared to 5.94% as of March 31, 2010.
"We are pleased with the progress we have made in executing our comeback strategy," said Charles E. Bradley, Jr., Chairman and Chief Executive Officer. "We purchased $50 million of new contracts during the quarter, a 49% increase vs. the fourth quarter of 2010, and we expect to see continued growth this quarter. In addition, the credit and yield metrics of the new loans look as attractive as at any time in the last 10 years."
"In April as we previously reported we closed our first term securitization of 2011. It was a senior subordinate transaction with a net advance rate of approximately 94% and an effective yield to the investors of approximately 4%. This transaction provided significant liquidity and the cost of funds is a vast improvement from our more recent financing facilities. As I have mentioned previously, accessing the term securitization market has been an important objective because it is a critical part of attaining profitability once again."
CPS announced that it will hold a conference call on Tuesday, May 24, 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 May 24, 2011 and May 31, 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 70460984. 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