Consumer Portfolio Services Inc. Reports Annual Results for 2000

    IRVINE, Calif.--March 29, 2001--Consumer Portfolio Services Inc. today announced financial results for the fourth quarter and year ended Dec. 31, 2000.
    For the fourth quarter, total revenues increased from negative revenues of $10.2 million to positive revenues of $7.8 million. The company's net loss for the period was $6.7 million, or $0.33 per share, on 20 million diluted shares outstanding, compared with a net loss of $18.9 million, or $0.94 per share, on 20.1 million diluted shares outstanding for the same period in the prior year.
    For the year ended Dec. 31, 2000, total revenues increased by 142.8% to $36 million, compared with $14.8 million in the prior year. The company's net loss for the year was $22.1 million, or $1.10 per share, on 20.2 million diluted shares outstanding, compared with a net loss of $44.5 million, or $2.38 per share, on 18.7 million diluted shares outstanding in the prior year.
    For the year ended Dec. 31, 2000, purchases of contracts from automobile dealers increased by $182.6 million to $607 million, compared with $424.4 million for the prior year. Contracts sold during the year increased 149% to $600.4 million, compared with $241.2 million in the prior year. The aggregate outstanding balance of contracts serviced by the company at Dec. 31, 2000, was $411.9 million, a decrease of 49.8% from $821 million at Dec. 31, 1999.
    Balances of accounts past due over 30 days represented 5.8% of the servicing portfolio at Dec. 31, 2000, compared with 5.1% at Dec. 31, 1999. The annualized net charge off rate for the three and 12 month periods ended Dec. 31, 2000, were 10.7% and 11.2%, respectively, compared with 14.9% and 9.2% for the three and 12 month periods ended Dec. 31, 1999.
    The company's non-discounted allowance for credit losses on sold contracts in which it retains a residual interest was $17.8 million, or 4.6% of the aggregate balance of such contracts as of Dec. 31, 2000. The on-balance sheet allowance for credit losses was $2.2 million, or 10.3% of contracts held for sale at Dec. 31, 2000. As of Dec. 31, 2000, the inventory of repossessed vehicles was 1.9% of the servicing portfolio, compared with 3.3% at Dec. 31, 1999.
    "Although the earnings results were negative in the fourth quarter, the company has made a strong rebound from 1999," said Charles E. Bradley, Jr., president and chief executive officer. "We are very pleased with the progress we have made to date, particularly in terms of improved efficiencies, increased contract purchasing volume and maintenance of our delinquency percentage. 2000 was a year to re-establish our base business and to prepare for a more active role in the sub prime market in 2001."

           Consumer Portfolio Services Inc. and Subsidiaries
            Condensed Consolidated Statements of Operations
                              (Unaudited)
                 (In thousands, except per share data)

                         Three Months Ended     Twelve Months Ended
                            December 31,            December 31,
                          2000        1999        2000        1999

Revenues:
Gain (loss) on sale of
 contracts, net        $   3,606   $   1,317   $  16,234   $ (14,844)
Interest income              997     (16,987)      3,480       3,032
Servicing fees             2,879       5,527      15,848      27,761
Other income (loss)          289         (78)        389      (1,144)

                           7,771     (10,221)     35,951      14,805

Expenses:
Interest                   4,229       3,819      17,240      27,405
Employee costs             5,918       6,664      24,634      29,820
General and
 administrative            5,075       4,967      15,772      19,605
Other expenses             2,758       2,341      10,708      10,138

                          17,980      17,791      68,354      86,968

Loss before income
 taxes                   (10,209)    (28,012)    (32,403)    (72,163)
Income tax benefit        (3,523)     (9,086)    (10,256)    (27,631)

Net loss               $  (6,686)  $ (18,926)  $ (22,147)  $ (44,532)

Loss per share:
   Basic               $   (0.33)  $   (0.94)  $   (1.10)  $   (2.38)
   Diluted             $   (0.33)  $   (0.94)  $   (1.10)  $   (2.38)

Number of shares used
 in computing loss per
 share:
   Basic                  20,007      20,108      20,195      18,678
   Diluted                20,007      20,108      20,195      18,678


                 Condensed Consolidated Balance Sheets
                            (In thousands)

                                       December 31,     December 31,
                                          2000             1999

Cash and restricted cash               $    24,315      $     3,324
Contracts held for sale                     18,830            2,421
Residual interest in securitizations        99,199          172,530
Other assets                                33,350           42,039

Total assets                           $   175,694      $   220,314

Senior secured debt                         38,000           23,161
Subordinated debt                           59,199           90,500
Other liabilities                           16,373           22,216

Total liabilities                          113,572          135,877

Shareholders' equity                        62,122           84,437

  Total liabilities and shareholders'
   equity                              $   175,694      $   220,314