Consumer Portfolio Services Inc. Reports 2001 First Quarter Earnings

    IRVINE, Calif.--April 26, 2001--Consumer Portfolio Services Inc. today announced its earnings for the first quarter ended March 31, 2001.
    The company's net income for the three months ended March 31, 2001, was $186,000, or $0.01 per share, on 21.4 million diluted shares outstanding, compared with a net loss of $11.1 million, or $0.55 per share, on 20.1 million diluted shares outstanding for the same period in the prior year. Total revenues increased by $17 million, from $374,000 for the year-earlier period to $17.3 million for the three months ended March 31, 2001.
    Purchases of contracts from automobile dealers increased 21% to $190.7 million from $157.6 million for the prior year's period. During the three month period ended March 31, 2001, the company sold $198.9 million of contracts, compared with $154.5 million for the same period in the prior year. The aggregate outstanding balance of contracts serviced by the company at March 31, 2001, was $381.3 million, a decrease of 44.9% from $692.5 million at March 31, 2000.
    Balances of accounts past due over 30 days represented 2.6% of the servicing portfolio at March 31, 2001, compared with 3.3% at March 31, 2000. The annualized net charge-off rate for the three month period ended March 31, 2001, was 8.23%, compared with 13.89% for the three month period ended March 31, 2000. As of March 31, 2001, the inventory of repossessed vehicles was 1.8% of the servicing portfolio, compared with 2.6% at March 31, 2000.
    "We are very pleased with the results of the quarter. This is our first profitable quarter in two years. This is another important step in the process of rebuilding our company," said Charles E. Bradley Jr., president and chief executive officer.
    Consumer Portfolio Services purchases, sells and services retail installment sales contracts originated predominantly by franchised dealers for new and late model used cars. The company finances automobile purchases through approximately 4,500 dealers under contract across the United States.

    Forward-looking statements in this news release include the company's recorded gain on sale 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; 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 or changes in bankruptcy law, 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.

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

                                               Three Months Ended
                                                    March 31,
                                                2001        2000
Revenues:
Gain on sale of contracts, net              $    9,371  $    4,346
Interest income                                  5,014      (8,957)
Servicing fees                                   2,580       5,095
Other income (loss)                                360        (110)

                                                17,325         374

Expenses:
Interest                                         4,269       4,779
Employee costs                                   6,952       6,793
General and administrative                       2,867       3,528
Other expenses                                   2,931       2,791

                                                17,019      17,891

Income (loss) before income tax (benefit)          306     (17,517)
Income tax (benefit)                               120      (6,420)

   Net income (loss)                        $      186  $  (11,097)

Earnings (loss) per share:
   Basic                                    $     0.01  $    (0.55)
                                                               
   Diluted                                  $     0.01  $    (0.55)
                                                               
Number of shares used in computing
 earnings (loss) per share:
   Basic                                        19,577      20,144
   Diluted                                      21,356      20,144


                 Condensed Consolidated Balance Sheets
                            (In thousands)

                                              March 31,   Dec. 31,
                                                2001        2000
                                             (Unaudited)

Cash and restricted cash                    $   14,538  $   24,315
Contracts held for sale                          5,389      18,830
Residual interest in securitizations           108,418      99,199
Other assets                                    31,981      33,350

Total assets                                $  160,326  $  175,694

Senior secured debt                             30,000      38,000
Subordinated debt                               54,658      59,199
Other liabilities                               12,851      16,373

Total liabilities                               97,509     113,572

Shareholders' equity                            62,817      62,122

   Total liabilities and shareholders'      $  160,326  $  175,694
    equity