Consumer Portfolio Services, Inc. Reports Third Quarter 2002 Earnings
IRVINE, Calif.--Oct. 23, 2002--Consumer Portfolio Services, Inc. today announced earnings for its third quarter, ended September 30, 2002.
For the three months ended September 30, 2002 total revenues increased approximately $11.8 million, or 82%, to $26.0 million, compared to $14.3 million for the three months ended September 30, 2001. Operating income for the third quarter 2002 was $2.2 million, an increase of 785% over the $253,000 for the same period last year. Net income for the quarter ended September 30, 2002 was $1.3 million, or $0.06 per diluted share, compared to net income of $253,000, or $0.01 per diluted share, for the quarter ended September 30, 2001, representing an increase of over 400%. Diluted shares outstanding were 21.0 million and 21.1 million for the quarters ended September 30, 2002 and 2001, respectively.
Revenues for the nine months ended September 30, 2002 totaled $66.4 million, an increase of $18.5 million, or 39%, compared to $47.9 million in the 2001 period. For the nine months ended September 30, 2002 net income was $18.5 million, or $0.85 per diluted share, which includes an extraordinary gain recognized in the first quarter 2002 related to the CPS acquisition of MFN Financial Corporation, which closed March 8, 2002. For the nine months ended September 30, 2001 net income was $680,000, or $0.03 per diluted share. Diluted shares outstanding were 22.1 million and 21.2 million for the nine-month periods ended September 30, 2002 and 2001, respectively.
"The three months ended September 30 mark another solid quarter in which Consumer Portfolio Services has increased its revenues and earnings. This accomplishment can be attributed to our continued focus on strategically managing our operations and growth," said Charles E. Bradley, President and Chief Executive Officer of Consumer Portfolio Services, Inc. "With the MFN acquisition nearly fully integrated into CPS and our recent success in the securitization market, we are well positioned to continue our progress and move forward."
CPS's managed receivables totaled $575.4 million at September 30, 2002, an increase of 81% since September 30, 2001. For the nine months ended September 30, 2002, the Company purchased $357.7 million in contracts and has completed $285.4 million in term asset backed securitizations. During the nine months ended September 30, 2002, the Company completed one term securitization totaling $68.5 million.
Conference Call
Consumer Portfolio Services also announced that it will hold a conference call today at 4:30 p.m. Eastern Time to discuss its quarterly results. Those wishing to participate by telephone may dial-in at (973) 935-2101 approximately 10 minutes prior to the scheduled time.
A replay will be available between October 23, 2002 and October 30, 2002, beginning one hour after conclusion of the call by dialing (877) 519-4471. The reservation number is 3537308. A broadcast of the conference call is also available live and for 30 days after the call via the Company's web site at www.consumerportfolio.com and at www.streetevents.com.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is a consumer finance company that specializes in purchasing, selling and servicing retail automobile installment sale contracts originated by automobile dealers located throughout the United States. The Company is currently active in 38 states. Through its purchase of contracts, the Company provides indirect financing to car dealer customers with limited credit histories, low incomes or past credit problems, who generally would not be expected to qualify for financing provided by banks or by automobile manufacturers' captive finance companies.
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; 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 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
(In thousands, except per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
2002 2001 2002 2001
---- ---- ---- ----
Revenues:
Gain on sale of
contracts, net $ 5,303 $ 7,441 $ 12,170 $ 25,932
Interest income 13,218 3,909 35,708 13,223
Servicing fees 3,619 2,676 10,385 7,884
Other income 3,900 245 8,129 877
--------- -------- -------- ---------
26,040 14,271 66,392 47,916
--------- -------- -------- ---------
Expenses:
Employee costs 9,174 5,055 28,608 17,925
General and
administrative 5,829 3,205 15,354 9,872
Interest 6,334 3,258 17,982 11,016
Other expenses 2,463 2,500 7,704 8,303
--------- -------- -------- ---------
23,800 14,018 69,648 47,116
--------- -------- -------- ---------
Income (loss) before
income tax expense
(benefit)
and extraordinary item 2,240 253 (3,256) 800
Income tax expense
(benefit) 940 - (4,314) 120
--------- -------- -------- ---------
Income before
extraordinary item 1,300 253 1,058 680
Extraordinary item,
unallocated negative
goodwill - - 17,412 -
--------- -------- -------- ---------
Net income $ 1,300 $ 253 $ 18,470 $ 680
========= ======== ======== =========
Earnings per share
before extraordinary
item:
Basic $ 0.07 $ 0.01 $ 0.05 $ 0.03
Diluted 0.06 0.01 0.05 0.03
Earnings per share after
extraordinary item:
Basic $ 0.07 $ 0.01 $ 0.94 $ 0.03
Diluted 0.06 0.01 0.85 0.03
Number of shares used in
computing earnings per
share:
Basic 19,683 19,791 19,693 19,567
Diluted 21,012 21,112 22,109 21,163
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, December 31,
2002 2001
---- ----
Cash and restricted cash $ 47,549 $ 13,924
Finance receivables, net 112,083 -
Residual interest in
securitizations 116,959 106,103
Other assets 27,609 31,177
--------- ---------
$ 304,200 $ 151,204
========= =========
Accounts payable and
other liabilities $ 19,783 $ 9,029
Securitization trust
debt 92,566 -
Senior secured debt 56,543 26,000
Subordinated debt 53,908 54,489
--------- ---------
222,800 89,518
--------- ---------
Shareholders' equity 81,400 61,686
--------- ---------
$ 304,200 $ 151,204
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