Consumer Portfolio Services, Inc. Reports 2002 Fourth Quarter and Full-Year Earnings; Revenues and Net Income Continued Strong Growth
IRVINE, Calif.--Feb. 25, 2003--Consumer Portfolio Services, Inc. today announced earnings for its fourth quarter and year ended December 31, 2002.For the three months ended December 31, 2002 total revenues increased approximately $11.5 million, or 82%, to $25.6 million, compared to $14.1 million for the three months ended December 31, 2001. Pretax income for the fourth quarter 2002 was $3.3 million, compared to a pretax loss of ($480,000) for the comparable 2001 period. Net income for the quarter ended December 31, 2002 was $1.9 million, or $0.09 per diluted share, compared to a net loss of ($360,000), or ($0.02) per diluted share, for the quarter ended December 31, 2001. Diluted shares outstanding were 21.9 million and 19.5 million for the quarters ended December 31, 2002 and 2001, respectively.
Revenues for the year ended December 31, 2002 totaled $92.0 million, an increase of $30.0 million, or 48%, compared to $62.0 million for 2001. Full-year 2002 net income was $20.4 million, or $0.94 per diluted share, and included an extraordinary gain recognized in the first quarter 2002 related to the Company's March 2002 acquisition of MFN Financial Corporation. For the year ended December 31, 2001 net income was $320,000, or $0.02 per diluted share. Diluted shares outstanding were 22.3 million and 21.0 million for the years 2002 and 2001, respectively.
"The fourth quarter and full year results reflect the fundamental strengths of our business on a number of fronts, as indicated by our growing receivables portfolio and securitization activities. Also, we recently added an additional $75 million warehouse line, raising our current warehouse capacity to $200 million, which will further enhance our ability to acquire contracts in the coming year," said Charles E. Bradley, President and Chief Executive Officer of Consumer Portfolio Services. "We remain keenly focused on strategically and carefully managing our operations and growth, and look forward to the opportunities available in our marketplace as we move into 2003."
Consumer Portfolio Services' managed receivables totaled $595.2 million at December 31, 2002, an increase of 108% since December 31, 2001. During 2002, the Company purchased $463.3 million in contracts and completed $384.7 million in term asset backed securitizations. In 2001, the Company completed one term asset backed securitization of $68.5 million.
Conference Call
Consumer Portfolio Services announced that it will hold a conference call tomorrow, February 26, 2003, at 2:00 p.m. EST to discuss its quarterly and full year results. Those wishing to participate by telephone may dial-in at (973) 582-2783 approximately 10 minutes prior to the scheduled time.
A replay will be available between February 26, 2003 and March 6, 2003, beginning one hour after conclusion of the call, by dialing (877) 519-4471. The reservation number is 3773584. 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 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 Year ended
December 31, December 31,
-------------------------------------------
2002 2001 2002 2001
-------------------------------------------
Revenues:
Gain on sale of
contracts, net $4,274 $6,833 $16,444 $32,765
Interest income 12,936 3,982 48,644 17,205
Servicing fees 4,236 2,782 14,621 10,666
Other income 4,114 492 12,243 1,369
------------ --------- -------- --------
25,560 14,089 91,952 62,005
------------ --------- -------- --------
Expenses:
Employee costs 9,170 6,069 37,778 23,994
General and
administrative 4,777 2,773 20,131 12,645
Interest 5,943 3,319 23,925 14,335
Other expenses 2,352 2,408 10,056 10,711
------------ --------- -------- --------
22,242 14,569 91,890 61,685
------------ --------- -------- --------
Income (loss) before
income tax expense
(benefit)
and extraordinary
item 3,318 (480) 62 320
Income tax expense
(benefit) 1,380 (120) (2,934) -
------------ --------- -------- --------
Income before
extraordinary item 1,938 (360) 2,996 320
Extraordinary item,
unallocated negative
goodwill - - 17,412 -
------------ --------- -------- --------
Net income $1,938 $(360) $20,408 $320
============ ========= ======== ========
Earnings per share before
extraordinary item:
Basic $0.09 $(0.02) $0.15 $0.02
Diluted 0.09 (0.02) 0.14 0.02
Earnings per share after
extraordinary item:
Basic $0.09 $(0.02) $1.03 $0.02
Diluted 0.09 (0.02) 0.94 0.02
Number of shares used in
computing earnings per
share:
Basic 20,519 19,510 19,902 19,480
Diluted 21,913 19,510 22,256 21,018
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
December 31, December 31,
2002 2001
------------ -----------
Cash and restricted cash $51,859 $13,924
Finance receivables, net 84,592 -
Residual interest in
securitizations 127,170 106,103
Other assets 21,827 31,177
------------ ---------
$285,448 $151,204
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Accounts payable and
other liabilities $27,672 $9,029
Securitization trust debt 71,630 -
Senior secured debt 50,072 26,000
Subordinated debt 53,500 54,489
------------ ---------
202,874 89,518
------------ ---------
Shareholders' equity 82,574 61,686
------------ ---------
$285,448 $151,204
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