Consumer Portfolio Services, Inc. Reports 2000 Q1 Results
22 May 2000
Consumer Portfolio Services, Inc. Reports 2000 First Quarter Results
IRVINE, Calif.--May 18, 2000--Consumer Portfolio Services, Inc. Thursday announced financial results for its first quarter, ended March 31, 2000.For the three months ended March 31, 2000, total revenues decreased 98.2% to $374,000 compared with $20.8 million for the three months ended March 31, 1999. The company's net loss for the period was $11.1 million, or $0.55 per share, on 20.1 million diluted shares outstanding, compared with a net loss of $2.1 million, or $0.14 per share, on 15.7 million diluted shares outstanding for the same period in the prior year.
Purchases of contracts from automobile dealers increased from the previous quarter by 33.9%, to $157.6 million, and were nearly unchanged as compared with purchases for the three month period ended March 31, 1999, of $158.0 million. During the three month period ended March 31, 2000, the company sold $154.5 million of contracts compared to not selling any contracts for the same period in the prior year. The aggregate outstanding balance of contracts serviced by the company at March 31, 2000, was $692.5 million, a decrease of 55.0% from $1,540.4 million at March 31, 1999.
Balances of accounts past due over 30 days represented 3.3% of the servicing portfolio at March 31, 2000, compared with 3.7% at March 31, 1999. The annualized net charge off rate for the three month period ended March 31, 2000, was 13.89%, compared with 7.28% for the three month period ended March 31, 1999. The company's non-discounted allowance for credit losses was $60.1 million, or 8.8% of the contracts sold that it serviced as of March 31, 2000. The on-balance sheet allowance for credit losses was $273,000, or 7.3% of contracts held for sale at March 31, 2000. As of March 31, 2000, the inventory of repossessed vehicles was 2.6% of the servicing portfolio, compared with 2.2% at March 31, 1999.
"Although we have made considerable progress towards recovery, there are still challenges we must face and overcome before our recovery will be complete," said Charles E. Bradley, Jr., president and chief executive officer. "With continued monthly releases of cash from our securitized portfolio, our short-term liquidity problems have been solved, allowing us to focus on re-building and growing the company again."
Consumer Portfolio Services, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended March 31, 2000 1999 Revenues: Gain (loss) on sale of contracts, net $ 4,346 $ (1,560) Interest income (8,957) 14,601 Servicing fees 5,095 7,918 Other loss (110) (135) 374 20,824 Expenses: Interest 4,779 7,268 Employee costs 6,793 8,244 General and administrative 3,528 5,756 Other expenses 2,791 3,223 17,891 24,491 Loss before income taxes (17,517) (3,667) Income tax benefit (6,420) (1,540) Net loss $ (11,097) $ (2,127) Loss per share: Basic $ (0.55) $ (0.14) Diluted $ (0.55) $ (0.14) Number of shares used in computing loss per share: Basic 20,144 15,659 Diluted 20,144 15,659 Condensed Consolidated Balance Sheets (In thousands) March 31, Dec. 31, 2000 1999 Cash and restricted cash $ 4,699 $ 3,324 Contracts held for sale 3,482 2,421 Residual interest in securitizations 146,335 172,530 Other assets 49,379 45,290 Total assets $ 203,895 $ 223,565 Senior secured debt 46,000 23,161 Subordinated debt 60,500 90,500 Other liabilities 23,744 25,467 Total liabilities 130,244 139,128 Shareholders' equity 73,651 84,437 Total liabilities and shareholders' equity $ 203,895 $ 223,565