Exhibit 99.1
May 06, 2003 04:35 PM US Eastern Time zone
CONSUMER PORTFOLIO SERVICES, INC. REPORTS 2003 FIRST QUARTER EARNINGS; REVENUES
AND NET INCOME SHOW CONTINUED STRENGTH
IRVINE, Calif.--(BUSINESS WIRE)--May 6, 2003--Consumer Portfolio Services, Inc.
(Nasdaq: CPSS) today announced earnings for its first quarter ended March 31,
2003.
For the three months ended March 31, 2003 total revenues increased approximately
$9.4 million, or 72%, to $22.5 million, compared to $13.1 million for the three
months ended March 31, 2002. Pretax income for the first quarter of 2003 was
$2.4 million, compared to a pretax loss of ($6.8 million) for the comparable
2002 period. Net income for the quarter ended March 31, 2003 was $6.3 million,
or $0.29 per diluted share, compared to a net loss before extraordinary item of
($981,000), or ($0.05) per diluted share, for the quarter ended March 31, 2002.
Diluted shares outstanding were 21.9 million and 19.3 million for the quarters
ended March 31, 2003 and 2002, respectively.
"The first quarter results continue to evidence our solid operating performance
and the strength of our portfolio. The 2003-A securitization that we completed
this past quarter continued our trend of successful execution in the asset
backed market," said Charles E. Bradley, President and Chief Executive Officer
of Consumer Portfolio Services. "As previously stated, our strategy is to grow
our portfolio cautiously, as well as to look for selective acquisition
opportunities that will complement our business strategy and supplement our
existing portfolio. The recently announced acquisition of TFC Enterprises fits
with this strategy, and we look forward to completing the transaction later this
month."
Consumer Portfolio Services' managed receivables totaled $595.6 million at March
31, 2003. During the first quarter of 2003, the Company purchased $87.3 million
in contracts and completed the $138.1 million CPS Auto Receivables Trust 2003-A
securitization. During the same period in 2002, the Company completed one asset
backed term securitization of $45.65 million.
Conference Call
- ---------------
Consumer Portfolio Services announced that it will hold a conference call
Wednesday, May 7, 2003, at 1:30 p.m. EST to discuss its quarterly 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 May 7, 2003 and May 13, 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.
Any implication that the results of the most recently completed quarter are
indicative of future results is a forward-looking statement. There is no reason
to expect that any future period will include a tax benefit similar to the
benefit recorded in the most recently completed quarter, and other factors,
including those identified above in relation to gain on sale and provision for
credit losses, may also affect future performance.
An additional forward-looking statement is the statement that the company "looks
forward" to completing its acquisition of TFC Enterprises, Inc. Such acquisition
is subject to a number of conditions precedent, none of which are assured,
including a favorable vote of the acquired company's stockholders, the consent
of the senior lender to Consumer Portfolio Services, Inc., and availability of
ongoing contract acquisition financing for the acquired company.
Consumer Portfolio Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended
March 31,
-------------------
2003 2002
-------------------
Revenues:
Gain on sale of contracts, net $4,555 $1,772
Interest income 9,328 7,744
Servicing fees 4,602 3,390
Other income 4,062 230
-------- ---------
22,547 13,136
-------- ---------
Expenses:
Employee costs 8,447 8,462
General and administrative 4,033 4,404
Interest 5,530 4,431
Other expenses 2,183 2,614
-------- ---------
20,193 19,911
-------- ---------
Income (loss) before income tax benefit
and extraordinary item 2,354 (6,775)
Income tax benefit (3,924) (5,794)
-------- ---------
Income (loss) before extraordinary item 6,278 (981)
Extraordinary item, unallocated negative
goodwill - 17,412
-------- ---------
Net income $6,278 $16,431
======== =========
Earnings (loss) per share before extraordinary item:
Basic $0.31 $(0.05)
Diluted 0.29 (0.05)
Earnings per share after extraordinary item:
Basic $0.31 $0.85
Diluted 0.29 0.85
Number of shares used in computing earnings per share:
Basic 20,270 19,286
Diluted 21,860 19,286
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, Dec. 31,
2003 2002
--------- ---------
Cash and restricted cash $59,238 $51,859
Finance receivables, net 61,860 84,592
Residual interest in securitizations 127,112 127,170
Other assets 25,363 21,827
--------- ---------
$273,573 $285,448
========= =========
Accounts payable and other liabilities $24,515 $27,672
Securitization trust debt 54,165 71,630
Senior secured debt 53,308 50,072
Subordinated debt 53,496 53,500
--------- ---------
185,484 202,874
--------- ---------
Shareholders' equity 88,089 82,574
--------- ---------
$273,573 $285,448
========= =========
CONSUMER PORTFOLIO SERVICES
Investors: Media:
Charles E. Bradley Sloane & Company
949/753-6800 Dana Fields
OR 212/446-1878
Sloane & Company
Jenny Lee
212/446-1892