EXHIBIT 99.1
[GRAPHIC OMITTED] NEWS RELEASE
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CONSUMER PORTFOLIO SERVICES, INC. REPORTS
2005 FIRST QUARTER RESULTS
IRVINE, CALIFORNIA, MAY 2, 2005 (BUSINESS WIRE) -- Consumer Portfolio Services,
Inc. (Nasdaq: CPSS) today announced results for its first quarter ended March
31, 2005.
For the three months ended March 31, 2005 total revenues increased approximately
$14.3 million, or 52.0%, to $41.8 million, compared to $27.5 million for the
three months ended March 31, 2004. Total expenses for the three months ended
March 31, 2005 were $42.1 million, an increase of $13.1 million, or 45.4%, as
compared to $28.9 million for the three months ended March 31, 2004. Net loss
for the quarter ended March 31, 2005 was $(239,000), or $(0.01) per diluted
share, compared to net loss of $(1.4) million, or $(0.07) per diluted share, for
the quarter ended March 31, 2004. Diluted shares outstanding were 21.5 million
and 20.6 million for the quarters ended March 31, 2005 and 2004, respectively.
"We are pleased with the financial results for the first quarter as our
transition from gain on sale to portfolio accounting is almost complete," said
Charles E. Bradley, President and Chief Executive Officer of Consumer Portfolio
Services. "We are working diligently so that revenue growth continues to outpace
expense growth in the coming quarters as we further leverage our operating
infrastructure. Operationally, during the first quarter we experienced
meaningful growth in purchases of new receivables, which were the highest they
have been in almost three years. In addition, asset performance was strong."
"As I mentioned previously, another significant positive development for us in
the first quarter was the settlement of the Stanwich litigation in California.
Subsequent to quarter end, we have also renewed one of our warehouse
facilities."
During the first quarter of 2005, Consumer Portfolio Services purchased $144.2
million of contracts from dealers as compared to $127.1 million during the
fourth quarter of 2004 and $93.4 million during the first quarter 2004. In
addition, the Company continued its regular quarterly securitization program
with the March sale of $125.1 million of AAA/Aaa rated asset backed notes. As of
March 31, 2005, the Company's managed receivables totaled $926.3 million, as
follows ($ in millions):
Owned by Consolidated Subsidiaries* $692.0
Owned by Non-Consolidated Subsidiaries 193.8
As Third Party Servicer for SeaWest Financial 40.5
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Total $926.3
* Before $71.7 million of allowance for credit losses and
deferred acquisition fees.
previously reported, in order to increase transparency of the Company's
financial reports, in the third quarter of 2003 Consumer Portfolio Services
began structuring its securitization transactions as secured financings, with
receivables and associated debt remaining on the balance sheet, and without
recognition of a gain on sale. Accordingly, net earnings are recognized over the
life of the receivables as interest income and fee income, less related funding
costs and a provision for losses. Such loan loss provisions are recorded upon
acquisition and during the life of the receivables. The effect is to accelerate
recognition of expenses and defer recognition of revenue. As a result, reported
earnings have been less than what they would have been had the Company continued
to structure its securitizations to record a gain on sale.
CONFERENCE CALL
Consumer Portfolio Services announced that it will hold a conference call
tomorrow, May 3, 2005, at 1:30 p.m. EDT to discuss its quarterly results. Those
wishing to participate by telephone may dial-in at 973-409-9261 approximately 10
minutes prior to the scheduled time.
A replay will be available between May 3, 2005 and May 10, 2005, beginning one
hour after conclusion of the call, by dialing 877-519-4471 or 973-341-3080 for
international participants, with pin number 6003840. 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
REVENUE, EXPENSE, GAIN ON SALE REVENUE 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.
THE STATEMENTS CONCERNING THE INTENDED STRUCTURE OF FUTURE SECURITIZATIONS AND
THE EFFECTS OF SUCH STRUCTURES ON FINANCIAL ITEMS ARE FORWARD-LOOKING
STATEMENTS. IF THE COMPANY WERE TO CHANGE THE STRUCTURE OF FUTURE TRANSACTIONS,
THAT COULD CAUSE SUCH FORWARD-LOOKING STATEMENTS NOT TO BE ACCURATE.
ANY IMPLICATION THAT THE RESULTS OF THE MOST RECENTLY COMPLETED QUARTER ARE
INDICATIVE OF FUTURE RESULTS IS DISCLAIMED, AND THE READER SHOULD DRAW NO SUCH
INFERENCE. FACTORS SUCH AS THOSE IDENTIFIED ABOVE IN RELATION TO GAIN ON SALE
AND PROVISION FOR CREDIT LOSSES MAY AFFECT FUTURE PERFORMANCE.
INVESTOR RELATIONS CONTACT
Charles E. Bradley
Consumer Portfolio Services
949-753-6800
CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three months ended
March 31,
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2005 2004
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REVENUES:
Interest income $ 36,172 $ 20,423
Servicing fees 2,265 3,324
Other income 3,397 3,775
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41,833 27,522
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EXPENSES:
Employee costs 10,450 9,653
General and administrative 5,138 3,966
Interest 10,384 5,912
Provision for credit losses 12,312 6,750
Impairment loss on residual asset - -
Other expenses 3,788 2,648
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42,072 28,929
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Income (loss) before income taxes (239) (1,407)
Income taxes - -
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Net income (loss) $ (239) $ (1,407)
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Earnings (loss) per share:
Basic $ (0.01) $ (0.07)
Diluted (0.01) (0.07)
Number of shares used in computing earnings (loss) per share:
Basic 21,528 20,638
Diluted 21,528 20,638
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
March 31, December 31,
2005 2004
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Cash and restricted cash $ 159,789 $ 139,479
Finance receivables, net 620,302 550,191
Residual interest in securitizations 44,135 50,430
Other assets 26,307 26,499
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$ 850,533 $ 766,599
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Accounts payable and other liabilities $ 16,836 $ 18,153
Warehouse lines of credit 50,535 34,279
Residual interest financing 16,411 22,204
Securitization trust debt 619,430 542,815
Senior secured debt 59,829 59,829
Subordinated debt 14,000 15,000
Other liabilities 3,684 4,399
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780,725 696,679
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Shareholders' equity 69,808 69,920
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$ 850,533 $ 766,599
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