EXHIBIT 99.1
CPS NEWS RELEASE
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CONSUMER PORTFOLIO SERVICES, INC. REPORTS
2006 FIRST QUARTER EARNINGS
IRVINE, CALIFORNIA, APRIL 25, 2006 (BUSINESS WIRE) -- Consumer Portfolio
Services, Inc. (Nasdaq: CPSS) today announced earnings for its first quarter
ended March 31, 2006.
Net income for the quarter ended March 31, 2006 was $1.8 million, or $0.07 per
diluted share, compared to net loss of $(239,000), or $(0.01) per diluted share,
for the quarter ended March 31, 2005. For the three months ended March 31, 2006
total revenues increased approximately $16.2 million, or 38.7%, to $58.0
million, compared to $41.8 million for the three months ended March 31, 2005.
Total expenses for the three months ended March 31, 2006 were $56.2 million, an
increase of $14.2 million, or 33.7%, as compared to $42.1 million for the three
months ended March 31, 2005.
"We are pleased with the financial performance of the Company for the first
quarter," said Charles E. Bradley, President and Chief Executive Officer. "We
have now had four profitable quarters in a row and have re-established a
financial base from which to grow. Operationally, we continued the successful
execution of our business plan. During the first quarter, purchases of new
receivables were the highest they have been in almost eight years. With respect
to asset performance, delinquencies and credit losses improved vs. the fourth
quarter as we expected given seasonal historical patterns. These asset
performance metrics also compare favorably to those from the first quarter of
2005."
During the first quarter of 2006, Consumer Portfolio Services purchased $254.5
million of contracts from dealers as compared to $188.1 million during the
fourth quarter of 2005 and $144.2 million during the first quarter of 2005. As
previously reported, the Company continued its regular quarterly securitization
program with the March sale of $245.0 million of AAA/Aaa rated asset backed
notes. As of March 31, 2006, the Company's managed receivables totaled $1,240.0
million, as follows ($ in millions):
Owned by Consolidated Subsidiaries* $1,144.3
Owned by Non-Consolidated Subsidiaries 83.2
As Third Party Servicer for SeaWest Financial 12.5
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Total $1,240.0
* Before $93.5 million of allowance for credit losses,
deferred acquisition fees and repossessed vehicles.
As 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 provisions are recorded upon acquisition
and during the life of the receivables.
CONFERENCE CALL
Consumer Portfolio Services announced that it will hold a conference call
tomorrow, April 26, 2006, at 1:30 p.m. EDT to discuss its quarterly earnings.
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 April 26, 2006 and May 5, 2006, beginning one
hour after conclusion of the call, by dialing 877-519-4471 or 973-341-3080 for
international participants, with pin number 7304946. 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 47 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.
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. ALL OF SUCH
FACTORS ALSO MAY AFFECT THE COMPANY'S FUTURE EARNINGS, AS TO WHICH THERE CAN BE
NO ASSURANCE.
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
Robert E. Riedl
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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2006 2005
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REVENUES:
Interest income $ 54,527 $ 36,172
Servicing fees 1,005 2,264
Other income 2,492 3,397
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58,024 41,833
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EXPENSES:
Employee costs 9,357 10,450
General and administrative 5,111 5,138
Interest 18,035 10,384
Provision for credit losses 19,099 12,312
Other expenses 4,632 3,788
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56,234 42,072
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Income (loss) before income taxes 1,790 (239)
Income taxes -- --
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Net income (loss) $ 1,790 $ (239)
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Earnings (loss) per share:
Basic $ 0.08 $ (0.01)
Diluted 0.07 (0.01)
Number of shares used in computing earnings
(loss) per share:
Basic 21,732 21,528
Diluted 24,188 21,528
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, December 31,
2006 2005
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Cash and restricted cash $ 237,932 $ 175,451
Finance receivables, net 1,050,825 913,576
Residual interest in securitizations 22,608 25,220
Other assets 42,858 40,897
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$1,354,223 $1,155,144
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Accounts payable and other liabilities $ 18,893 $ 19,779
Warehouse lines of credit 75,056 35,350
Residual interest financing 37,728 43,745
Securitization trust debt 1,100,606 924,026
Senior secured debt 40,000 40,000
Subordinated debt 6,314 18,655
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1,278,597 1,081,555
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Shareholders' equity 75,626 73,589
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$1,354,223 $1,155,144
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