Exhibit 99.1
NEWS RELEASE
- --------------------------------------------------------------------------------
CONSUMER PORTFOLIO SERVICES, INC. REPORTS
2008 FIRST QUARTER EARNINGS
IRVINE, CALIFORNIA, APRIL 15, 2008 (BUSINESS WIRE) -- Consumer Portfolio
Services, Inc. (Nasdaq: CPSS) ("CPS" or the "Company") today announced earnings
for its first quarter ended March 31, 2008.
Total revenues for the first quarter of 2008 increased approximately $16.8
million, or 19.4%, to $103.3 million, compared to $86.5 million for the first
quarter of 2007. Total operating expenses for the first quarter of 2008 were
$99.5 million, an increase of $18.4 million, or 22.7%, as compared to $81.1
million for the 2007 period.
Pretax income for the first quarter of 2008 decreased to $3.8 million, compared
to pretax income of $5.4 million for the first quarter of 2007. Net income for
the first quarter of 2008 was $2.1 million, or $0.11 per diluted share, compared
to net income of $3.2 million, or $0.14 per diluted share, for the year-ago
quarter.
During the first quarter of 2008, CPS purchased $176.1 million of contracts from
dealers as compared to $265.8 million during the fourth quarter of 2007 and
$330.3 million during the first quarter of 2007. The Company's managed
receivables totaled $2,092.1 million as of March 31, 2008, an increase of $365.4
million, or 21.2%, from $1,726.7 million as of March 31, 2007, as follows ($ in
millions):
Originating Entity March 31, 2008 March 31, 2007
- ------------------ -------------- --------------
CPS $2,028.8 $1,658.9
TFC 62.6 62.4
MFN 0.0 0.1
SeaWest 0.5 3.1
As Third Party Servicer for SeaWest Financial 0.2 2.2
-------- --------
Total $2,092.1 $1,726.7
Subsequent to quarter end, the Company completed its first securitization since
September of last year with the sale of $244.4 million of triple A rated
asset-backed notes.
Annualized net charge-offs during the March 2008 quarter were 6.66% of the
average owned portfolio as compared to 5.12% during the 2007 quarter.
Delinquencies greater than 30 days (including repossession inventory) were 4.82%
of the total owned portfolio as of March 31, 2008, as compared to 3.55% as of
March 31, 2007.
"While our financial results for the first quarter of 2008 were not immune to
the ongoing capital markets turbulence and economic slowdown, we are pleased to
have been able to continue to build the equity base of the Company," said
Charles E. Bradley, Jr., Chief Executive Officer. "In addition, with the
completion of our securitization last week, we have significant borrowing
capacity available under our warehouse credit facilities. As a result of the
credit tightening changes and price increases we have implemented over the last
six months, we should be well positioned once the capital markets stabilize."
Page 1 of 2
CONFERENCE CALL
CPS announced that it will hold a conference call tomorrow, April 16, 2008, at
1:30 p.m. ET to discuss its quarterly earnings. Those wishing to participate by
telephone may dial-in at 973-582-2717 approximately 10 minutes prior to the
scheduled time.
A replay will be available between April 16, 2008 and April 23, 2008, beginning
one hour after conclusion of the call, by dialing 800-642-1687 or 706-645-9291
for international participants, with pin number 43172900. 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 specialty finance company engaged in
purchasing and servicing new and used retail automobile contracts originated
primarily by franchised automobile dealerships and to a lesser extent by select
independent dealers of used automobiles in the United States. We serve as an
alternative source of financing for dealers, facilitating sales to sub-prime
customers, who have limited credit history, low income or past credit problems
and who otherwise might not be able to obtain financing from traditional
sources.
FORWARD-LOOKING STATEMENTS IN THIS NEWS RELEASE INCLUDE THE COMPANY'S RECORDED
REVENUE, EXPENSE 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 THE EFFECTS OF RECENT 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 PROVISION FOR
CREDIT LOSSES MAY AFFECT FUTURE PERFORMANCE.
INVESTOR RELATIONS CONTACTS
Consumer Portfolio Services, Inc.
Robert E. Riedl
949-753-6800
Erica Waldow
888-505-9200
Page 2 of 2
CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended
March 31,
---------------------
2008 2007
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REVENUES:
Interest income $ 99,362 $ 80,490
Servicing fees 428 282
Other income 3,511 5,723
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103,301 86,495
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EXPENSES:
Employee costs 13,482 10,804
General and administrative 7,346 5,969
Interest 39,034 29,505
Provision for credit losses 34,909 29,489
Other expenses 4,756 5,318
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99,527 81,085
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Income before income taxes 3,774 5,410
Income taxes 1,660 2,179
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Net income $ 2,114 $ 3,231
======== ========
Earnings per share:
Basic $ 0.11 $ 0.15
Diluted 0.11 0.14
Number of shares used in computing earnings per share:
Basic 19,297 21,526
Diluted 19,973 23,718
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
March 31, December 31,
2008 2007
----------- -----------
Cash $ 18,508 $ 20,880
Restricted cash 176,646 170,341
----------- -----------
Total Cash 195,154 191,221
Finance receivables 2,026,726 2,068,004
Allowance for finance credit losses (94,833) (100,138)
----------- -----------
Finance receivables, net 1,931,893 1,967,866
Residual interest in securitizations 1,868 2,274
Deferred tax assets, net 58,845 58,835
Other assets 60,191 62,617
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$ 2,247,951 $ 2,282,813
=========== ===========
Accounts payable and other liabilities $ 35,575 $ 36,097
Warehouse lines of credit 367,955 235,925
Residual interest financing 90,000 70,000
Securitization trust debt 1,610,649 1,798,302
Subordinated debt 28,405 28,134
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2,132,584 2,168,458
----------- -----------
Shareholders' equity 115,367 114,355
----------- -----------
$ 2,247,951 $ 2,282,813
=========== ===========
OPERATING AND PERFORMANCE DATA ($ IN THOUSANDS) At and for the
Three months ended
March 31,
----------------------------
2008 2007
--------- ---------
Contract purchases 176,090 330,273
Total managed portfolio 2,092,094 1,726,744
Average managed portfolio 2,112,686 1,665,891
Net interest margin (1) 60,328 50,985
Risk adjusted margin (2) 25,419 21,496
Core operating expenses (3) 25,584 22,091
Annualized % of average managed portfolio 4.84% 5.30%
Annualized return on managed assets (4) 0.71% 1.30%
Allowance for finance credit losses as % of fin. receivables 4.68% 4.84%
Aggregate allowance as % of fin. receivables (5) 5.83% 5.90%
Delinquencies
31+ Days 2.92% 2.10%
Repossession Inventory 1.90% 1.44%
Total Delinquencies and Repossession Inventory 4.82% 3.55%
Annualized net charge-offs as % of average owned portfolio 6.66% 5.12%
(1) Interest income less interest expense.
(2) Net interest margin less provision for credit losses.
(3) Total expenses less interest and provision for credit losses.
(4) Pretax income divided by average managed portfolio.
(5) Includes allowance for finance credit losses and allowance for
repossession inventory.