CPS reports results for the quarter ended March 31, 1996; establishes subsidiary to capitalize on market opportunity.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--April 23, 1996--Consumer Portfolio Services Inc. (NASDAQ/NMS:CPSS CPSS Committee on Payment and Settlement Systems CPSS Commission on Public Secondary Schools CPSS Cincinnati Prehospital Stroke Scale (STR - Smile, Talk, Raise both arms) CPSS Certified Professional Soil Scientist ) Tuesday Tuesday: see week. reported net income of $3,051,296, or $0.21 per share, based on 14,664,553 common and common equivalent shares outstanding, for the quarter ended March 31, 1996, compared with net income of $2,019,189, or $0.18 per share, based on 11,143,268 common and common equivalent shares outstanding, for the same period in the prior year. Total revenues for the quarter ended March 31, 1996, were $10,302,680, a 48.2 percent increase over total revenues of $6,950,853 for the same period in the prior year. Fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings for the quarter ended March 31, 1996, were $0.20 per share based on 15,201,011 common and common equivalent shares outstanding, compared with $0.17 per share based on 12,538,352 common and common equivalent shares outstanding during the same period in the prior year. CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. reported that purchases of contracts from automobile dealers increased to $72.3 million for the quarter ended March 31, 1996, up from $41.6 million for the same period in the prior year. Contracts sold in the form of asset backed securities equaled $67.1 million for the quarter ended March 31, 1996, up from $45.1 million for the same period in the prior year. The aggregate outstanding balance of contracts serviced by the company was $331.6 million at March 31, 1996, compared with $193.6 million at March 31, 1995. During the quarter, the company established SAMCO SAMCO Structural Assessment, Monitoring and Control Acceptance Corp., an 80 percent owned subsidiary whose operating objective is to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. sub prime automobile receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed through independent finance companies located primarily in rural areas of the Southeast. The originations staff of Texas-based SAMCO has been trained at CPS in the use of CPS underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. and CPS' proprietary computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. receivables origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real systems. Contracts purchased by SAMCO will be serviced and collected by CPS in Irvine, with the same systems and procedures used in the collection of CPS' existing $331.6 million sub prime automobile receivables portfolio. "Through our partners at SAMCO, we have determined that the rural areas serviced by independent finance companies represent a substantial opportunity for the origination of a quality sub prime automobile receivables portfolio," reported Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by E. Bradley Jr., president and chief executive office of Consumer Portfolio Services. "Rural independent finance companies have many long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. relationships with borrowers who may not have access to traditional financing such as banks and captives. However, the philosophy and capital structure of these finance companies limit their ability to make a 36-, 48- or 60-month loan for a new or late model vehicle. "The SAMCO program will leverage off of the relationships that rural independent finance companies have with their customers and should result in a high-quality sub prime automobile receivables portfolio," continued Bradley. Consumer Portfolio Services purchases, sells and services loans originated by automobile dealers for new and late model used cars. The company services loans in 49 states and is purchasing contracts in 29 states. For more information on Consumer Portfolio Services Inc. via facsimile at no cost, simply call 800/PRO-INFO and dial client code 090. -0-
CONSUMER PORTFOLIO SERVICES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months ended March 31,
1996 1995
----------- -----------
REVENUES
Net Gain on Sale of Contracts $ 4,483,523 $ 2,768,161
Servicing Fees 3,822,296 2,036,117
Interest Income 1,996,861 2,146,575
Total Revenues 10,302,680 6,950,853
Expenses 5,201,384 3,574,159 Income before Income Taxes 5,101,296 3,376,694 Income Taxes 2,050,000 1,357,505 Net Income 3,051,296 2,019,189 Net Income per Common and Common Equivalent Share 0.21 0.18 Weighted Average Number of Common and Common Equivalent Shares 14,664,553 11,143,268 Fully Diluted Net Income per Common and Common Equivalent Shares 0.20 0.17 Fully Diluted Weighted Average Number of Common and Common Equivalent Shares 15,201,011 12,538,352 -0-
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, Dec. 31,
1996 1995
----------- -----------
Cash $ 968,904 $10,895,157
Contracts Held for Sale 21,889,137 19,548,842
Investments in Credit Enhancements 35,602,677 30,477,793
Other Assets 20,997,912 16,956,533
79,458,630 77,878,325
Warehouse Line of Credit 7,850,656 7,500,000
Notes Payable 20,000,000 20,000,000
Convertible Subordinated Debt 3,000,000 3,000,000
Other Liabilities 4,026,288 5,897,243
34,876,944 36,397,243
Shareholders' Equity 44,581,686 41,481,082
$79,458,630 $77,878,325
CONTACT: Consumer Portfolio Services Inc., Irvine Charles E. Bradley Jr., 714/753-6800 or Financial Relations Board Jody Martin, 310/442-0599 (general information) Moira Conlon Conlon is an Irish family name, the gaelic spelling being Ó Connalláin. It is a variartion of the anglcised version of Ó Connalláin. It is sometimes spelt Conlan, Conlen and Conlin. Like most surnames, it is sometimes used as a first name. , 310/442-0599 (analysts) Judith Sylk-Siegel, 212/661-8030 (media) |
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