Consumer Portfolio Services, Inc. Reports 2000 First Quarter Results.Business Editors 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)--May 18, 2000 Consumer Portfolio Services, Inc. (Nasdaq: 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 ) Thursday Thursday: see week. announced financial results for its first quarter, ended March 31, 2000. For the three months ended March 31, 2000, total revenues decreased 98.2% to $374,000 compared with $20.8 million for the three months ended March 31, 1999. The company's net loss for the period was $11.1 million, or $0.55 per share, on 20.1 million 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. shares outstanding, compared with a net loss of $2.1 million, or $0.14 per share, on 15.7 million diluted shares outstanding for the same period in the prior year. Purchases of contracts from automobile dealers increased from the previous quarter by 33.9%, to $157.6 million, and were nearly unchanged as compared with purchases for the three month period ended March 31, 1999, of $158.0 million. During the three month period ended March 31, 2000, the company sold $154.5 million of contracts compared to not selling any contracts for the same period in the prior year. The aggregate outstanding balance of contracts serviced by the company at March 31, 2000, was $692.5 million, a decrease of 55.0% from $1,540.4 million at March 31, 1999. Balances of accounts past due over 30 days represented 3.3% of the servicing portfolio at March 31, 2000, compared with 3.7% at March 31, 1999. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net charge off rate for the three month period ended March 31, 2000, was 13.89%, compared with 7.28% for the three month period ended March 31, 1999. The company's non-discounted allowance for credit losses was $60.1 million, or 8.8% of the contracts sold that it serviced as of March 31, 2000. The on-balance sheet allowance for credit losses was $273,000, or 7.3% of contracts held for sale at March 31, 2000. As of March 31, 2000, the inventory of repossessed vehicles was 2.6% of the servicing portfolio, compared with 2.2% at March 31, 1999. "Although we have made considerable progress towards recovery, there are still challenges we must face and overcome before our recovery will be complete," said 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 officer. "With continued monthly releases of cash from our securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. portfolio, our short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. liquidity problems have been solved, allowing us to focus on re-building and growing the company again." Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this news release include the company's allowances for credit losses, which necessarily depend on estimates of future events. The accuracy of such estimates may be adversely affected by various factors, which include (in addition to risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the economy generally) the following: possible increased delinquencies, repossessions and losses on retail installment contracts installment contract n. an agreement in which payments of money, delivery of goods or performance of services are to be made in a series of payments, deliveries or performances, usually on specific dates or upon certain happenings. ; possible unavailability un·a·vail·a·ble adj. Not available, accessible, or at hand. un  a·vail of qualified personnel, which could
adversely affect the company's ability to service its portfolio;
possible increases in the rate of consumer bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most 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 reference to continued monthly releases of cash is a
forward-looking statement, and the factors listed above could affect theavailability of such releases. Consumer Portfolio Services, Inc. purchases, sells and services retail installment sales Installment sale The sale of an asset in exchange for a specified series of payments (the installments). installment sale A sale in which the buyer is scheduled to make a series of payments over a period of time. contracts originated predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. by franchised dealers for new and late model used cars. The company finances automobile purchases through approximately 2,500 dealers under contract across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. .
Consumer Portfolio Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
March 31,
2000 1999
Revenues:
Gain (loss) on sale of
contracts, net $ 4,346 $ (1,560)
Interest income (8,957) 14,601
Servicing fees 5,095 7,918
Other loss (110) (135)
374 20,824
Expenses:
Interest 4,779 7,268
Employee costs 6,793 8,244
General and administrative 3,528 5,756
Other expenses 2,791 3,223
17,891 24,491
Loss before income taxes (17,517) (3,667)
Income tax benefit (6,420) (1,540)
Net loss $ (11,097) $ (2,127)
Loss per share:
Basic $ (0.55) $ (0.14)
Diluted $ (0.55) $ (0.14)
Number of shares used in computing loss
per share:
Basic 20,144 15,659
Diluted 20,144 15,659
Condensed Consolidated Balance Sheets
(In thousands)
March 31, Dec. 31,
2000 1999
Cash and restricted cash $ 4,699 $ 3,324
Contracts held for sale 3,482 2,421
Residual interest in
securitizations 146,335 172,530
Other assets 49,379 45,290
Total assets $ 203,895 $ 223,565
Senior secured debt 46,000 23,161
Subordinated debt 60,500 90,500
Other liabilities 23,744 25,467
Total liabilities 130,244 139,128
Shareholders' equity 73,651 84,437
Total liabilities and
shareholders' equity $ 203,895 $ 223,565
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