Consumer Portfolio Services, Inc. Reports 2006 First Quarter Earnings.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. -- 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 ) 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 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. 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 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, 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 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 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 Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. also compare favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 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 Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. 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) $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
(1) Before $93.5 million of allowance for credit losses, deferred
acquisition fees and repossessed vehicles.
As previously reported, in order to increase transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. 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 EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York 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 In rallying, the Scheduled Time of any crew is the time, calculated at the beginning of the event, that they should arrive at any given control. It is different from Due Time in that Due Time is dynamic, ie it can change throughout the event as competitors drop time; whereas . 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 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 by automobile dealers located throughout 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. . 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 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 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 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. ; incorrect prepayment speed Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. discount rate assumptions; 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. All of such factors also may affect the Company's
future earnings, as to which there can be no assurance.Any implication implication In logic, a relation that holds between two propositions when they are linked as antecedent and consequent of a true conditional proposition. Logicians distinguish two main types of implication, material and strict. that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference (logic) inference - The logical process by which new facts are derived from known facts by the application of inference rules. See also symbolic inference, type inference. . Factors such as those identified above in relation to gain on sale and provision for credit losses may affect future performance.
Consumer Portfolio Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended
March 31,
-------------------------
2006 2005
------------ ------------
Revenues:
Interest income $54,527 $36,172
Servicing fees 1,005 2,264
Other income 2,492 3,397
------------ ------------
58,024 41,833
------------ ------------
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
------------ ------------
56,234 42,072
------------ ------------
Income (loss) before income taxes 1,790 (239)
Income taxes - -
------------ ------------
Net income (loss) $1,790 $(239)
============ ============
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
------------ ------------
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
------------ ------------
$1,354,223 $1,155,144
============ ============
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
------------ ------------
1,278,597 1,081,555
------------ ------------
Shareholders' equity 75,626 73,589
------------ ------------
$1,354,223 $1,155,144
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