Consumer Portfolio Services, Inc. Reports 2007 Third Quarter Earnings.IRVINE, 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 ) ("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. " or the "Company") today announced earnings for its third quarter ended September 30, 2007. Pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. for the third quarter of 2007 increased to $6.3 million, compared to pretax income of $4.3 million for the comparable quarter ended September 30, 2006. Net income for the quarter ended September 30, 2007 was $3.7 million, or $0.16 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 income of $4.3 million, or $0.18 per diluted share, for the quarter ended September 30, 2006. Net income for the third quarter of 2006 did not include a provision for income tax expense. For the three months ended September 30, 2007 total revenues increased approximately $29.0 million, or 39.4%, to $102.8 million, compared to $73.7 million for the three months ended September 30, 2006. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the three months ended September 30, 2007 were $96.4 million, an increase of $27.0 million, or 38.8%, as compared to $69.4 million for the three months ended September 30, 2006. Pretax income for the nine months ended September 30, 2007 increased to $18.0 million, compared to pretax income of $8.7 million for the nine months ended September 30, 2006. Net income for the nine months ended September 30, 2007 was $10.4 million, or $0.45 per diluted share, compared to net income of $8.7 million, or $0.36 per diluted share, for the nine months ended September 30, 2006. Net income for the nine months ended September 30, 2006 did not include a provision for income tax expense. For the nine months ended September 30, 2007 total revenues increased approximately $86.1 million, or 43.3%, to $285.0 million, compared to $199.0 million for the nine months ended September 30, 2006. Total operating expenses for the nine months ended September 30, 2007 were $267.1 million, an increase of $76.8 million, or 40.3%, as compared to $190.3 million for the nine months ended September 30, 2006. During the third quarter of 2007, CPS purchased $340.2 million of contracts from dealers as compared to $346.0 million during the second quarter of 2007 and $254.4 million during the third quarter of 2006. During the first three quarters of 2007, CPS purchased $1,016.5 million of contracts from dealers as compared to $777.7 million during the first three quarters of 2006. 2007 contract purchases represent an increase of 30.7% vs. the same period in 2006. The Company's managed receivables totaled $2,053.1 million as of September 30, 2007, an increase of $572.4 million, or 38.7%, from $1,480.7 million as of September 30, 2006, as follows ($ in millions): [TABLE OMITTED] In addition, 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 September sale of $327.5 million of asset backed notes. As previously announced, the quarterly transaction was executed with lower credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing requirements than the second quarter transaction. The Company also issued $60 million of two-year notes under a new $120 million revolving and term residual interest Residual Interest A type of interest payment received by investors in a real estate mortgage investment conduit (REMIC). Notes: Investors receive interest payments after all required regular interest has been paid to investors within higher priority tranches. financing facility. 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-offs during the first nine months of 2007 were 4.95% of the average owned portfolio as compared to 4.00% during the same period in 2006. Delinquencies greater than 30 days (including repossession The taking back of an item that has been sold on credit and delivered to the purchaser because the payments have not been made on it. For example, if an individual fails to render prompt payments on a new car, the car might be subject to repossession by the finance company, inventory) were 6.06% of the total owned portfolio as of September 30, 2007 as compared to 4.97% as of September 30, 2006. "We are pleased with another solid quarter both financially and operationally," said Charles E. Bradley, Jr., President and Chief Executive Officer. "In the third quarter we achieved our 10th straight quarter of pretax income growth and were able to navigate the turbulent capital markets to successfully close our regular quarterly term securitization. Our volume of new contract purchases remained strong and credit performance met our expectations." Conference Call CPS announced that it will hold a conference call tomorrow, October 18, 2007, 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 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 October 18, 2007 and October 25, 2007, beginning one hour after conclusion of the call, by dialing 877-519-4471 or 973-341-3080 for international participants, with pin number 9337877. 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 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. . 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 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 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 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 (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 provision for credit losses may affect future performance. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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