Consumer Portfolio Services, Inc. Reports 2008 First 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 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 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 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 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 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): [TABLE OMITTED] Subsequent to quarter end, the Company completed its first 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. since September of last year with the sale of $244.4 million of triple A rated asset-backed notes. 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 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 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 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 credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement 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." 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 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 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 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; 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. Factors such as those identified above in relation to provision for credit losses may affect future performance. [TABLE OMITTED] [TABLE OMITTED] |
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