Consumer Portfolio Services Inc. Reports 2000 Second Quarter Results; Announces $5 Million Stock and Securities Repurchase.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers 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)--Aug. 14, 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 ) Monday Monday: see week. announced financial results for its second quarter, ended June June: see month. 30, 2000. For the three months ended June 30, 2000, total revenues increased 1.1% to $13.6 million compared with $13.4 million for the three months ended June 30, 1999. The company's net loss for the period was $3.2 million, or $0.16 per share, on 20.3 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 $6.9 million, or $0.37 per share, on 18.8 million diluted shares outstanding for the same period in the prior year. Purchases of contracts from automobile dealers for the three months ended June 30, 2000, increased by $79.9 million to $139.0 million over purchases from dealers in the prior year's period. During the three month period ended June 30, 2000, the company sold $144.0 million of contracts, compared with $268.2 million in the prior year's period. The aggregate outstanding balance of contracts serviced by the company at June 30, 2000, was $583.7 million, a decrease of 55.4% from $1,307.9 million at June 30, 1999. Balances of accounts past due over 30 days represented 4.9% of the servicing portfolio at June 30, 2000, compared with 4.4% at June 30, 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 June 30, 2000, was 9.6%, compared with 7.3% for the three month period ended June 30, 1999. The company's non-discounted allowance for credit losses was $43.9 million, or 7.6% of the contracts sold that it serviced as of June 30, 2000. The on-balance sheet allowance for credit losses was $765,000, or 24.7% of contracts held for sale at June 30, 2000. As of June 30, 2000, the inventory of repossessed vehicles was 1.7% of the servicing portfolio, compared with 2.6% at June 30, 1999. The company has also been authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by its board of directors to begin a program to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to $5 million of outstanding stock and securities. "Although the company still posted a loss in the second quarter, the results show continued progress towards becoming a financially healthy participant in the sub prime auto industry. Continued monthly releases of cash have put us in our best liquidity position in two years," said Charles E. Bradley, Jr., president and chief executive officer. "The stock and securities repurchase program indicates the commitment of the board and management to increasing shareholder value now and in the future," continued Bradley. Consumer Portfolio Services, 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. . 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, and its stated intention to repurchase outstanding securities. 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 the availability of
such releases. The statement of intention to repurchase $5 million of
outstanding securities is a forward-looking statement. Such repurchases
would include retirement of $1 million of 10.50% Participating Equity
Notes due 2004, which amount the company is contractually committed to
repay prior to Jan. 1, 2001. The effectuation ef·fec·tu·ate tr.v. ef·fec·tu·at·ed, ef·fec·tu·at·ing, ef·fec·tu·ates To bring about; effect. [Medieval Latin effectu of any further purchases of outstanding securities will depend, among other factors, on the prices prevailing in the markets for such securities. Should such prices materially exceed those that have prevailed in recent months, the company may decline to purchase outstanding securities (other than $1 million of debt as to which the company is committed).
Consumer Portfolio Services Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Gain (loss) on sale of
contracts, net $ 3,495 $ (4,877) $ 7,841 $ (6,436)
Interest income 5,792 10,730 (3,165) 25,331
Servicing fees 4,289 8,029 9,385 15,947
Other loss (26) (476) (137) (611)
13,550 13,406 13,924 34,231
Expenses:
Interest 3,991 10,407 8,769 17,674
Employee costs 5,585 7,850 12,378 16,094
General and administrative 4,485 4,799 8,013 10,555
Other expenses 2,675 2,275 5,467 5,499
16,736 25,331 34,627 49,822
Loss before income taxes (3,186) (11,925) (20,703) (15,591)
Income tax benefit - (5,015) (6,420) (6,554)
Net loss $(3,186) $ (6,910) $(14,283) $ (9,037)
Loss per share:
Basic $ (0.16) $ (0.37) $ (0.71) $ (0.52)
Diluted $ (0.16) $ (0.37) $ (0.71) $ (0.52)
Number of shares used in
computing loss per share:
Basic 20,319 18,773 20,232 17,224
Diluted 20,319 18,773 20,232 17,224
Condensed Consolidated Balance Sheets
(In thousands)
June 30, Dec. 31,
2000 1999
(Unaudited)
Cash and restricted cash $ 17,813 $ 3,324
Contracts held for sale 1,930 2,421
Residual interest in securitizations 132,794 172,530
Other assets 39,311 45,290
Total assets $ 191,848 $ 223,565
Senior secured debt 46,000 23,161
Subordinated debt 60,468 90,500
Other liabilities 14,903 25,467
Total liabilities 121,371 139,128
Shareholders' equity 70,477 84,437
Total liabilities and shareholders'
equity $ 191,848 $ 223,565
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