Consumer Portfolio Services Inc. Reports 2001 First Quarter Earnings.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)--April 26, 2001 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 its earnings for the first quarter ended March 31, 2001. The company's net income for the three months ended March 31, 2001, was $186,000, or $0.01 per share, on 21.4 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 $11.1 million, or $0.55 per share, on 20.1 million diluted shares outstanding for the same period in the prior year. Total revenues increased by $17 million, from $374,000 for the year-earlier period to $17.3 million for the three months ended March 31, 2001. Purchases of contracts from automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of dealers increased 21% to $190.7 million from $157.6 million for the prior year's period. During the three month period ended March 31, 2001, the company sold $198.9 million of contracts, compared with $154.5 million for the same period in the prior year. The aggregate outstanding balance of contracts serviced by the company at March 31, 2001, was $381.3 million, a decrease of 44.9% from $692.5 million at March 31, 2000. Balances of accounts past due over 30 days represented 2.6% of the servicing portfolio at March 31, 2001, compared with 3.3% at March 31, 2000. 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 Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. rate for the three month period ended March 31, 2001, was 8.23%, compared with 13.89% for the three month period ended March 31, 2000. As of March 31, 2001, the inventory of repossessed vehicles was 1.8% of the servicing portfolio, compared with 2.6% at March 31, 2000. "We are very pleased with the results of the quarter. This is our first profitable quarter in two years. This is another important step in the process of rebuilding our company," 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. 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 4,500 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 recorded gain on sale 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. ; 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.
Consumer Portfolio Services Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
Revenues:
Gain on sale of contracts, net $ 9,371 $ 4,346
Interest income 5,014 (8,957)
Servicing fees 2,580 5,095
Other income (loss) 360 (110)
17,325 374
Expenses:
Interest 4,269 4,779
Employee costs 6,952 6,793
General and administrative 2,867 3,528
Other expenses 2,931 2,791
17,019 17,891
Income (loss) before income tax (benefit) 306 (17,517)
Income tax (benefit) 120 (6,420)
Net income (loss) $ 186 $ (11,097)
Earnings (loss) per share:
Basic $ 0.01 $ (0.55)
Diluted $ 0.01 $ (0.55)
Number of shares used in computing
earnings (loss) per share:
Basic 19,577 20,144
Diluted 21,356 20,144
Condensed Consolidated Balance Sheets
(In thousands)
March 31, Dec. 31,
2001 2000
(Unaudited)
Cash and restricted cash $ 14,538 $ 24,315
Contracts held for sale 5,389 18,830
Residual interest in securitizations 108,418 99,199
Other assets 31,981 33,350
Total assets $ 160,326 $ 175,694
Senior secured debt 30,000 38,000
Subordinated debt 54,658 59,199
Other liabilities 12,851 16,373
Total liabilities 97,509 113,572
Shareholders' equity 62,817 62,122
Total liabilities and shareholders' $ 160,326 $ 175,694
equity
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