Consumer Portfolio Services Inc. reports record fourth quarter and 1996 annual results; annual net earnings up 47%; establishes east coast collections office.IRVINE, Calif.--(BUSINESS WIRE)--Feb. 14, 1997--Consumer Portfolio Services Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :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 record results for the fourth quarter and year ended December 31, 1996. For the fourth quarter, total revenues increased 98% to $15.0 million compared with $7.6 million for the same period in the prior year. The Company's net earnings increased 46% to $3.9 million, or $.26 per share, on 15.1 million common and common equivalent shares outstanding, compared with $2.7 million, or $.19 per share, on 14.3 million common and common equivalent shares outstanding for the same period in the prior year. Fully 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. earnings for the quarter increased 44% to $.26 per share on 15.6 million common and common equivalent shares outstanding compared with $.18 per share, on 14.8 million common and common equivalent shares outstanding for the same period in the prior year. For the year ended December 31, 1996, total revenues increased 67% to $51.2 million compared with $30.6 million for the twelve months ended December 31, 1995. The Company's net earnings increased 47% to $14.1 million, or $.95 per share, on 14.9 million common and common equivalent shares outstanding, compared with $9.6 million, or $.71 per share, on 13.4 million common and common equivalent shares outstanding for the twelve months ended December 31, 1995. Fully diluted earnings for the year increased 33% to $.93 per share on 15.4 million common and common equivalent shares outstanding compared with $.70 per share, on 13.9 million common and common equivalent shares outstanding for the twelve months ended December 31, 1995. 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. reported that purchases of contracts from automobile dealers for the fourth quarter increased 60% to $97.0 million compared with $60.5 million for the same period in the prior year. Contracts sold in the form of asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. increased 64% to $92.9 million compared with $56.5 million for the same period in the prior year. For the year ended December 31, 1996, the Company reported that purchases of contracts from automobile dealers increased 83% to $351.4 million compared with $192.6 million for the twelve months ended December 31, 1995. Contracts sold in the form of asset-backed securities increased 70% to $341.0 million compared with $200.8 million for the previous twelve month period. The aggregate outstanding balance of contracts serviced by the Company increased 75% to $505.9 million at December 31, 1996, compared with 288.9 million at December 31, 1995. 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. charge-off rate for the three months ended December 31, 1996 was 4.8% of the average outstanding servicing portfolio balance for the period. Accounts past due thirty or more days represented 6.8% of the servicing portfolio. The Company attributed the December 31, 1996 delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. results to seasonality and further reported that the delinquency ratio for January 31, 1997 had declined to 6.0%. The Company also announced several other recent developments: CPS recently signed a lease on 18,600 square feet of prime office space in Chesapeake, Virginia Chesapeake is an independent city located in the South Hampton Roads region of eastern Virginia in the United States. One of the Seven Cities of Hampton Roads, Chesapeake was formed in 1963 by a political consolidation of the City of South Norfolk with the former Norfolk County, , near Norfolk. The Company intends to staff this facility with collections personnel to improve the availability, distribution and effectiveness of its collection resources. The facility is expected to open on or about April 1, 1997 with approximately 50 experienced collections staff. CPS intends to grow the facility in both physical size and personnel commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the growth of its portfolio with the intent that it will someday some·day adv. At an indefinite time in the future. Usage Note: The adverbs someday and sometime express future time indefinitely: We'll succeed someday. Come sometime. handle a substantial share of the Company's collection workload. Activities at the Chesapeake facility will not include contract originations as the Company intends to keep those activities centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. at its headquarters in Irvine, California Irvine is an incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28 1971, the 69.7 square mile (180.5 km²) city has a population of 202,079 (as of 2007). . On January 17, 1997, the $3 million convertible subordinated note which was on the Company's balance sheet at December 31, 1996 was converted to 480,000 shares of common stock. The conversion of this note will save the Company $285,000 in annual interest expense. The annual results include net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. for two 80% owned subsidiaries which were formed during 1996 to focus on new market areas for the Company's products. The Company's share of start up losses for SAMCO SAMCO Structural Assessment, Monitoring and Control Acceptance Corp. and LINC Acceptance Corp. was $947,000. In addition, the reported results also reflect the Company's pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. share of the losses of its 38% investment in NAB Asset Corp., which were approximately $595,000. NAB's operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. are primarily related to the start up of its two operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . "We are pleased to report another quarter and year of strong results," commented Charles E. Bradley, Jr. President and Chief Executive Officer. "Fiscal 1996 was a great year for CPS. We have continued to expand our marketing territories and add dealers to attain resonable growth without sacrificing credit quality. The execution of our quarterly asset backed securitiztion transactions continues to improve, resulting in lower overall costs of funding our servicing portfolio." Consumer Portfolio Services Inc. 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 automobile dealers for new and late model used cars. The Company purchases contracts from approximately 2,300 dealers in 36 states and services contracts in 49 states. -0-
Consumer Portfolio Services Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
1996 1995 1996 1995
Revenues:
Net gain on sale of
contracts $ 7,457 $ 3,216 $ 23,321 $ 13,719
Servicing fees 4,835 1,914 16,169 8,511
Interest income 2,751 2,483 11,704 8,377
------ ----- ------ ------
Total Revenues 15,043 7,613 51,194 30,607
Expenses 8,420 3,207 27,501 14,573
Income before income
taxes 6,623 4,406 23,693 16,034
Income taxes 2,682 1,706 9,595 6,440
Net income $ 3,941 $ 2,700 $ 14,098 $ 9,594
Net income per common and common
equivalent share $ 0.26 $ 0.19 $ 0.95 $ 0.71
Weighted average number of common
and common equivalent
shares 15,098 14,324 14,850 13,431
Fully diluted net income per common
and common equivalent
share $ 0.26 $ 0.18 $ 0.93 $ 0.70
Fully diluted weighted average number of
common and common equivalent
shares 15,578 14,804 15,410 13,911
-0-
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
Dec. 31, Dec. 31,
1996 1995
Cash $ 154 $ 10,895
Contracts held for sale 21,657 19,549
Investments in credit
enhancements 43,597 30,478
Other assets 35,928 16,956
------ ------
Total Assets 101,336 77,878
Warehouse line of credit 13,265 7,500
Notes payable 20,000 20,000
Convertible subordinated debt 3,000 3,000
Other liabilities 8,113 5,897
------ ------
Total Liabilities 44,378 36,397
Shareholders' equity 56,958 41,481
------ ------
Total Liabilities and
shareholders' equity $101,336 $ 77,878
CONTACT: Consumer Portfolio Services Inc., Irvine Sheila L. Chiri, 714/753-4843 |
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