CPS Announces Fourth Quarter 2012 Earnings

CPS Announces Fourth Quarter 2012 Earnings

  *Pretax income of $4.6 million
  *Net income of $64.8 million, or $2.20 per diluted share, including income
    tax benefit of $60.2 million, or $2.04 per diluted share
  *New contract purchases of $151 million
  *Total managed portfolio increases to $898 million from $845 million as of
    September 30, 2012

IRVINE, Calif., Feb. 4, 2013 (GLOBE NEWSWIRE) -- Consumer Portfolio Services,
Inc. (Nasdaq:CPSS) ("CPS" or the "Company") today announced earnings of $64.8
million, or $2.20 per diluted share, for its fourth quarter ended December 31,
2012. This includes an income tax benefit of $60.2 million, or $2.04 per
diluted share, related to the reversal of a valuation allowance against the
Company's deferred tax asset net of current period income tax expense. This
compares to net income of $235,000, or $0.01 per diluted share, in the fourth
quarter of 2011. Net income for 2012 was $69.4 million, or $2.72 per diluted
share, as compared to a net loss of $14.5 million, or $0.76 per diluted share,
for 2011. The 2012 results include an income tax benefit of $60.2 million, or
$2.36 per diluted share, related to the reversal of a valuation allowance
against the Company's deferred tax asset net of current period income tax
expense.

Revenues for the fourth quarter of 2012 were $50.6 million, an increase of
approximately $4.9 million, or 11%, compared to $45.8 million for the fourth
quarter of 2011. Total operating expenses for the fourth quarter of 2012 were
$46.0 million, an increase of $480,000, or 1%, compared to $45.5 million for
the 2011 period. Pretax income for the fourth quarter of 2012 was $4.6 million
compared to pretax income of $235,000 in the fourth quarter of 2011.

For the year ended December 31, 2012 total revenues were $187.2 million
compared to $143.1 million for 2011, an increase of approximately $44.1
million, or 31%. Total expenses for the year ended December 31, 2012 were
$178.0 million, an increase of $20.4 million, or 13%, compared to $157.6
million for 2011. Pretax income for the year ended December 31, 2012 was $9.2
million, compared to a pretax loss of $14.5 million for 2011.

During the fourth quarter of 2012, CPS purchased $150.8 million of new
contracts compared to $143.1 million during the third quarter of 2012 and
$92.2 million during the fourth quarter of 2011.The Company's managed
receivables totaled $897.6 million as of December 31, 2012, an increase from
$844.9 million as of September 30, 2012 and $794.6 million as of December 31,
2011, as follows ($ in millions):

Originating Entity      December 31, 2012 September 30, 2012 December 31, 2011
CPS                     $825.0            $748.8             $586.9
Fireside Bank           60.8              80.3               172.2
TFC                     0.2               0.4                2.0
As Third Party Servicer 11.6              15.4               33.5
Total                   $897.6            $844.9             $794.6

Annualized net charge-offs for 2012 were 3.61% of the average owned portfolio
as compared to 4.79% for 2011. Delinquencies greater than 30 days (including
repossession inventory) were 5.6% of the total owned portfolio as of December
31, 2012, as compared to 6.0% as of December 31, 2011.

As previously reported, during December CPS closed its fourth term
securitization transaction of 2012 and the seventh transaction since April
2011. In the senior subordinate structure, a special purpose subsidiary sold
five tranches of asset-backed notes totaling $160.0 million.The notes are
secured by automobile receivables purchased by CPS and have a weighted average
effective coupon of approximately 2.05%. The transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the original
receivable pool balance.The final enhancement level requires accelerated
payment of principal on the notes to reach overcollateralization of 11.50% of
the then-outstanding receivable pool balance.

"2012 was a very good year for us," said Charles E. Bradley, Jr., Chairman and
Chief Executive Officer."The comeback plans that we set in motion three years
ago are now resulting in significant earnings growth.From an operational
standpoint, our managed portfolio is once again growing meaningfully.We have
achieved this growth while maintaining attractive yields and credit
demographics on our new contract purchases.And asset performance metrics of
our newer vintages continue to be strong.From a financial perspective, we are
now at a point where revenue growth is greatly exceeding expense growth,
demonstrating the operating leverage inherent in our business model.These
trends bode well for our future profitability."

Conference Call

CPS announced that it will hold a conference call on Tuesday, February 5,
2013, at 1:00 p.m. ET to discuss its quarterly operating results. Those
wishing to participate by telephone may dial-in at 877 312-5502 or 253
237-1131 approximately 10 minutes prior to the scheduled time.

A replay of the conference call will be available between February 5, 2013 and
February 11, 2013, beginning two hours after conclusion of the call, by
dialing 855 859-2056 or 404 537-3406 for international participants, with
conference identification number 96024567. A broadcast of the conference call
will also be available live and for 90 days after the call via the Company's
web site at www.consumerportfolio.com.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company
that provides indirect automobile financing to individuals with past credit
problems, low incomes or limited credit histories. We purchase retail
installment sales contracts primarily from franchised automobile dealerships
secured by late model used vehicles and, to a lesser extent, new vehicles. We
fund these contract purchases on a long-term basis primarily through the
securitization markets and service the contracts over their lives.

Forward-looking statements 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 incurred losses.The accuracy of such
estimates may be adversely affected by various factors, which include (in
addition to risks relating to the economy generally) the following: possible
increased delinquencies; repossessions and losses on retail installment
contracts; incorrect prepayment speed 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, 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 financial results, 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 the provision
for credit losses may affect future performance.

                                                                                 
Consumer Portfolio Services, Inc. and Subsidiaries                                
Condensed Consolidated Statements of Operations                                   
(In thousands, except per share data)                                             
(Unaudited)                                                                       
                                                                          
               Three months ended                Year ended                 
               December 31,                      December 31,               
               2012              2011             2012            2011        
Revenues:                                                                  
Interest income $48,104         $41,224        $175,314      $ 127,856  
Servicing fees  408              818             2,305          4,348      
Other income    2,108            3,726           9,589          10,927     
               50,620           45,768          187,208        143,131    
Expenses:                                                                  
Employee costs  9,695             8,927            35,573         32,270     
General and     3,664            3,893           15,429         14,590     
administrative
Interest        17,726           25,677          79,422         83,054     
Provision for   11,483           3,474           33,495         15,508     
credit losses
Other expenses  3,445            3,562           14,102         12,169     
               46,013           45,533          178,021        157,591    
Income (loss)
before income   4,607            235             9,187          (14,460)   
taxes
Income tax
expense         (60,221)         --              (60,221)       --         
(benefit)
Net income      $64,828         $235           $69,408       $(14,460) 
(loss)
                                                                          
Earnings (loss)                                                            
per share:
Basic           $3.30           $0.01          $3.56         $(0.76)   
Diluted         $2.20           $0.01          $2.72         $(0.76)   
                                                                          
Earnings (loss)
per share                                                                  
without tax
gain:
Basic           $0.23           $0.01          $0.47         $(0.76)   
Diluted         $0.16           $0.01          $0.36         $(0.76)   
                                                                          
Number of
shares used in
computing                                                                  
earnings
(loss)per
share:
Basic           19,673           19,662          19,473         19,013     
Diluted         29,527           22,299          25,478         19,013     
                                                                          
                                                                          
Condensed Consolidated Balance Sheets                                          
(In thousands)                                                                 
(Unaudited)                                                                    
                                                                          
               December 31,      December                                   
                                   31,
               2012              2011                                       
Assets:                                                                    
Cash and cash   $12,966         $10,094                                  
equivalents
Restricted cash 104,445           159,228                                    
and equivalents
Total cash and
cash            117,411           169,322                                    
equivalents
                                                                          
Finance         764,343           516,630                                    
receivables
Allowance for
finance credit  (19,594)          (10,351)                                   
losses
Finance
receivables,    744,749           506,279                                    
net
                                                                          
Finance
receivables     59,668            160,253                                    
measured at
fair value
Residual
interest in     4,824             4,414                                      
securitizations
Deferred tax    75,640            15,000                                     
assets, net
Other assets    35,328            34,782                                     
               $1,037,620      $890,050                                 
                                                                          
Liabilities and
Shareholders'                                                              
Equity:
Accounts
payable and     $17,785         $27,993                                  
accrued
expenses
Warehouse lines 21,731            25,393                                     
of credit
Residual
interest        13,773            21,884                                     
financing
Debt secured by
receivables     57,107            166,828                                    
measured at
fair value
Securitization  792,497           583,065                                    
trust debt
Senior secured
debt, related   50,135            58,344                                     
party
Subordinated    23,281            20,750                                     
renewable notes
               976,309           904,257                                    
                                                                          
Shareholders'   61,311            (14,207)                                   
equity
               $1,037,620      $890,050                                 
                                                                          
                                                                          
Operating and Performance Data ($ in millions)                                    
                                                                          
               At and for the                    At and for the             
               Three months ended                Year ended                 
               December 31,                      December 31,               
               2012              2011             2012            2011        
                                                                          
Contracts       $150.83         $92.22         $551.74       $284.24   
purchased
Contracts       156.70           83.90           594.60         299.50     
securitized
                                                                          
Total managed   $897.58         $794.65        $897.58       $794.65   
portfolio
Average managed 880.47           804.68          822.57         711.73     
portfolio
                                                                          
Allowance for
finance credit
losses as % of  2.56%             2.00%                                      
fin.
receivables
                                                                          
Aggregate
allowance as %  3.35%             2.87%                                      
of fin.
receivables (1)
                                                                          
Delinquencies                                                              
31+ Days        4.06%             4.43%                                      
Repossession    1.49%             1.52%                                      
Inventory
Total
Delinquencies   5.55%             5.95%                                      
and Repo.
Inventory
                                                                          
Annualized net
charge-offs as  3.99%             3.06%            3.61%           4.79%       
% of average
owned portfolio
                                                                          
Recovery rates  46.8%             44.1%            47.9%           44.0%       
(2)
                                                                          
               For the                            For the
               Three months ended                 Year ended
               December 31,                       December 31,
               2012               2011              2012             2011
               $ (3)        % (4) $ (3)      % (4)  $ (3)      % (4) $ (3)       % (4)
Interest income $48.10     21.9% $41.22   20.5%  $175.31  21.3% $127.86   18.0%
Servicing fees
and other       2.52        1.1%  4.54      2.3%   11.89     1.4%  15.28      2.1%
income
Interest        (17.73)     -8.1% (25.68)   -12.8% (79.42)   -9.7% (83.05)    -11.7%
expense
Net interest    32.89       14.9% 20.09     10.0%  107.79    13.1% 60.08      8.4%
margin
Provision for   (11.48)     -5.2% (3.47)    -1.7%  (33.50)   -4.1% (15.51)    -2.2%
credit losses
Risk adjusted   21.41       9.7%  16.62     8.3%   74.29     9.0%  44.57      6.3%
margin
Core operating  (16.80)     -7.6% (16.38)   -8.1%  (65.10)   -7.9% (59.03)    -8.3%
expenses
Pre-tax income  $4.61      2.1%  $0.23    0.1%   $9.19    1.1%  $(14.46)  -2.0%
(loss)
                                                                          
(1)Includes allowance for finance credit losses and allowance for repossession
inventory.
(2)Wholesale auction liquidation amounts (net of expenses) for CPS portfolio as a
percentage of the account balance at the time of sale.
(3)Numbers may not add due to rounding.
(4)Annualized percentage of the average managed portfolio.Percentages may not add due
to rounding.

CONTACT: Investor Relations Contact
         Robert E. Riedl, Chief Investment Officer
         949 753-6800
 
Press spacebar to pause and continue. Press esc to stop.