CPS Announces First Quarter 2013 Earnings

CPS Announces First Quarter 2013 Earnings

  *Pretax income of $6.5 million
  *Net income of $3.8 million, or $0.12 per diluted share
  *New contract purchases of $180 million
  *Total managed portfolio increases to $969 million from $898 million at the
    end of 2012

IRVINE, Calif., April 16, 2013 (GLOBE NEWSWIRE) -- Consumer Portfolio
Services, Inc. (Nasdaq:CPSS) ("CPS" or the "Company") today announced earnings
of $3.8 million, or $0.12 per diluted share, for its first quarter ended March
31, 2013. This compares to net income of $512,000, or $0.02 per diluted share,
in the first quarter of 2012. The 2012 period did not include a tax expense.

Revenues for the first quarter of 2013 were $54.6 million, an increase of
$10.1 million, or 23%, compared to $44.5 million for the first quarter of
2012. Total operating expenses for the first quarter of 2013 were $48.1
million, an increase of $4.1 million, or 9.2%, compared to $44.0 million for
the 2012 period. Pretax income for the first quarter of 2013 was $6.5 million
compared to pretax income of $512,000 in the first quarter of 2012.

During the first quarter of 2013, CPS purchased $180.1 million of new
contracts compared to $150.8 million during the fourth quarter of 2012 and
$119.9 million during the first quarter of 2012. The Company's managed
receivables totaled $968.5 million as of March 31, 2013, an increase from
$897.6 million as of December 31, 2012 and $781.8 million as of March 31,
2012, as follows ($ in millions):

Originating Entity      March 31, 2013 December 31, 2012 March 31, 2012
CPS                     $917.0         $825.0            $621.7
Fireside Bank           43.3           60.8              133.2
TFC                     --             0.2               1.1
As Third Party Servicer 8.2            11.6              25.8
Total                   $968.5         $897.6            $781.8

Annualized net charge-offs for the first quarter of 2013 were 4.23% of the
average owned portfolio as compared to 3.90% for the 2012 period.
Delinquencies greater than 30 days (including repossession inventory) were
4.16% of the total owned portfolio as of March 31, 2013, as compared to 3.51%
as of March 31, 2012.

As previously reported, during March CPS closed its first term securitization
transaction of 2013 and the eighth transaction since April 2011. In the senior
subordinate structure, a special purpose subsidiary sold five tranches of
asset-backed notes totaling $185.0 million. The notes are secured by
automobile receivables purchased by CPS and have a weighted average effective
coupon of approximately 1.87%. 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.

"The first quarter of 2013 was a good start to the year," said Charles E.
Bradley, Jr., Chairman and Chief Executive Officer. "We saw a solid increase
in new contract purchases, our earnings growth continued its momentum and we
accomplished much on the capital markets front. Specifically, we extended the
revolving period of one of our credit facilities for two years and added a
two-year amortization period thereafter. Our first term securitization of the
year achieved the lowest effective interest rate in the history of the
Company. And last week we entered into a new residual financing facility. This
allowed us to prepay $15 million of our senior secured debt and to lower our
blended interest rate on corporate and residual interest debt by over 200
basis points."

Conference Call

CPS announced that it will hold a conference call on Wednesday, April 17,
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 April 17, 2013 and
April 24, 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 35205561. 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                    
                            March 31,                             
                            2013           2012                     
Revenues:                                                          
Interest income              $51,168      $40,611                
Servicing fees               909           801                     
Other income                 2,517         3,106                   
                            54,594        44,518                  
Expenses:                                                          
Employee costs               8,949         8,871                    
General and administrative   3,755         4,497                   
Interest                     16,346        22,309                  
Provision for credit losses  15,147        4,836                   
Other expenses               3,869         3,493                   
                            48,066        44,006                  
Income before income taxes   6,528         512                     
Income tax expense           2,743         --                      
Net income                  $3,785       $512                   
                                                                  
Earnings per share:                                                
Basic                        $0.19        $0.03                  
Diluted                      $0.12        $0.02                  
                                                                  
Number of shares used in
computing earnings per                                             
share:
Basic                        20,073         19,416                  
Diluted                      31,624         22,601                  
                                                                  
                                                                  
                                                                  
Condensed Consolidated Balance Sheets                                
(In thousands)                                                       
(Unaudited)                                                          
                                                                  
                            March 31,      December 31,             
                            2013           2012                     
Assets:                                                            
Cash and cash equivalents    $13,866      $12,966                
Restricted cash and          139,393        104,445                  
equivalents
Total cash and cash          153,259        117,411                  
equivalents
                                                                  
Finance receivables          857,430        764,343                  
Allowance for finance credit (24,881)       (19,594)                 
losses
Finance receivables, net     832,549        744,749                  
                                                                  
Finance receivables measured 43,021         59,668                   
at fair value
Residual interest in         3,505          4,824                    
securitizations
Deferred tax assets, net     75,640         75,640                   
Other assets                 37,342         35,328                   
                            $1,145,316   $1,037,620             
                                                                  
Liabilities and                                                    
Shareholders' Equity:
Accounts payable and accrued $21,472      $17,785                
expenses
Warehouse lines of credit    26,676         21,731                   
Residual interest financing  13,773         13,773                   
Debt secured by receivables  40,387         57,107                   
measured at fair value
Securitization trust debt    901,679        792,497                  
Senior secured debt, related 50,789         50,135                   
party
Subordinated renewable notes 23,558         23,281                   
                            1,078,334      976,309                  
                                                                  
Shareholders' equity         66,982         61,311                   
                            $1,145,316   $1,037,620             
                                                                  
                                                                  
                                                                  
Operating and Performance Data ($ in millions)                       
                                                                  
                            At and for the                        
                            Three months ended                    
                            March 31,                             
                            2013           2012                     
                                                                  
Contracts purchased          $180.12      $119.90                
Contracts securitized        161.25        144.79                  
                                                                  
Total managed portfolio      $968.54      $781.80                
Average managed portfolio    944.05        783.21                  
                                                                  
Allowance for finance credit
losses as % of fin.          2.90%          2.03%                    
receivables
                                                                  
Aggregate allowance as % of  3.68%          2.74%                    
fin. receivables (1)
                                                                  
Delinquencies                                                      
31+ Days                     2.59%          2.13%                    
Repossession Inventory       1.57%          1.38%                    
Total Delinquencies and      4.16%          3.51%                    
Repo. Inventory
                                                                  
Annualized net charge-offs
as % of average owned        4.23%          3.90%                    
portfolio
                                                                  
Recovery rates (2)           49.0%          48.1%                    
                                                                  
                            For the
                            Three months ended
                            March 31,
                            2013                          2012
                            $ (3)          % (4)          $ (3)      % (4)
Interest income              $51.17       21.7%          $40.61   20.7%
Servicing fees and other     3.43          1.5%           3.91      2.0%
income
Interest expense             (16.35)       -6.9%          (22.31)   -11.4%
Net interest margin          38.25         16.2%          22.21     11.3%
Provision for credit losses  (15.15)       -6.4%          (4.84)    -2.5%
Risk adjusted margin         23.10         9.8%           17.37     8.9%
Core operating expenses      (16.57)       -7.0%          (16.86)   -8.6%
Pre-tax income               $6.53        2.8%           $0.51    0.3%
                                                                  
                                                                  
(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
 
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