CPS Announces Second Quarter 2013 Earnings

CPS Announces Second Quarter 2013 Earnings

  *Pretax income of $8.5 million
  *Net income of $4.8 million, or $0.15 per diluted share
  *New contract purchases of $204 million
  *Total managed portfolio increases to $1.067 billion from $969 million at
    March 31, 2013

IRVINE, Calif., Aug. 8, 2013 (GLOBE NEWSWIRE) -- Consumer Portfolio Services,
Inc. (Nasdaq:CPSS) ("CPS" or the "Company") today announced earnings of $4.8
million, or $0.15 per diluted share, for its second quarter ended June 30,
2013. This compares to net income of $1.3 million, or $0.05 per diluted share,
in the second quarter of 2012. Earnings for the first six months of 2013 were
$8.6 million, or $0.27 per diluted share, as compared to earnings of $1.9
million, or $0.08 per diluted share, for the same period in 2012. The 2012
periods do not include a tax expense.

Revenues for the second quarter of 2013 were $70.5 million, an increase of
$26.3 million, or 60%, compared to $44.2 million for the second quarter of
2012. Total operating expenses for the second quarter of 2013 were $61.9
million, an increase of $19.1 million, or 45%, compared to $42.8 million for
the 2012 period. Pretax income for the second quarter of 2013 was $8.5 million
compared to pretax income of $1.3 million in the second quarter of 2012.

For the six months ended June 30, 2013 total revenues were $125.1 million
compared to $88.7 million for the six months ended June 30, 2012, an increase
of approximately $36.4 million, or 41%. Total expenses for the six months
ended June 30, 2013 were $110.0 million, an increase of $23.2 million, or 27%,
compared to $86.8 million for the six months ended June 30, 2012. Pretax
income for the six months ended June 30, 2013 was $15.1 million, compared to
$1.9 million for the six months ended June 30, 2012.

During the second quarter of 2013, CPS purchased $203.8 million of new
contracts compared to $180.1 million during the first quarter of 2013 and
$137.9 million during the second quarter of 2012. The Company's managed
receivables totaled $1.067 billion as of June 30, 2013, an increase from
$968.5 million as of March 31, 2013 and $806.1 million as of June 30, 2012, as
follows ($ in millions):

Originating Entity      June 30, 2013 March 31, 2013 June 30, 2012
CPS                     $1,030.5      $917.0         $681.5
Fireside Bank           31.1          43.3           104.0
TFC                     --            --             0.6
As Third Party Servicer 5.8           8.2            20.0
Total                   $1,067.4      $968.5         $806.1

Annualized net charge-offs for the second quarter of 2013 were 4.03% of the
average owned portfolio as compared to 3.16% for the 2012 period.
Delinquencies greater than 30 days (including repossession inventory) were
5.16% of the total owned portfolio as of June 30, 2013, as compared to 3.81%
as of June 30, 2012.

As previously reported, during June CPS closed its second term securitization
transaction of 2013 and the ninth transaction since April 2011. In the senior
subordinate structure, a special purpose subsidiary sold five tranches of
asset-backed notes totaling $205.0 million. The notes are secured by
automobile receivables purchased by CPS and have a weighted average effective
coupon of approximately 2.34%. 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 second quarter of 2013 was another good quarter for CPS," said Charles E.
Bradley, Jr., Chairman and Chief Executive Officer. "Our managed portfolio
continues to grow as we purchase new contracts with attractive yields and
credit demographics. Asset performance metrics, while higher year-over-year,
are well within our expectations as credit trends "normalize" after the very
tight lending period following the financial crisis. In addition, we extended
the revolving period of our second credit facility in June for two years and
added a one-year amortization period thereafter. As a result, both of our
credit facilities now have multi-year revolving periods plus amortization
periods. These features give us considerably more financial flexibility across
a variety of capital markets environments."

Conference Call

CPS announced that it will hold a conference call on Friday, August 9, 2013,
at 3:00 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 August 9, 2013 and
August 16, 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 30267175. 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      Six month ended
                               June 30,                June 30,
                               2013         2012         2013       2012
Revenues:                                                         
Interest income                 $55,797    $41,546    $106,964 $82,157
Servicing fees                  876         595         1,784     1,396
Other income                    2,862       2,010       5,380     5,116
Gain on cancellation of debt    10,947      --          10,947    
                               70,482      44,151      125,075   88,669
Expenses:                                                         
Employee costs                  11,527      8,277        20,476    17,148
General and administrative      4,518       3,577       8,272     8,075
Interest                        14,601      19,827      30,947    42,136
Provision for credit losses     17,371      7,711       32,519    12,547
Provision for contingent        9,650       --          9,650     --
liabilities
Other expenses                  4,269       3,418       8,137     6,911
                               61,936      42,810      110,001   86,817
Income before income taxes      8,546       1,341       15,074    1,852
Income tax expense              3,721       --          6,464     --
Net income                     $4,825     $1,341     $8,610   $1,852
                                                                 
Earnings per share:                                               
Basic                           $0.23      $0.07      $0.42    $0.10
Diluted                         $0.15      $0.05      $0.27    $0.08
                                                                 
                                                                 
Number of shares used in                                          
computing earnings per share:
Basic                           20,989       19,305      20,534     19,360
Diluted                         31,788       24,636      31,709     23,283
                                                                 
                                                                 
Condensed Consolidated Balance Sheets                               
(In thousands)                                                      
(Unaudited)                                                         
                                                                 
                                                                 
                               June 30,     December 31,           
                               2013         2012                   
Assets:                                                           
Cash and cash equivalents       $18,584    $12,966              
Restricted cash and equivalents 122,864      104,445                
Total cash and cash equivalents 141,448      117,411                
                                                                 
Finance receivables             971,914      764,343                
Allowance for finance credit    (32,101)     (19,594)               
losses
Finance receivables, net        939,813      744,749                
                                                                 
Finance receivables measured at 30,319       59,668                 
fair value
Residual interest in            2,246        4,824                  
securitizations
Deferred tax assets, net        69,971       75,640                 
Other assets                    41,243       35,328                 
                               $ 1,225,040 $ 1,037,620           
                                                                 
Liabilities and Shareholders'                                     
Equity:
Accounts payable and accrued    $29,672    $17,785              
expenses
Warehouse lines of credit       17,144       21,731                 
Residual interest financing     33,773       13,773                 
Debt secured by receivables     25,622       57,107                 
measured at fair value
Securitization trust debt       983,887      792,497                
Senior secured debt, related    39,368       50,135                 
party
Subordinated renewable notes    22,569       23,281                 
                               1,152,035    976,309                
                                                                 
Shareholders' equity            73,005       61,311                 
                               $ 1,225,040 $ 1,037,620           

                                                                      
                                                                      
Operating and Performance                                              
Data ($ in millions)
                                                                     
                                                                     
                                                                     
             At and for the                  At and for the            
             Three months ended              Six months ended          
             June 30,                        June 30,                  
             2013             2012            2013             2012      
                                                                     
Contracts     $203.78        $137.90       $383.90        $257.80 
purchased
Contracts     209.64          140.41         370.90          285.20   
securitized
                                                                     
Total managed $1,067.42      $806.14       $1,067.42      $806.14 
portfolio
Average
managed       1,034.57        795.31         989.31          789.26   
portfolio
                                                                     
Allowance for
finance
credit losses 3.30%            2.28%                                    
as % of fin.
receivables
                                                                     
Aggregate
allowance as
% of fin.     4.02%            2.89%                                    
receivables
(1)
                                                                     
Delinquencies                                                         
31+ Days      3.82%            2.64%                                    
Repossession  1.34%            1.17%                                    
Inventory
Total
Delinquencies 5.16%            3.81%                                    
and Repo.
Inventory
                                                                     
Annualized
net
charge-offs   4.03%            3.16%           4.12%            3.53%     
as % of
average owned
portfolio
                                                                     
Recovery      48.6%            49.1%           48.8%            48.6%     
rates (2)
                                                                     
             For the                          For the
             Three months ended               Six months ended
             June 30,                         June 30,
             2013              2012             2013              2012
             $ (3)       % (4) $ (3)     % (4)  $ (3)       % (4) $ (3)     % (4)
Interest      $55.80    21.6% $41.55  20.9%  $106.96   21.6% $82.16  20.8%
income
Servicing
fees and      3.74       1.4%  2.61     1.3%   7.16       1.4%  6.51     1.7%
other income
Interest      (14.60)    -5.6% (19.83)  -10.0% (30.95)    -6.3% (42.14)  -10.7%
expense
Net interest  44.93      17.4% 24.32    12.2%  83.18      16.8% 46.53    11.8%
margin
Provision for (17.37)    -6.7% (7.71)   -3.9%  (32.52)    -6.6% (12.55)  -3.2%
credit losses
Risk adjusted 27.56      10.7% 16.61    8.4%   50.66      10.2% 33.99    8.6%
margin
Core
operating     (20.31)    -7.9% (15.27)  -7.7%  (36.89)    -7.5% (32.13)  -8.1%
expenses
Provision for
contingent    (9.65)     -3.7% --      0.0%   (9.65)     -2.0% --      0.0%
liabilities
Gain on
cancellation  10.95      4.2%  --      0.0%   10.95      2.2%  --      0.0%
of debt
Pre-tax       $8.55     3.3%  $1.34   0.7%   $15.07    3.0%  $1.85   0.5%
income
                                                                     
                                                                     
                                                                     
(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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