CPS Announces Third Quarter 2013 Earnings

CPS Announces Third Quarter 2013 Earnings

  *Pretax income of $10.6 million
  *Net income of $5.9 million, or $0.19 per diluted share
  *New contract purchases of $207 million
  *Total managed portfolio increases to $1.167 billion from $1.067 billion at
    June 30, 2013

IRVINE, Calif., Oct. 17, 2013 (GLOBE NEWSWIRE) -- Consumer Portfolio Services,
Inc. (Nasdaq:CPSS) ("CPS" or the "Company") today announced earnings of $5.9
million, or $0.19 per diluted share, for its third quarter ended September 30,
2013. This compares to net income of $2.7 million, or $0.11 per diluted share,
in the third quarter of 2012. Earnings for the first nine months of 2013 were
$14.5 million, or $0.46 per diluted share, as compared to earnings of $4.6
million, or $0.19 per diluted share, for the same period in 2012. The 2012
periods do not include a tax expense.

Revenues for the third quarter of 2013 were $64.1 million, an increase of
$16.1 million, or 34%, compared to $47.9 million for the third quarter of
2012. Total operating expenses for the third quarter of 2013 were $53.5
million, an increase of $8.3 million, or 18%, compared to $45.2 million for
the 2012 period. Pretax income for the third quarter of 2013 was $10.6 million
compared to pretax income of $2.7 million in the third quarter of 2012.

For the nine months ended September 30, 2013 total revenues were $189.1
million compared to $136.6 million for the nine months ended September 30,
2012, an increase of approximately $52.6 million, or 39%. Total expenses for
the nine months ended September 30, 2013 were $163.5 million, an increase of
$31.5 million, or 24%, compared to $132.0 million for the nine months ended
September 30, 2012. Pretax income for the nine months ended September 30, 2013
was $25.6 million, compared to $4.6 million for the nine months ended
September 30, 2012.

During the third quarter of 2013, CPS purchased $206.8 million of new
contracts compared to $203.8 million during the second quarter of 2013 and
$143.1 million during the third quarter of 2012. The Company's managed
receivables totaled $1.167 billion as of September 30, 2013, an increase from
$1.067 billion as of June 30, 2013 and $844.9 million as of September 30,
2012, as follows ($ in millions):


Originating Entity      September 30, 2013 June 30, 2013 September 30, 2012
                                                      
CPS                     $1,141.1           $1,030.5      $748.8
Fireside Bank           21.7               31.1          80.3
TFC                     --                 --            0.4
As Third Party Servicer 4.1                5.8           15.4
Total                   $1,166.9           $1,067.4      $844.9


Annualized net charge-offs for the first nine months of 2013 were 4.21% of the
average owned portfolio as compared to 3.47% for the 2012 period.
Delinquencies greater than 30 days (including repossession inventory) were
6.44% of the total owned portfolio as of September 30, 2013, as compared to
4.64% as of September 30, 2012.

As previously reported, during September CPS closed its third term
securitization transaction of 2013 and the 10^th 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 3.08%. 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 5.00% of
the then-outstanding receivable pool balance.

"We're pleased to report another strong quarter of financial results," said
Charles E. Bradley, Jr., Chairman and Chief Executive Officer."With continued
improvements in funding costs and operating expenses, our return on managed
assets is expanding.This combination of higher returns on an increasing asset
base positions us well for future earnings growth."

Conference Call

CPS announced that it will hold a conference call on Friday, October 18, 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 October 18, 2013 and
October 25, 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 86908030. 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 Nine month ended
                                   September 30,      September 30,
                                   2013       2012      2013       2012
Revenues:                                                        
Interest income                     $60,462  $45,053 $167,426 $127,210
Servicing fees                      700       502      2,484     1,897
Other income                        2,904     2,365    8,284     7,481
Gain on cancellation of debt        --       --       10,947    --
                                   64,066    47,920   189,141   136,588
                                                                
Expenses:                                                        
Employee costs                      11,199    8,730     31,675    25,878
General and administrative          4,074     3,690    12,346    11,765
Interest                            13,853    19,560   44,800    61,696
Provision for credit losses         20,220    9,465    52,739    22,012
Provision for contingent            --       --       9,650     --
liabilities
Other expenses                      4,161     3,747    12,298    10,657
                                   53,507    45,192   163,508   132,008
Income before income taxes          10,559    2,728    25,633    4,580
Income tax expense                  4,686     --       11,150    --
Net income                        $5,873   $2,728  $14,483  $4,580
                                                                
Earnings per share:                                              
Basic                               $0.27    $0.14   $0.69    $0.24
Diluted                             $0.19    $0.11   $0.46    $0.19
                                                                
Number of shares used in computing                               
earnings per share:
Basic                               21,795     19,495   20,959     19,406
Diluted                             31,217     25,695   31,550     24,026



Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

                                                  September 30, December 31,
                                                  2013          2012
Assets:                                                         
Cash and cash equivalents                          $24,128     $12,966
Restricted cash and equivalents                    129,450       104,445
Total cash and cash equivalents                    153,578       117,411
                                                               
Finance receivables                                1,081,282     764,343
Allowance for finance credit losses                (34,464)      (19,594)
Finance receivables, net                           1,046,818     744,749
                                                               
Finance receivables measured at fair value         21,217        59,668
Residual interest in securitizations               1,426         4,824
Deferred tax assets, net                           66,166        75,640
Other assets                                       44,307        35,328
                                                  $ 1,333,512  $ 1,037,620
                                                               
Liabilities and Shareholders' Equity:                           
Accounts payable and accrued expenses              $33,817     $17,785
Warehouse lines of credit                          26,959        21,731
Residual interest financing                        20,000        13,773
Debt secured by receivables measured at fair value 16,888        57,107
Securitization trust debt                          1,094,559     792,497
Senior secured debt, related party                 38,963        50,135
Subordinated renewable notes                       20,640        23,281
                                                  1,251,826     976,309
                                                               
Shareholders' equity                               81,686        61,311
                                                  $ 1,333,512  $ 1,037,620



Operating and Performance Data ($ in millions)

                                  At and for the      At and for the
                                  Three months ended  Nine months ended
                                  September 30,       September 30,
                                  2013        2012      2013        2012
                                                                 
Contracts purchased                $206.77   $143.11 $590.67   $400.91
Contracts securitized              203.32     154.70   574.22     437.90
                                                                 
Total managed portfolio            $1,166.87 $844.86 $1,166.87 $844.86
Average managed portfolio          1,134.57   831.30   1,037.73   803.27
                                                                 
Allowance for finance credit       3.19%       2.47%                
losses as % of fin. receivables
                                                                 
Aggregate allowance as % of fin.   4.21%       3.13%                
receivables (1)
                                                                 
Delinquencies                                                     
31+ Days                           4.63%       3.33%                
Repossession Inventory             1.81%       1.31%                
Total Delinquencies and Repo.      6.44%       4.64%                
Inventory
                                                                 
Annualized net charge-offs as % of 4.89%       3.35%     4.21%       3.47%
average owned portfolio
                                                                 
Recovery rates (2)                 45.5%       47.2%     47.7%       48.2%



               For the                     For the
               Three months ended          Nine months ended
               September 30,               September 30,
               2013           2012           2013            2012
               $ (3)    % (4) $ (3)    % (4) $ (3)     % (4) $ (3)     % (4)
Interest income $60.46 21.3% $45.05 21.7% $167.43 21.5% $127.21 21.1%
Servicing fees
and other       3.60    1.3%  2.87    1.4%  10.77    1.4%  9.38     1.6%
income
Interest        (13.85) -4.9% (19.56) -9.4% (44.80)  -5.8% (61.70)  -10.2%
expense
Net interest    50.21   17.7% 28.36   13.6% 133.39   17.1% 74.89    12.4%
margin
Provision for   (20.22) -7.1% (9.47)  -4.6% (52.74)  -6.8% (22.01)  -3.7%
credit losses
Risk adjusted   29.99   10.6% 18.90   9.1%  80.66    10.4% 52.88    8.8%
margin
Core operating  (19.43) -6.9% (16.17) -7.8% (56.32)  -7.2% (48.30)  -8.0%
expenses
Provision for
contingent      --     0.0%  --     0.0%  (9.65)   -1.2% --      0.0%
liabilities
Gain on
cancellation of --     0.0%  --     0.0%  10.95    1.4%  --      0.0%
debt
Pre-tax income  $10.56 3.7%  $2.73  1.3%  $25.63  3.3%  $4.58   0.8%



(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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