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Consumer Portfolio Services, Inc. Reports 2006 Third Quarter Earnings Wednesday October 18, 5:00 pm ET
IRVINE, Calif.--(BUSINESS WIRE)--Consumer Portfolio Services, Inc. (Nasdaq:CPSS - News) today announced earnings for its third quarter ended September 30, 2006.
Net income for the quarter ended September 30, 2006 was $4.3 million, or $0.18 per diluted share, compared to net income of $1.4 million, or $0.06 per diluted share, for the quarter ended September 30, 2005. For the three months ended September 30, 2006 total revenues increased approximately $24.3 million, or 49.3%, to $73.7 million, compared to $49.4 million for the three months ended September 30, 2005. Total expenses for the three months ended September 30, 2006 were $69.4 million, an increase of $21.5 million, or 44.8%, as compared to $48.0 million for the three months ended September 30, 2005.
Net income for the nine months ended September 30, 2006 was $8.7 million, or $0.36 per diluted share, compared to net income of $1.7 million, or $0.07 per diluted share, for the nine months ended September 30, 2005. For the nine months ended September 30, 2006 total revenues increased approximately $60.0 million, or 43.2%, to $199.0 million, compared to $139.0 million for the nine months ended September 30, 2005. Total expenses for the nine months ended September 30, 2006 were $190.3 million, an increase of $53.0 million, or 38.6%, as compared to $137.3 million for the nine months ended September 30, 2005.
"We are very pleased with the financial results for the third quarter," said Charles E. Bradley, Jr., President and Chief Executive Officer of Consumer Portfolio Services. "Our improved earnings highlight our recurring theme of the operating leverage inherent in our business model, as revenue growth has continued to significantly outpace expense growth. This was our sixth straight quarter of profitability, with each quarter showing sequential improvement. Operations for the third quarter remained strong as we continued the growth of our total managed portfolio while maintaining solid asset performance metrics."
During the third quarter of 2006, Consumer Portfolio Services purchased $254.4 million of contracts from dealers as compared to $268.8 million during the second quarter of 2006 and $205.0 million during the third quarter 2005. During the first three quarters of 2006, new contract purchases increased approximately 55% vs. the same period in 2005, increasing from $502.5 million in 2005 to $777.7 million in 2006. In addition, the Company continued its regular quarterly securitization program with the September sale of $247.5 million of asset backed notes. As previously reported, the credit enhancement levels were 150 basis points lower than those applicable to the Company's June transaction. As of September 30, 2006, the Company's managed receivables totaled $1,480.7 million, as follows ($ in millions):
Owned by Consolidated Subsidiaries* $1,422.3 Owned by Non-Consolidated Subsidiaries 52.5 As Third Party Servicer for SeaWest Financial 5.9 --------- Total $1,480.7
* Before $116.9 million of allowance for credit losses, deferred acquisition fees and repossessed vehicles.
As previously reported, in order to increase transparency of the Company's financial reports, in the third quarter of 2003 Consumer Portfolio Services began structuring its securitization transactions as secured financings, with receivables and associated debt remaining on the balance sheet, and without recognition of a gain on sale. Accordingly, net earnings are recognized over the life of the receivables as interest income and fee income, less related funding costs and a provision for losses. Such provisions are recorded upon acquisition and during the life of the receivables.
Conference Call
Consumer Portfolio Services announced that it will hold a conference call tomorrow, October 19, 2006, at 1:30 p.m. EDT to discuss its quarterly earnings. Those wishing to participate by telephone may dial-in at 973-409-9261 approximately 10 minutes prior to the scheduled time.
A replay will be available between October 19, 2006 and October 27, 2006, beginning one hour after conclusion of the call, by dialing 877-519-4471 or 973-341-3080 for international participants, with pin number 7996460. A broadcast of the conference call will also be available live and for 30 days after the call via the Company's web site at www.consumerportfolio.com and at www.streetevents.com.Posts: 2321 | Registered: Aug 2006
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