IRVINE, Calif. — By cutting operating expenses, top company leaders say Consumer Portfolio Services is executing its "comeback strategy," as it also shaved down first-quarter pretax and net losses when compared year-over-year.

The company shared earlier this week that its first-quarter revenues came in at $32.4 million, a decrease of approximately $12.2 million, or 27.3 percent, compared to $44.6 million for the first quarter of 2010.

However, CPS determined its first-quarter total operating expenses came in at $36.6 million, a decrease of $15.9 million or 30.3 percent from the opening quarter of 2010 when the company's expenses were $52.5 million.

As a result, management calculated its pretax loss for the first quarter of this year was $4.2 million. In the first quarter of 2010, the pretax loss was $7.9 million.

CPS' first-quarter net loss also settled at $4.2 million or 23 cents per diluted share. In the prior-year first quarter, the net loss was $7.9 million or 44 cents per diluted share.

While the company still sustained a net loss, the future could be brighter based on the contract value CPS has purchased recently.

In the first quarter, the company said it purchased $50 million worth of contracts from dealers as compared to $33.6 million during the fourth quarter of last year. The amount also is much greater than the same quarter a year ago. That's when CPS purchased $17.4 million in dealer contracts.

Elsewhere on CPS' balance sheet, officials revealed their managed receivables totaled $679.7 million as of March 31, a decrease of $364.4 million or 34.9 percent from $1.044 billion as of the same date last year.

CPS mentioned its first-quarter annualized net charge-offs were 9.32 percent of the average owned portfolio. In the year-ago period, it was 12.19 percent.

The company noted its delinquencies greater than 30 days (including repossession inventory) were 5.82 percent of the total owned portfolio as of March 31. On the same date in 2010, the level was 5.94 percent.

Chairman and chief executive officer Charles Bradley Jr. began his assessment of CPS' first-quarter performance by stating, "We are pleased with the progress we have made in executing our comeback strategy.

"We purchased $50 million of new contracts during the quarter, a 49 percent increase versus the fourth quarter of 2010, and we expect to see continued growth this quarter," Bradley recapped.

"In addition, the credit and yield metrics of the new loans look as attractive as at any time in the last 10 years," he interjected.

Bradley went on to run down some other company highlights.

"In April, as we previously reported, we closed our first term securitization of 2011," Bradley pointed out. "It was a senior subordinate transaction with a net advance rate of approximately 94 percent and an effective yield to the investors of approximately 4 percent. This transaction provided significant liquidity, and the cost of funds is a vast improvement from our more recent financing facilities. 

"As I have mentioned previously, accessing the term securitization market has been an important objective because it is a critical part of attaining profitability once again," he concluded.