IRVINE, Calif. — In announcing its first quarter results, Consumer Portfolio Services said that its annualized net charge-offs came in at 11.59 percent, compared with 6.66 percent in the first quarter of last year.

Moreover, the company announced that delinquencies greater than 30 days (including repossession inventory) were 6.73 percent of the total portfolio, compared with 4.82 percent last year.

Officials explained that the increase in net charge-off and delinquency percentages can be attributed to the aging of the portfolio and the "significant decrease in the size of the managed portfolio as nominal new-contract purchases have not replaced portfolio run-off."

During the time frame, the company said it purchased $1.1 million in contracts from dealers, compared with $7.3 million during the fourth quarter of 2008 and $176.1 million during first quarter of 2008. 

Managed receivables came in at about $1.5 billion, down $603.7 million, or 28.9 percent, from $2.09 billion in the same quarter of last year.

"With respect to asset performance, we experienced the typical seasonal improvement in delinquencies that we were expecting so this should lead to declining net charge-offs next quarter," explained Charles Bradley Jr., chief executive officer.

"We also saw marked improvement in the wholesale auction market during the first quarter as used-car sales have increased year-over-year," he continued. "Recovery levels on our repossessed vehicles increased nicely and we have regained much of the drop we experienced in the fourth quarter last year. In addition, the early performance trends on our 2008 contract purchases are quite favorable compared to earlier vintages."

Overall, CPS reported total revenues of $66.1 million for the period, down about $37.3 million, or 36.1 percent, compared with $103.3 million for the same time frame of 2008.

Additionally, total operating expenses came in at $66.6 million, down $33 million, or 33.1 percent, compared with $99.5 million for the prior year.

Net loss for the period was $0.5 million, compared with net income of $2.1 million.

"Our financial performance in the first quarter improved significantly versus the third and fourth quarters of 2008," Bradley stated. "We continue to be diligent at containing operating expenses as our managed portfolio decreases.

"While we expect the remainder of 2009 to be challenging, we are starting to see signs of improvement in the funding landscape as sentiment among securitization investors has improved dramatically since the fourth quarter of last year," he concluded.