IRVINE, Calif. — What top executives said was the company's first
quarter of organic sequential revenue growth since 2007, Consumer Portfolio Services
posted in third-quarter gains in earnings, revenue and new contracts purchases.

The company tabulated that its earnings came in at $2.7
million or 11 cents per diluted share for the quarter that ended Sept. 30. A
year earlier, CPS reported a net loss of $4.0 million or 20 cents per diluted
share.

CPS highlighted that earnings for the first nine months of
2012 totaled $4.6 million or 19 cents per diluted share compared to a net loss
of $14.7 million 78 cents per diluted share for the same period in 2011.

Officials indicated Q3 revenues totaled $47.9 million, an
increase of approximately $14.1 million or 42 percent compared to $33.8 million
for the quarter last year.

CPS noted its total operating expenses for the third quarter
were $45.2 million, an increase of $7.3 million or 19 percent from the year-ago
quarter.

Furthermore the company computed that its third-quarter pretax
income was $2.7 million compared to pretax loss of $4.0 million during the
previous year's time period.

For the nine months that ended Sept. 30, CPS indicated its total
revenues came in at $136.6 million compared to $97.4 million for the first nine
months of last year. The jump represented a year-over-year increase of
approximately $39.2 million or 40 percent.

Meanwhile, the company noted its total expenses for the nine
months this year increase $20.0 million or 18 percent, from $112.1 million to $132.0
million. As a result, CPS' pretax income for the nine months of this year
totaled $4.6 million, compared to pretax loss of $14.7 million during the same
span last year.

Returning to third-quarter data only, CPS said it purchased
$143.1 million of new contracts during the reporting period, up from$137.9
million during the second quarter and $81.2 million year earlier.

The company added up its managed receivables and found the
total to be $844.9 million as of Sept. an increase from $806.1 million as of
June 30 and $827.8 million a year ago.

Officials determined their annualized net charge-offs for
the third quarter were 3.35 percent of the average owned portfolio as compared
to 4.13 percent for the third quarter of last year.

They went on to note delinquencies greater than 30 days
(including repossession inventory) were 4.64 percent of the total owned
portfolio as of Sept. 30, compared to 6.54 percent as of the same date last
year.

As previously reported last month by SubPrime Auto Finance
News, CPS closed its third term securitization transaction of 2012 and the
sixth transaction in the last 18 months.

In the senior subordinate structure, a special purpose
subsidiary sold five tranches of asset-backed notes totaling $147.0 million.
The notes are secured by automobile receivables purchased by CPS and have a
weighted average effective coupon of approximately 2.45 percent.

The transaction has initial credit enhancement consisting of
a cash deposit equal to 1.00 percent of the original receivable pool balance.
The final enhancement level requires accelerated payment of principal on the
notes to reach overcollateralization of 11.00 percent of the then-outstanding
receivable pool balance.

CPS chairman and chief executive officer Charles Bradley Jr.
shared his quarterly assessment of the company's performance

"We are extremely pleased with our third quarter financial
results," Bradley said. "It was our first quarter of organic sequential revenue
growth since 2007 and the onset of the financial crisis. This demonstrates that
we are well positioned within the auto finance industry to continue growing our
managed portfolio.

"And as we fund this growth with cost-efficient
securitizations, our net interest margin is expanding significantly," he
continued. "These two components have been big drivers of our earnings growth
over the last year."


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