Normal
0
false
false
false
EN-US
X-NONE
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:”Times New Roman”;
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}

IRVINE, Calif. — The positive momentum for Consumer
Portfolio Services continued into the second quarter as the company again
reported positive earnings as well as gains in revenue and contracts purchased.

According to its financial statement released this week, CPS
generated earnings of $1.3 million or 5 cents per diluted share for its second
quarter that ended June 30. A year earlier, the company still was in the midst
of its turnaround as it sustained a net loss of $6.4 million or 35 cents per
diluted share.

Now through the first half of this year, CPS calculated that
its net earnings stood at $1.9 million, or 8 cents per diluted share, marking a
stark change from a year ago when the company finished the first half of 2011
with a net loss of $10.6 million or 58 cents per diluted share.

The company's Q2 revenues totaled $44.2 million, an increase
of approximately $13.0 million, or 42 percent year-over-year. The gain helped
to offset a 14-percent rise in second quarter operating expenses, which came in
at $42.8 million.

Furthermore, CPS' pretax income for the second quarter settled
at $1.3 million, marking another major improvement as the company suffered a
pretax loss of $6.4 million during the second quarter of last year.

Executives also tabulated other financial figures through
the first half of 2012, including:

—Total revenues of $88.7 million, up from $63.5 million a
year earlier.
—Total expenses of $86.8
million, up from $74.2 million a year earlier.
—Pretax income of $1.9 million, compared to a pretax loss of $10.6 million a
year earlier.

Elsewhere on its financial update, CPS indicated that it purchased
$137.9 million of new contracts during the second quarter. In the same period a
year ago, it purchased $60.8 million, and the company opened 2012 by buying $119.9
million in the first quarter.

That activity left the company's managed receivables at
$806.1 million as of June 30, an increase from $781.8 million as of March 31
and $635.0 million as of June 30 of last year.

CPS determined its annualized net charge-offs for the second
quarter were 3.16 percent of the average owned portfolio as compared to 6.04
percent for the second quarter of last year.

Delinquencies greater than 30 days (including repossession
inventory) stood at 3.81 percent of the total owned portfolio as of June 30 as
compared to 5.92 percent on the same date last year.

The turnaround is all part of CPS' plan for an extended
recovery. SubPrime Auto Finance News recapped the company's previous improvement
and growth strategy here.

"The second quarter of 2012 marks another milestone in our
recovery from the financial crisis," CPS chairman and chief executive officer Charles
Bradley Jr. said when the company revealed its second-quarter performance.

"We are now growing our total managed portfolio sequentially
as our new contract purchases are more than offsetting the runoff of the
Fireside Bank portfolio and our 2007 and 2008 vintages," Bradley continued. "As
we can see from our financial results, the operating leverage inherent in our
business is once again becoming evident. This bodes well for our future
profitability.

"Operationally, the second quarter was also solid," he went
on to say. "New contract purchases increased 15 percent from the first quarter
and yields and credit demographics of the new paper remain attractive. Asset
performance metrics continue to be very strong as well with year-over-year net
charge-offs and delinquencies continuing to decline. In addition, we achieved
another record low funding cost on our June securitization."