IRVINE, Calif. — During the third quarter, Consumer Portfolio Services reported that it purchased $340.2 million in contracts from dealers, as compared with $346.0 million during the second quarter of 2007 and $254.4 million during the third quarter of 2006.

However, while contracts purchased for the quarter were down in comparison to last quarter and the prior-year period, the company actually comes in above last year's three-quarter total due to earlier contract buys.  

During the first three quarters of 2007, CPS purchased $1.0165 billion of contracts from dealers, as compared with $777.7 million during the first three quarters of 2006.

Contract purchased this year represent an increase of 30.7 percent versus the same period in 2006, executives highlighted.

The company's managed receivables totaled $2.0531 billion as of Sept. 30, up by $572.4 million, or 38.7 percent, from $1.4807 billion as of Sept. 30, 2006.

Officials also indicated that third-quarter pretax income grew to $6.3 million from $4.3 million for the comparable quarter last year.

Meanwhile, net income was $3.7 million, or $0.16 per diluted share, compared with net income of $4.3 million, or $0.18 per diluted share. Net income for the third quarter of 2006 did not include a provision for income tax expense, officials noted.

As for total revenues, they increased about $29.0 million, or 39.4 percent, to $102.8 million, compared with $73.7 million last year. Total operating expenses were $96.4 million, up $27.0 million, or 38.8 percent, as compared with $69.4 million for the three months ended Sept. 30, 2006.

Continuing on, officials said pretax income for the nine-month period increased to $18.0 million, compared with pretax income of $8.7 million.

Net income for that period was $10.4 million, or $0.45 per diluted share, compared to net income of $8.7 million, or $0.36 per diluted share. Moreover, officials noted that net income for the nine-month did not include a provision for income tax expense.

For the nine-month time frame revenues grew about $86.1 million, or 43.3 percent, to $285.0 million, compared with $199 million. Total operating expenses were $267.1 million, up $76.8 million, or 40.3 percent, as compared with $190.3 million for the nine months ended Sept. 30, 2006.

In addition, the company said it continued its regular quarterly securitization program with the September sale of $327.5 million of asset-backed notes.

As previously announced, the quarterly transaction was executed with lower credit enhancement requirements than the second quarter transaction. CPS also issued $60 million of two-year notes under a new $120 million revolving and term residual interest financing facility.

Annualized net charge-offs during the first nine months of 2007 were 4.95 percent of the average owned portfolio, as compared with 4 percent during the same period in 2006, officials reported.

Delinquencies greater than 30 days (including repossession inventory) were 6.06 percent of the total owned portfolio, as compared with 4.97 percent as of Sept. 30, 2006.

"We are pleased with another solid quarter both financially and operationally," explained Charles Bradley Jr., president and chief executive officer.

"In the third quarter we achieved our 10th straight quarter of pretax income growth and were able to navigate the turbulent capital markets to successfully close our regular quarterly term securitization. Our volume of new contract purchases remained strong and credit performance met our expectations," he concluded.