CPS Records Second Profitable Quarter in a Row
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IRVINE, Calif. — The turnaround at Consumer Portfolio
Services continued into the first quarter of this year as the company posted
income after sustaining a pretax loss of more than $4 million during the same
period a year earlier.
For the quarter that ended March 31, CPS generated $44.5
million in revenues, an increase of approximately $12.1 million or 37.4 percent
compared to $32.4 million for the first quarter of 2011.
The company determined its total operating expenses settled
at $44.0 million, an increase of $7.4 million or 20.2 percent from $36.6
million in the year-ago quarter.
As a result, CPS posted first-quarter pretax income of
$512,000, a stark contrast from the pretax loss of $4.2 million a year earlier.
Executives computed that first-quarter net income of
$512,000 resulted in a 2 cents per diluted share figure, while in the year-ago
quarter shareholders took a loss of 23 cents per diluted share
In other elements of its first-quarter financial statement, CPS
noted that purchased $119.9 million of contracts from dealers as compared to
$92.2 million during the fourth quarter of last year and $50.0 million during
the first quarter a year ago.
That decision left the company's managed receivables at
$781.8 million as of March 31, an increase of $102.1 million or 15 percent from
$679.7 million on the same date last year.
Executives explained CPS' managed receivables increased
year-over-year for the second time since 2008. This was a result of the acquisition
of the $237 million portfolio from Fireside Bank last September and continued
growth in new contract purchases during the last several quarters.
CPS also highlighted its annualized net charge-offs for the first
quarter were 3.90 percent of the average owned portfolio as compared to 9.32
percent for the first quarter of last year.
The company also mentioned delinquencies greater than 30
days — including repossession inventory — were 3.51 percent of the total owned
portfolio as of March 31 as compared to 5.82 percent on the same date last
year.
Reflecting on the first-quarter performance, CPS chairman
and chief executive officer Charles Bradley Jr. stated, "We are pleased to
announce our second consecutive quarter of profitability and an improvement
versus the previous quarter.
"Operationally, we have maintained the positive momentum
from last year into 2012 with new contract purchases increasing 30 percent
quarter-over-quarter and asset performance metrics that have continued to
improve," Bradley continued.
In addition, we
completed our first term securitization of 2012 in March with a blended coupon
of approximately 3.50 percent, the lowest for the company in the last 10 years,"
he concluded.