IRVINE, Calif. — Along with revealing its operating results for the fourth quarter and all of 2009, Consumer Portfolio Services announced it entered into another new financing facility worth $50 million.

Company executives indicated that the facility is structured similarly to an unrated term securitization transaction with an extended pre-funding period. They explained that it allows for contribution of receivables over a period of time until $50 million in asset-backed notes have been issued or the end of this year — whichever occurs first.

CPS also said no additional notes will be issued and the notes will be repaid over the remaining life of the receivables. The company added that approximately $9.1 million of asset-backed notes were issued at the closing of the facility.

"Our momentum has continued in 2010 as we closed a second $50 million financing facility, which now gives us $100 million in total capacity," highlighted Charles Bradley Jr., chairman and chief executive officer of CPS.

"This ensures the funding necessary for us to confidently continue to increase our contract purchases. It also contains more favorable pricing than the facility we closed last fall," Bradley continued.

"Meanwhile, the credit markets continue to improve as several subprime auto securitization transactions have closed in the last six months. These developments set the stage for us to return to the term securitization market later this year or early next year," he added.

Moving on to a discussion about fourth-quarter results, executives stated CPS posted revenues of $46.7 million. The figure marked a 37.4-percent decrease from revenue in the fourth quarter of 2008, which was $74.6 million.

However, CPS cut its operating expenses by 23.7 percent in the fourth quarter. To close 2009, these expenses were $85.3 million as compared to $111.9 million in the last quarter of 2008.

All told for the fourth quarter of 2009, the company calculated a pretax loss of $38.6 million. That total edged slightly higher from the loss $37.3 million CPS sustained in the same quarter of the previous year.

Executives also pointed out that their net loss for the fourth quarter of 2009 includes a charge to income tax expense of $7.8 million related to an addition to the valuation allowance against the deferred tax asset.

In other figures from the fourth quarter that CPS reported, the company mentioned that it purchased $6.1 million of contracts from dealers in that span. This marked a sharp jump from what the company purchased during the third quarter, which was just $506,000.

In the fourth quarter of 2008, CPS purchased $7.3 million in dealer contracts.

At the close of 2009, the company noted its managed receivables totaled $1.19 billion. The figure marked a 28.2-percent decrease from the total at the end of 2008. At that point it was $1.66 billion.

When looking at more full-year 2009 data, CPS revealed several areas where the total dropped from the previous year.

The company indicated its total revenues went from $368.4 million in 2008 to $223.9 million last year, a difference of 39.2 percent. Its 2009 total expenses decreased by 33.6 percent to $273.3 million from $411.9 million.

CPS' pretax loss for 2009 came in at $49.4 million, compared to pretax loss of $43.5 million in 2008. Executives said their net loss for 2009 was $57.2 million. In 2008, the company's net loss was $26.1 million.

Elsewhere, the company mentioned that its annualized net charge-offs for 2009 were 11.02 percent of the average owned portfolio as compared to 7.74 percent in 2008. Executives also mentioned their delinquencies greater than 30 days — including repossession inventory — were 8.76 percent of the total owned portfolio. The percentage climbed up from 8.59 percent CPS reported at the close of 2008.

"The increase in net charge-off and delinquency percentages versus the year-ago period can be partly 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," company executives explained.

When reviewing the full-year financial report, Bradley said that "2009 was a challenging year for us as our shrinking servicing portfolio and credit losses from our legacy 2006 and 2007 vintages hurt our financial results."

Bradley remained upbeat about CPS potential to thrive in the industry.

"We are very pleased, however, with the progress we have made in re-establishing ourselves in the auto finance marketplace," he stated.

"In the fourth quarter we purchased the first meaningful amount of new contracts in close to a year. These contracts have the highest yields and the best credit demographics we have seen in over 10 years," Bradley continued.

"And the asset performance metrics of our 2008 and 2009 vintages are significantly better than 2006 and 2007 and consistent with the 2004 and 2005 vintages," he went on to say.

"In addition, adding $146 million to our servicing portfolio with the CompuCredit portfolio in November is a testament to our servicing abilities," Bradley concluded.