IRVINE, Calif. — Despite fourth-quarter and full-year drops in revenue and operating expenses still resulting in pre-tax and net losses, Consumer Portfolio Services emphasized strides the company made to close out 2010 in connection with two new credit facilities and other initiatives.

The company first articulated its fourth-quarter results for the period that ended Dec. 31.

CPS' operating results included fourth-quarter revenues of $35.3 million, a decrease of approximately $11.4 million, or 24.5 percent, from the same quarter a year earlier. That's when the company generated $46.7 million.

In terms of fourth-quarter total operating expenses, executives determined they were $37.4 million, a decrease of $47.9 million, or 56.1 percent, as compared the year-ago quarter when the company had $85.3 million in expenses.

The significant reduction in expenses helped Consumer Portfolio Services significantly cut its pretax loss in the fourth quarter. In the last quarter of 2009, the company's loss was $38.6 million, but during the recent fourth quarter, CPS improved it to a loss of $2.2 million.

As a result, executives calculated their net loss for the fourth quarter at $14.5 million, or 84 cents per diluted share. During the same quarter in 2009, CPS' net loss climbed to $46.4 million, or $2.55 per diluted share.

Executives pointed out their net loss for the fourth quarter of 2010 included income tax expense of $12.4 million or 71 cents per diluted share, which represents an addition to the valuation allowance against the company's deferred tax asset. They reiterated net loss for the fourth quarter of 2009 included income tax expense of $7.8 million, or 43 cents per diluted share, which represents an addition to the valuation allowance against the company's deferred tax asset.

Full-Year Results

Turning over to a discussion about its full-year performance, Consumer Portfolio Services indicated its 2010 revenues came in at $155.2 million compared to $223.9 million for 2009. The decline represented a decrease of approximately $68.7 million or 30.7 percent.

The company computed that its 2010 total expenses settled at $172.0 million, a decrease of $101.3 million, or 37.1 percent, from the 2009 total of $273.3 million.

Nevertheless, CPS said it still suffered a pretax loss in 2010 that totaled $16.8 million. It was still an improvement over the 2009 pretax loss, which the company indicated was $49.4 million.

Executives also shared their 2010 net loss for the year was $33.8 million, or $1.94 per diluted share, an improvement over the 2009 net loss which was $57.2 million, or $3.07 per diluted share.

CPS noted the net loss for the year of 2010 included income tax expense of $17.0 million, or 97 cents per diluted share, which represents additions to the valuation allowance against the company's deferred tax asset. The company also said net loss for the year of 2009 included income tax expense of $7.8 million, or 42 cents per diluted share, which represents additions to the valuation allowance against the company's deferred tax asset.

Other Company Activities

During the fourth quarter, CPS mentioned that it purchased $33.6 million of contracts from dealers as compared to $35.3 million during the third quarter and $6.1 million during the fourth quarter of 2009.

The company determined its managed receivables totaled $756.2 million as of Dec. 31, a decrease of $438.5 million or 36.7 percent, from $1.1947 billion at the close of 2009.

CPS went on to report its 2010 annualized net charge-offs were 9.04 percent of the average owned portfolio as compared to 11.02 percent in 2009. The company also pointed out its delinquencies greater than 30 days — including repossession inventory — were 9.16 percent of the total owned portfolio as of Dec. 31, as compared to 8.76 percent at the end of 2009.

Top Executive Reacts to Results

CPS chairman and chief executive officer Charles Bradley Jr. began his commentary about the company's financial performance by stating, "2010 and the last few months have been very productive for the company.

"We have established two new credit facilities for $200 million in new warehouse funding, raised $20 million in incremental growth capital and completed our first term securitization since early 2008," Bradley explained. "In addition, our new contract purchase initiatives within the dealership community are gaining traction. We purchased over $110 million in new contracts in 2010 versus nominal amounts in 2009 and maintained attractive yields and credit metrics."

Bradley then went on to highlight what Consumer Portfolio Services is aiming to accomplish this year.

"Our two primary objectives for 2011 will be to increase new contract purchases to the point where our total managed portfolio starts growing again and to complete multiple term securitization transactions," Bradley said. "We feel both of these goals are attainable and will mark important milestones in our rebuilding efforts from the impact we have felt from the Great Recession."