IRVINE, Calif. — Consumer Portfolio Services announced earlier this week that it faired the tough marketplace relatively well in the second quarter. Its second quarter revenues are up, compared to the second quarter of 2007.

More specifically, officials said revenues were up $3 million, or 3.1 percent, to $98.8 million. This is compared to $95.8 million in the same period of last year.

However, revenues were offset a bit by total operating expenses that came in at $96.1 million, an increase of $6.5 million, or 7.3 percent, as compared to $89.6 million for the 2007 time frame.

As for income, pre-tax income for the second quarter of 2008 decreased to $2.7 million, compared to $6.2 million. Also, net income for the second quarter of 2008 was $1.5 million, or $0.08 per diluted share, compared to net income of $3.5 million, or $0.15 per diluted share, for the year-ago quarter. So this was down, but executives were optimistic about their revenues.

"Against the backdrop of the uncertain economy and the turbulent capital markets environment, we are pleased with the second quarter's resilient financial and operating performance," stated Charles Bradley Jr., chief executive officer.

For the six months ended June 30, total revenues increased about $19.8 million, or 10.9 percent, to $202.1 million, compared to $182.3 million posted last year.

Total expenses for the six month period were $195.6 million, an increase of $25 million, or 14.6 percent, as compared to $170.6 million.

Pretax income decreased to $6.5 million, compared to pretax income of $11.6 million, while net income came in at $3.6 million, or $0.18 per diluted share, compared to net income of $6.7 million, or $0.29 per diluted share, for the first six months of last year.

During the second quarter of 2008, CPS said it purchased $79.8 million of contracts from dealers, as compared to $176.1 million during the first quarter of 2008 and $346 million during the second quarter of 2007.

During the first half of 2008, CPS purchased $255.9 million of contracts from dealers as compared to $676.3 million during the first half of 2007.

The company's managed receivables totaled about $1.979 billion as of June 30, compared to $1.9 billion in 2007.

As previously reported, the company completed its first securitization since September 2007 in April of this year with the sale of $244.4 million of triple A rated notes. At quarter-end, CPS raised $25 million in senior secured financing and amended its residual credit facility, which will give the company the option, if certain conditions are met, to extend the maturity by an additional year to June 2010.

Annualized net charge-offs during the first half of 2008 were 6.75 percent of the average owned portfolio, as compared to 4.60 percent during the same period in 2007.

Delinquencies greater than 30 days (including repossession inventory) were 6.12 percent of the total owned portfolio as of June 30, 2008, compared to 4.85 percent.

"Over the last nine months, we have accomplished several important objectives that should afford us the operational flexibility to navigate the company through these challenging times," Bradley reported. "These items include the financings we completed last week, the slowdown in new-contract purchases implemented this year and the increase in pricing for new-contract purchases. In addition, the primary credit metrics of our new contract purchases are the best we have seen in over 10 years.

"Asset performance metrics for the quarter were well within the range of our expectations. While the portfolio delinquency and net charge-off levels have increased versus last year, our total managed portfolio has declined since the beginning of the year and the slightly weaker 2006 and 2007 vintages have seasoned into their peak loss periods," he concluded.