Press Release Details
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Pretax income of
$11.5 million -
Net income of
$6.5 million , or$0.21 per diluted share -
New contract purchases of
$173 million -
Total managed portfolio increases to
$1.231 billion from$1.167 billion atSeptember 30, 2013
Revenues for the fourth quarter of 2013 were
For the year ended
During the fourth quarter of 2013, CPS purchased
Originating Entity |
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CPS |
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14.8 | 21.7 | 60.8 |
TFC | -- | -- | 0.2 |
As Third Party Servicer | 2.8 | 4.1 | 11.6 |
Total |
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Annualized net charge-offs for 2013 were 4.73% of the average owned portfolio as compared to 3.61% for 2012. Delinquencies greater than 30 days (including repossession inventory) were 6.87% of the total owned portfolio as of
As previously reported, during December CPS closed its fourth term securitization transaction of 2013 and the 11th transaction since
"2013 was another very good year for CPS," said
"We also made significant progress on several strategic objectives in 2013 to strengthen our balance sheet. First, we amended our revolving credit facilities to include multi-year revolving periods and amortization periods thereafter. In addition, we began the deleveraging process of repaying our residual and corporate debt, which we expect to nearly complete by the end of this year. These moves should enhance our operating and financial stability across a variety of capital markets environments."
Conference Call
CPS announced that it will hold a conference call on
A replay of the conference call will be available between
About
Forward-looking statements in this news release include the Company's recorded revenue, expense and provision for credit losses, because these items are dependent on the Company's estimates of incurred losses. The accuracy of such estimates may be adversely affected by various factors, which include (in addition to risks relating to the economy generally) the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company's ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company's rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company's realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company's business is concentrated. All of such factors also may affect the Company's future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to the provision for credit losses may affect future performance.
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Condensed Consolidated Statements of Operations | ||||
(In thousands, except per share data) | ||||
(Unaudited) | ||||
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2013 | 2012 | 2013 | 2012 | |
Revenues: | ||||
Interest income | $ 63,904 | $ 48,104 | $ 231,330 | $ 175,314 |
Servicing fees | 609 | 408 | 3,093 | 2,305 |
Other income | 2,121 | 2,108 | 10,405 | 9,589 |
Gain on cancellation of debt | -- | -- | 10,947 | -- |
66,634 | 50,620 | 255,775 | 187,208 | |
Expenses: | ||||
Employee costs | 11,285 | 9,695 | 42,960 | 35,573 |
General and administrative | 3,999 | 3,664 | 16,345 | 15,429 |
Interest | 13,379 | 17,726 | 58,179 | 79,422 |
Provision for credit losses | 24,130 | 11,483 | 76,869 | 33,495 |
Provision for contingent liabilities | (1,809) | -- | 7,841 | -- |
Other expenses | 4,110 | 3,445 | 16,408 | 14,102 |
55,094 | 46,013 | 218,602 | 178,021 | |
Income before income taxes | 11,540 | 4,607 | 37,173 | 9,187 |
Income tax expense | 5,018 | (60,221) | 16,168 | (60,221) |
Net income | $ 6,522 | $ 64,828 | $ 21,005 | $ 69,408 |
Earnings per share: | ||||
Basic | $ 0.28 | $ 3.30 | $ 0.98 | $ 3.56 |
Diluted | $ 0.21 | $ 2.20 | $ 0.67 | $ 2.72 |
Pre-tax earnings per share: | ||||
Basic | $ 0.50 | $ 0.23 | $ 1.73 | $ 0.47 |
Diluted | $ 0.36 | $ 0.16 | $ 1.18 | $ 0.36 |
Number of shares used in computing earnings per share: | ||||
Basic | 23,256 | 19,673 | 21,538 | 19,473 |
Diluted | 31,629 | 29,527 | 31,574 | 25,478 |
Condensed Consolidated Balance Sheets | ||
(In thousands) | ||
(Unaudited) | ||
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2013 | 2012 | |
Assets: | ||
Cash and cash equivalents | $ 22,112 | $ 12,966 |
Restricted cash and equivalents | 132,284 | 104,445 |
Total cash and cash equivalents | 154,396 | 117,411 |
Finance receivables | 1,155,063 | 764,343 |
Allowance for finance credit losses | (39,626) | (19,594) |
Finance receivables, net | 1,115,437 | 744,749 |
Finance receivables measured at fair value | 14,476 | 59,668 |
Residual interest in securitizations | 854 | 4,824 |
Deferred tax assets, net | 59,215 | 75,640 |
Other assets | 51,988 | 35,328 |
$ 1,396,366 | $ 1,037,620 | |
Liabilities and Shareholders' Equity: | ||
Accounts payable and accrued expenses | $ 24,839 | $ 17,785 |
Warehouse lines of credit | 9,452 | 21,731 |
Residual interest financing | 19,096 | 13,773 |
Debt secured by receivables measured at fair value | 13,117 | 57,107 |
Securitization trust debt | 1,177,559 | 792,497 |
Senior secured debt, related party | 38,559 | 50,135 |
Subordinated renewable notes | 19,142 | 23,281 |
1,301,764 | 976,309 | |
Shareholders' equity | 94,602 | 61,311 |
$ 1,396,366 | $ 1,037,620 |
Operating and Performance Data ($ in millions) | ||||
At and for the | At and for the | |||
Three months ended | Twelve months ended | |||
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2013 | 2012 | 2013 | 2012 | |
Contracts purchased | $ 173.41 | $150.83 | $ 764.09 | $ 551.74 |
Contracts securitized | 185.37 | 156.70 | 759.59 | 594.60 |
Total managed portfolio | $ 1,231.42 | $ 897.58 | $ 1,231.42 | $ 897.58 |
Average managed portfolio | 1,214.55 | 880.47 | 1,081.94 | 822.57 |
Allowance for finance credit losses as % of fin. receivables | 3.43% | 2.56% | ||
Aggregate allowance as % of fin. receivables (1) | 4.61% | 3.35% | ||
Delinquencies | ||||
31+ Days | 4.82% | 4.06% | ||
Repossession Inventory | 2.05% | 1.49% | ||
Total Delinquencies and Repo. Inventory | 6.87% | 5.55% | ||
Annualized net charge-offs as % of average owned portfolio | 5.57% | 3.99% | 4.73% | 3.61% |
Recovery rates (2) | 45.4% | 46.8% | 47.0% | 47.9% |
For the | For the | |||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | 2013 | 2012 | |||||
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% (4) |
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% (4) |
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% (4) |
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% (4) | |
Interest income | $ 63.90 | 21.0% | $ 48.10 | 21.9% | $ 231.33 | 21.4% | $ 175.31 | 21.3% |
Servicing fees and other income | 2.73 | 0.9% | 2.52 | 1.1% | 13.50 | 1.2% | 11.89 | 1.4% |
Interest expense | (13.38) | -4.4% | (17.73) | -8.1% | (58.18) | -5.4% | (79.42) | -9.7% |
Net interest margin | 53.26 | 17.5% | 32.89 | 14.9% | 186.65 | 17.3% | 107.79 | 13.1% |
Provision for credit losses | (24.13) | -7.9% | (11.48) | -5.2% | (76.87) | -7.1% | (33.50) | -4.1% |
Risk adjusted margin | 29.13 | 9.6% | 21.41 | 9.7% | 109.78 | 10.1% | 74.29 | 9.0% |
Core operating expenses | (19.39) | -6.4% | (16.80) | -7.6% | (75.71) | -7.0% | (65.10) | -7.9% |
Provision for contingent liabilities | 1.81 | 0.6% | -- | 0.0% | (7.84) | -0.7% | -- | 0.0% |
Gain on cancellation of debt | -- | 0.0% | -- | 0.0% | 10.95 | 1.0% | -- | 0.0% |
Pre-tax income | $ 11.54 | 3.8% | $ 4.61 | 2.1% | $ 37.17 | 3.4% | $ 9.19 | 1.1% |
(1) Includes allowance for finance credit losses and allowance for repossession inventory. | ||||||||
(2) Wholesale auction liquidation amounts (net of expenses) for CPS portfolio as a percentage of the account balance at the time of sale. | ||||||||
(3) Numbers may not add due to rounding. | ||||||||
(4) Annualized percentage of the average managed portfolio. Percentages may not add due to rounding. |
CONTACT: Investor Relations ContactSource:Robert E. Riedl , Chief Investment Officer 949 753-6800
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