IRVINE, Calif., March 5, 2012 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq:CPSS) ("CPS" or the "Company") today announced earnings for its fourth quarter ended December 31, 2011.

Operating results for the fourth quarter of 2011 included revenues of $45.8 million, an increase of approximately $10.5 million, or 29.8%, compared to $35.3 million for the fourth quarter of 2010. Total operating expenses for the fourth quarter of 2011 were $45.5 million, an increase of $7.6 million, or 20.1%, as compared to $37.9 million for the 2010 period. Pretax income for the fourth quarter of 2011 was $235,000 compared to pretax loss of $2.6 million in the fourth quarter of 2010. Net income for the fourth quarter of 2011 was $235,000, or $0.01 per diluted share, compared to net loss of $15.0 million, or $0.87 per diluted share, for the year-ago quarter.  Net loss for the fourth quarter of 2010 includes a charge to income tax expense of $12.4 million, or $0.71 per diluted share, related to an addition to the valuation allowance against the deferred tax asset.

For the year ended December 31, 2011 total revenues were $143.1 million compared to $155.2 million for the year ended December 31, 2010, a decrease of approximately $12.1 million, or 7.8%. Total expenses for the year ended December 31, 2011 were $157.6 million, a decrease of $13.8 million, or 8.0%, as compared to $171.4 million for the year ended December 31, 2010. Pretax loss for the year ended December 31, 2011 was $14.5 million, compared to pretax loss of $16.2 million for the year ended December 31, 2010. Net loss for the year ended December 31, 2011 was $14.5 million, or $0.76 per diluted share, compared to net loss of $33.2 million, or $1.90 per diluted share, for the year ended December 31, 2010. Net loss for the year of 2010 includes a charge to income tax expense of $17.0 million, or $0.97 per diluted share, related to an addition to the valuation allowance against the deferred tax asset.

During the fourth quarter of 2011, CPS purchased $92.2 million of contracts from dealers as compared to $81.2 million during the third quarter of 2011 and $33.6 million during the fourth quarter of 2010. The Company's managed receivables totaled $794.6 million as of December 31, 2011, an increase of $38.4 million, or 5.1%, from $756.2 million as of December 31, 2010, as follows ($ in millions):

The Company's managed receivables increased year-over-year for the first time since 2008. This was a result of the acquisition of the $237 million portfolio from Fireside Bank in September 2011 and continued growth in new contract purchases during the fourth quarter. The portfolio by originating entity is as follows ($ in millions):

Annualized net charge-offs for 2011 were 5.23% of the average owned portfolio as compared to 9.04% for 2010.  Delinquencies greater than 30 days (including repossession inventory) were 6.0% of the total owned portfolio as of December 31, 2011, as compared to 9.2% as of December 31, 2010.

"The fourth quarter of 2011 marks our return to profitability after managing through the credit crisis," said Charles E. Bradley, Jr., Chairman and Chief Executive Officer. "While it has taken longer than we would have preferred, we have been executing on our business plan: prudently increasing our new contract purchases, pursuing opportunistic acquisitions and tapping the securitization market for cost-efficient funding. We have achieved this while maintaining strong yields and credit metrics on our new loans and asset performance metrics that continue to improve. With the growth of the CPS portfolio that began in the fourth quarter, we should continue to see improved operating leverage in future quarters. This bodes well for our financial results in 2012 and beyond."

"As previously reported, we completed our third term securitization of 2011 in December. This marks our fourth transaction since September 2010 and the first since 2007 to utilize a pre-funding structure. Pre-funding structures allow us to lock in long-term funding costs on future contract purchases and act as a hedge against changes in interest rates."

Conference Call

CPS announced that it will hold a conference call on Tuesday, March 6, 2012, at 1:30 p.m. ET to discuss its quarterly operating results.  Those wishing to participate by telephone may dial-in at 877 312-5502 or 253 237-1131 approximately 10 minutes prior to the scheduled time.

A replay will be available between March 6, 2012 and March 12, 2012, beginning two hours after conclusion of the call, by dialing 855 859-2056 or 404 537-3406 for international participants, with conference identification number 59347514.  A broadcast of the conference call will also be available live and for 30 days after the call via the Company's web site at www.consumerportfolio.com.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems, low incomes or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.

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 future 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 provision for credit losses may affect future performance.

CONTACT: Investor Relations Contact



         Robert E. Riedl, Chief Investment Officer

         949 753-6800

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