Press Release Details
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Fourth quarter pretax income of
$14.3 million -
Fourth quarter net income of
$8.0 million , or$0.25 per diluted share -
Full year pretax income increased 40% to
$52.2 million -
Full year net income increased 40% to
$29.5 million , or$0.92 per diluted share -
New contract purchases of
$264 million for the fourth quarter -
Total managed portfolio increases to
$1.644 billion from$1.519 billion atSeptember 30, 2014
Revenues for the fourth quarter of 2014 were
For the year ended
During the fourth quarter of 2014, CPS purchased
Originating Entity |
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|
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CPS | $ 1,641.8 | $ 1,514.6 | $ 1,213.8 |
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1.7 | 3.2 | 14.8 |
As Third Party Servicer | 0.4 | 0.8 | 2.8 |
Total | $ 1,643.9 | $ 1,518.6 | $ 1,231.4 |
Annualized net charge-offs for the fourth quarter of 2014 were 6.44% of the average owned portfolio as compared to 5.57% for the fourth quarter of 2013. Delinquencies greater than 30 days (including repossession inventory) were 7.18% of the total owned portfolio as of
As previously reported, during December CPS closed its fourth term securitization transaction of 2014 and the 15th transaction since
"We are pleased to report another successful year in 2014," said Charles E Bradley, Jr., Chairman and Chief Executive Officer. "In addition to record pre-tax earnings, our new contract purchases grew 24% compared to 2013 and our total managed portfolio grew 34% to over
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, | |||||||
2014 | 2013 | 2014 | 2013 | |||||
Revenues: | ||||||||
Interest income | $ 79,652 | $ 63,904 | $ 286,734 | $ 231,330 | ||||
Servicing fees | 218 | 609 | 1,376 | 3,093 | ||||
Other income | 3,597 | 2,121 | 12,146 | 10,405 | ||||
Gain on cancellation of debt | -- | -- | -- | 10,947 | ||||
83,467 | 66,634 | 300,256 | 255,775 | |||||
Expenses: | ||||||||
Employee costs | 14,732 | 11,285 | 50,129 | 42,960 | ||||
General and administrative | 4,772 | 3,999 | 19,254 | 16,345 | ||||
Interest | 12,833 | 13,379 | 50,395 | 58,179 | ||||
Provision for credit losses | 31,433 | 24,130 | 108,228 | 76,869 | ||||
Provision for contingent liabilities | -- | (1,809) | -- | 7,841 | ||||
Other expenses | 5,351 | 4,110 | 20,008 | 16,408 | ||||
69,121 | 55,094 | 248,014 | 218,602 | |||||
Income before income taxes | 14,346 | 11,540 | 52,242 | 37,173 | ||||
Income tax expense | 6,336 | 5,018 | 22,726 | 16,168 | ||||
Net income | $ 8,010 | $ 6,522 | $ 29,516 | $ 21,005 | ||||
Earnings per share: | ||||||||
Basic | $ 0.31 | $ 0.28 | $ 1.18 | $ 0.98 | ||||
Diluted | $ 0.25 | $ 0.21 | $ 0.92 | $ 0.67 | ||||
Number of shares used in computing earnings per share: | ||||||||
Basic | 25,470 | 23,256 | 25,040 | 21,538 | ||||
Diluted | 32,060 | 31,629 | 32,032 | 31,574 | ||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
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2014 | 2013 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ 17,859 | $ 22,112 | ||||||
Restricted cash and equivalents | 175,382 | 132,284 | ||||||
Total cash and cash equivalents | 193,241 | 154,396 | ||||||
Finance receivables | 1,595,956 | 1,155,063 | ||||||
Allowance for finance credit losses | (61,460) | (39,626) | ||||||
Finance receivables, net | 1,534,496 | 1,115,437 | ||||||
Finance receivables measured at fair value | 1,664 | 14,476 | ||||||
Residual interest in securitizations | 68 | 854 | ||||||
Deferred tax assets, net | 42,847 | 59,215 | ||||||
Other assets | 60,742 | 51,988 | ||||||
$ 1,833,058 | $ 1,396,366 | |||||||
Liabilities and Shareholders' Equity: | ||||||||
Accounts payable and accrued expenses | $ 21,660 | $ 24,839 | ||||||
Warehouse lines of credit | 56,839 | 9,452 | ||||||
Residual interest financing | 12,327 | 19,096 | ||||||
Debt secured by receivables measured at fair value | 1,250 | 13,117 | ||||||
Securitization trust debt | 1,598,496 | 1,177,559 | ||||||
Senior secured debt, related party | -- | 38,559 | ||||||
Subordinated renewable notes | 15,233 | 19,142 | ||||||
1,705,805 | 1,301,764 | |||||||
Shareholders' equity | 127,253 | 94,602 | ||||||
$ 1,833,058 | $ 1,396,366 | |||||||
Operating and Performance Data ($ in millions) | ||||||||
At and for the | At and for the | |||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | 2014 | 2013 | |||||
Contracts purchased | $ 264.37 | $ 173.41 | $ 944.94 | $ 764.09 | ||||
Contracts securitized | 269.93 | 185.37 | 901.07 | 759.59 | ||||
Total managed portfolio | $ 1,643.92 | $ 1,231.42 | $ 1,643.92 | $ 1,231.42 | ||||
Average managed portfolio | 1,605.04 | 1,214.55 | 1,422.87 | 1,081.94 | ||||
Allowance for finance credit losses as % of fin. receivables | 3.85% | 3.43% | ||||||
Aggregate allowance as % of fin. receivables (1) | 4.88% | 4.61% | ||||||
Delinquencies | ||||||||
31+ Days | 5.46% | 4.82% | ||||||
Repossession Inventory | 1.72% | 2.05% | ||||||
Total Delinquencies and Repo. Inventory | 7.18% | 6.87% | ||||||
Annualized net charge-offs as % of average owned portfolio | 6.44% | 5.57% | 5.83% | 4.73% | ||||
Recovery rates (2) | 42.7% | 45.4% | 46.0% | 47.0% | ||||
For the | For the | |||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | 2014 | 2013 | |||||
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% (4) |
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% (4) |
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% (4) |
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% (4) | |
Interest income | $ 79.65 | 19.9% | $ 63.90 | 21.0% | $ 286.73 | 20.2% | $ 231.33 | 21.4% |
Servicing fees and other income | 3.82 | 1.0% | 2.73 | 0.9% | 13.52 | 1.0% | 13.50 | 1.2% |
Interest expense | (12.83) | -3.2% | (13.38) | -4.4% | (50.40) | -3.5% | (58.18) | -5.4% |
Net interest margin | 70.63 | 17.6% | 53.26 | 17.5% | 249.86 | 17.6% | 186.65 | 17.3% |
Provision for credit losses | (31.43) | -7.8% | (24.13) | -7.9% | (108.23) | -7.6% | (76.87) | -7.1% |
Risk adjusted margin | 39.20 | 9.8% | 29.13 | 9.6% | 141.63 | 10.0% | 109.78 | 10.1% |
Core operating expenses | (24.86) | -6.2% | (19.39) | -6.4% | (89.39) | -6.3% | (75.71) | -7.0% |
Provision for contingent liabilities | -- | 0.0% | 1.81 | 0.6% | -- | 0.0% | (7.84) | -0.7% |
Gain on cancellation of debt | -- | 0.0% | -- | 0.0% | -- | 0.0% | 10.95 | 1.0% |
Pre-tax income | $ 14.35 | 3.6% | $ 11.54 | 3.8% | $ 52.24 | 3.7% | $ 37.17 | 3.4% |
(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:Jeffrey P. Fritz , Chief Financial Officer 844 878-2777
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