Press Release Details
- Pretax income of
$8.2 million - Net loss of
$10.0 million , or($0.46) per diluted share, including non-cash income tax charge of$15.1 million related to the Tax Cuts and Jobs Act; net income of$5.1 million or$0.20 per diluted share excluding non-cash income tax charge of$15.1 million - New contract purchases of
$191 million
Revenues for the fourth quarter of 2017 were
For the year ended
During the fourth quarter of 2017, CPS purchased
Annualized net charge-offs for the fourth quarter of 2017 were 7.24% of the average portfolio as compared to 6.97% for the fourth quarter of 2016. Delinquencies greater than 30 days (including repossession inventory) were 11.26% of the total portfolio as of
The Company also announced that it had adopted the fair value method of accounting for finance receivables that it acquired after 2017.
"We are pleased to have wrapped up 2017 and to have reported net income of
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.
Investor Relations Contact
844 878-2777
Consumer Portfolio Services, Inc. and Subsidiaries | |||||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Interest income | $ | 105,100 | $ | 105,248 | $ | 424,174 | $ | 408,996 | |||||||||||||||||||||
Other income | 2,125 | 2,935 | 10,209 | 13,286 | |||||||||||||||||||||||||
107,225 | 108,183 | 434,383 | 422,282 | ||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||
Employee costs | 19,160 | 18,039 | 72,967 | 65,549 | |||||||||||||||||||||||||
General and administrative | 6,482 | 6,624 | 26,578 | 24,840 | |||||||||||||||||||||||||
Interest | 23,704 | 21,499 | 92,345 | 79,941 | |||||||||||||||||||||||||
Provision for credit losses | 43,660 | 43,630 | 186,713 | 178,511 | |||||||||||||||||||||||||
Other expenses | 6,002 | 5,740 | 23,709 | 23,780 | |||||||||||||||||||||||||
99,008 | 95,532 | 402,312 | 372,621 | ||||||||||||||||||||||||||
Income before income taxes | 8,217 | 12,651 | 32,071 | 49,661 | |||||||||||||||||||||||||
Income tax expense | 18,168 | 5,186 | 28,306 | 20,361 | |||||||||||||||||||||||||
Net income (loss) | $ | (9,951 | ) | $ | 7,465 | $ | 3,765 | $ | 29,300 | ||||||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||||||||
Basic | $ | (0.46 | ) | $ | 0.31 | $ | 0.17 | $ | 1.20 | ||||||||||||||||||||
Diluted | $ | (0.46 | ) | $ | 0.26 | $ | 0.14 | $ | 1.01 | ||||||||||||||||||||
Number of shares used in computing earnings (loss) | |||||||||||||||||||||||||||||
per share: | |||||||||||||||||||||||||||||
Basic | 21,702 | 23,709 | 22,687 | 24,356 | |||||||||||||||||||||||||
Diluted | 21,702 | 28,386 | 27,214 | 29,035 | |||||||||||||||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 12,731 | $ | 13,936 | |||||||||||||||||||||||||
Restricted cash and equivalents | 111,965 | 112,754 | |||||||||||||||||||||||||||
Total cash and cash equivalents | 124,696 | 126,690 | |||||||||||||||||||||||||||
Finance receivables | 2,304,984 | 2,267,943 | |||||||||||||||||||||||||||
Allowance for finance credit losses | (109,187 | ) | (95,578 | ) | |||||||||||||||||||||||||
Finance receivables, net | 2,195,797 | 2,172,365 | |||||||||||||||||||||||||||
Deferred tax assets, net | 32,446 | 42,845 | |||||||||||||||||||||||||||
Other assets | 71,902 | 68,502 | |||||||||||||||||||||||||||
$ | 2,424,841 | $ | 2,410,402 | ||||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 28,715 | $ | 24,977 | |||||||||||||||||||||||||
Warehouse lines of credit | 112,408 | 103,358 | |||||||||||||||||||||||||||
Securitization trust debt | 2,083,215 | 2,080,900 | |||||||||||||||||||||||||||
Subordinated renewable notes | 16,566 | 14,949 | |||||||||||||||||||||||||||
2,240,904 | 2,224,184 | ||||||||||||||||||||||||||||
Shareholders' equity | 183,937 | 186,218 | |||||||||||||||||||||||||||
$ | 2,424,841 | $ | 2,410,402 | ||||||||||||||||||||||||||
Operating and Performance Data ($ in millions) | |||||||||||||||||||||||||||||
At and for the | At and for the | ||||||||||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||
Contracts purchased | $ | 190.78 | $ | 215.29 | $ | 859.07 | $ | 1,088.79 | |||||||||||||||||||||
Contracts securitized | 200.00 | 210.00 | 870.00 | 1,215.00 | |||||||||||||||||||||||||
Total portfolio balance | $ | 2,333.53 | $ | 2,308.07 | $ | 2,333.53 | $ | 2,308.07 | |||||||||||||||||||||
Average portfolio balance | 2,339.06 | 2,307.51 | 2,334.01 | 2,226.07 | |||||||||||||||||||||||||
Allowance for finance credit losses as % of fin. receivables | 4.74 | % | 4.21 | % | |||||||||||||||||||||||||
Aggregate allowance as % of fin. receivables (1) | 5.70 | % | 5.39 | % | |||||||||||||||||||||||||
Delinquencies | |||||||||||||||||||||||||||||
31+ Days | 9.81 | % | 9.22 | % | |||||||||||||||||||||||||
Repossession Inventory | 1.44 | % | 1.74 | % | |||||||||||||||||||||||||
Total Delinquencies and Repo. Inventory | 11.25 | % | 10.96 | % | |||||||||||||||||||||||||
Annualized net charge-offs as % of average portfolio | 7.24 | % | 6.97 | % | 7.68 | % | 7.03 | % | |||||||||||||||||||||
Recovery rates (2) | 34.7 | % | 34.8 | % | 35.1 | % | 37.5 | % | |||||||||||||||||||||
For the | For the | ||||||||||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||
$ (3) | % (4) | $ (3) | % (4) | $ (3) | % (4) | $ (3) | % (4) | ||||||||||||||||||||||
Interest income | $ | 105.10 | 18.0 | % | $ | 105.25 | 18.2 | % | $ | 424.17 | 18.2 | % | $ | 409.00 | 18.4 | % | |||||||||||||
Servicing fees and other income | 2.13 | 0.4 | % | 2.94 | 0.5 | % | 10.21 | 0.4 | % | 13.29 | 0.6 | % | |||||||||||||||||
Interest expense | (23.70 | ) | -4.1 | % | (21.50 | ) | -3.7 | % | (92.35 | ) | -4.0 | % | (79.94 | ) | -3.6 | % | |||||||||||||
Net interest margin | 83.52 | 14.3 | % | 86.68 | 15.0 | % | 342.04 | 14.7 | % | 342.34 | 15.4 | % | |||||||||||||||||
Provision for credit losses | (43.66 | ) | -7.5 | % | (43.63 | ) | -7.6 | % | (186.71 | ) | -8.0 | % | (178.51 | ) | -8.0 | % | |||||||||||||
Risk adjusted margin | 39.86 | 6.8 | % | 43.05 | 7.5 | % | 155.33 | 6.7 | % | 163.83 | 7.4 | % | |||||||||||||||||
Core operating expenses | (31.64 | ) | -5.4 | % | (30.40 | ) | -5.3 | % | (123.25 | ) | -5.3 | % | (114.17 | ) | -5.1 | % | |||||||||||||
Pre-tax income | $ | 8.22 | 1.4 | % | $ | 12.65 | 2.2 | % | $ | 32.07 | 1.4 | % | $ | 49.66 | 2.2 | % | |||||||||||||
(1) Includes allowance for finance credit losses and allowance for repossession inventory. | |||||||||||||||||||||||||||||
(2) Wholesale auction liquidation amounts (net of expenses) 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 portfolio balance. Percentages may not add due to rounding. |
Source: Consumer Portfolio Services, Inc.