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Document And Entity Information (USD $)
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3 Months Ended | ||
|---|---|---|---|
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Mar. 31, 2012
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Apr. 10, 2012
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Jun. 30, 2011
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| Document and Entity Information [Abstract] | |||
| Entity Registrant Name | CONSUMER PORTFOLIO SERVICES INC | ||
| Document Type | 10-Q | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Common Stock, Shares Outstanding | 19,331,257 | ||
| Entity Public Float | $ 18,740,264 | ||
| Amendment Flag | false | ||
| Entity Central Index Key | 0000889609 | ||
| Entity Current Reporting Status | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Filer Category | Smaller Reporting Company | ||
| Entity Well-known Seasoned Issuer | No | ||
| Document Period End Date | Mar. 31, 2012 | ||
| Document Fiscal Year Focus | 2012 | ||
| Document Fiscal Period Focus | Q1 |
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- Details
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- Definition
If the value is true, then the document is an amendment to previously-filed/accepted document. No definition available.
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- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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- Definition
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word "Other". No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Indicate number of shares or other units outstanding of each of registrant's classes of capital or common stock or other ownership interests, if and as stated on cover of related periodic report. Where multiple classes or units exist define each class/interest by adding class of stock items such as Common Class A [Member], Common Class B [Member] or Partnership Interest [Member] onto the Instrument [Domain] of the Entity Listings, Instrument. No definition available.
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- Definition
Indicate "Yes" or "No" whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, (4) Smaller Reporting Company (Non-accelerated) or (5) Smaller Reporting Accelerated Filer. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate "Yes" or "No" if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No definition available.
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- Definition
Indicate "Yes" or "No" if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A. No definition available.
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- Details
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| X | ||||||||||
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- Definition
Sum of the carrying values as of the balance sheet date of obligations incurred through that date and due within one year (or the operating cycle, if longer), including liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received, taxes, interest, rent and utilities, accrued salaries and bonuses, payroll taxes and fringe benefits. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount owed to the reporting entity by counterparties in securitized loan transactions. No definition available.
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| X | ||||||||||
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- Definition
Interest, dividends, rents, ancillary and other revenues earned but not yet received by the entity on its investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This element represents the portion of a balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents the amount that could be realized under a life insurance contract or contracts owned by the Company as of the date of the statement of financial position. Such Company-owned life insurance policies are commonly known as corporate-owned life insurance (COLI) or bank-owned life insurance (BOLI). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Net amount of long-term deferred finance costs capitalized at the end of the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount after allocation of valuation allowances of noncurrent deferred tax asset attributable to deductible temporary differences and carryforwards. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
A valuation allowance for financing receivables that are expected to be uncollectible. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total of all Liabilities and Stockholders' Equity items (or Partners' Capital, as applicable), including the portion of equity attributable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
An amount representing an agreement for an unconditional promise by the maker to pay the Company (holder) a definite sum of money within one year from the balance sheet date (or the normal operating cycle, whichever is longer), net of any write-downs taken for collection uncertainty on the part of the holder. Such amount may include accrued interest receivable in accordance with the terms of the debt. The debt also may contain provisions and related items including a discount or premium, payable on demand, secured, or unsecured, interest bearing or noninterest bearing, among a myriad of other features and characteristics. This amount does not include amounts related to receivables held-for-sale. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount for notes payable (written promise to pay), due to related parties. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Net amount of the investment in a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in the creditor's statement of financial position. Examples include, but are not limited to, credit card receivables, notes receivable and receivables relating to lessor's rights to payments from leases other than operating leases that have been recorded as assets. Excludes trade accounts receivable with contractual maturity of one year or less and arose from the sale of goods or services. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Secured financing other than securities sold under agreements to repurchase and securities loaned. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate par or stated value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount, net of accumulated depreciation, depletion and amortization, of long-lived physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, furniture and fixtures, and computer equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The carrying amounts of cash and cash equivalent items which are restricted as to withdrawal or usage. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or entity statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits. Excludes compensating balance arrangements that are not agreements which legally restrict the use of cash amounts shown on the balance sheet. For a classified balance sheet represents the current portion only (the noncurrent portion has a separate concept); there is a separate and distinct element for unclassified presentations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date, including the current and noncurrent portions, of collateralized debt obligations (with maturities initially due after one year or beyond the operating cycle, if longer). Such obligations include mortgage loans, chattel loans, and any other borrowings secured by assets of the borrower. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date of other collateralized debt obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Including the current and noncurrent portions, carrying value as of the balance sheet date of subordinated debt (with initial maturities beyond one year or beyond the operating cycle if longer). Subordinated debt places a lender in a lien position behind debt having a higher priority of repayment in liquidation of the entity's assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)
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Mar. 31, 2012
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Dec. 31, 2011
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|---|---|---|
| Preferred Stock par value (in Dollars per share) | $ 1 | $ 1 |
| Preferred Stock shares authorized | 5,000,000 | 5,000,000 |
| Preferred Stock shares issued | 0 | 0 |
| Common stock par value (in Dollars per share) | $ 0 | $ 0 |
| Common stock shares authorized | 75,000,000 | 75,000,000 |
| Common stock shares issued | 19,331,257 | 19,526,968 |
| Common stock shares outstanding | 19,331,257 | 19,526,968 |
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Series A Preferred Stock [Member]
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| Preferred Stock par value (in Dollars per share) | $ 1 | $ 1 |
| Preferred Stock shares authorized | 5,000,000 | 5,000,000 |
| Preferred Stock shares issued | 0 | 0 |
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Series B Preferred Stock [Member]
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| Preferred Stock par value (in Dollars per share) | $ 1 | $ 1 |
| Preferred Stock shares authorized | 1,870 | 1,870 |
| Preferred Stock shares issued | 1,870 | 1,870 |
| Series B convertible preferred stock shares outstanding | 1,870 | 1,870 |
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- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Number of shares of common stock outstanding. Common stock represent the ownership interest in a corporation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) issued to shareholders (includes related preferred shares that were issued, repurchased, and remain in the treasury). May be all or portion of the number of preferred shares authorized. Excludes preferred shares that are classified as debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) held by stockholders. Does not include preferred shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | |
|---|---|---|
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Mar. 31, 2012
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Mar. 31, 2011
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| Interest income | $ 40,611 | $ 28,584 |
| Servicing fees | 801 | 1,415 |
| Other income | 3,106 | 2,396 |
| 44,518 | 32,395 | |
| Employee costs | 8,871 | 7,623 |
| General and administrative | 4,497 | 3,639 |
| Interest | 22,309 | 19,126 |
| Provision for credit losses | 4,836 | 3,692 |
| Marketing | 2,620 | 1,596 |
| Occupancy | 721 | 761 |
| Depreciation and amortization | 152 | 164 |
| 44,006 | 36,601 | |
| Income (loss) before income tax expense | 512 | (4,206) |
| Net income (loss) | $ 512 | $ (4,206) |
| Basic (in Dollars per share) | $ 0.03 | $ (0.23) |
| Diluted (in Dollars per share) | $ 0.02 | $ (0.23) |
| Basic (in Shares) | 19,416 | 18,122 |
| Diluted (in Shares) | 22,601 | 18,122 |
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- Definition
The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate direct operating costs incurred during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of operating profit and nonoperating income or expense before Income or Loss from equity method investments, income taxes, extraordinary items, and noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cost of borrowed funds accounted for as interest that was charged against earnings during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Income derived from investments in debt securities and on cash and cash equivalents the earnings of which reflect the time value of money or transactions in which the payments are for the use or forbearance of money. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount of net occupancy expense that may include items, such as depreciation of facilities and equipment, lease expenses, property taxes and property and casualty insurance expense. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The total amount of other operating income, the components of which are not separately disclosed on the income statement, from items that are associated with the entity's normal revenue producing operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Provision charged for the period based on estimated losses to be realized from loan and lease transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Expenditures for salaries other than officers. Does not include allocated share-based compensation, pension and post-retirement benefit expense or other labor-related non-salary expense. For commercial and industrial companies, excludes any direct and overhead labor that is included in cost of goods sold. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate total amount of expenses directly related to the marketing or selling of products or services. No definition available.
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| X | ||||||||||
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- Definition
Income from servicing real estate mortgages, credit cards, and other financial assets held by others. Also include any premiums received in lieu of regular servicing fees on such loans only as earned over the life of the loans. May also be net of any related impairment of fair value of capitalized service costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
|---|---|---|
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Mar. 31, 2012
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Mar. 31, 2011
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|
| Net income/(loss) | $ 512 | $ (4,206) |
| Other comprehensive income/(loss); change in funded status of pension plan | ||
| Comprehensive income/(loss) | $ 512 | $ (4,206) |
| X | ||||||||||
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- Definition
The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Net of tax amount of the (increase) decrease in the value of the projected benefit obligation and the increase (decrease) in the value of the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption that has not been recognized in net periodic benefit cost. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Debt secured by receivables measured at fair value No definition available.
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| X | ||||||||||
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- Definition
Derivative warrants reclassified from liabilities to common stock upon amendment No definition available.
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| X | ||||||||||
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- Definition
Purchase of finance receivables portfolio No definition available.
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| X | ||||||||||
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- Definition
The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by or used in operations using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase in the net discounted value of the proved oil and gas reserves due only to the passage of time. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount of noncash expense included in interest expense to amortize debt discount and premium associated with the related debt instruments. Excludes amortization of financing costs. Alternate captions include noncash interest expense. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of amortization of deferred charges applied against earnings during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount of noncash expense included in interest expense to issue debt and obtain financing associated with the related debt instruments. Alternate captions include noncash interest expense. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount of noncash expense included in interest expense to allocate debt discount and premium, and the costs to issue debt and obtain financing over the related debt instruments. Alternate captions include noncash interest expense. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net increase or decrease in fair value as a result of changes in the assumptions or model used to calculate the fair value of servicing assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount of increase (decrease) in cash and cash equivalents. Cash and cash equivalents are the amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets to periods that benefit from use of the assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in the amounts payable to vendors for goods and services received and the amount of obligations and expenses incurred but not paid. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in the amount due from borrowers for interest payments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in other assets used in operating activities not separately disclosed in the statement of cash flows. May include changes in other current assets, other noncurrent assets, or a combination of other current and noncurrent assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash inflow or outflow for the increase (decrease) associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as operating activities. This may include cash restricted for regulatory purposes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of interest income and other income recognized during the period. Included in this element is interest derived from investments in debt securities, cash and cash equivalents, and other investments which reflect the time value of money or transactions in which the payments are for the use or forbearance of money and other income from ancillary business-related activities (that is, excluding major activities considered part of the normal operations of the business). No definition available.
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| X | ||||||||||
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- Definition
The amount of cash paid for interest during the period net of cash paid for interest that is capitalized. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash inflow or outflow from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash inflow or outflow from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net amount paid or received by the reporting entity associated with purchase (sale or collection) of loans receivable arising from the financing of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash outflow for loan and debt issuance costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash inflow from amounts received from issuance of long-term debt that is wholly or partially secured by collateral. Excludes proceeds from tax exempt secured debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
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- Definition
The cash inflow from a contractual arrangement with the lender, including letter of credit, standby letter of credit and revolving credit arrangements, under which borrowings can be made up to a specific amount at any point in time with either short term or long term maturity that is collateralized (backed by pledge, mortgage or other lien in the entity's assets). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash inflow from a long-term borrowing made from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth. Alternate caption: Proceeds from Advances from Affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash inflow or outflow from the proceeds and repayments made on the long-term borrowing from related party where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and such forth. Alternate caption: Proceeds from (Payments for) Advances from Affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
|
- Definition
The net cash inflow or outflow associated with long-term debt that is wholly or partially secured by collateral. Excludes proceeds from and repayments of tax exempt secured debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash inflow associated with the amount received from holders exercising their stock options. This item inherently excludes any excess tax benefit, which the entity may have realized and reported separately. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Provision charged for the period based on estimated losses to be realized from loan and lease transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash used to settle the borrowing issued by the entity involved in financial services operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash outflow associated with security instruments that either represent a creditor or an ownership relationship with the holder of the investment security with a maturity of beyond one year or normal operating cycle, if longer. Includes repayments of (a) debt, (b) capital lease obligations, (c) mandatory redeemable capital securities, and (d) any combination of (a), (b), or (c). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cash outflow to repay long-term debt that is wholly or partially secured by collateral. Excludes repayments of tax exempt secured debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock or unit options, amortization of restricted stock or units, and adjustment for officers' compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(1) Summary of Significant Accounting Policies
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Mar. 31, 2012
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| Significant Accounting Policies [Text Block] |
(1)
Summary of
Significant Accounting Policies
Description
of Business
We
were formed in California on March 8, 1991. We specialize in
purchasing and servicing retail automobile installment sale
contracts (“automobile contracts” or
“finance receivables”) originated by licensed
motor vehicle dealers located throughout the United States
(“dealers”) in the sale of new and used
automobiles, light trucks and passenger vans. Through our
purchases, we provide indirect financing to dealer customers
for borrowers with limited credit histories, low incomes or
past credit problems (“sub-prime customers”). We
serve as an alternative source of financing for dealers,
allowing sales to customers who otherwise might not be able
to obtain financing. In addition to purchasing installment
purchase contracts directly from dealers, we have also (i)
acquired installment purchase contracts in four merger and
acquisition transactions, (ii) purchased immaterial amounts
of vehicle purchase money loans from non-affiliated lenders,
and (iii) lent money directly to consumers for an immaterial
amount of vehicle purchase money loans. In this
report, we refer to all of such contracts and loans as
"automobile contracts."
Basis
of Presentation
Our
Unaudited Condensed Consolidated Financial Statements have
been prepared in conformity with accounting principles
generally accepted in the United States of America, with the
instructions to Form 10-Q and with Article 8 of Regulation
S-X of the Securities and Exchange Commission, and include
all adjustments that are, in management’s opinion,
necessary for a fair presentation of the results for the
interim periods presented. All such adjustments are, in the
opinion of management, of a normal recurring
nature. In addition, certain items in prior period
financial statements may have been reclassified for
comparability to current period presentation. Results for the
three-month period ended March 31, 2012 are not necessarily
indicative of the operating results to be expected for the
full year.
Certain
information and footnote disclosures normally included in
financial statements prepared in accordance with accounting
principles generally accepted in the United States of America
have been condensed or omitted from these Unaudited Condensed
Consolidated Financial Statements. These Unaudited Condensed
Consolidated Financial Statements should be read in
conjunction with the Consolidated Financial Statements and
Notes to Consolidated Financial Statements included in our
Annual Report on Form 10-K for the year ended December 31,
2011.
Use
of Estimates
The
preparation of financial statements in conformity with
accounting principles generally accepted in the
United States of America requires us to make estimates
and assumptions that affect the reported amounts of assets
and liabilities as of the date of the financial statements,
as well as the reported amounts of income and expenses during
the reported periods. Specifically, a number of estimates
were made in connection with determining an appropriate
allowance for finance credit losses, valuing finance
receivables measured at fair value and the related debt,
valuing residual interest in securitizations, accreting net
acquisition fees, amortizing deferred costs, valuing warrants
issued, and recording deferred tax assets and reserves for
uncertain tax positions. These are material estimates that
could be susceptible to changes in the near term and,
accordingly, actual results could differ from those
estimates.
Other
Income
The
following table presents the primary components of Other
Income:
Stock-based
Compensation
We
recognize compensation costs in the financial statements for
all share-based payments based on the grant date fair value
estimated in accordance with the provisions of ASC
718 “Accounting for Stock Based
Compensation”.
For
the three months ended March 31, 2012 and 2011, we recorded
stock-based compensation costs in the amount of $293,000 and
$371,000, respectively. As of March 31, 2012,
unrecognized stock-based compensation costs to be recognized
over future periods equaled $1.7 million. This amount will be
recognized as expense over a weighted-average period of 2.5
years.
The
following represents stock option activity for the three
months ended March 31, 2012:
At
March 31, 2012, the aggregate intrinsic value of options
outstanding and exercisable was $876,000 and $309,000,
respectively. There were 15,000 shares exercised for the
three months ended March 31, 2012 compared to 3,000 for the
comparable period in 2011. There were 823,000
shares available for future stock option grants under
existing plans as of March 31, 2012.
Purchases
of Company Stock
During
the three-month periods ended March 31, 2012 and 2011, we
purchased 227,298 and 6,000 shares, respectively, of our
common stock, at average prices of $1.15 and $1.34,
respectively.
Reclassifications
Some
items in the prior year financial statements were
reclassified to conform to the current presentation.
Reclassifications had no effect on prior year net income or
total shareholders’ equity.
Derivative
Financial Instruments
We
do not use derivative financial instruments to hedge
exposures to cash-flow or market risks. However, from 2008 to
2010, we issued warrants to purchase the Company’s
common stock in conjunction with various debt financing
transactions. At the time of issuance, four of these warrants
issued contained "down round" or reset features that are
subject to classification as liabilities for financial
statement purposes. These liabilities are measured at fair
value, with the changes in fair value at the
end of each period reflected as current period income or
loss. Accordingly, changes to the market price per share of
our common stock underlying these warrants
with "down round" or
price reset features directly affect the fair value
computations for these derivative financial instruments. The
effect is that any increase in the market price per share of
our common stock also increases the related liability, which
in turn would result in a current period loss. Conversely,
any decrease in the market price per share of our common
stock also decreases the related liability, which in turn
would result in a current period gain. We use a binomial
pricing model to compute the fair value of the liabilities
associated with the outstanding warrants. In computing the
fair value of the warrant liabilities at the end of each
period, we use significant judgments with respect to the risk
free interest rate, the volatility of our stock price, and
the estimated life of the warrants. The effects of these
judgments, if proven incorrect, could have a significant
effect on our financial statements. The warrant
liabilities are included in Accounts payable and accrued
expenses on our consolidated balance
sheets. On March 29, 2012 we amended
three of the four warrants that contained the “down
round” features to remove those specific price reset
terms. On the date of the amendment, we valued
each of the three warrants using a binomial pricing model as
described above. The aggregate value of the three
amended warrants of $1.1 million was then reclassified from
Accounts payable to Common Stock. The remaining
warrant with the “down round” feature was not
amended and was valued and recorded at March 31, 2012 using a
binomial pricing model to compute the fair value, which is
included in Accounts payable and accrued expenses, and will
continue to be subject to quartely valuations.
Financial
Covenants
Certain
of our securitization transactions, our warehouse credit
facilities and our residual interest financing contain
various financial covenants requiring minimum financial
ratios and results. Such covenants include maintaining
minimum levels of liquidity and net worth and not exceeding
maximum leverage levels. As of March 31, 2012, we were in
compliance with all such covenants. In addition, certain
securitization and non-securitization related debt agreements
contain cross-default provisions that would allow certain
creditors to declare a default if a default occurred under a
different facility.
Finance
Receivables and Related Debt Measured at Fair Value
In
September 2011 we purchased approximately $217.8 million of
finance receivables from Fireside Bank. These receivables and
the related acquisition debt are recorded on our balance
sheet at fair value. There are no level 1 or level
2 inputs (as described by ASC 820) available to us for
measurement of such receivables, or for the related
debt. Our level 3, unobservable inputs
reflect our own assumptions about the factors that market
participants use in pricing similar receivables and debt, and
are based on the best information available in the
circumstances. The valuation method used to estimate fair
value may produce a fair value measurement that may not be
indicative of ultimate realizable value. Furthermore, while
we believe our valuation methods are appropriate and
consistent with those used by other market participants, the
use of different methods or assumptions to estimate the fair
value of certain financial instruments could result in
different estimates of fair value. Those estimated
values may differ significantly from the values that would
have been used had a readily available market for such
receivables or debt existed, or had such receivables or debt
been liquidated, and those differences could be material to
the financial statements.
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- Definition
The entire disclosure for all significant accounting policies of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(2) Finance Receivables
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Mar. 31, 2012
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| Finance, Loan and Lease Receivables, Held-for-investment, Policy [Policy Text Block] |
(2) Finance
Receivables
Our
portfolio of finance receivables consists of small-balance
homogeneous contracts comprising a single segment and class
that is collectively evaluated for impairment on a portfolio
basis according to delinquency status. Our contract purchase
guidelines are designed to produce a homogenous portfolio.
For key terms such as interest rate, length of contract,
monthly payment and amount financed, there is relatively
little variation from the average for the
portfolio. We report delinquency on a contractual
basis. Once a contract becomes greater than 90 days
delinquent, we do not recognize additional interest income
until the obligor under the contract makes sufficient
payments to be less than 90 days delinquent. Any
payments received on a contract that is greater than 90 days
delinquent are first applied to accrued interest and then to
principal reduction.
The
following table presents the components of Finance
Receivables, net of unearned interest:
We
consider an automobile contract delinquent when an obligor
fails to make at least 90% of a contractually due payment by
the following due date, which date may have been extended
within limits specified in the servicing agreements. The
period of delinquency is based on the number of days payments
are contractually past due. Automobile contracts less than 31
days delinquent are not included. The period of
delinquency is based on the number of days a payment is past
its due date, as extended where applicable. In
certain circumstances we will grant obligors one-month
payment extensions to assist them with temporary cash flow
problems. The only modification of terms is to
advance the obligor’s next due date by one month and
extend the maturity date of the receivable by one
month. In some cases, a two-month extension may be
granted. There are no other concessions such as a
reduction in interest rate, forgiveness of principal or of
accrued interest. Accordingly, we consider such
extensions to be insignificant delays in payments rather than
troubled debt restructurings. The following table
summarizes the delinquency status of finance receivables as
of March 31, 2012 and December 31, 2011:
Finance
receivables totaling $3.4 million and $13.0 million at March
31, 2012 and December 31, 2011, respectively, including all
receivables greater than 90 days delinquent have been placed
on non-accrual status as a result of their delinquency
status.
We
use a loss allowance methodology commonly referred to as
"static
pooling,"
which stratifies our finance receivable portfolio into
separately identified pools based on the period of
origination. Using analytical and formula driven techniques,
we estimate an allowance for finance credit losses, which we
believe is adequate for probable credit losses that can be
reasonably estimated in our portfolio of automobile
contracts. The estimate for probable credit losses is reduced
by our estimate for future recoveries on previously incurred
losses. Provision for losses is charged to our
consolidated statement of operations. Net losses incurred on
finance receivables are charged to the allowance. For finance
receivables originated through December 31, 2010 we
established the allowance at the time of the acquisition of
the receivable. Beginning January 1, 2011, we
establish the allowance for new receivables over the
twelve-month period following their acquisition.
The
following table presents a summary of the activity for the
allowance for credit losses for the three-month periods ended
March 31, 2012 and 2011:
Excluded
from finance receivables are contracts that were previously
classified as finance receivables but were reclassified as
other assets because we have repossessed the vehicle securing
the Contract. The following table presents a
summary of such repossessed inventory together with the
allowance for losses in repossessed inventory that is not
included in the allowance for credit losses:
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|
- Definition
Disclosure of accounting policy for those finance, loan and lease receivables classified as held for investment. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the allowance for loan and lease losses is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of commitment and other fees and loan origination costs (including, if applicable, how the entity accounts for fees and costs associated with credit cards that are either purchased or originated) (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status (for impaired loans, the policy for recognizing interest income on such loans, including how cash receipts are recorded) and (7) the treatment of foreclosures or repossessions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(3) Finance Receivables Measured at Fair Value
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Mar. 31, 2012
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| Fair Value of Financial Instruments, Policy [Policy Text Block] |
(3)
Finance
Receivables Measured at Fair Value
In
September 2011 we purchased approximately $217.8 million of
finance receivables from Fireside Bank. These receivables are
recorded on our balance sheet at fair value.
The
following table presents the components of Finance
Receivables measured at fair value:
The
following table summarizes the delinquency status of finance
receivables measured at fair value as of March 31, 2012 and
December 31, 2011:
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- Definition
Disclosure of accounting policy for determining the fair value of financial instruments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(4) Securitization Trust Debt
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| Long-term Debt [Text Block] |
(4)
Securitization
Trust Debt
We
have completed a number of securitization transactions that
are structured as secured borrowings for financial accounting
purposes. The debt issued in these transactions is shown on
our Unaudited Condensed Consolidated Balance Sheets as
“Securitization trust debt,” and the components
of such debt are summarized in the following table:
_________________
All
of the securitization trust debt was sold in private
placement transactions to qualified institutional buyers. The
debt was issued through our wholly-owned bankruptcy remote
subsidiaries and is secured by the assets of such
subsidiaries, but not by our other assets. Principal of $90.8
million, and the related interest payments, are guaranteed by
financial guaranty insurance policies issued by third party
financial institutions.
The
terms of the various securitization agreements related to the
issuance of the securitization trust debt andthe warehouse
credit facilities require that we meet certain delinquency
and credit loss criteria with respect to the collateral pool,
and certain of the agreements require that we maintain
minimum levels of liquidity and net worth and not exceed
maximum leverage levels. In addition, certain
securitization and non-securitization related debt contain
cross-default provisions, which would allow certain creditors
to declare a default if a default were declared under a
different facility.
We
are responsible for the administration and collection of the
automobile contracts. The securitization agreements also
require certain funds be held in restricted cash accounts to
provide additional collateral for the borrowings or to be
applied to make payments on the securitization trust debt. As
of March 31, 2012, restricted cash under the various
agreements totaled approximately $131.5 million. Interest
expense on the securitization trust debt consists of the
stated rate of interest plus amortization of additional costs
of borrowing. Additional costs of borrowing include facility
fees, insurance and amortization of deferred financing costs
and discounts on notes sold. Deferred financing costs and
discounts on notes sold related to the securitization trust
debt are amortized using a level yield method. Accordingly,
the effective cost of the securitization trust debt is
greater than the contractual rate of interest disclosed
above.
Our
wholly-owned bankruptcy remote subsidiaries were formed to
facilitate the above asset-backed financing transactions.
Similar bankruptcy remote subsidiaries issue the debt
outstanding under our credit facilities. Bankruptcy remote
refers to a legal structure in which it is expected that the
applicable entity would not be included in any bankruptcy
filing by its parent or affiliates. All of the assets of
these subsidiaries have been pledged as collateral for the
related debt. All such transactions, treated as secured
financings for accounting and tax purposes, are treated as
sales for all other purposes, including legal and bankruptcy
purposes. None of the assets of these subsidiaries are
available to pay other creditors.
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- Definition
The entire disclosure for long-term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(5) Debt
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| Debt Disclosure [Text Block] |
(5)
Debt
The
terms and amounts of our other debt outstanding at March 31,
2012 and December 31, 2011 are summarized below:
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- Definition
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(6) Interest Income
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| Interest and Other Income [Text Block] |
(6)
Interest
Income and Interest Expense
The
following table presents the components of interest
income:
The following table presents the components of interest
expense:
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- Definition
The entire disclosure for interest and other income. No definition available.
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(7) Earnings (Loss) Per Share
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| Earnings Per Share [Text Block] |
(7)
Earnings
(Loss) Per Share
Earnings
(loss) per share for the three-month periods ended March 31,
2012 and 2011 were calculated using the weighted average
number of shares outstanding for the related period. The
following table reconciles the number of shares used in the
computations of basic and diluted earnings (loss) per share
for the three-month periods ended March 31, 2012 and
2011:
If
the anti-dilutive effects of common stock equivalents were
considered, shares included in the diluted earnings (loss)
per share calculation for the three-month periods ended March
31, 2011 would have included an additional 3.3 million
attributable to the exercise of outstanding options and
warrants.
On
June 30, 2008, we entered into a series of agreements
pursuant to which an affiliate of Levine Leichtman Capital
Partners purchased a $10 million five-year, fixed rate,
senior secured note from us. The indebtedness is
secured by substantially all of our assets, though not by the
assets of our special-purpose financing
subsidiaries. In July 2008, in conjunction with
the amendment of the combination term and revolving residual
credit facility as discussed above, the lender purchased an
additional $15 million note with substantially the same terms
as the $10 million note. Pursuant to the June 30,
2008 securities purchase agreement, we issued to the lender
1,225,000 shares of common stock. In addition, we
issued the lender two warrants: (i) warrants that we refer to
as the FMV Warrants, which are exercisable for 1,611,114
shares of our common stock, at an exercise price of $1.39818
per share, and (ii) warrants that we refer to as the N
Warrants, which are exercisable for 285,781 shares of our
common stock, at a nominal exercise price. Both the FMV
Warrants and the N Warrants are exercisable in whole or in
part and at any time up to and including June 30,
2018. We valued the warrants using the
Black-Scholes valuation model and recorded their value as a
liability on our balance sheet because the terms of the
warrants also included a provision whereby the lender could
require us to purchase the warrants for cash. That provision
was eliminated by mutual agreement in September
2008. The FMV Warrants were initially exercisable
to purchase 1,500,000 shares for $2.573 per share, were
adjusted in connection with the July 2008 issuance of other
warrants to become exercisable to purchase 1,564,324 shares
at $2.4672 per share, and were further adjusted in connection
with a July 2009 amendment of our option plan to become
exercisable at $1.44 per share. Upon issuance in
September 2009 of the Fortress Warrant, the FMV Warrant was
further adjusted to become exercisable to purchase 1,600,991
shares at an exercise price of $1.407 per
share. Upon issuance in March 2010 of the Page
Five Warrant, the FMV Warrant was further adjusted to become
exercisable to purchase 1,611,114 shares at an exercise price
of $1.39818 per share. In November 2009 we entered
into an additional agreement with this lender whereby they
purchased an additional $5 million note. The note
accrued interest at 15.0% and was repaid in December 2010 at
which time the lender purchased a new $27.8 million note
under substantially the same terms as the $10 million and $15
million notes already outstanding. The $27.8
million note accrues interest at 16.0% and matures in
December 2013. Concurrent with the issuance of the
$27.8 million note, the term $10 and $15 million notes were
amended to change their maturity dates to December
2013. In conjunction with the issuance of the
$27.8 million note, we issued to the lender 880,000 shares of
common stock and 1,870 shares of Series B convertible
preferred stock. Each share of the Series B
convertible preferred stock was exchanged for 1,000 shares of
our common stock on June 15, 2011, upon shareholder approval
of such exchange. At the time of issuance, the
value of the common stock and Series B preferred stock was
$753,000 and $1.6 million, respectively. On
March 31, 2011, we sold an additional $5 million note due
February 29, 2012 to LLCP. In April 2011
we purchased from LLCP a portion of an outstanding
subordinated note issued by our CPS Cayman Residual Trust
2008-A, and financed that purchase by issuing to LLCP a new
$3 million note due June 30, 2012. In November
2011, we sold an additional $5 million note due October
2012. All such notes bear interest at 14% per
annum. In February 2012, we extended the maturity
of the $5 million note that was originally due in February
2012 to March 2012 at which time the note was repaid in
full.
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- Definition
The entire disclosure for earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(8) Income Taxes
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| Income Tax Disclosure [Text Block] |
(8)
Income
Taxes
We
file numerous consolidated and separate income tax returns
with the United States and with many states. With few
exceptions, we are no longer subject to U.S. federal, state,
or local examinations by tax authorities for years before
2007.
We
have subsidiaries in various states that are currently under
audit for years ranging from 2003 through 2006. To date, no
material adjustments have been proposed as a result of these
audits.
We
do not anticipate that total unrecognized tax benefits will
significantly change due to any settlements of audits or
expirations of statutes of limitations over the next twelve
months.
The
Company and its subsidiaries file a consolidated federal
income tax return and combined or stand-alone state franchise
tax returns for certain states. We utilize the asset and
liability method of accounting for income taxes, under which
deferred income taxes are recognized for the future tax
consequences attributable to the differences between the
financial statement values of existing assets and liabilities
and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The
effect on deferred taxes of a change in tax rates is
recognized in income in the period that includes the
enactment date. We have estimated a valuation allowance
against that portion of the deferred tax asset whose
utilization in future periods is not more than likely. Our
net deferred tax asset of $15.0 million as of March 31, 2012
is net of a valuation allowance of $61.4 million.
On
a quarterly basis, we determine whether a valuation allowance
is necessary for our deferred tax asset. In performing this
analysis, we consider all evidence currently available, both
positive and negative, in determining whether, based on the
weight of that evidence, the deferred tax asset will be
realized. We establish a valuation allowance when it is more
likely than not that a recorded tax benefit will not be
realized. The expense to create the valuation allowance is
recorded as additional income tax expense in the period the
valuation allowance is established. During the first three
months of 2012, we decreased our valuation allowance by
$330,000, which was offset by the decrease in our gross
deferred tax assets, resulting in no change to the our
deferred tax assets and no income tax expense for the
period.
In
determining the possible future realization of deferred tax
assets, we have considered the taxes paid in the current and
prior years that may be available to recapture, as well as
future taxable income from the following sources: (a)
reversal of taxable temporary differences; and (b) tax
planning strategies that, if necessary, would be implemented
to accelerate taxable income into years in which net
operating losses might otherwise expire. Our tax planning
strategies include the prospective sale of certain assets
such as finance receivables, residual interests in
securitized finance receivables, charged off receivables and
base servicing rights. The expected proceeds for
such asset sales have been estimated based on our expectation
of what buyers of the assets would consider to be reasonable
assumptions for net cash flows and required rates of return
for each of the various asset types. Our estimates
for net cash flows and required rates of return are
subjective and inherently subject to future events that may
significantly affect actual net proceeds we may receive from
executing our tax planning strategies.
We
believe such asset sales can produce at least $37.5 million
in taxable income within the relevant carryforward period.
Such strategies could be implemented without significant
effect on our core business or our ability to generate future
growth. The costs related to the implementation of these tax
strategies were considered in evaluating the amount of
taxable income that could be generated in order to realize
our deferred tax assets.
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- Definition
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(9) Legal Proceedings
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| Legal Matters and Contingencies [Text Block] |
(9)
Legal
Proceedings
Griffith
Litigation. We are named as defendant
in a putative class action brought in federal district court
in Chicago, Illinois. In March 2012 the court gave
preliminary approval to a settlement agreed to between us and
the plaintiffs, pursuant to which (i) a class will be
certified for settlement purposes only, and (ii) we will pay
a fixed amount of plaintiff attorney fees and also make
payments against claims made by members of the class, the
amount of which will be based on class members’
responses to our notice of the settlement. Final approval and
effectiveness of the settlement will occur only following
notice to the class members, a hearing on the fairness of the
settlement, and ultimate approval of the settlement following
such a hearing. Our legal contingency accrual at
March 31, 2012 includes our estimate for the amount that is
probable. There can be no assurance as to the
ultimate outcome of the case.
Stanwich
Litigation. We were for some time a defendant in a
class action (the “Stanwich Case”) brought in the
California Superior Court, Los Angeles County. The original
plaintiffs in that case were persons entitled to receive
regular payments (the “Settlement Payments”)
under out-of-court settlements reached with third party
defendants. Stanwich Financial Services Corp.
(“Stanwich”), then an affiliate of our former
chairman of the board of directors, is the entity that was
obligated to pay the Settlement Payments. Stanwich had
defaulted on its payment obligations to the plaintiffs and in
September 2001 filed for reorganization under the Bankruptcy
Code, in the federal Bankruptcy Court of
Connecticut. By February 2005, we had settled all
claims brought against us in the Stanwich Case.
In
November 2001, one of the defendants in the Stanwich Case,
Jonathan Pardee, asserted claims for indemnity against us in
a separate action, which is now pending in federal district
court in Rhode Island. We have filed counterclaims in the
Rhode Island federal court against Mr. Pardee, and have filed
a separate action against Mr. Pardee's Rhode Island
attorneys, in the same court. As of December 31, 2010, these
actions in the court in Rhode Island had been stayed,
awaiting resolution of an adversary action brought against
Mr. Pardee in the bankruptcy court, which is hearing the
bankruptcy of Stanwich.
On
April 6, 2011, that adversary action was dismissed, pursuant
to an agreement between us and the representative of
creditors in the Stanwich bankruptcy. Under that
agreement, CPS has paid the bankruptcy estate $800,000 and
abandoned its claims against the estate, and the estate has
abandoned its adversary action against Mr. Pardee. The
entire payment in this matter was included in our legal
contingency liability as of December 31,
2010. With the dismissal of the adversary action,
all known claims asserted against Mr. Pardee have been
resolved, without his incurring any
liability. Accordingly, we believe that this
resolution of the adversary action will result in limitation
of our exposure to Mr. Pardee to no more than some
portion of his
attorneys
fees incurred. The stay in the action against us
in Rhode Island has been lifted, and a trial is scheduled for
November 2012.
The
reader should consider that any adverse judgment against us
in this case for indemnification, in an amount materially in
excess of any liability already recorded in respect thereof,
could have a material adverse effect on our financial
position. There can be no assurance as to the
ultimate outcome of this matter.
Other
Litigation.
We
are routinely involved in various legal proceedings resulting
from our consumer finance activities and practices, both
continuing and discontinued. We believe that there are
substantive legal defenses to such claims, and intend to
defend them vigorously. There can be no assurance, however,
as to the outcome.
We
have recorded a liability as of March 31, 2012 that we
believe represents an appropriate allowance for legal
contingencies, including those described above. Any adverse
judgment against us, if in an amount materially in excess of
the recorded liability, could have a material adverse effect
on our financial position.
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- Definition
The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies. No definition available.
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(10) Employee Benefits
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| Compensation and Employee Benefit Plans [Text Block] |
(10)
Employee
Benefits
On
March 8, 2002 we acquired MFN Financial Corporation and its
subsidiaries in a merger. We sponsor the MFN
Financial Corporation Benefit Plan (the “Plan”).
Plan benefits were frozen June 30, 2001. The table below sets
forth the Plan’s net periodic benefit cost for the
three-month periods ended March 31, 2012 and 2011.
We
contributed $137,000 to the Plan during the three-month
period ended March 31, 2012 and we anticipate making
contributions in the amount of $775,000 for the remainder of
2012.
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- Definition
The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. No definition available.
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(11) Fair Value Measurements
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| Fair Value Disclosures [Text Block] |
(11)
Fair Value Measurements
In
September 2006, the FASB issued ASC 820, "Fair Value
Measurements" which clarifies the principle that
fair value should be based on the assumptions market
participants would use when pricing an asset or liability and
establishes a fair value hierarchy that prioritizes the
information used to develop those assumptions. Under the
standard, fair value measurements would be separately
disclosed by level within the fair value hierarchy.
ASC
820 defines fair value, establishes a framework for measuring
fair value, establishes a three-level valuation hierarchy for
disclosure of fair value measurement and enhances disclosure
requirements for fair value measurements. The three levels
are defined as follows: level 1 - inputs to the valuation
methodology are quoted prices (unadjusted) for identical
assets or liabilities in active markets; level 2 –
inputs to the valuation methodology include quoted prices for
similar assets and liabilities in active markets, and inputs
that are observable for the asset or liability, either
directly or indirectly, for substantially the full term of
the financial instrument; and level 3 – inputs to the
valuation methodology are unobservable and significant to the
fair value measurement.
At
the time of issuance, four warrants issued between 2008 and
2010 in conjunction with various debt financing transactions
contained features that make them subject to derivative
accounting. We valued these warrants using a binomial
valuation model using a weighted average volatility
assumption of 41%, weighted average term of 8 years and a
risk free rate of 3.3%. On March 29, 2012 we
amended three of the four warrants to remove the features
that resulted in derivative accounting. On the
date of the amendment, we valued each of the three warrants
using a binomial pricing model as described
above. The aggregate value of the three amended
warrants of $1.1 million was then reclassified from Accounts
payable to Common Stock. The remaining warrant
subject to derivative accounting was not amended and was
valued at March 31, 2012 to be $114,000 and
is classified as a liability on our consolidated
balance sheet as of March 31, 2012.
In
September 2008 we sold automobile contracts in a
securitization that was structured as a sale for financial
accounting purposes. In that sale, we retained
both securities and a residual interest in the transaction
that are measured at fair value. We describe below
the valuation methodologies we use for the securities
retained and the residual interest in the cash flows of the
transaction, as well as the general classification of such
instruments pursuant to the valuation
hierarchy. The securities retained were sold in
September 2010 in the re-securitization transaction described
in Note 1. In the same transaction, the residual interest was
reduced by $1.5 million. The residual interest in
such securitization is $4.6 million as of March 31, 2012 and
is classified as level 3 in the three-level valuation
hierarchy. We determine the value of that residual interest
using a discounted cash flow model that includes estimates
for prepayments and losses. We use a discount rate
of 20% per annum and a cumulative net loss rate of 13%. The
assumptions we use are based on historical performance of
automobile contracts we have originated and serviced in the
past, adjusted for current market conditions. No gain or loss
was recorded as a result of the re-securitization transaction
described above.
Repossessed
vehicle inventory, which is included in Other Assets on our
balance sheet, is measured at fair value using level 2
assumptions based on our actual loss experience on sale of
repossessed vehicles. At March 31, 2012, the finance
receivables related to the repossessed vehicles in inventory
totaled $8.7 million. We have applied a valuation adjustment
of $4.2 million, resulting in an estimated fair value and
carrying amount of $4.5 million.
We
have no level 3 assets that are measured at fair value on a
non-recurring basis. The table below presents a
reconciliation for level 3 assets measured at fair value on a
recurring basis using significant unobservable inputs:
In
September 2011, we acquired $217.8 million of finance
receivables from Fireside Bank for a purchase price of $201.3
million. The receivables were acquired by our
wholly-owned special purpose subsidiary, CPS Fender
Receivables, LLC, which issued a note for $197.3 million,
with a fair value of $196.5 million. Since
the
Fireside receivables were originated by another entity with
its own underwriting guidelines and procedures, we have
elected to account for the Fireside receivables and the
related debt secured by those receivables at their estimated
fair values so that changes in fair value will be reflected
in our results of operations as they
occur. Interest income from the receivables and
interest expense on the note are included in interest income
and interest expense, respectively. Changes to the
fair value of the receivables and debt are also to be
included in interest income and interest expense,
respectively. Our level 3, unobservable inputs
reflect our own assumptions about the factors that market
participants use in pricing similar receivables and debt, and
are based on the best information available in the
circumstances. They include such inputs as estimated net
charge-offs and timing of the amortization of the portfolio
of finance receivables. The table below presents a
reconciliation of the acquired finance receivables and
related debt measured at fair value on a recurring basis
using significant unobservable inputs:
The
table below compares the fair values of the Fireside
receivables and the related secured debt to their contractual
balances for the periods shown:
The
following summary presents a description of the methodologies
and assumptions used to estimate the fair value of our
financial instruments. Much of the information used to
determine fair value is highly subjective. When applicable,
readily available market information has been utilized.
However, for a significant
portion
of our financial instruments, active markets do not exist.
Therefore, significant elements of judgment were required in
estimating fair value for certain items. The subjective
factors include, among other things, the estimated timing and
amount of cash flows, risk characteristics, credit quality
and interest rates, all of which are subject to change. Since
the fair value is estimated as of March 31, 2012 and December
31, 2011, the amounts that will actually be realized or paid
at settlement or maturity of the instruments could be
significantly different. The estimated fair values of
financial assets and liabilities at March 31, 2012 and
December 31, 2011, were as follows:
The
following table provides certain qualitative information
about our level 3 fair value measurements:
Cash,
Cash Equivalents and Restricted Cash
The
carrying value equals fair value.
Finance
Receivables, net
The
fair value of finance receivables is estimated by discounting
future cash flows expected to be collected using current
rates at which similar receivables could be
originated.
Fair
Value Receivables and Receivable Financing Debt at Fair
Value
The
carrying value equals fair value.
Accrued
Interest Receivable and Payable
The
carrying value approximates fair value because the related
interest rates are estimated to reflect current market
conditions for similar types of instruments.
Warehouse
Lines of Credit, Residual Interest
Financing, Senior Secured Debt and Subordinated
Renewable Notes
The
carrying value approximates fair value because the related
interest rates are estimated to reflect current market
conditions for similar types of secured instruments.
Securitization
Trust Debt
The
fair value is estimated by discounting future cash flows
using interest rates that we believe reflects the current
market rates.
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- Definition
The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(12) Liquidity, Results of Operations and Management's Plans
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| Going Concern Note |
Our
business requires substantial cash to support our purchases
of automobile contracts and other operating activities. Our
primary sources of cash have been cash flows from operating
activities, including proceeds from term securitization
transactions and other sales of automobile contracts, amounts
borrowed under various revolving credit facilities (also
sometimes known as warehouse credit facilities), servicing
fees on portfolios of automobile contracts previously sold in
securitization transactions or serviced for third parties,
customer payments of principal and interest on finance
receivables, fees for origination of automobile contracts,
and releases of cash from securitized pools of automobile
contracts in which we have retained a residual ownership
interest and from the spread account associated with such
pools. Our primary uses of cash have been the purchases of
automobile contracts, repayment of amounts borrowed under
lines of credit and otherwise, operating expenses such as
employee, interest, occupancy expenses and other general and
administrative expenses, the establishment of spread account
and initial overcollateralization, if any, and the increase
of credit enhancement to required levels in securitization
transactions, and income taxes. There can be no assurance
that internally generated cash will be sufficient to meet our
cash demands. The sufficiency of internally generated cash
will depend on the performance of securitized pools (which
determines the level of releases from those pools and their
related spread accounts), the rate of expansion or
contraction in our managed portfolio, and the terms upon
which we are able to acquire, sell, and borrow against
automobile contracts.
We
purchase automobile contracts from dealers for a cash price
approximating their principal amount, adjusted for an
acquisition fee which may either increase or decrease the
automobile contract purchase price. Those automobile
contracts generate cash flow, however, over a period of
years. As a result, we have been dependent on warehouse
credit facilities to purchase automobile contracts, and on
the availability of cash from outside sources in order to
finance our continuing operations, as well as to fund the
portion of automobile contract purchase prices not financed
under revolving warehouse credit facilities.
The
acquisition of automobile contracts for subsequent sale in
securitization transactions, and the need to fund spread
accounts and initial overcollateralization, if any, and
increase credit enhancement levels when those transactions
take place, results in a continuing need for capital. The
amount of capital required is most heavily dependent on the
rate of our automobile contract purchases, the required level
of initial credit enhancement in securitizations, and the
extent to which the previously established trusts and their
related spread accounts either release cash to us or capture
cash from collections on securitized automobile contracts. Of
those, the factor most subject to our control is the rate at
which we purchase automobile contracts.
We
are and may in the future be limited in our ability to
purchase automobile contracts due to limits on our
capital. As of March 31, 2012, we had unrestricted
cash of $10.6 million. We had $99.1 million
available under the Goldman facility and $7.0 million
available under the UBS facility (in all facilities advances
are subject to our having purchased available eligible
collateral). Our plans to manage our liquidity
include maintaining our rate of automobile contract purchases
at a level that matches our available capital, and, wherever
appropriate, reducing our operating costs. If we
are unable to complete such securitizations, we may be unable
to increase our rate of automobile contract purchases, in
which case our interest income and other portfolio related
income would decrease.
Our
liquidity will also be affected by releases of cash from the
trusts established with our securitizations. While
the specific terms and mechanics of each spread account vary
among transactions, our securitization agreements generally
provide that we will receive excess cash flows, if any, only
if the amount of credit enhancement has reached specified
levels and/or the delinquency, defaults or net losses related
to the automobile contracts in the pool are below certain
predetermined levels. In the event delinquencies, defaults or
net losses on the automobile contracts exceed such levels,
the terms of the securitization: (i) may require increased
credit enhancement to be accumulated for the particular pool;
(ii) may restrict the distribution to us of excess cash flows
associated with other pools; or (iii) in certain
circumstances, may permit the insurers to require the
transfer of servicing on some or all of the automobile
contracts to another servicer. There can be no assurance that
collections from the related trusts will continue to generate
sufficient cash. Moreover, most of our
spread account balances are pledged as collateral to our
residual interest financing. As such, most of the
current releases of cash from our securitization trusts are
directed to pay the obligations of our residual interest
financing.
Our
plan for future operations and meeting the obligations of our
financing arrangements includes returning to profitability
(which we achieved in the fourth quarter of 2011 and the
first quarter of 2012) and eliminating our
shareholders’ deficit by gradually increasing the
amount of our contract purchases with the goal of increasing
the balance of our outstanding managed
portfolio. Our plans also include financing future
contract purchases with credit facilities and term
securitizations that offer a lower overall cost of funds
compared to the facilities we used in 2009 and
2010. To illustrate, in the last six months of
2009 we purchased $6.1 million in contracts and our sole
credit facility had a minimum interest rate of 14.00% per
annum. By comparison, in 2010, we purchased $113.0
million in contracts and, in March 2010, entered into the $50
million term funding facility which had an interest rate of
11.00% per annum and the ability to decrease such rate to
9.00% per annum if certain conditions were met. In
December 2010 we entered into a $100 million credit facility
with an interest rate of one-month LIBOR plus 5.00% per
annum, with a minimum rate of 6.5% per annum, and in February
2011 we added another $100 million credit facility with an
interest rate of one-month LIBOR plus 6.00% per
annum. During 2011, we used the two $100 million
credit facilities to purchase $284.2 million in new
contracts. During the three months ended March 31,
2012 we purchased an additional $119.9 million in new
contracts.
Moreover,
the weighted average effective coupons of our April 2011,
September 2011, December 2011 and March 2012 term
securitizations were 3.77%, 4.51%, 4.93% and 3.47%,
respectively and did not include financial guaranty
policies. These transactions demonstrate our
ability to access the lower cost of funds available in the
current market environment without the financial guaranties
we historically incorporated into our term securitization
structures. We expect to complete more term
securitizations in 2012. In addition, less
competition in the auto financing marketplace has resulted in
better terms for our recent contract purchases compared to
years before 2008. The following table summarizes
the average acquisition fees we charged dealers and the
weighted average annual percentage rate on our purchased
contracts for the periods shown:
We
have and will continue to have a substantial amount of
indebtedness. At March 31, 2012, we had approximately $853.9
million of debt outstanding. Such debt consisted primarily of
$599.7 million of securitization trust debt, $133.0 in
portfolio acquisition debt, $28.9 million of warehouse line
of credit debt, $18.0 million of residual interest financing,
$53.6 million of senior secured related party debt and
$20.7
million
in subordinated notes. We are also currently
offering the subordinated notes to the public on a continuous
basis, and such notes have maturities that range from three
months to 10 years.
As
of March 31, 2012 we have a shareholders’ deficit of
$12.6 million and our recent operating results include net
losses of $14.5 million and $33.8 million in 2011 and 2010,
respectively. We believe that our results have
been materially and adversely affected by the disruption in
the capital markets that began in the fourth quarter of 2007,
by the recession that began in December 2007, and by related
high levels of unemployment. Our ability to repay
or refinance maturing debt may be adversely affected by
prospective lenders’ consideration of our recent
operating losses.
Although
we believe we are able to service and repay our debt, there
is no assurance that we will be able to do so. If our plans
for future operations do not generate sufficient cash flows
and operating profits, our ability to make required payments
on our debt would be impaired. Failure to pay our
indebtedness when due could have a material adverse effect
and may require us to issue additional debt or equity
securities.
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- Definition
If there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date), disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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