CONSUMER PORTFOLIO SERVICES, INC.
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(Exact Name of Registrant as Specified in Charter)
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CALIFORNIA
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1-11416
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33-0459135
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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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19500 Jamboree Road, Irvine, CA 92612
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(Address of Principal Executive Offices) (Zip Code)
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Not Applicable
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(Former name or former address, if changed since last report)
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On October 15, 2012, the registrant announced its earnings for the quarter and nine-month periods ended September 30, 2012. A copy of the announcement is attached as an exhibit to this report.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 News Release dated October 15, 2012.
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CONSUMER PORTFOLIO SERVICES, INC.
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Dated: October 15, 2012
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By: /s/ JEFFREY P. FRITZ
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Jeffrey P. Fritz
Senior Vice President and Chief Financial Officer
Signing on behalf of the registrant
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NEWS RELEASE
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§
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Net income of $2.7 million, or $0.11 per share
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§
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New contract purchases of $143 million
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§
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Total managed portfolio increases to $845 million from $806 million in June 2012
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Originating Entity
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September 30, 2012
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June 30, 2012
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September 30, 2011
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CPS
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$748.8
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$681.5
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$572.5
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Fireside Bank
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80.3
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104.0
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210.9
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TFC
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0.4
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0.6
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3.1
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As Third Party Servicer
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15.4
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20.0
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41.3
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Total
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$844.9
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$806.1
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$827.8
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Consumer Portfolio Services, Inc. and Subsidiaries
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Condensed Consolidated Statements of Operations
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(In thousands, except per share data)
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(Unaudited)
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Three months ended
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Nine months ended
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September 30,
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September 30,
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||||||||||||
2012
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2011
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2012
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2011
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Revenues:
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Interest income
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$ 45,053
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$ 30,236
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$ 127,210
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$ 86,632
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Servicing fees
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502
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986
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1,897
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3,530
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Other income
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2,365
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2,592
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7,481
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7,201
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47,920
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33,814
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136,588
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97,363
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Expenses:
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Employee costs
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8,730
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8,257
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25,878
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23,343
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General and administrative
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3,690
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3,286
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11,765
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10,697
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Interest
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19,560
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19,011
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61,696
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57,377
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Provision for credit losses
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9,465
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3,982
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22,012
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12,034
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Other expenses
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3,747
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3,324
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10,657
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8,607
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45,192
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37,860
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132,008
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112,058
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Income (loss) before income taxes
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2,728
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(4,046)
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4,580
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(14,695)
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Income taxes
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-
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-
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-
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-
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Net income (loss)
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$ 2,728
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$ (4,046)
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$ 4,580
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$ (14,695)
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Earnings (loss) per share:
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Basic
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$ 0.14
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$ (0.20)
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$ 0.24
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$ (0.78)
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Diluted
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$ 0.11
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$ (0.20)
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$ 0.19
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$ (0.78)
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Number of shares used in computing earnings (loss)
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per share:
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Basic
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19,495
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19,821
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19,406
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18,794
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Diluted
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25,695
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19,821
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24,026
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18,794
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Condensed Consolidated Balance Sheets
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(In thousands)
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(Unaudited)
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September 30, | December 31, | ||||||||||||
2012
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2011
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Cash
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$ 10,468
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$ 10,094
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Restricted cash
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107,240
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159,228
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Total Cash
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117,708
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169,322
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Finance receivables
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687,096
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516,630
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Allowance for finance credit losses
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(16,946)
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(10,351)
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Finance receivables, net
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670,150
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506,279
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Finance receivables measured at fair value
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77,484
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160,253
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Residual interest in securitizations
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4,895
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4,414
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Deferred tax assets, net
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15,000
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15,000
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Other assets
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37,628
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34,782
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$ 922,865
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$ 890,050
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Accounts payable and other liabilities
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$ 22,146
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$ 27,993
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Warehouse lines of credit
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20,398
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25,393
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Residual interest financing
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13,773
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21,884
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Debt secured by receivables measured at fair value
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76,630
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166,828
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Securitization trust debt
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721,396
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583,065
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Senior secured debt, related party
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54,452
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58,344
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Subordinated debt
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21,525
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20,750
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930,320
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904,257
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Shareholders' equity
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(7,455)
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(14,207)
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$ 922,865
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$ 890,050
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Operating and Performance Data ($ in millions)
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At and for the
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At and for the
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Three months ended
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Nine months ended
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September 30,
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September 30,
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2012
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2011
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2012
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2011
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Contracts purchased
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$ 143.11
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$ 81.17
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$ 400.91
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$ 192.02
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Contracts securitized
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154.70
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111.05
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437.90
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215.60
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Total managed portfolio
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$ 844.86
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$ 827.80
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$ 844.86
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$ 827.80
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Average managed portfolio
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831.30
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691.24
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803.27
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669.03
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Allowance for finance credit losses as % of fin. receivables
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2.47%
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1.97%
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Aggregate allowance as % of fin. receivables (1)
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3.13%
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2.91%
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Delinquencies
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31+ Days
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3.33%
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5.08%
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Repossession Inventory
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1.31%
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1.46%
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Total Delinquencies and Repo. Inventory
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4.64%
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6.54%
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Annualized net charge-offs as % of average owned portfolio
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3.35%
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4.13%
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3.47%
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6.56%
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Recovery rates (2)
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47.2%
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43.2%
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48.2%
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44.0%
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For the
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For the
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Three months ended
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Nine months ended
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September 30,
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September 30,
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||||||||||||
2012
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2011
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2012
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2011
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$
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% (3)
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$
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% (3)
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$
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% (3)
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$
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% (3)
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Interest income
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$ 45.1
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21.7%
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$ 30.2
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17.5%
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$ 127.2
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21.1%
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$ 86.6
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17.3%
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Servicing and other income
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2.9
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1.4%
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3.6
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2.1%
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9.4
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1.6%
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10.7
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2.1%
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Interest expense
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(19.6)
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-9.4%
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(19.0)
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-11.0%
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(61.7)
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-10.2%
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(57.4)
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-11.4%
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Net interest margin
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28.4
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13.6%
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14.8
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8.6%
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74.9
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12.4%
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40.0
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8.0%
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Provision for credit losses
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(9.5)
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-4.6%
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(4.0)
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-2.3%
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(22.0)
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-3.7%
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(12.0)
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-2.4%
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Risk adjusted margin
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18.9
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9.1%
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10.8
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6.3%
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52.9
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8.8%
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28.0
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5.6%
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Core operating expenses
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(16.2)
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-7.8%
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(14.9)
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-8.6%
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(48.3)
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-8.0%
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(42.6)
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-8.5%
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Pre-tax income
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2.7
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1.3%
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(4.0)
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-2.3%
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4.6
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0.8%
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(14.7)
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-2.9%
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(1) Includes allowance for finance credit losses and allowance for repossession inventory.
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(2) Wholesale auction liquidation amounts (net of expenses) for CPS portfolio as a percentage of the account balance at the time of sale.
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(3) As a percentage of the average managed portfolio.
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