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 February 4, 2013, the registrant announced its earnings for the year ended December 31, 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 February 4, 2013.
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CONSUMER PORTFOLIO SERVICES, INC.
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Dated: February 4, 2013
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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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Pretax income of $4.6 million
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§
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Net income of $64.8 million, or $2.20 per diluted share, including income tax benefit of $60.2 million, or $2.04 per diluted share
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§
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New contract purchases of $151 million
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§
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Total managed portfolio increases to $898 million from $845 million as of September 30, 2012
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Originating Entity
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December 31, 2012
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September 30, 2012
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December 31, 2011
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CPS
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$825.0
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$748.8
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$586.9
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Fireside Bank
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60.8
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80.3
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172.2
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TFC
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0.2
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0.4
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2.0
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As Third Party Servicer
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11.6
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15.4
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33.5
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Total
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$897.6
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$844.9
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$794.6
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Consumer Portfolio Services, Inc. and Subsidiaries
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Condensed Consolidated Statements of Operations | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three months ended
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Year ended
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||||||||||||||||
December 31,
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December 31,
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||||||||||||||||
2012
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2011
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2012
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2011
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Revenues:
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|||||||||||||||||
Interest income
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$ |
48,104
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$ |
41,224
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$ |
175,314
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$ |
127,856
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|||||||||
Servicing fees
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408
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818
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2,305
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4,348
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|||||||||||||
Other income
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2,108
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3,726
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9,589
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10,927
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|||||||||||||
50,620
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45,768
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187,208
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143,131
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Expenses:
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Employee costs
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9,695
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8,927
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35,573
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32,270
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|||||||||||||
General and administrative
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3,664
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3,893
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15,429
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14,590
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Interest
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17,726
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25,677
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79,422
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83,054
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Provision for credit losses
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11,483
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3,474
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33,495
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15,508
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Other expenses
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3,445
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3,562
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14,102
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12,169
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|||||||||||||
46,013
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45,533
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178,021
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157,591
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Income (loss) before income taxes
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4,607
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235
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9,187
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(14,460)
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Income tax expense (benefit)
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(60,221)
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-
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(60,221)
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-
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Net income (loss)
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$ |
64,828
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$ |
235
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$ |
69,408
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$ |
(14,460)
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Earnings (loss) per share:
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Basic
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$ |
3.30
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$ |
0.01
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$ |
3.56
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$ |
(0.76)
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Diluted
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$ |
2.20
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$ |
0.01
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$ |
2.72
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$ |
(0.76)
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Earnings (loss) per share without tax gain:
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Basic
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$ |
0.23
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$ |
0.01
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$ |
0.47
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$ |
(0.76)
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Diluted
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$ |
0.16
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$ |
0.01
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$ |
0.36
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$ |
(0.76)
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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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19,673
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19,662
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19,473
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19,013
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Diluted
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29,527
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22,299
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25,478
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19,013
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Condensed Consolidated Balance Sheets
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(In thousands) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
December 31,
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December 31,
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||||||||||||||||
2012
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2011
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Assets:
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Cash and cash equivalents
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$ |
12,966
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$ |
10,094
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|||||||||||||
Restricted cash and equivalents
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104,445
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159,228
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Total cash and cash equivalents
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117,411
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169,322
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Finance receivables
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764,343
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516,630
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Allowance for finance credit losses
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(19,594)
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(10,351)
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Finance receivables, net
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744,749
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506,279
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Finance receivables measured at fair value
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59,668
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160,253
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Residual interest in securitizations
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4,824
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4,414
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Deferred tax assets, net
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75,640
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15,000
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Other assets
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35,328
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34,782
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$ |
1,037,620
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$ |
890,050
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Liabilities and Shareholders' Equity:
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Accounts payable and accrued expenses
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$ 17,785
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$ |
27,993
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Warehouse lines of credit
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21,731
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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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57,107
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166,828
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Securitization trust debt
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792,497
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583,065
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Senior secured debt, related party
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50,135
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58,344
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Subordinated renewable notes
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23,281
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20,750
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976,309
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904,257
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Shareholders' equity
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61,311
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(14,207)
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$ |
1,037,620
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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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Year ended
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December 31,
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December 31,
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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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$ 150.83
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$ 92.22
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$ 551.74
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$ 284.24
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Contracts securitized
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156.70
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83.90
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594.60
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299.50
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Total managed portfolio
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$ 897.58
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$ 794.65
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$ 897.58
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$ 794.65
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Average managed portfolio
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880.47
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804.68
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822.57
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711.73
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Allowance for finance credit losses as % of fin. receivables
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2.56%
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2.00%
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Aggregate allowance as % of fin. receivables (1)
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3.35%
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2.87%
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Delinquencies
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31+ Days
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4.06%
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4.43%
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Repossession Inventory
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1.49%
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1.52%
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Total Delinquencies and Repo. Inventory
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5.55%
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5.95%
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Annualized net charge-offs as % of average owned portfolio
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3.99%
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3.06%
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3.61%
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4.79%
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Recovery rates (2)
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46.8%
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44.1%
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47.9%
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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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Year ended
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|||||||||||||
December 31,
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December 31,
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2012
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2011
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2012
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2011
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$ (3)
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% (4)
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$ (3)
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% (4)
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$ (3)
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% (4)
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$ (3)
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% (4)
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Interest income
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$ 48.10
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21.9%
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$ 41.22
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20.5%
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$ 175.31
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21.3%
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$ 127.86
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18.0%
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Servicing fees and other income
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2.52
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1.1%
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4.54
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2.3%
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11.89
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1.4%
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15.28
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2.1%
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Interest expense
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(17.73)
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-8.1%
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(25.68)
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-12.8%
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(79.42)
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-9.7%
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(83.05)
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-11.7%
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Net interest margin
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32.89
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14.9%
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20.09
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10.0%
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107.79
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13.1%
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60.08
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8.4%
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Provision for credit losses
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(11.48)
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-5.2%
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(3.47)
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-1.7%
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(33.50)
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-4.1%
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(15.51)
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-2.2%
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Risk adjusted margin
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21.41
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9.7%
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16.62
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8.3%
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74.29
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9.0%
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44.57
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6.3%
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Core operating expenses
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(16.80)
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-7.6%
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(16.38)
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-8.1%
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(65.10)
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-7.9%
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(59.03)
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-8.3%
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Pre-tax income (loss)
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$ 4.61
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2.1%
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$ 0.23
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0.1%
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$ 9.19
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1.1%
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$ (14.46)
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-2.0%
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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) Numbers may not add due to rounding.
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(4) Annualized percentage of the average managed portfolio. Percentages may not add due to rounding.
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