CONSUMER PORTFOLIO SERVICES, INC.
|
||
(Exact Name of Registrant as Specified in Charter)
|
CALIFORNIA
|
1-11416
|
33-0459135
|
||||
(State or Other Jurisdiction
of Incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
3800 Howard hughes Parkway, Las Vegas, NV 89169
|
||
(Address of Principal Executive Offices) (Zip Code)
|
Not Applicable
|
||
(Former name or former address, if changed since last report)
|
CONSUMER PORTFOLIO SERVICES, INC.
|
||
Dated: July 22, 2014
|
By: /s/ JEFFREY P. FRITZ
|
|
Jeffrey P. Fritz
Executive Vice President and Chief Financial Officer
Signing on behalf of the registrant
|
NEWS RELEASE
|
§
|
Pretax income of $12.3 million
|
§
|
Net income of $7.0 million, or $0.22 per diluted share
|
§
|
New contract purchases of $211 million
|
§
|
Total managed portfolio increases to $1.374 billion from $1.295 billion at March 31, 2014
|
§
|
Second quarter ABS earns triple “A” rating.
|
Originating Entity
|
June 30, 2014
|
March 31, 2014
|
June 30, 2013
|
CPS
|
$1,366.6
|
$1,282.6
|
$1,030.5
|
Fireside Bank
|
5.7
|
9.1
|
31.1
|
As Third Party Servicer
|
1.3
|
3.5
|
5.8
|
Total
|
$1,373.6
|
$1,295.2
|
$1,067.4
|
Consumer Portfolio Services, Inc. and Subsidiaries
|
||||||||||||||||
Condensed Consolidated Statements of Operations
|
||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Revenues:
|
||||||||||||||||
Interest income
|
$ |
68,221
|
$ |
55,797
|
$ |
133,217
|
$ |
106,964
|
||||||||
Servicing fees
|
367
|
876
|
880
|
1,784
|
||||||||||||
Other income
|
3,006
|
2,862
|
5,643
|
5,380
|
||||||||||||
Gain on cancellation of debt
|
-
|
10,947
|
-
|
10,947
|
||||||||||||
71,594
|
70,482
|
139,740
|
125,075
|
|||||||||||||
Expenses:
|
||||||||||||||||
Employee costs
|
11,774
|
11,527
|
22,664
|
20,476
|
||||||||||||
General and administrative
|
5,075
|
4,518
|
8,678
|
8,272
|
||||||||||||
Interest
|
11,942
|
14,601
|
25,323
|
30,947
|
||||||||||||
Provision for credit losses
|
25,627
|
17,371
|
49,508
|
32,519
|
||||||||||||
Provision for contingent liabilities
|
-
|
9,650
|
-
|
9,650
|
||||||||||||
Other expenses
|
4,847
|
4,269
|
9,474
|
8,137
|
||||||||||||
59,265
|
61,936
|
115,647
|
110,001
|
|||||||||||||
Income before income taxes
|
12,329
|
8,546
|
24,093
|
15,074
|
||||||||||||
Income tax expense
|
5,303
|
3,721
|
10,362
|
6,464
|
||||||||||||
Net income
|
$ |
7,026
|
$ |
4,825
|
$ |
13,731
|
$ |
8,610
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ |
0.28
|
$ |
0.23
|
$ |
0.56
|
$ |
0.42
|
||||||||
Diluted
|
$ |
0.22
|
$ |
0.15
|
$ |
0.43
|
$ |
0.27
|
||||||||
Number of shares used in computing earnings
|
||||||||||||||||
per share:
|
||||||||||||||||
Basic
|
25,029
|
20,989
|
24,694
|
20,534
|
||||||||||||
Diluted
|
32,002
|
31,788
|
32,009
|
31,709
|
||||||||||||
Condensed Consolidated Balance Sheets
|
||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
June 30,
|
December 31,
|
|||||||||||||||
2014
|
|
2013
|
||||||||||||||
Assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ |
14,426
|
$ |
22,112
|
||||||||||||
Restricted cash and equivalents
|
154,902
|
132,284
|
||||||||||||||
Total cash and cash equivalents
|
169,328
|
154,396
|
||||||||||||||
Finance receivables
|
1,312,745
|
1,155,063
|
||||||||||||||
Allowance for finance credit losses
|
(53,326)
|
(39,626)
|
||||||||||||||
Finance receivables, net
|
1,259,419
|
1,115,437
|
||||||||||||||
Finance receivables measured at fair value
|
5,686
|
14,476
|
||||||||||||||
Residual interest in securitizations
|
260
|
854
|
||||||||||||||
Deferred tax assets, net
|
51,550
|
59,215
|
||||||||||||||
Other assets
|
54,831
|
51,988
|
||||||||||||||
$ |
1,541,074
|
$ |
1,396,366
|
|||||||||||||
Liabilities and Shareholders' Equity:
|
||||||||||||||||
Accounts payable and accrued expenses
|
$ |
24,252
|
$ |
24,839
|
||||||||||||
Warehouse lines of credit
|
41,290
|
9,452
|
||||||||||||||
Residual interest financing
|
14,079
|
19,096
|
||||||||||||||
Debt secured by receivables measured at fair value
|
5,392
|
13,117
|
||||||||||||||
Securitization trust debt
|
1,326,319
|
1,177,559
|
||||||||||||||
Senior secured debt, related party
|
--
|
38,559
|
||||||||||||||
Subordinated renewable notes
|
18,038
|
19,142
|
||||||||||||||
1,429,370
|
1,301,764
|
|||||||||||||||
Shareholders' equity
|
111,704
|
94,602
|
||||||||||||||
$ |
1,541,074
|
$ 1,396,366
|
||||||||||||||
Operating and Performance Data ($ in millions)
|
||||||||||||||||
At and for the
|
At and for the
|
|||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Contracts purchased
|
$ |
211.38
|
$ |
203.78
|
$ |
401.27
|
$ |
383.90
|
||||||||
Contracts securitized
|
200.21
|
209.64
|
374.80
|
370.90
|
||||||||||||
Total managed portfolio
|
$ |
1,373.58
|
$ |
1,067.42
|
$ |
1,373.58
|
$ |
1,067.42
|
||||||||
Average managed portfolio
|
1,343.46
|
1,034.57
|
1,309.13
|
989.31
|
||||||||||||
Allowance for finance credit losses as % of fin. receivables
|
4.06%
|
3.30%
|
||||||||||||||
Aggregate allowance as % of fin. receivables (1)
|
5.19%
|
4.02%
|
||||||||||||||
Delinquencies
|
||||||||||||||||
31+ Days
|
4.10%
|
3.82%
|
||||||||||||||
Repossession Inventory
|
2.11%
|
1.34%
|
||||||||||||||
Total Delinquencies and Repo. Inventory
|
6.21%
|
5.16%
|
||||||||||||||
Annualized net charge-offs as % of average owned portfolio
|
4.98%
|
4.03%
|
5.25%
|
4.12%
|
||||||||||||
Recovery rates (2)
|
49.2%
|
48.6%
|
48.6%
|
48.8%
|
||||||||||||
For the
|
For the
|
|||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
$(3)
|
% (4)
|
$ (3)
|
% (4)
|
$ (3)
|
% (4)
|
$ (3)
|
% (4)
|
|||||||||
Interest income
|
$ |
68.22
|
20.3%
|
$ 55.80
|
21.6%
|
$ 133.22
|
20.4%
|
$ 106.96
|
21.6%
|
|||||||
Servicing fees and other income
|
3.37
|
1.0%
|
3.74
|
1.4%
|
6.52
|
1.0%
|
7.16
|
1.4%
|
||||||||
Interest expense
|
(11.94)
|
-3.6%
|
(14.60)
|
-5.6%
|
(25.32)
|
-3.9%
|
(30.95)
|
-6.3%
|
||||||||
Net interest margin
|
59.65
|
17.8%
|
44.93
|
17.4%
|
114.42
|
17.5%
|
83.18
|
16.8%
|
||||||||
Provision for credit losses
|
(25.63)
|
-7.6%
|
(17.37)
|
-6.7%
|
(49.51)
|
-7.6%
|
(32.52)
|
-6.6%
|
||||||||
Risk adjusted margin
|
34.03
|
10.1%
|
27.56
|
10.7%
|
64.91
|
9.9%
|
50.66
|
10.2%
|
||||||||
Core operating expenses
|
(21.70)
|
-6.5%
|
(20.31)
|
-7.9%
|
(40.82)
|
-6.2%
|
(36.89)
|
-7.5%
|
||||||||
Provision for contingent liabilities
|
-
|
0.0%
|
(9.65)
|
-3.7%
|
-
|
0.0%
|
(9.65)
|
-2.0%
|
||||||||
Gain on cancellation of debt
|
-
|
0.0%
|
10.95
|
4.2%
|
-
|
0.0%
|
10.95
|
2.2%
|
||||||||
Pre-tax income
|
$ |
12.33
|
3.7%
|
$ 8.55
|
3.3%
|
$ 24.09
|
3.7%
|
$ 15.07
|
3.0%
|
|||||||
(1) Includes allowance for finance credit losses and allowance for repossession inventory.
|
||||||||||||||||
(2) Wholesale auction liquidation amounts (net of expenses) for CPS portfolio as a percentage of the account balance at the time of sale.
|
||||||||||||||||
(3) Numbers may not add due to rounding.
|
||||||||||||||||
(4) Annualized percentage of the average managed portfolio. Percentages may not add due to rounding.
|
||||||||||||||||