CPS Announces First Quarter 2017 Earnings
• Pretax income of $7.8 million
-- Net income of $4.5 million, or $0.16 per diluted share
-- New contract purchases of $230 million
• Total managed portfolio increases to $2.32 billion from $2.31 billion at December 31, 2016
Consumer Portfolio Services, Inc. (CPSS) ("CPS" or the "Company") today announced earnings of $4.5 million, or $0.16 per diluted share, for its first quarter ended March 31, 2017. This compares to net income of $7.2 million, or $0.24 per diluted share, in the first quarter of 2016.
Revenues for the first quarter of 2017 were $107.6 million, an increase of $6.9 million, or 6.9%, compared to $100.6 million for the first quarter of 2016. Total operating expenses for the first quarter of 2017 were $99.8 million, an increase of $11.4 million, or 12.9%, compared to $88.4 million for the 2016 period. Pretax income for the first quarter of 2017 was $7.8 million compared to pretax income of $12.2 million in the first quarter of 2016, a decrease of 36.3%.
During the first quarter of 2017, CPS purchased $229.6 million of new contracts compared to $215.3 million during the fourth quarter of 2016 and $312.3 million during the first quarter of 2016. The Companys managed receivables totaled $2.323 billion as of March 31, 2017, an increase from $2.308 billion as of December 31, 2016 and $2.142 billion as of March 31, 2016.
Annualized net charge-offs for the first quarter of 2017 were 7.91% of the average owned portfolio as compared to 7.57% for the first quarter of 2016. Delinquencies greater than 30 days (including repossession inventory) were 9.74% of the total owned portfolio as of March 31, 2017, as compared to 8.97% as of March 31, 2016.
"We are pleased with our first quarter results," said Charles E. Bradley, Jr., Chairman and Chief Executive Officer. "Despite the challenges facing our industry, such as higher delinquencies and lower recoveries at the wholesale auctions, we marked our 23 consecutive quarter of positive earnings."
CPS announced that it will hold a conference call on Thursday, April 20, 2017, at 1:00 p.m. ET to discuss its quarterly operating results. Those wishing to participate by telephone may dial-in at 877 312-5502 or 253 237-1131 approximately 10 minutes prior to the scheduled time. The conference identification number is 8553937.
A replay of the conference call will be available between April 20, 2017 and April 27, 2017, beginning two hours after conclusion of the call, by dialing 855 859-2056 or 404 537-3406 for international participants, with conference identification number 8553937. A broadcast of the conference call will also be available live and for 90 days after the call via the Companys web site at www.consumerportfolio.com.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems, low incomes or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
Forward-looking statements in this news release include the Companys recorded revenue, expense and provision for credit losses, because these items are dependent on the Companys estimates of incurred losses. The accuracy of such estimates may be adversely affected by various factors, which include (in addition to risks relating to the economy generally) the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Companys ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Companys rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Companys realization upon repossessed vehicles; and economic conditions in geographic areas in which the Companys business is concentrated. All of such factors also may affect the Companys future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to the provision for credit losses may affect future performance.
Consumer Portfolio Services, Inc. and Subsidiaries
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Investor Relations Contact
Jeffrey P. Fritz, Chief Financial Officer
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