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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3800 Howard Hughes Pkwy, Ste 1400, Las Vegas, NV 89169
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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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CONSUMER PORTFOLIO SERVICES, INC.
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Dated: April 15, 2015
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By: /s/ JEFFREY P. FRITZ
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Jeffrey P. Fritz
Executive 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 $14.7 million
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§
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Net income of $8.3 million, or $0.26 per diluted share
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§
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New contract purchases of $234 million
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§
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Total managed portfolio increases to $1.726 billion from $1.644 billion at December 31, 2014
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Originating Entity
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March 31, 2015
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December 31, 2014
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March 31, 2014
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CPS
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$1,724.5
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$1,641.8
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$1,282.6
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Fireside Bank
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0.7
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1.7
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9.1
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As Third Party Servicer
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0.3
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0.4
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3.5
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Total
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$1,725.5
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$1,643.9
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$1,295.2
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Consumer Portfolio Services, Inc. and Subsidiaries
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Condensed Consolidated Statements of Operations
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(In thousands, except per share data)
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(Unaudited)
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Three months ended
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March 31,
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2015
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2014
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Revenues:
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Interest income
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$ | 82,359 | $ | 64,996 | ||||
Servicing fees
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148 | 513 | ||||||
Other income
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3,482 | 2,637 | ||||||
85,989 | 68,146 | |||||||
Expenses:
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Employee costs
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14,486 | 10,890 | ||||||
General and administrative
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4,836 | 3,603 | ||||||
Interest
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13,173 | 13,381 | ||||||
Provision for credit losses
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33,439 | 23,880 | ||||||
Other expenses
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5,306 | 4,628 | ||||||
71,240 | 56,382 | |||||||
Income before income taxes
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14,749 | 11,764 | ||||||
Income tax expense
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6,416 | 5,059 | ||||||
Net income
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$ | 8,333 | $ | 6,705 | ||||
Earnings per share:
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Basic
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$ | 0.33 | $ | 0.28 | ||||
Diluted
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$ | 0.26 | $ | 0.21 | ||||
Number of shares used in computing earnings
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per share:
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Basic
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25,635 | 24,355 | ||||||
Diluted
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31,991 | 32,011 | ||||||
Condensed Consolidated Balance Sheets
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(In thousands)
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(Unaudited)
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March 31,
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December 31,
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2015 | 2014 | |||||||
Assets:
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Cash and cash equivalents
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$ | 20,202 | $ | 17,859 | ||||
Restricted cash and equivalents
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173,451 | 175,382 | ||||||
Total cash and cash equivalents
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193,653 | 193,241 | ||||||
Finance receivables
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1,683,904 | 1,595,956 | ||||||
Allowance for finance credit losses
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(68,142 | ) | (61,460 | ) | ||||
Finance receivables, net
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1,615,762 | 1,534,496 | ||||||
Finance receivables measured at fair value
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743 | 1,664 | ||||||
Deferred tax assets, net
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40,347 | 42,847 | ||||||
Other assets
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54,948 | 60,810 | ||||||
$ | 1,905,453 | $ | 1,833,058 | |||||
Liabilities and Shareholders' Equity:
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Accounts payable and accrued expenses
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$ | 21,665 | $ | 21,660 | ||||
Warehouse lines of credit
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21,965 | 56,839 | ||||||
Residual interest financing
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12,074 | 12,327 | ||||||
Debt secured by receivables measured at fair value
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-- | 1,250 | ||||||
Securitization trust debt
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1,697,649 | 1,598,496 | ||||||
Subordinated renewable notes
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15,082 | 15,233 | ||||||
1,768,435 | 1,705,805 | |||||||
Shareholders' equity
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137,018 | 127,253 | ||||||
$ | 1,905,453 | $ | 1,833,058 | |||||
Operating and Performance Data ($ in millions)
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At and for the
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Three months ended
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March 31,
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2015
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2014
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Contracts purchased
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$
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233.89
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$
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189.89
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Contracts securitized
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258.33
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174.58
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Total managed portfolio
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$
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1,725.52
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$
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1,295.23
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Average managed portfolio
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1,704.59
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1,274.80
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Allowance for finance credit losses as % of fin. receivables
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4.05
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%
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3.64
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%
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Aggregate allowance as % of fin. receivables (1)
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4.93
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%
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4.85
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%
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Delinquencies
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31+ Days
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5.56
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%
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4.16
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%
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Repossession Inventory
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1.30
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%
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2.18
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%
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Total Delinquencies and Repo. Inventory
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6.86
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%
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6.33
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%
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Annualized net charge-offs as % of average owned portfolio
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6.64
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%
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5.54
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%
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Recovery rates (2)
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43.8
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%
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48.1
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%
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For the
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Three months ended
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March 31,
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2015
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2014
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$(3)
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%(4) |
$(3)
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% (4)
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Interest income
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$ |
82.36
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19.3% |
$ 65.00
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20.4%
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Servicing fees and other income
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3.63
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0.9% |
3.15
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1.0%
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Interest expense
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(13.17)
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-3.1% |
(13.38)
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-4.2%
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Net interest margin
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72.82
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17.1% |
54.77
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17.2%
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Provision for credit losses
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(33.44)
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-7.8% |
(23.88)
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-7.5%
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Risk adjusted margin
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39.38
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9.2% |
30.89
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9.7%
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Core operating expenses
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(24.63)
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-5.8% |
(19.12)
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-6.0%
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Pre-tax income
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$ |
14.75
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3.5% |
$ 11.76
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3.7%
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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) 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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