still showing good earnings, now can they stay in business?
Consumer Portfolio Services, Inc. Reports 1998 Third Quarter Results
Quarterly Earnings Up 30%
IRVINE, Calif.--(BUSINESS WIRE)--Oct. 21, 1998--Consumer Portfolio
Services, Inc. (Nasdaq: CPSS - news) Thursday announced financial
results for its third quarter, ended September 30, 1998.
For the third quarter, total revenues increased 76% to $37.4 million,
compared with $21.3 million for the same period in the prior year. The
Company's net earnings increased 29.5% to $6.2 million, or $.38 per
share, on 16.9 million diluted shares outstanding, compared with $4.8
million, or $.30 per share, on 16.5 million diluted shares outstanding
for the same period in the prior year.
For the nine months ended September 30, 1998, total revenues increased
83.2% to $102.0 million, compared with $55.7 million for the same period
in the prior year. Net earnings increased 33.1% to $17.8 million, or
$1.08 per share on 16.7 million diluted shares, compared with $13.3
million, or $.85 per share on 15.9 million diluted shares for the same
period in the prior year.
Purchases of contracts from automobile dealers increased 74.5% in the
third quarter to $303.0 million, compared with $173.6 million for the
same period in 1997. Contracts sold during the third quarter in the form
of asset-backed securities increased 60.2% to $240.3 million compared
with $150.0 million for the same period in the prior year. The aggregate
outstanding balance of contracts serviced by the Company at September
30, 1998, increased by 87.9% to $1,489.4 million, compared with $792.7
million at September 30, 1997.
Balances of accounts past due over 30 days represented 4.7% of the
servicing portfolio at September 30, 1998, compared with 6.1% at
September 30, 1997. The annualized net charge off rate for the three
month period ended September 30, 1998, was 6.5%, compared to 6.2% for
the three month period ended September 30, 1997. The Company's
non-discounted allowance for credit losses equaled $131.7 million, or
11.2% of the contracts sold that it serviced as of September 30, 1998.
The on-balance sheet allowance for credit losses was $14.1 million, or
4.6% of contracts held for sale at September 30, 1998.
''We are very pleased with the Company's performance for our fiscal
third quarter of 1998,'' said Charles E. Bradley, Jr., President and
Chief Executive Officer. ''The credit quality of our servicing portfolio
continues to improve. Annualized net charge offs were 6.5%,
approximately equal to second quarter 1998, and in line with our
expectations. Delinquent accounts represented only 4.7% of the servicing
portfolio, continuing a trend of lower delinquencies in 1998 compared to
1997. As of September 30, 1998, our inventory of repossessed vehicles
declined to 1.9% of the servicing portfolio, compared to 2.2% for June
1998. |
