Authorization

CPS Announces Second Quarter 2020 Earnings

Pretax income of $4.6 million



Net income of $3.0 million, or $0.13 per diluted share



New contract purchases of $136 million



Pretax charges of $12.6 million related to potential losses from the pandemic

LAS VEGAS, July 21, 2020 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (a??CPSa?? or the a??Companya??) today announced earnings of $3.0 million, or $0.13 per diluted share, for its second quarter ended June 30, 2020. This compares to net income of $1.8 million, or $0.08 per diluted share, in the second quarter of 2019.Revenues for the second quarter of 2020 were $67.3 million, a decrease of $19.0 million, or 22.0%, compared to $86.3 million for the second quarter of 2019.A  Total operating expenses for the second quarter of 2020 were $62.6 million compared to $83.6 million for the 2019 period for a decrease of $20.9 million, or 25.0%.A  Pretax income for the second quarter of 2020 was $4.6 million compared to pretax income of $2.8 million in the second quarter of 2019, an increase of 67.6%.Results for the second quarter include two specific charges related to estimated potential impact on credit performance resulting from the pandemic.A  The Company recorded a $9.5 million mark down to the carrying value of the portion of the receivables portfolio accounted for at fair value.A  The mark down is reflected as a reduction in revenue for the quarter.A  The Company also recorded a $3.1 million charge to the provision for credit losses for the legacy portfolio accounted for under the Current Expected Credit Loss (CECL) model.A  Without the charges related to the pandemic, revenues, total operating expenses and pretax income for the second quarter of 2020 would have been $76.8 million, $59.5 million and $17.3 million, respectively.For the six months ended June 30, 2020 total revenues were $138.1 million compared to $174.6 million for the six months ended June 30, 2019, a decrease of approximately $36.5 million, or 20.9%.A  Total expenses for the six months ended June 30, 2020 were $130.3 million, a decrease of $38.8 million, or 23.0%, compared to $169.1 million for the six months ended June 30, 2019.A  Pretax income for the six months ended June 30, 2020 was $7.8 million, compared to $5.4 million for the six months ended June 30, 2019.A  Net income for the six months ended June 30, 2020 was $13.8 million compared to $3.5 million for the six months ended June 30, 2019. Results for the six months ended June 30, 2020 include a net tax benefit of $8.8 million related to the revaluation of the Companya??s net operating losses and other tax adjustments. Without this tax benefit, net income and net income per diluted share for the six months ended June 30, 2020 would have been $5.0 million and $0.21 per share, respectively.A During the second quarter of 2020, CPS purchased $135.9 million of new contracts compared to $266.0 million during the first quarter of 2020 and $250.1 million during the second quarter of 2019.A  The Company's receivables totaled $2.326 billion as of June 30, 2020, a decrease from $2.435 billion as of March 31, 2020 and $2.399 billion as of June 30, 2019.
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