Consumer Portfolio Profits Fall 14 Percent

Consumer Portfolio Services Inc. (NASDAQ: CPSS), a specialty finance company with a focus on auto loans, reported that its third-quarter earnings fell nearly 14 percent compared with the year-ago period.

Net income for the third quarter of 2007 was $3.7 million, or 16 cents per diluted share, compared to net income of $4.3 million, or 18 cents per diluted share in Q3 2006. Net income for the third quarter of 2006 did not include a provision for income tax expense.

For the three months ended September 30, 2007 total revenues increased approximately $29 million, or 39 percent, to $102.8 million, compared to $73.7 million a year ago. Total operating expenses this year were $96.4 million, an increase of $27.0 million, or nearly 39 percent, compared with $69.4 million a year ago.

Irvine, Calif.-based Consumer Portfolio reported its total managed portfolio was valued at more than $2.0 billion in the third quarter, compared with nearly $1.5 billion, a rise of more than 39 percent. It bought $340.2 million in contracts from auto dealers in the third quarter compared with $254.4 million a year ago.

Annualized net charge-offs during the first nine months of 2007 were 4.95 percent of the average owned portfolio as compared to 4 percent during the same period in 2006. Delinquencies greater than 30 days (including repossession inventory) were 6.06 percent of the total owned portfolio as of September 30 as compared to 4.97 percent as of September 30, 2006.

The company continued its regular quarterly securitization program with the September sale of $327.5 million of asset backed notes.