Consumer Portfolio Services, Inc. Reports 2005 Third Quarter Earnings

Consumer Portfolio Services, Inc. today announced earnings for its third quarter ended September 30, 2005.

Net income for the quarter ended September 30, 2005 was $1.4 million, or $0.06 per diluted share, compared to net loss of $(2.1) million, or $(0.10) per diluted share, for the quarter ended September 30, 2004. For the three months ended September 30, 2005 total revenues increased approximately $14.5 million, or 41.4%, to $49.4 million, compared to $34.9 million for the three months ended September 30, 2004. Total expenses for the three months ended September 30, 2005 were $48.0 million, an increase of $11.0 million, or 29.8%, as compared to $37.0 million for the three months ended September 30, 2004.

Net income for the nine months ended September 30, 2005 was $1.7 million, or $0.07 per diluted share, compared to net loss of $(3.6) million, or $(0.17) per diluted share, for the nine months ended September 30, 2004. For the nine months ended September 30, 2005 total revenues increased approximately $43.9 million, or 46.1%, to $139.0 million, compared to $95.1 million for the nine months ended September 30, 2004. Total expenses for the nine months ended September 30, 2005 were $137.3 million, an increase of $38.5 million, or 39.0%, as compared to $98.8 million for the nine months ended September 30, 2004.

“We are pleased with the financial results for the third quarter as we improved earnings vs. the second quarter,” said Charles E. Bradley, President and Chief Executive Officer of Consumer Portfolio Services. “As we discussed last quarter, we would expect to see continued profitability in the coming periods. In addition, we experienced a significant jump in purchases of new receivables, which are historically flat during the summer months. Asset performance remains strong.

“In another positive note, subsequent to quarter end, JMP Securities initiated research coverage on the Company.”

During the third quarter of 2005, Consumer Portfolio Services purchased $205.0 million of contracts from dealers as compared to $153.9 million during the second quarter of 2005 and $119.3 million during the third quarter 2004. During the first three quarters of 2005, new contract purchases increased approximately 57% vs. the same period in 2004, increasing from $320.1 million in 2004 to $503.1 million in 2005. In addition, the Company continued its regular quarterly securitization program with the September sale of $183.3 million of AAA/Aaa rated asset backed notes. As of September 30, 2005, the Company’s managed receivables totaled $1,055.9 million.

As previously reported, in order to increase transparency of the Company’s financial reports, in the third quarter of 2003 Consumer Portfolio Services began structuring its securitization transactions as secured financings, with receivables and associated debt remaining on the balance sheet, and without recognition of a gain on sale. Accordingly, net earnings are recognized over the life of the receivables as interest income and fee income, less related funding costs and a provision for losses. Such provisions for losses are recorded upon acquisition and during the life of the receivables.

About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is a consumer finance company that specializes in purchasing, selling and servicing retail automobile installment sale contracts originated by automobile dealers located throughout the United States. The Company is currently active in 43 states. Through its purchase of contracts, the Company provides indirect financing to car dealer customers with limited credit histories, low incomes or past credit problems, who are typically unable to obtain financing from traditional sources.