Slide 1: Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc.Nasdaq: CPSS
Slide 2: Cautionary Statement
Cautionary Statement Information included in the following slides is believed to be accurate, but is not necessarily complete. Such information should be reviewed in its appropriate context. The implication that historical trends will continue in the future, or that past performance is indicative of
Slide 3: Reference to Public Reports
Reference to Public Reports Any person considering an investment in securities issued by CPS is urged to review the materials filed by CPS with the U.S. Securities and Exchange Commission ("Commission"). Such materials may be found by inquiring of the Commission's EDGAR search page (http://www.sec.g
Slide 4: Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc.Specialty finance company focused on sub-prime auto marketEstablished in 1991; IPO in 1992 Through June 30, 2005, over $5.7 billion in contract purchases from auto dealers
Slide 5: Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. As of June 30, 2005, managed portfolio of approximately $1.0 billion Irvine, California headquarters and servicing branches in Virginia, Florida, Georgia and Illinois Approximately 700 employees
Slide 6: U.S. Auto Finance Market
U.S. Auto Finance Market2004 U.S. auto financing = $392 billion*$207 billion new; $185 billion used Company estimates 20%, or $78 billion is “sub-prime” Historically fragmented market with few long-term dominant players* According to CNW Marketing Research, Inc.
Slide 7: Major Market Participants
Major Market Participants AmeriCredit Capital One TriadHSBC/Household CitiFinancial
Slide 8: The CPS Landscape as of June 30, 2005
The CPS Landscape as of June 30, 2005Contracts with 6,075 dealers in 46 states61 employee marketing reps in field West coast headquarters and four strategically located servicing branches HQ
Slide 9: The CPS Landscape: Primarily factory franchised dealers
The CPS Landscape Primarily factory franchised dealers87%2%11%Contract Purchases January through June 2005 Factory Franchised Rental Car Companies Independents
Slide 10: The CPS Landscape: risk-adjusted pricing programs
The CPS LandscapeCPS’s risk-adjusted pricing results in program offerings covering a wide band of the credit spectrum New contract acquisitions January through June 2005n/a10,54928.0First Time Buyer51711,51726.4Mercury / Delta52711,87323.2Standard51714,37119.2Alpha52816,91816.8Alpha Plus52318,72315.
Slide 11: The CPS Landscape: Product Mix
The CPS Landscape Product Mix Alpha Alpha Plus Super Alpha Preferred Standard Mercury / Delta FTB Military New contract acquisitions January through June 2005
Slide 12: The CPS Landscape: Primarily late model pre-owned vehicles
The CPS Landscape Primarily late model pre-owned vehicles17% New83% Pre-owned0%5%10%15%20%25%30%20052004200320022001EarlierSecuritization 2005-A Principal Balances by Model Year
Slide 13: The CPS Landscape: Affordable, basic transportation vehicle
13The CPS Landscape Affordable, basic transportation vehicle Average vehicle sales price of $14,797Average monthly payment of $367 for 61 monthsPONT6%NISS6%CHRY5%Others27%FORD19%DODG12%CHEV16%MITS5%TOYO4%New contract acquisitions January through June 2005
Slide 14: The CPS Landscape: obligor profile
The CPS Landscape21%Percentage of homeowners$38,292 per year Average household income5 years Average time in residence5 year Average time in job37 years Average age An emphasis on stable obligors with the ability to rehabilitate their credit profile New contract acquisitions January through June 200
Slide 15: Contract Originations
Contract Originations Centralized contract originations at Irvine HQ Maximizes control and efficiencies proprietary auto-decisioning system Makes initial credit decision on approximately 70% of incoming applications Enhances dealer service by shortening response time Pre-funding verification of empl
Slide 16: Contract Originations: Infrastructure to Support Significant Volumes
Contract Originations Infrastructure to Support Significant Originations Volumes Since inception through June 2005 the Company has originated over $5.7 billion 1602004006008001,0001,200199119921993199419951996199719981999200020012002200320042005Annual Volumes ($ in millions)Annualized 2005 originati
Slide 17: Contract Servicing
Contract Servicing Geographically dispersed servicing centers enhance coverage and staffing flexibility Offices are tied into the central database and paperless collection system Dynamic work queue monitoring and balancing among offices
Slide 18: Contract Servicing
Contract Servicing Early contact on past due accounts; commencing sixth day after due dateWorkloads allocated based on specialization Front end workload supplemented by automated intelligent predictive dialer
Slide 19: Contract Servicing
Contract Servicing Automated paperless servicing system builds dynamic work queues based on the account’s characteristics. Agents are assigned to work queues based on their specialization. Supervisors with appropriate expertise oversee specialized groups.SupervisionFrontEnd30-59 daysSupervisionPredi
Slide 20: Successful Acquisitions
Successful Acquisitions$75 million portfolio acquired Servicing for additional $100 million April 2004$63.2 million Sea West Financial Corp.(Purchase of certain assets only)$150 million portfolio CPS maintains presence in TFC military niche May 2003$23.7 million THE Finance Company$380 million portf
Slide 21: Portfolio Financing
Portfolio Financing$200 million short-term warehouse facility Quarterly “AAA rated asset-backed securities provide long-term matched funding Use of multiple bond insurers enhances liquidity and structural flexibility Sale of subordinated tranches increases liquidity
Slide 22: Portfolio Financing: regular issuer of rated ABS since 1994
0501001502002503003501994-11994-21994-31994-41995-11995-21995-31995-41996-11996-11996-21996-31997-11997-21997-31997-41997-51998-11998-21998-31998-42001-A2002-A2002-B2002-C2003-A2003-B2003-C2003-D2004-A2004-12004-B2004-C2004-D2005-A2005-BOutstanding Balance Original Balance$ in millions Portfolio Fin
Slide 23: Other Financing
Other Financing($ in thousands)Sub. Debt -Renewable Notes Sub. Debt -RISRs Senior Debt -Affiliate of Levine Leichtman “BBB” rated “NIM” transaction Source Shelf registration effective May 2005Wtdrate 7.7%Wtdorigterm 27 months $1,000Publicly issued notes from 199612.5%Maturing 2006$14,000A lender to
Slide 24: Asset Performance: 30 Plus Days Past Due
0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%10.00% Dec 95 Dec 97 Mar 99 Sep 99 Mar 00 Sep 00 Mar 01 Sep 01 Mar 02 Sep 02 Mar 03 Sep 03 Mar 04 Sep 04 Mar 05CPS MFNTFC Asset Performance Receivables and Repo Inventory 30 Plus Days Past Due Three month rolling averages Consistent Performance and P
Slide 25: Asset Performance: Average Annual Net Credit Losses
250.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%1995199619971998199920002001200220032004CPSMFNTFCAsset Performance Average Annual Net Credit Losses Consistent Performance and Positive Trends MFN recoveries now exceed incremental lossesThroughQ2 2005
Slide 26: Asset Performance: ABS Pool Cumulative Net Credit Losses
260.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%123456789101112131415161718192021222324199719982001200220032004Asset Performance Average ABS Pool Cumulative Net Credit Losses as of June 30, 2005Consistent Performance and Positive Trends ABS pools from 2003 onward exhibit substantially better performanc
Slide 27: Summary Balance Sheets
Summary Balance Sheets($ in thousands)$ 766,59969,920696,67974,829542,81522,20434,279$ 22,552$ 766,59926,49950,430550,191125,113$ 14,366December 31, 2004410,310843,071102,46575,094Other debt Liabilities$ 492,470$ 913,44133,70945,315Warehouse lines of credit$ 29,018 $ 18,611 Accounts payable and othe
Slide 28: Summary Statements of Operations
Summary Statements of Operations($ in thousands)4,05211,75000Impairment on residual$ 306030689,30427,53622,33219,28520,15189,6108,8564,06076,694$ 0June 30,2005Six Months Ended$ 10,421$ 0$ 0Net gain on sale of contractsYear Ended$ (15,888)0(15,888)148,58032,57432,14730,93938,173132,69214,39412,480105
Slide 29: Investment Merits
Investment Merits Market participant since 1991; CPS has weathered industry turbulence to remain one of the few independent public auto finance companies Disciplined approach to credit quality and servicing Demonstrated growth in new contract acquisitions and total managed portfolio Access to capita
Slide 30: Investment Merits
Investment Merits Improving asset performance Portfolio accounting has gained traction -June 2005 quarter profitable for the first time since June 2003 quarter Opportunistic, successful acquisitions Stable senior management -President, Senior Vice Presidents and Vice Presidents average 11 years of s
Slide 31: Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc.Nasdaq: CPSS