Consumer Portfolio Services, Inc. · NASDAQ:CPSS
Consumer Portfolio Services — Investor Presentation (May 2008)
23 slides from Consumer Portfolio Services's investor presentation, May 19, 2008
Slide 1: Investor Presentation As of March 31, 2008
Investor Presentation As of March 31, 2008
Slide 2: Specialty finance company focused on sub-prime auto
Specialty finance company Irvine, California headquarters and focused on the sub-prime auto market three strategically located servicing branches in Virginia, Florida and Illinois Established in 1991; IPO in 1992Approximately 933 employees Through March 31, 2008, approximately $8.5 billion in contra
Slide 3: U.S. Auto Finance Market
U.S. Auto Finance Market 2006 U.S. auto financing = $405 billion(1) $216 billion new; $189 billion used Company estimates 20%, or $81 billion is“subprime” Historically fragmented market Few dominant longterm players Significant barriers to entry Major Other Market Players AmeriCredit CapitalOne Tria
Slide 4: Contract purchases from dealers
Purchase contracts from dealers in 47 states80employeemarketingrepsinthefieldand11in ‐ house80 employee marketing reps in the field and 11 inhousePrimarily factory franchised dealersContract Purchases for the three months ended March 20081%18%Factory FranchisedRental Car 81%CompaniesIndependents(1)I
Slide 5: Contract originations since inception
Since inception through December 31, 2007 the Company has originated over $8.4 billion
Slide 6: Securitization 2008-A principal balances by model year
Securitization 2008-A (1)Principal Balances by Model Year Primarily late model pre-owned vehicles •15% New•85% Pre-owned•71% Domestic29%Fi•29% Foreign 6(1)2008-A closed April 10, 2008.
Slide 7: Risk-adjusted pricing across the credit spectrum
CPS’s risk-adjusted pricing results in program offerings covering a wide band of the credit spectrum Program (1)Avg. Yield (2)Avg. Amount Financed Avg. FICO% of Purchases Preferred 12.0% $18,682 573 5% Super Alpha 14.8% $18,863 524 11% AlphaPlus 16.6% $17,023 530 17% p, Alpha 18.9% $15,470 519 43% S
Slide 8: Borrower and contract profile
Borrower:•Average age 38 years•Average time in job 6 years•Average time in residence 0; 5 years•Average credit history 10 years•Average household income $41,652 per year•Percentage of homeowners 16%•Average amount financed &# 160; $15,032Contract:•Average monthly payment $374•Average term 62 month
Slide 9: Contract originations and servicing
Contract OriginationsServicingCentralized contract originations at Irvine HQMaximizes control and efficienciesGeographically dispersed servicing centers enhance coverage and staffing flexibility and drive portfolio performanceProprietary auto ‐ decisioning system Makes initial credit decision on il9
Slide 10: Average LTV and PTI ratios have steadily decreased
Average LTV and Average PTI ratios have steadily decreased 118%Loan-to-Value Ratio Payment-to-Income Ratio15% 114%116% 13%14% PTI
Slide 11: Homeowner performance analysis by vintage
2003 Vintage -Home Owner 2004 Vintage - -Home Owner 2005 Vintage -Home Owner 2006 Vintage -Home Owner 2003 Vintage - -Non-Homeowner 2004 Vintage -Non-Homeowner 2005 Vintage -Non-Homeowner 2006 Vintage -Non-Homeowner Homeowner Performance Analysis14.00% 8.00%10.00%12.00% 4.00%6.00% 200%2.00% 0.00%
Slide 12: Funding and liquidity
Two senior warehouse facilities aggregating $400 million Quarterly “AAA” rated asset-backed securities provide long-term matched funding -$6.4 billion in 48 deals since 1994 (including 2008-A that closed April 10, 2008)(gp) Sale of subordinated tranches increases liquidity $120 million residual cred
Slide 13: Total managed portfolio
Total Managed Portfolio Primary Driver of Growth is CPS “Organic” Contract Purchases with over 99% now On Balance Sheet2,5002,126.22,092.1 2,5001,5002,000595.2743.5906.91,121.7Millions)5001,000($ in Primary Driver of Growth is CPS “Organic” Contract Purchases with over 99% now On Balance Sheet2,5001
Slide 14: Delinquencies and repo inventory
Three Quarter Rolling Average (31 or more days past due)800%9.00%10.00%CPS Portfolio5.00%6.00%7.00%8.00%1.00%2.00%3.00%4.00%0.00%1.00% Delinquencies and Repo Inventory
Slide 15: Average ABS pool cumulative net losses
Average ABS Pool Cumulative Net Losses as of March 31, 2008ABS pools from 2003 onward exhibit substantially better performance1400%16.00%18.00%1997199810.00%12.00%14.00%2001200220034.00%6.00%8.00%20032004200520060.00%2.00%20062007
Slide 16: Historical corporate debt
LT Debt (left axis) Residual Interest Debt (left axis) Residual and LT Debt to Managed Portfolio (right axis) 30.00%35.00% 15.00%20.00%25.00% 12015.00%20.00%25.00%6080 100 120 Millions5.00%10.00%20 40 60 $ in M 0.00%-Historical Corporate Debt
Slide 17: Recovery rates correlate to Manheim Index
Recovery Rates Correlate to Manheim Index ManheimUsedVehicleValueIndex(QuarterlyAvg)(1)50.00%120.00Manheim IndexRecovery RateManheim Used Vehicle Value Index (Quarterly Avg.) (1)CPS Recovery Rate Quarterly Avg. (2) 115.00 11000110.00 100.00105.00 Autcion Values
Slide 18: Summary Balance Sheets
Summary Balance Sheets ($ in millions) March 31,2008 December 31,2007 December 31,2006 December 31,2005 2008 2007 2006 2005 Assets Cash$ 18.5$ 20.9$ 14.2$ 17.8Restricted Cash176.6170.3193.0157.7 Finance receivables, net of allowance1,931.91,967.91,401.4913.6Residual interest in securitizations1.92.3
Slide 19: Summary income statements
($ in millions)March31, 2008 March 31,2007 ($ in millions)March31, 2008March 31,2007December 31,2007December 31,2006December 31,2005 Interest income$ 99.4$ 80.5$ 370.3$ 263.6$ 171.8Servicing fees0.40.31.22.96.6Other income3.55.723.112.415.2 Employee costs13.510.846.738.540.4 Interest39.029.5139.293.
Slide 20: Summary operating results
Three MonthsEnded Years Ended ($ in millions)March31, 2008 March 31,2007 ($ in millions)March31, 2008March 31,2007December 31,2007December 31,2006December 31,2005 Revenues Interest income$ 99.4$ 80.5$ 370.3$ 263.6$ 171.8Servicing fees0.40.31.22.96.6Other income3.55.723.112.415.2 103.386.5394.6278.91
Slide 21: CPS has weathered industry turbulence
CPS has weathered industry turbulencetoremainoneoftheRecurring revenue model and soundqualityofearningsturbulence to remain one of the few independent public auto finance companiessound quality of earnings Attractive industry fundamentalsDisciplined approach to credit Operating leverage through econ
Slide 22: Reference to Public Reports
AnypersonconsideringaninvestmentinsecuritiesissuedbyCPSisurgedtoreviewthematerialsfiledbyCPSwiththeU.S.SecuritiesandExchangeCommissionyg("Commission").SuchmaterialsmaybefoundbyinquiringoftheCommission‘sEDGARsearchpage(http://www.sec.gov/edgar/searchedgar/companysearch.html)usingCPS'stickersymbol,whi
Slide 23: Forward-looking statements disclaimer
Information included in the preceding 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 future results, is di
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