Consumer Portfolio Services, Inc. · NASDAQ:CPSS
Consumer Portfolio Services — Investor Presentation (June 2010)
23 slides from Consumer Portfolio Services's investor presentation, Jun 16, 2010
Slide 1: Investor Presentation As of March 31, 2010
Investor Presentation As of March 31, 2010
Slide 2: Company Overview
Company Overview © Specialty finance company © focused on the sub-prime auto market © Established in 1991; IPOin1992 © © Through March 31, 2010, () approximatcly $8.7 billion in contract purchases from auto dealers Trvine, California hcadquartcrs and three strategically located servicing branches in
Slide 3: (1) According to CNW Marketing Research, Inc.
(1) According to CNW Marketing Research, Inc.
Slide 4: Purchase contracts from dealers across the U.S.
m Purchase contracts from dealers across the U.S. m 10 employee marketing reps in the field and 10 in-house m Primarily factory franchised dealers (1) Under the CPS programs for contracts purchased in the first quarter of 2010.
Slide 5: Originations since inception through March 2010
m Since inception through March 2010 the Company has originated $8.7 billion - recently have begun to ramp up after credit crisis of 2008 and 2009
Slide 6: (1) Under the CPS programs for contracts purchased in the first quarter of 2010.
(1) Under the CPS programs for contracts purchased in the first quarter of 2010.
Slide 7: Risk-adjusted pricing across the credit spectrum
m CPS’s risk-adjusted pricing results in program offerings covering a wide band of the credit spectrum (1) Under the CPS programs for contracts purchased in the first quarter of 2010. (2) Contract APR as adjusted for fees charged (or paid) to dealer. Program (1) Avg. Yield (2) Avg. Amount Financed A
Slide 8: (1) Under the CPS programs for contracts purchased in the first quarter of 2010.
(1) Under the CPS programs for contracts purchased in the first quarter of 2010.
Slide 9: Contract Originations and Servicing
Contract Originations m Centralized contract originations at Irvine HQ Maximizes control and efficiencies m Proprietary auto-decisioning system Makes initial credit decision on over 98% of incoming applications Enhances dealer service by shortening response time m Pre-funding verification of employm
Slide 10: Average LTV and PTI ratios have steadily decreased
m Average LTV and Average PTI ratios have steadily decreased
Slide 11: CPS homeowners continue to outperform non-homeowners
m CPS homeowners continue to outperform non-homeowners
Slide 12: Funding capacity and liquidity
m $100 million in funding capacity through two facilities Pursuing additional sources of liquidity m Quarterly “AAA” rated asset-backed securities provided historical long-term matched funding - $6.4 billion in 48 deals from 1994 to 2008 Last deal completed in April 2008 Objective is to re-enter ter
Slide 13: Managed portfolio decline from reduced purchases
m Recent decline is a result of reduced new contract purchases in 2008 and 2009.
Slide 14: Portfolio delinquencies appear to have peaked
m Portfolio delinquencies (31+) look to have peaked (1) Three quarter rolling averages.
Slide 15: Quarterly vintage cumulative net losses
m Average of quarterly vintage cum. net losses as of March 31, 2010 m 2008 vintage in line with 2003 and 2004 vintages
Slide 16: Historical Corporate Debt
Historical Corporate Debt ‘MELT Debt (left axis) mEResidual Interest Debt (left axis) ‘-#Residual and LT Debt to Managed Portfolio (right axis) 160 35.00% 140 30.00% rey 25.00% EL) 20.00% g 8 15.00% = 60 2 an | 10.00% 20 5.00% : , i ; r + 0.00% oO S\ Sh > o S\ ge DAO SPS OF 5) Oe ST Ny AS) ENT ENTE
Slide 17: Recovery Rates Correlate to Manheim Index
m Recovery Rates Correlate to Manheim Index m Steady Improvement since December 2008
Slide 18: Balance sheet summary
($ in millions) March 31, 2010 December 31, 2009 December 31, 2008 December 31, 2007 Assets Cash $ 22.8 $ 12.4 $ 22.1 $ 20.9 Restricted Cash 126.9 128.5 153.5 170.3 Finance receivables, net of allowance 738.8 840.1 1,339.3 1,967.9 Residual interest in securitizations 4.6 4.3 3.6 2.3 Deferred tax ass
Slide 19: Income statement summary
Three Months Ended Years Ended ($ in millions) March 31, 2010 March 31, 2009 December 31, 2009 December 31, 2008 December 31, 2007 Revenues Interest income $ 39.0 $ 61.2 $ 208.2 $ 351.6 $ 370.3 Servicing fees 2.4 1.0 4.6 2.1 1.2 Other income 3.2 3.8 11.1 14.8 23.1 44.6 66.1 223.9 368.4 394.6 Expense
Slide 20: Key performance metrics
(1) Interest income less interest expense and provision for credit losses. (2) Total expenses less provision for credit losses less interest expense, impairment loss on residual asset, and loss on sale of receivables. ($ in millions) Three Months Ended Years Ended March 31, 2010 March 31, 2009 Decem
Slide 21: Investment highlights
m CPS has weathered two down cycles to remain one of the few independent public auto finance companies m Attractive industry fundamentals as larger competitors exit industry m Disciplined approach to credit quality and servicing m Credit performance of 2008 and 2009 vintages in line with 2003 and 20
Slide 22: Risk factors and SEC filings notice
m 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 using CPS's ticker symbol, which is "CPSS."
Slide 23: Forward-looking statements notice
m 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
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