Consumer Portfolio Services, Inc. · NASDAQ:CPSS
Consumer Portfolio Services — Investor Presentation (November 2007)
24 slides from Consumer Portfolio Services's investor presentation, Nov 13, 2007
Slide 1: Consumer Portfolio Services, Inc.
Exhibit 99.1 Consumer Portfolio Services, Inc. Nasdaq: CPSS As of September 30, 2007 1
Slide 2: Safe Harbor Statement
Safe Harbor 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 o
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: Company Overview
Company Overview ü ü Specialty finance company Irvine, California headquarters focused on sub-prime auto and three strategically located market servicing branches in Virginia, Florida and Illinois ü ü Established in 1991; IPO in Approximately 956 employees 1992 ü ü Through September 30, 2007, As of
Slide 5: U.S. Auto Finance Market
U.S. Auto Finance Market ü Major Market Players: 2005 U.S. auto financing = $407 billion(1) ü AmeriCredit § $211 billion new; $196 ü Capital One billion used ü ü Triad Company estimates 20%, or $81 ü billion is “sub-prime” HSBC/Household ü ü Wells Fargo Historically fragmented market withü few long-
Slide 6: Marketing
Marketing as of September 30, 2007 ü ü Contracts with over 9,400 dealers in 47 states ü 120 employee marketing reps in the field and 9 in-house Primarily factory franchise dealers Independents(1) Rental Car Companies 11% 1% Factory Contract Purchases for the nine Franchised months ended September 30
Slide 7: Collateral Description
Collateral Description Securitization 2007-C ü Principal Balances by Primarily late model pre- Model Year owned § vehicles § 17% New § 83% Pre-owned § 69% Domestic 31% Foreign 7
Slide 8: Program Overview
Program Overview CPS’s risk-adjusted pricing results in program offerings covering a wide band of the credit spectrum New contract acquisitions for the nine months ended September 30, 2007 Program Avg Avg Amount % of Yield(1) Avg FICO Purchases (2) Financed Preferred 12.0% $19,503 573 4% Super Alpha
Slide 9: Borrower and Contract Profile
Borrower and Contract Profile An emphasis on stable borrowers with the ability to rehabilitate their credit profile Borrower: Average age 38 years Average time in job 5 years Average time in residence 5 years Average credit history 9 years Average household income $41,496 per year Percentage of home
Slide 10: Operations
Operations Contract Originations Servicing ü ü Centralized contract originations at Geographically dispersed servicing centers Irvine HQ enhance coverage and staffing flexibility and § drive portfolio performance Maximizes control and efficiencies ü ü Early contact on past due accounts; § Proprietar
Slide 11: Historical Origination Volume
Historical Origination Volume Since inception through September 30, 2007 the Company has originated over $8.0 billion Annual Volumes ($ in millions) (1) 11 (1) For the nine months ended September 30, 2007.
Slide 12: Strategies for Future Growth
Strategies for Future Growth ü Increase dealer penetration and expand dealer network § § Expansion of marketing rep network Continue high level of dealer contact with § improved service levels § Expansion of risk-based pricing model § Expansion of the independent dealer program Retention of existing
Slide 13: Portfolio Financing
Portfolio Financing ü Two senior warehouse facilities aggregating $400 million ü $25 million subordinated warehouse facility allows advance rates up to 93% across both senior lines ü Quarterly “AAA” rated asset-backed securities provide long-term matched funding - $6.0 billion in 47 deals since 1994
Slide 14: Historical Corporate Debt
Historical Corporate Debt 14
Slide 15: Total Managed Portfolio
Total Managed Portfolio Composition by Source ($ in millions) $2,053 mm $1,566 mm $1,122 mm $907 mm $744 mm $595 mm Primary Driver of Growth is CPS “Organic” Contract Purchases with over 99% now On Balance Sheet 15
Slide 16: Delinquencies and Repo Inventory
Delinquencies and Repo Inventory (1) Three quarter rolling averages 16 (1) 31 or more days past due.
Slide 17: Static Pool Performance
Static Pool Performance Average ABS Pool Cumulative Net Losses as of September 30, 2007 Consistent Performance and Positive Trends ABS pools from 2003 onward exhibit substantially better performance. 17 Months seasoned
Slide 18: Auction Values
Auction Values Liquidation Values for Repo Sales Have Increased from 2003 (1) 18 (1) Net liquidation proceeds as a percentage of the net balance at the time of sale of the vehicle.
Slide 19: Summary Balance Sheets
Summary Balance Sheets ($ in millions) September 30, 2007 December 31, 2006 December 31, 2005 Assets Cash $ 16.9 $ 14.2 $ 17.8 Restricted Cash 258.1 193.0 157.7 Finance receivables, net of allowance 1,897.4 1,401.4 913.6 Residual interest in securitizations 1.6 13.8 25.2 Deferred tax assets, net 55.
Slide 20: Summary Statements of Operations
Summary Statements of Operations Nine Months Ended Years Ended ($ in millions) September 30, September 30, December 31, December 31, 2007 2006 2006 2005 Revenues Interest income $ 267.4 $ 188.2 $ 263.6 $ 171.8 Servicing fees 0.7 2.4 2.9 6.6 Other income 17.0 8.3 12.4 15.2 285.0 199.0 278.9 193.7 Exp
Slide 21: Selected Financial Data
Selected Financial Data ($ in millions) Nine Months Ended Years Ended September September December 31, December 31, December 31, 30, 2007 30, 2006 2006 2005 2004 Auto contract purchases $1,016.5 $777.7 $1,019.0 $691.3 $447.2 Total managed portfolio $2,053.1 $1,480.7 $1,565.9 $1,121.7 $906.9 Risk-adj
Slide 22: Investment Merits
Investment Merits ü ü CPS has weathered industry Recurring revenue model and turbulence to remain one of the sound quality of earnings few independent public auto ü finance companies ü Operating leverage through Attractive industry fundamentals economies of scale ü ü Disciplined approach to credit O
Slide 23: Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. Nasdaq: CPSS 23
Slide 24: Slide 24
Consumer Portfolio Services — Investor Presentation (November 2007) on 6ix