Auto Financier Notches Q3 ProfitTuesday, October 16, 2012
Irvine-based auto financier Consumer Portfolio Services Inc. swung to profit in the third quarter, notching net income of $2.7 million compared with a loss of $4 million a year ago.
Investors sent the stock price up more than 7% during early trading to a market value of about $73.3 million.
Consumer Portfolio Services provides car loans to individuals with limited credit histories, other credit problems or low incomes.
The company saw $47.9 million in revenue in the latest quarter, a 42% increase from the year-ago period.
New contracts purchased in the third quarter totaled $143.1 million, a 76% jump from a year earlier.
“It was our first quarter of organic sequential revenue growth since 2007 and the onset of the financial crisis,” Chief Executive Charles Bradley said.
Loan quality improved in the third quarter, as net charge-offs accounted for 3.35% of the portfolio, compared with 4.13% in the same quarter a year ago. Delinquencies for longer than 30 days made up 4.64% of the portfolio at the end of September, down from 6.54%.
Consumer Portfolio Services had $4.6 million in profit on $136.6 million in sales for the first nine months of the year. The figures compare with net loss of $14.7 million on $97.4 million in sales for the same period last year.