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CPS Announces Third Quarter 2010 Operating Results

During the third quarter of 2010, CPS purchased $35.3 million of contracts from dealers as compared to $26.7 million during the second quarter of 2010 and $506,000 during the third quarter of 2009. The Company's managed receivables totaled $843.0 million as of September 30, 2010, a decrease of $354.3 million, or 29.6%, from $1,197.3 million as of September 30, 2009, as follows ($ in millions):

  September 30, 2010 September 30, 2009
Owned by Consolidated Subsidiaries* $657.6 $1,049.3
Owned by Non-Consolidated Subsidiaries 95.8 148.0
As Third Party Servicer 89.6 0.0
 Total $843.0 $1,197.3
     
* Before $49.3 million and $73.3 million of allowance for credit losses, deferred acquisition fees and repossessed vehicles for 2010 and 2009, respectively.

Annualized net charge-offs for the third quarter of 2010 were 6.98% of the average owned portfolio as compared to 8.82% in 2009.  Delinquencies greater than 30 days (including repossession inventory) were 8.64% of the total owned portfolio as of September 30, 2010, as compared to 8.83% as of September 30, 2009. The third quarter of 2010 represents the second consecutive quarter that year-over-year portfolio net charge-off levels have improved since the Company's managed portfolio began to decrease in 2008.

"Operational improvements continued in the third quarter with another significant increase in new contract purchases and favorable year-over-year credit performance levels," said Charles E. Bradley, Jr., Chairman and Chief Executive Officer. "In addition, we successfully completed our first term securitization transaction in over two years, our first rated senior subordinate term deal since 1993, at rates competitive with our peers. Getting that deal closed should enhance our fund raising efforts in the near term and set the stage for lower funding costs in 2011."

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