IRVINE, Calif. -

Consumer Portfolio Services navigated more pronounced subprime vehicle financing competition during the fourth quarter en route to record pre-tax profits for the year.

The company reported this week that its Q4 earnings totaled $6.5 million or $0.21 per diluted share. This figures compares to net income of $64.8 million or $2.20 per diluted share in the year-ago quarter. However, CPS pointed out the 2012 period includes an income tax benefit of $60.2 million or $2.04 per diluted share, related to the reversal of a valuation allowance against the company's deferred tax asset net of current period income tax expense.

For the year, CPS generated earnings of $21.0 million or $0.67 per diluted share, compared to earnings of $69.4 million or $2.72 per diluted share for 2012. The company reiterated that last year's figure includes an income tax benefit of $60.2 million or $2.36 per diluted share related to the reversal of a valuation allowance against the company's deferred tax asset net of current period income tax expense.

The company's Q4 revenues came in at $66.6 million, an increase of $16.0 million or 32 percent year-over-year. CPS' total operating expenses rose to $55.1 million, an increase of $9.1 million or 20 percent compared to the fourth quarter of last year.

With those figures in mind, executives computed that their pretax income for the fourth quarter was $11.5 million, a whopping 150-percent increase from the $4.6 million reported in the fourth quarter of 2012.

Looking again at full-year amounts, CPS determined that its total revenues came in at $255.8 million for 2013, climbing approximately $68.6 million or 37 percent. Meanwhile, the company's total expenses for 2013 moved $40.6 million or 23 percent higher to $218.6 million. Those amounts left CPS with pretax income for the year ended at $37.2 million, up from $9.2 million for 2012.

"I think it's safe to say we're very happy with our quarter, we're very happy with the year overall. We manage to accomplish in 2013 probably just about everything we could possibly have wanted to or hoped to accomplish," CPS chairman and chief executive officer Brad Bradley said "In addition to record pre-tax profits, our new contract purchases grew 38 percent year-over-year and our total managed portfolio surpassed $1.2 billion for the first time since 2010. The fourth quarter of 2013 marked our ninth consecutive quarter of improving pre-tax income.

"We also made significant progress on several strategic objectives in 2013 to strengthen our balance sheet," Bradley continued. "First, we amended our revolving credit facilities to include multi-year revolving periods and amortization periods thereafter. In addition, we began the deleveraging process of repaying our residual and corporate debt, which we expect to nearly complete by the end of this year. These moves should enhance our operating and financial stability across a variety of capital markets environments."

As Bradley mentioned, the company's managed receivables totaled $1.231 billion as of Dec. 31, representing an increase from $1.167 billion as of Sept. 30 and $897.6 million at the close of 2012.

CPS climbed to that spot because it purchased $173.4 million of new contracts in Q4, up from $150.8 million during the fourth quarter of 2012 but down from $206.8 million during the third quarter.

"It's finally time where I can say we have been able to see some of the competition out there and I think it came mostly in the fourth quarter," Bradley said. "Generally speaking the fourth quarter is not a time where company grow. Certainly we never do. It's Christmas time and people are using the money for their things.

"Interesting enough we saw lots of the competitors grow or try and grow a lot," he continued. "That put together a bunch of competition for the fourth quarter. I think lot of people are sort of put out some expectations of what they deliver in the fourth quarter since we don't do that or didn't do that for some big growth in the fourth quarter, we weren't sort of caught up in that whirlwind. But in fact we did see the competition in the fourth quarter."

Looking forward, Bradley doesn't think increased competition is going to affect CPS' performance immensely if what he observed in Q4 is any indicator.

"A lot of it is either some of bigger companies that sort of need to make a statement or smaller companies looking for sort of get a toehold in the industry," Bradley said. "Again the fourth quarter is probably not the quarter for people who are trying to do that, so it's little interesting to watch.

"What's sort of interesting now is we are in the growth period, and we in fact are seeing lots of significant growth," Bradley continued. "Lots of competition already, possible competition we might have thought that would slow down a little bit.

"They keep pushing back the filing for tax returns. Last year, it was the middle of January. This year, it was the last of January," he went on to say. "The season moves out just a little bit, but we are pleasantly surprised to see that operations are up 35 percent so we are looking for another big growth quarter coming up even with the competition out there. It will be interesting to see what everyone else is doing as we go forward."