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<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------
FORM 11-K
(Mark One)
[x] Annual Report pursuant to Section 15(d) of the Securities Exchange of 1934
(No Fee Required)
For the fiscal year ended December 31, 1997
OR
[ ] Transition Report pursuant to Section 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]
For the transition period from ______ to_______
Commission File Number 1-14116
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Consumer Portfolio Services, Inc. 401(k) Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Consumer Portfolio Services, Inc.
2 Ada
Irvine, CA 92618
================================================================================
<PAGE>
REQUIRED INFORMATION
I. Financial Statements.
Financial statements and schedules prepared in accordance with the
financial reporting requirements of the Employee Retirement Income Security Act
of 1974, together with independent auditors' report thereon.
II. Exhibits:
Consent of Independent Auditors.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this annual
report to be signed on its behalf by the undersigned, hereunto duly authorized.
Consumer Portfolio Services, Inc. 401(k) Plan
By: Consumer Portfolio Services, Inc.
Date: June 29, 1998 By: /s/ Doris F. Warren
------------------------- ------------------------------------------
Doris F. Warren
Vice President - Human Resources
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Financial Statements and Supplemental Schedules
December 31, 1997 and 1996
(With Independent Auditors' Report Thereon)
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Index to Financial Statements and Supplemental Schedules
--------------------------------------------------------
Page
----
Independent Auditors' Report 1
Statements of Net Assets Available for Plan Benefits -
December 31, 1997 and 1996 2
Statements of Changes in Net Assets Available for Plan Benefits -
Years ended December 31, 1997 and 1996 3
Notes to Financial Statements 4
Schedule
--------
Item 27a - Schedule of Assets Held for Investment Purposes -
December 31, 1997 1
Item 27d - Schedule of Reportable Transactions - Year ended
December 31, 1997 2
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Administrator
Consumer Portfolio Services, Inc. 401(k) Plan:
We have audited the accompanying statements of net assets available for Plan
benefits of the Consumer Portfolio Services, Inc. 401(k) Plan (the Plan) as of
December 31, 1997 and 1996 and the related statements of changes in net assets
available for Plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for Plan benefits of the Plan as
of December 31, 1997 and 1996 and the changes in net assets available for Plan
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
for investment purposes and schedule of reportable transactions are presented
for the purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ KPMG Peat Marwick
Orange County, California
June 24, 1998
1
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1997 and 1996
<TABLE>
<CAPTION>
ASSETS 1997 1996
-------------------- --------------------
<S> <C> <C>
Investments, at fair value:
Money market fund $ 147,972 --
Guaranteed investment contract 126,085 71,176
Pooled separate accounts 858,206 496,948
Consumer Portfolio Services, Inc. common stock 260,664 170,662
Participant loans 31,475 1,503
----------- ----------
1,424,402 740,289
Receivables -- employees' individual rollover 5,088 12,290
Cash -- 32
----------- ----------
Net assets available for Plan benefits $ 1,429,490 752,611
=========== ==========
See accompanying notes to financial statements.
</TABLE>
2
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
----------- ----------
<S> <C> <C>
Additions to net assets attributed to:
Interest $ 7,041 3,097
Net appreciation in fair value of investments 76,896 37,831
----------- ----------
83,937 40,928
Contributions:
Employer 111,070 63,853
Employees 612,906 321,300
Employees' individual rollover 23,487 33,567
----------- ----------
Total additions 831,400 459,648
Deductions from net assets attributed to -- benefits paid to
participants 154,521 28,685
----------- ----------
Net increase 676,879 430,963
Net assets available for Plan benefits:
Beginning of year 752,611 321,648
----------- ----------
End of year $ 1,429,490 752,611
=========== ==========
See accompanying notes to financial statements.
</TABLE>
3
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements
December 31, 1997 and 1996
(1) DESCRIPTION OF THE PLAN
GENERAL
The Consumer Portfolio Services, Inc. (the Plan Sponsor) 401(k) Plan (the
Plan) was established as a profit sharing plan with a cash or deferred
arrangement on January 1, 1994. The Plan was restated as of January 1, 1996
to permit investment in the Plan Sponsor's common stock without regard to
Section 407(a) of ERISA. The following description provides only general
information. Participants should refer to the Plan agreement for a more
complete description of the Plan's provisions.
The Plan is a defined contribution plan which provides retirement benefits
for eligible employees of the Plan Sponsor. It is subject to the provisions
of the Employee Retirement Income Security Act of 1974 (ERISA).
ADMINISTRATION OF THE PLAN
The Plan is administered by the Human Resources Department (the Plan
Administrator) of the Plan Sponsor. The Plan Administrator consults with
the Board of Directors and other key management of the Plan Sponsor when
managing the operations and the administration of the Plan. The assets of
the Plan are held in a nondiscretionary trust by Charles Schwab Trust
Company (Trustee) and Aetna Life Insurance and Annuity Company (Insurance
Company) and are administered under an agreement which requires that the
Trustee and Insurance Company hold, administer and distribute the funds of
the Plan in accordance with the text of the Plan and the instructions of
the Plan Administrator or its designees.
CONTRIBUTIONS
All employees of the Plan Sponsor are eligible to participate in the Plan
after they have completed 90 days of service. Each year participants may
contribute up to 15% of their compensation, as defined in the Plan.
Participants may roll over into the Plan amounts representing distributions
from other qualified plans.
Each quarter the Plan Sponsor makes a matching contribution equal to 40% of
the participant's pretax contributions not to exceed $500 for the Plan
year. Matching contributions shall be made in the form of the Plan
Sponsor's common stock.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's
contributions, allocations of the Plan Sponsor's matching contributions and
the Plan's earnings and losses. Allocations are based on participant
earnings or account balances, as defined. Forfeitures are reallocated to
other Plan participants who contributed to the Plan in the Plan year of
allocation. Reallocations shall be made on a pro-rata basis, based on each
participant's pretax contributions for the Plan year. For the year ended
December 31, 1997 and 1996, participant forfeitures totaled $27,486 and
$6,907, respectively.
4
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
VESTING
Participants are immediately vested in their contributions plus actual
earnings thereon. Vesting in the Plan Sponsor's matching contributions plus
actual earnings thereon is based on years of continuous service. A
participant vests at the rate of 20% after two years of credited service and
20% each year thereafter until 100% is reached after six years of credited
service.
INVESTMENT OPTIONS
Contributions may be invested at the participant's direction into the
following options:
Stock Fund -- The fund provides Plan participant's with an opportunity to
invest in Consumer Portfolio Services, Inc. common stock.
Aetna Income Shares -- Seeks to maximize total return over the long-term by
investing primarily in long-term debt securities.
Aetna Fixed Account -- Guarantees a minimum rate of interest.
Aetna Variable Fund -- Seeks to maximize long-term total return by investing
in a portfolio of common stocks and securities convertible to common stock.
Aetna Investment Advisers Fund -- Seeks to maximize investment return
consistent with reasonable safety of principal by investing in a combination
of asset classes.
Aetna Variable Encore Fund -- Seeks a high current return, consistent with
the preservation of capital and liquidity by investing in high-quality money
market instruments.
Portfolio Partners MFS Emerging Equities Portfolio, formerly Alger American
Small Capitalization Portfolio -- Seeks long-term capital appreciation by
investing in companies with market capitalization.
Fidelity VIP Equity-Income Portfolio -- Seeks reasonable income by investing
primarily in income-producing equity securities.
Fidelity VIP Growth Portfolio -- Seeks capital appreciation by investing
primarily in common stock.
Fidelity VIP Overseas Portfolio -- Seeks long-term growth of capital
primarily through investments in foreign securities.
Portfolio Partners Scudder International Growth Portfolio, formerly Scudder
VLIF International Portfolio -- Seeks long-term growth of capital, primarily
through diversified holdings of marketable foreign equity investments.
Portfolio Partners MFS Research Growth Portfolio, formerly TCI Growth Fund --
Seeks capital growth over time by investing primarily in common stock
considered by management to have better-than-average prospects for
appreciation.
5
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
PARTICIPANTS LOANS
Participants may borrow from their fund accounts. Loan transactions are
treated as a transfer to (from) the investment funds. The loans are secured
by the balance in the participant's account and bear interest at a rate
commensurate with local prevailing rates as determined by the Plan
Administrator. Loans are limited to the lesser of $50,000 or 50% of the
participants vested account balance. Principal and interest are paid ratably
through payroll deductions.
PAYMENTS OF BENEFITS
Upon termination of service, a participant may elect to receive either a
single sum payment in cash equal to the value of the vested interest in his
or her account, or a series of substantially equal annual or more frequent
installments over a period not to exceed the member's life expectancy.
PLAN TERMINATION
Although they have not expressed any intent to do so, the Plan Sponsor has
the right under the Plan to discontinue contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100% vested in their accounts.
(2) SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan have been prepared on the accrual basis
of accounting.
INVESTMENTS
Publicly traded securities are carried at fair value based on the published
market quotations. The pooled separate account reflects amounts which have
been deposited with Aetna Life Insurance and Annuity Company for which the
carrying value of the investments are adjusted to market value based upon
quoted prices determined by Aetna Life Insurance and Annuity Company at the
end of each year, and the investment return is reflected in the ending
balance of the investment. The guaranteed investment contract is valued at
fair value adjusted for changes in investment value plus credited interest.
Participant loans are valued at cost, which approximates fair value.
Purchases and sales of investments are recorded on a trade-date basis.
ADMINISTRATIVE EXPENSES
All administrative costs of the Plan are paid by the Plan Sponsor.
USE OF ESTIMATES
The Plan Administrator has made a number of estimates and assumptions
relating to the reporting of assets and liabilities to prepare these
financial statements in conformity with generally accepted accounting
principles. Accordingly, actual results may differ from those estimates.
6
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
BENEFITS DUE TO TERMINATED PARTICIPANTS
Fund balances for employees that have been terminated but have yet to be paid
have been included in net assets available for plan benefits. They will be
reflected in the statements of changes in net assets available for plan
benefits when actually paid. At December 31, 1997 and 1996, the amount due
to terminated employees is $21,520 and $9,953, respectively.
7
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
(3) Net Assets Available for Plan Benefits
The following presents net assets available for Plan benefits for
each fund as of December 31, 1997:
<TABLE>
<CAPTION>
Participant directed
----------------------------------------------------------------------------------------------
Portfolio
Aetna Aetna Partners MFS Fidelity VIP
Aetna Aetna Aetna Investment Variable Emerging Equity- Fidelity VIP
Income Fixed Variable Advisers Encore Equities Income Growth
Shares Account Fund Fund Fund Portfolio Portfolio Portfolio
--------- --------- ---------- ---------- -------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Money market fund $ -- -- -- -- -- -- -- --
Guaranteed investment contract -- 126,085 -- -- -- -- -- --
Pooled separate accounts 27,859 -- 159,039 113,050 39,311 157,453 88,216 157,318
Consumer Portfolio Services, Inc.
common stock -- -- -- -- -- -- -- --
Participant loans -- -- -- -- -- -- -- --
------- ------- ------- ------- ------ ------- ------ -------
27,859 126,085 159,039 113,050 39,311 157,453 88,216 157,318
Receivables - employees' individual
rollover -- -- 1,696 -- -- -- -- --
------- ------- ------- ------- ------ ------- ------ -------
Net assets available for
Plan benefits $27,859 126,085 160,735 113,050 39,311 157,453 88,216 157,318
======= ======= ======= ======= ====== ======= ====== =======
<CAPTION>
Participant directed
----------------------------------------------------------------
Portfolio Non-
Partners Portfolio participant
Scudder Partners MFS directed
Fidelity VIP International Research -----------
Overseas Growth Growth Stock Participant Stock
Portfolio Portfolio Portfolio Fund loans Fund Total
----------- ------------- ------------ ------- ----------- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Money market fund -- -- -- 76,508 -- 71,464 147,972
Guaranteed investment contract -- -- -- -- -- -- 126,085
Pooled separate accounts 29,716 48,318 37,926 -- -- -- 858,206
Consumer Portfolio Services, Inc.
common stock -- -- -- 159,726 -- 100,938 260,664
Participant loans -- -- -- -- 31,475 -- 31,475
------ ------ ------ ------- ------ ------- ---------
29,716 48,318 37,926 236,234 31,475 172,402 1,424,402
Receivables - employees' individual
rollover -- -- -- 3,392 -- -- 5,088
------ ------ ------ ------- ------ ------- ---------
Net assets available for
Plan benefits 29,716 48,318 37,926 239,626 31,475 172,402 1,429,490
====== ====== ====== ======= ====== ======= =========
</TABLE>
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
The following presents net assets available for Plan benefits for each Fund as
of December 31, 1996:
<TABLE>
<CAPTION>
Participant directed
-----------------------------------------------------------------------------------------------
Alger
Aetna Aetna American Fidelity VIP
Aetna Aetna Aetna Investment Variable Small Equity- Fidelity VIP
Income Fixed Variable Advisers Encore Capitalization Income Growth
Shares Account Fund Fund Fund Portfolio Portfolio Portfolio
--------- --------- -------- ---------- -------- -------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Guaranteed investment contract $ -- 71,176 -- -- -- -- -- --
Pooled separate accounts 13,075 -- 85,188 65,429 26,650 126,611 35,508 70,010
Consumer Portfolio Services, Inc.
common stock -- -- -- -- -- -- -- --
Participant loans -- -- -- -- -- -- -- --
-------- ------- ------- ------- ------- -------- ------- -------
13,075 71,176 85,188 65,429 26,650 126,611 35,508 70,010
Receivables - employees' individual
rollover -- -- 168 -- -- 7,206 168 3,688
Cash -- -- -- -- -- -- -- --
-------- ------- ------- ------- ------- -------- ------- -------
Net assets available for
Plan benefits $ 13,075 71,176 85,356 65,429 26,650 133,817 35,676 73,698
======== ======= ======= ======= ======= ======== ======= =======
<CAPTION>
Participant directed
--------------------------------------------------------------- Non-
participant
Scudder directed
Fidelity VIP VLIF -----------
Overseas International TCI Growth Stock Participant Stock
Portfolio Portfolio Fund Fund loans Fund Total
------------ ------------- ---------- ----- ----------- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Guaranteed investment contract -- -- -- -- -- -- 71,176
Pooled separate accounts 7,430 27,220 39,827 -- -- -- 496,948
Consumer Portfolio Services, Inc.
common stock -- -- -- 105,156 -- 65,506 170,662
Participant loans -- -- -- -- 1,503 -- 1,503
------ ------- ------- -------- ------ ------- --------
7,430 27,220 39,827 105,156 1,503 65,506 740,289
Receivables - employees' individual
rollover -- -- -- 1,060 -- -- 12,290
Cash -- -- -- -- -- 32 32
------ ------- ------- -------- ------ ------- --------
Net assets available for
Plan benefits 7,430 27,220 39,827 106,216 1,503 65,538 752,611
======= ======= ======= ======== ====== ======= ========
</TABLE>
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
(4) Changes in Net Assets Available for Plan Benefits
The following presents changes in net assets available for Plan benefits for
each fund for the year ended December 31, 1997:
<TABLE>
<CAPTION>
Participant directed
------------------------------------------------------------------------------------------
Portfolio
Aetna Aetna Partners MFS Fidelity VIP
Aetna Aetna Aetna Investment Variable Emerging Equity-
Income Fixed Variable Advisers Encore Equities Income
Shares Account Fund Fund Fund Portfolio Portfolio
--------- ---------- ---------- ---------- -------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest $ -- 5,431 -- -- -- -- --
Net appreciation (depreciation)
in fair value of investments 1,426 -- 29,189 17,012 1,445 16,995 14,882
-------- -------- -------- -------- ------- -------- --------
1,426 5,431 29,189 17,012 1,445 16,995 14,882
Contributions:
Employer -- -- -- -- -- -- --
Employees 13,277 46,007 57,457 39,723 20,242 89,333 48,689
Employees' individual rollover 408 1,309 2,909 824 941 2,892 1,799
-------- -------- -------- -------- ------- -------- --------
Total additions 15,111 52,747 89,555 57,559 22,628 109,220 65,370
Deductions from net assets attributed to -
benefits paid to participants -- -- -- -- -- -- --
Interfund transfer (327) 2,162 (14,176) (9,938) (9,967) (85,584) (12,830)
-------- -------- -------- -------- ------- -------- --------
Net increase (decrease) 14,784 54,909 75,379 47,621 12,661 23,636 52,540
Net assets available for Plan benefits:
Beginning of year 13,075 71,176 85,356 65,429 26,650 133,817 35,676
-------- -------- -------- -------- ------- -------- --------
End of year $ 27,859 126,085 160,735 113,050 39,311 157,453 88,216
======== ======== ======== ======== ======= ======== ========
<CAPTION>
Participant directed
-----------------------------------------------------------------------------
Portfolio Portfolio Non-
Partners Partners participant
Scudder MFS directed
Fidelity VIP Fidelity VIP International Research -----------
Growth Overseas Growth Growth Stock Participant Stock
Portfolio Portfolio Portfolio Portfolio Fund loans Fund
------------ ------------ -------------- --------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest $ -- -- -- -- -- 1,610 --
Net appreciation (depreciation)
in fair value of investments 22,035 294 2,703 (2,505) (24,680) -- (1,900)
--------- ------- -------- -------- --------- ------- --------
22,035 294 2,703 (2,505) (24,680) 1,610 (1,900)
Contributions:
Employer -- -- -- -- -- -- 111,070
Employees 98,643 21,503 33,584 25,538 118,910 -- --
Employees' individual rollover 5,066 -- 48 48 7,243 -- --
--------- ------- -------- -------- --------- ------- --------
Total additions 125,744 21,797 36,335 23,081 101,473 1,610 109,170
Deductions from net assets attributed
to - benefits paid to participants -- -- -- -- 143,688 4,276 6,557
Interfund transfer (42,124) 489 (15,237) (24,982) 175,625 32,638 4,251
--------- ------- -------- -------- --------- ------- --------
Net increase (decrease) 83,620 22,286 21,098 (1,901) 133,410 29,972 106,864
Net assets available for Plan benefits:
Beginning of year 73,698 7,430 27,220 39,827 106,216 1,503 65,538
--------- ------- -------- -------- --------- ------- --------
End of year $ 157,318 29,716 48,318 37,926 239,626 31,475 172,402
========= ======= ======== ======== ========= ======= ========
<CAPTION>
Total
-----------
<S> <C>
Additions to net assets attributed to:
Interest $ 7,041
Net appreciation (depreciation)
in fair value of investments 76,896
----------
83,937
Contributions:
Employer 111,070
Employees 612,906
Employees' individual rollover 23,487
----------
Total additions 831,400
Deductions from net assets attributed to -
benefits paid to participants 154,521
Interfund transfer --
----------
Net increase (decrease) 676,879
Net assets available for Plan benefits:
Beginning of year 752,611
----------
End of year $ 1,429,490
==========
</TABLE>
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
The following presents changes in net assets available for Plan benefits for
each fund for the year ended December 31, 1996:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
Aetna Aetna
Aetna Aetna Aetna Investment Variable
Income Fixed Variable Advisers Encore
Shares Account Fund Fund Fund
---------- ---------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest $ - 3,063 - - -
Net appreciation (depreciation)
in fair value of investments 257 - 14,383 6,461 1,103
---------- ---------- ----------- ------------- ------------
257 3,063 14,383 6,461 1,103
Contributions:
Employer - 15 11 11 -
Employees 6,904 23,883 23,444 24,851 10,391
Employees' individual rollover - 2,709 1,936 1,871 -
---------- ---------- ----------- ------------- ------------
Total additions 7,161 29,670 39,774 33,194 11,494
Deductions from net assets attributed to
benefits paid to participants 805 815 46 680 489
Interfund transfer (640) (326) (18,038) (4,827) 3,284
---------- ---------- ----------- ------------- ------------
Net increase (decrease) 5,716 28,529 21,690 27,687 14,289
Net assets available for Plan benefits:
Beginning of year 7,359 42,647 63,666 37,742 12,361
---------- ---------- ----------- ------------- ------------
End of year $ 13,075 71,176 85,356 65,429 26,650
========== ========== =========== ============= ============
<CAPTION>
Participant directed
--------------------------------------------------------------------
Alger
American Fidelity VIP
Small Equity Fidelity VIP Fidelity
Capitalization Income Growth Overseas
Portfolio Portfolio Portfolio Portfolio
-------------- ------------- ------------- ----------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest - - - -
Net appreciation (depreciation)
in fair value of investments 414 2,572 3,097 411
-------------- ------------- ------------- ----------
414 2,572 3,097 411
Contributions:
Employer 15 - - -
Employees 55,506 21,160 50,861 6,375
Employees' individual rollover 9,955 4,037 9,705 -
-------------- ------------- ------------- ----------
Total additions 65,890 27,769 63,663 6,786
Deductions from net assets attributed to:
benefits paid to participants 54 25 22 23
Interfund transfer (16,177) (1,881) 3,436 -
-------------- ------------- ------------- ----------
Net increase (decrease) 49,659 25,863 67,077 6,763
Net assets available for Plan benefits:
Beginning of year 84,158 9,813 6,621 667
-------------- ------------- ------------- ----------
End of year $ 133,817 35,676 73,698 7,430
============== ============= ============= ==========
<CAPTION>
--------------------------------------------------------------------------
Scudder Aetna
VLIF Guaranteed
International TCI Growth Accumulated Stock Participant
Portfolio Fund Account Fund loans
------------- ---------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest - - - - 34
Net appreciation (depreciation)
in fair value of investments 2,734 (2,600) 6 7,676 -
------------- ---------- ----------- --------- -----------
2,734 (2,600) 6 7,676 34
Contributions:
Employer - - - - -
Employees 17,013 23,432 - 57,480 -
Employees' individual rollover - 422 - 2,932 -
------------- ---------- ----------- --------- -----------
Total additions 19,747 21,254 6 68,088 34
Deductions from net assets attributed to:
benefits paid to participants - 22 - 25,392 -
Interfund transfer (11,558) (16,410) (2,584) 63,520 1,469
------------- ---------- ----------- --------- -----------
Net increase (decrease) 8,189 4,822 (2,578) 106,216 1,503
Net assets available for Plan benefits:
Beginning of year 19,031 35,005 2,578 - -
------------- ---------- ----------- --------- -----------
End of year 27,220 39,827 - 106,216 1,503
============= ========== =========== ========= ===========
<CAPTION>
Non-
Participant
directed
------------
Stock
Fund Total
------------- ---------
<S> <C> <C>
Additions to net assets attributed to:
Interest - 3,097
Net appreciation (depreciation)
in fair value of investments 1,317 37,831
------------- ---------
1,317 40,928
Contributions:
Employer 63,801 63,853
Employees - 321,300
Employees' individual rollover - 33,567
------------- ---------
Total additions 65,118 459,648
Deductions from net assets attributed to:
benefits paid to participants 312 28,685
Interfund transfer 732 -
------------- ---------
Net increase (decrease) 65,538 430,963
Net assets available for Plan benefits:
Beginning of year - 321,648
------------- ---------
End of year 65,538 752,611
============= =========
</TABLE>
8
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
(5) INVESTMENTS
In accordance with the terms of the Plan Document and determined by the
Plan Administrator, the Plan offers 12 investment options. Plan
participants select the options they prefer and allocate their
contributions between options as they deem appropriate.
Participant loans are included in the statements of net assets available
for Plan benefits at cost, which approximates fair value of the notes. The
notes are payable through payroll deductions in installments of principal
plus interest at a rate of 10.25% - 10.50%, with final payments due between
April 1998 and October 2001, and are secured by the participants' vested
account balances.
The fair value of investments that represent 5% or more of the Plan's net
assets consisted of:
<TABLE>
<CAPTION>
INVESTMENT 1997 1996
-------------------------------------- -------------------- --------------------
<S> <C> <C>
Stock Fund $ 260,664 170,662
Schwab Advantage Money Market Fund 147,972 --
Aetna Variable Fund 159,039 85,188
Aetna Investment Advisers Fund 113,050 65,429
Aetna Fixed Account 126,085 71,176
Portfolio Partners MFS Research Growth
Portfolio -- 39,827
Portfolio Partners MFS Emerging
Equities Portfolio 157,453 126,611
Fidelity VIP Growth Portfolio 157,318 70,010
Fidelity VIP Equity-Income Portfolio 88,216 --
----------- ----------
$ 1,209,797 628,903
=========== ==========
</TABLE>
(6) TAX STATUS
The Internal Revenue Service has determined and informed the Plan Sponsor
by a letter dated February 7, 1996, that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code (IRC). The Plan has been amended since receiving the determination
letter. However, the Plan Administrator believes that the Plan is designed
and is currently being operated in compliance with the applicable
requirements of the IRC.
(7) RELATED PARTY TRANSACTIONS
Certain Plan investments are units of a Variable Annuity Account managed by
Aeltus Investment Management, Inc., an affiliate of Aetna Life Insurance
and Annuity Company. Aetna Life Insurance and Annuity Company is defined as
an insurance company by ERISA Sec. 403(b) and, therefore, these
transactions qualify as party-in-interest. Fees for the investment
management services are paid by the Plan Sponsor. In addition, the Plan
held 27,082 and 15,170 shares of common stock of Consumer Portfolio
Services, Inc. at December 31, 1997 and 1996, respectively.
9
<PAGE>
Schedule 1
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Item 27a -- Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION OF INVESTMENT INCLUDING
IDENTITY OF ISSUER BORROWER, LESSOR OR MATURITY DATE, RATE OF INTEREST, CURRENT VALUE
SIMILAR PARTY COLLATERAL, PAR OR MATURITY VALUE COST
--------------------------------------------- ------------------------------------ ------------- ---------------
<S> <C> <C> <C>
* Consumer Portfolio Services, Inc. 27,082 shares common stock $ 280,137 260,664
* Charles Schwab Institutional Schwab Advantage Money Market
Fund, 147,972 units 147,972 147,972
* Aetna Life Insurance
and Annuity Company Aetna Variable Fund, 7,964 units 159,039 159,039
* Aetna Life Insurance Aetna Variable Encore Fund, 3,247
and Annuity Company units 39,311 39,311
* Aetna Life Insurance Aetna Income Shares, 2,292 units
and Annuity Company 27,859 27,859
* Aetna Life Insurance Aetna Investment Advisers Fund,
and Annuity Company 6,669 units 113,050 113,050
* Aetna Life Insurance
and Annuity Company Aetna Fixed Account, 10,137 units 126,085 126,085
* Aetna Life Insurance Portfolio Partners Scudder
and Annuity Company International Growth Portfolio,
3,765 units 48,318 48,318
* Aetna Life Insurance Portfolio Partners MFS Research
and Annuity Company Growth Portfolio, 3,426 units 37,926 37,926
* Aetna Life Insurance Portfolio Partners MFS Emerging
and Annuity Company Equities Portfolio, 10,073 units 157,453 157,453
* Aetna Life Insurance Fidelity VIP Overseas Portfolio,
and Annuity Company 2,316 units 29,716 29,716
* Aetna Life Insurance Fidelity VIP Equity-Income
and Annuity Company Portfolio, 4,329 units 88,216 88,216
* Aetna Life Insurance Fidelity VIP Growth Portfolio, 8,209
and Annuity Company units 157,318 157,318
* Participant loans Participant loans; interest rate
between 10.25% and 10.5%; maturing
between April 1998 and October 2001 31,475 31,475
----------- ---------
$ 1,443,875 1,424,402
=========== =========
</TABLE>
* Denotes a party-in-interest.
See accompanying independent auditors' reports.
<PAGE>
Schedule 2
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Item 27d - Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
Selling/
Identity of party Purchase redemption
involved Description price price
- -------------------------------------------- --------------------------------------------------- --------------- -----------
<S> <C> <C> <C>
* Consumer Portfolio Services, Inc. Stock Fund series of 15 purchases $121,966 --
* Consumer Portfolio Services, Inc. Stock Fund series of 2 sales -- 4,083
* Schwab Advantage Money Market Fund Money market fund series of 54 purchases 453,826 --
* Schwab Advantage Money Market Fund Money market fund series of 30 sales -- 302,474
* Aetna Life Insurance and Annuity Company Aetna Variable Fund series of 51 purchases 75,306 --
* Aetna Life Insurance and Annuity Company Aetna Variable Fund series of 15 sales -- 30,644
* Aetna Life Insurance and Annuity Company Aetna Variable Encore Fund series of 54 purchases 78,958 --
* Aetna Life Insurance and Annuity Company Aetna Variable Encore Fund series of 20 sales -- 67,743
* Aetna Life Insurance and Annuity Company Aetna Investment Advisers Fund series of
50 purchases 42,879 --
* Aetna Life Insurance and Annuity Company Aetna Investment Advisers Fund series of
10 sales -- 12,270
* Aetna Life Insurance and Annuity Company Aetna Fixed Account series of 45 purchases 80,631 --
* Aetna Life Insurance and Annuity Company Aetna Fixed Account series of 11 sales -- 30,154
* Aetna Life Insurance and Annuity Company Portfolio Partners Scudder International Growth
Portfolio series of 49 purchases 41,024 --
* Aetna Life Insurance and Annuity Company Portfolio Partners Scudder International Growth
Portfolio series of 10 sales -- 22,627
* Aetna Life Insurance and Annuity Company Portfolio Partners MFS Research Growth Portfolio
series of 44 purchases 25,660 --
* Aetna Life Insurance and Annuity Company Portfolio Partners MFS Research Growth Portfolio
series of 12 sales -- 25,055
* Aetna Life Insurance and Annuity Company Portfolio Partners MFS Emerging Equities Portfolio
series of 49 purchases 100,358 --
* Aetna Life Insurance and Annuity Company Portfolio Partners MFS Emerging Equities Portfolio
series of 17 sales -- 86,510
* Aetna Life Insurance and Annuity Company Fidelity VIP Equity-Income Portfolio series of
53 purchases 61,003 --
* Aetna Life Insurance and Annuity Company Fidelity VIP Equity-Income Portfolio series of 7 sales -- 23,177
* Aetna Life Insurance and Annuity Company Fidelity VIP Growth Portfolio series of 52 purchases 108,896 --
* Aetna Life Insurance and Annuity Company Fidelity VIP Growth Portfolio series of 15 sales -- 43,622
====== ======
<CAPTION>
Expense Current value of
Identity of party Lease incurred with Cost of asset on Net gain (loss)
involved rental transaction asset transaction date
- -------------------------------------------- ------ ------------- ------- ---------------- ---------------
<S>
* Consumer Portfolio Services, Inc. -- 567 -- 121,966 --
* Consumer Portfolio Services, Inc. -- -- 3,313 -- 770
* Schwab Advantage Money Market Fund -- -- -- 453,826 --
* Schwab Advantage Money Market Fund -- -- 302,474 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 75,306 --
* Aetna Life Insurance and Annuity Company -- -- 30,644 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 78,958 --
* Aetna Life Insurance and Annuity Company -- -- 67,743 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 42,879 --
* Aetna Life Insurance and Annuity Company -- -- 12,270 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 80,631 --
* Aetna Life Insurance and Annuity Company -- -- 30,154 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 41,024 --
* Aetna Life Insurance and Annuity Company -- -- 22,627 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 25,660 --
* Aetna Life Insurance and Annuity Company -- -- 25,055 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 100,358 --
* Aetna Life Insurance and Annuity Company -- -- 86,510 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 61,003 --
* Aetna Life Insurance and Annuity Company -- -- 23,177 -- --
* Aetna Life Insurance and Annuity Company -- -- -- 108,896 --
* Aetna Life Insurance and Annuity Company -- -- 43,622 -- --
</TABLE>
* Denotes a party-in-interest.
See accompanying independent auditors' report.
<PAGE>
CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
Notes to Financial Statements, Continued
(3) Net Assets Available for Plan Benefits
The following presents net assets available for Plan benefits for each fund
as of December 31, 1997:
<TABLE>
<CAPTION>
Participant directed
-------------------------------------------------------------------------------------
Portfolio
Aetna Aetna Partners MFS Fidelity VIP
Aetna Aetna Aetna Investment Variable Emerging Equity-
Income Fixed Variable Advisers Encore Equities Income
Shares Account Fund Fund Fund Portfolio Portfolio
-------- -------- ---------- ----------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Guaranteed investment contract $ -- 126,085 -- -- -- -- --
Pooled separate accounts 27,859 -- 159,039 113,050 39,311 157,453 88,216
Consumer Portfolio Services, Inc.
common stock -- -- -- -- -- -- --
Participant loans -- -- -- -- -- -- --
------- -------- -------- ------- ------ ------- -------
27,859 126,085 159,039 113,050 39,311 157,453 88,216
Receivables -- employees' individual
rollover -- -- 1,696 -- -- -- --
Cash -- -- -- -- -- -- --
------- -------- -------- ------- ------ -------- -------
Net assets available for
Plan benefits $27,859 126,085 160,735 113,050 39,311 157,453 88,216
======= ======= ======= ======= ====== ======= ======
<CAPTION>
Participant directed
---------------------------------------------------------------------------------
Portfolio
Partners Portfolio
Scudder Partners MFS
Fidelity VIP Fidelity VIP International Research
Growth Overseas Growth Growth Stock Participant
Portfolio Portfolio Portfolio Portfolio Fund loans
------------ ------------ ------------- --------- ------ -----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Guaranteed investment contract -- -- -- -- -- --
Pooled separate accounts 157,318 29,716 48,318 37,926 -- --
Consumer Portfolio Services, Inc.
common stock -- -- -- -- 159,726 --
Participant loans -- -- -- -- -- 31,475
------- ------ ------ ------ ------- ------
157,318 29,716 48,318 37,926 159,726 31,475
Receivables -- employees' individual
rollover -- -- -- -- 3,392 --
Cash -- -- -- -- 76,508 --
------- ------ ------ ------ ------- ------
Net assets available for
Plan benefits 157,318 29,716 48,318 37,926 239,626 31,475
======= ====== ====== ====== ======= ======
<CAPTION>
Non-
participant
directed
-----------
Stock
Fund Total
----------- -----
<S> <C> <C>
Assets:
Investments at fair value:
Guaranteed investment contract -- 126,085
Pooled separate accounts -- 858,206
Consumer Portfolio Services, Inc.
common stock 100,938 260,664
Participant loans -- 31,475
------- ---------
100,938 1,276,430
Receivables -- employees' individual
rollover -- 5,088
Cash 71,464 147,972
------- ---------
Net assets available for
Plan benefits 172,402 1,429,490
======= =========
</TABLE>
8
<PAGE>
EXHIBIT 23.1
Independent Auditors' Consent
The Administrative Committee
Consumer Portfolio Services, Inc. 401(k) Plan
We consent to the incorporation by reference in the Registration Statement on
Form S-8 of Consumer Portfolio Services, Inc. of our report dated June 24, 1998
relating to the statements of net assets available for plan benefits and the
statements of changes in net assets available for plan benefits of the Consumer
Portfolio Services, Inc. 401(k) Plan as of and for the years ended December 31,
1997 and 1996, and all related schedules, which report appears in the December
31, 1997, annual report on Form 11-K of the Consumer Portfolio Services, Inc.
401(k) Plan.
/s/ KPMG Peat Marwick LLP
Orange County, California
June 29, 1998
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