- 3rd Quarter Revenues Rise 58%, Net Income Increases 52% -
ENGLEWOOD CLIFFS, N.J., Aug. 9 /PRNewswire-FirstCall/ -- Asta Funding,
Inc., (Nasdaq: ASFI), a leading consumer receivable asset management and
liquidation company, today reported results for the three months and nine
months ended June 30, 2005.
Net income for the three months ended June 30, 2005, rose 52% to a record
$8,536,000, or $0.59 per diluted share, compared to $5,607,000, or $0.39 per
diluted share, in the same prior year period. Revenues for the three months
ended June 30, 2005, were $19,028,000, an increase of 58% compared to revenues
of $12,050,000 a year ago.
Net income for the nine months ended June 30, 2005 grew 40% to a record
$21,992,000 or $1.53 per diluted share, from $15,728,000, or $1.10 per diluted
share, for the same period a year earlier. Revenues for the nine months ended
June 30, 2005 were a record $49,520,000, an increase of 36% compared to
revenues for the nine months ended June 30, 2004 of $36,369,000.
Mr. Gary Stern, Asta's Chief Executive Officer, stated, "We are extremely
pleased to report another record quarter and nine months. Our performance
continues to demonstrate that our business model is sound. We continue to buy
attractively priced distressed consumer receivable portfolios for liquidation
and for the June quarter we purchased portfolios with a face amount exceeding
$481 million, bringing our aggregate purchases for the nine months to
$2.3 billion, at prices that will allow us to attain our desired financial
returns. Additionally, we are in the final negotiations for the purchase of
portfolios with an aggregate face amount in excess of $500 million, which we
anticipate announcing within the next two weeks."
"Our financial metrics," Mr. Stern added, "are strong with cash
collections in the quarter of $43.5 million, up significantly from the
$26.0 million collected in the same quarter a year earlier. We remain highly
disciplined in our portfolio purchases and have the funds and credit resources
to acquire portfolios when the appropriate opportunities arise. At June 30,
2005 stockholder's equity was $136.4 million and our book value was $10.05, an
increase of roughly 25% from June 30, 2004."
Mr. Stern concluded, "Asta has been steadfast in its business focus. We
are disciplined buyers of distressed consumer receivable portfolios and
recognize our superior performance is the result of maintaining that
discipline. We will continue to build shareholder value by applying the same
principles in the future. We are confident that this is the path to long term
success."
Asta Funding will conduct a teleconference today at 10:30 a.m. EDT. To
participate please dial USA/Canada (877) 511-5818, International
(706) 634-1462 about 5 -10 minutes prior to 10:30 a.m. EDT. Please refer to
the Asta Funding earnings teleconference ID 8395599. A recording of the
conference call will be available from 12:00 noon EDT August 9th through
August 16th, by dialing USA/ Canada (800) 642-1687, International
(706) 645-9291, conference ID 8395599.
Asta Funding, Inc.
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer
receivable asset management company that specializes in the purchase,
management and liquidation of performing and non-performing consumer
receivables. For additional information, please visit our website at
http://www.astafunding.com.
Except for historical information contained herein, the matters set forth
in this news release are "forward- looking" statements (as defined in the
Private Securities Litigation Reform Act of 1995.) Although Asta Funding, Inc.
believes the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, there can be no assurance that its
expectations will be realized. Forward-looking statements involve certain
risks and uncertainties that could cause actual results to differ materially
from Asta Funding, Inc.'s expectations. Factors that could contribute to such
differences include those identified in Asta Funding, Inc.'s Form 10-K for the
fiscal year ended September 30, 2004, and those described from time to time in
Asta Funding, Inc.'s other filings with the Securities and Exchange
Commission, news releases and other communications, including that Asta may
not be able to purchase consumer receivable portfolios at favorable prices or
on sufficiently favorable terms or at all. Asta Funding, Inc.'s reports with
the Securities and Exchange Commission are available free of charge through
its website at http://www.astafunding.com.
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
2005 2004 2005 2004
Revenues:
Finance income $19,028,000 $12,050,000 $49,520,000 $36,369,000
Expenses:
General and
administrative 4,153,000 2,474,000 11,122,000 7,998,000
Interest 512,000 167,000 1,415,000 623,000
Third-party servicing - - - 1,316,000
4,665,000 2,641,000 12,537,000 9,937,000
Income before
income taxes 14,363,000 9,409,000 36,983,000 26,432,000
Income tax expense 5,827,000 3,802,000 14,991,000 10,704,000
Net income $8,536,000 $5,607,000 $21,992,000 $15,728,000
Net income per share:
Basic $0.63 $0.42 $1.63 $1.18
Diluted $0.59 $0.39 $1.53 $1.10
Weighted average number of shares outstanding:
Basic 13,569,000 13,403,000 13,529,000 13,318,000
Diluted 14,424,000 14,286,000 14,377,000 14,248,000
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS DATA
June 30, September 30,
2005 2004
(Unaudited)
ASSETS
Cash $ 1,920,000 $ 3,344,000
Consumer receivables acquired
for liquidation 166,728,000 146,165,000
Deposit on receivable purchase - 7,288,000
Furniture and equipment, net 678,000 596,000
Due from servicers 740,000 -
Prepaid income taxes 713,000 -
Other assets 961,000 1,248,000
Total assets $171,740,000 $158,641,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt $30,700,000 $39,355,000
Other liabilities 3,850,000 3,351,000
Income taxes payable 711,000 1,425,000
Deferred income taxes 44,000 44,000
Total liabilities 35,305,000 44,175,000
Stockholders' Equity
Preferred stock, $.01 par value;
authorized 5,000,000;
issued and outstanding -- none
Common stock, $.01 par value;
authorized 30,000,000 shares;
issued and outstanding -- 13,577,000
at June 30, 2005
and 13,432,000 at September 30, 2004 136,000 134,000
Additional paid-in capital 60,584,000 59,184,000
Retained earnings 75,715,000 55,148,000
Total stockholders' equity 136,435,000 114,466,000
Total liabilities and stockholders' equity $171,740,000 $158,641,000
SOURCE Asta Funding, Inc.
CONTACT:
Mitchell Cohen, CFO of Asta Funding, Inc., 201-567-5648; or
Stephen D. Axelrod, CFA, steve@wolfeaxelrod.com, or
Media, Andria Arena, 212-370-4500, Fax: +1-212-370-4505,
both of Wolfe Axelrod Weinberger Assoc. LLC for Asta Funding, Inc.
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