EX-99.1 2 y45440exv99w1.htm EX-99.1: PRESS RELEASE EX-99.1
 

Exhibit 99.1
 
(ASTA LOGO)
     
CONTACT:
                 FOR IMMEDIATE RELEASE
 
    
 
  Stephen D. Axelrod, CFA
Mitchell Cohen, CFO
  Alisa D. Steinberg (Media)
Asta Funding, Inc.
  Wolfe Axelrod Weinberger Assoc. LLC
(201) 567-5648
  (212) 370-4500; (212) 370-4505 (Fax)
 
  steve@wolfeaxelrod.com
 
  alisa@wolfeaxelrod.com
ASTA FUNDING ANNOUNCES FOURTH QUARTER
AND FISCAL YEAR FINANCIAL RESULTS
ENGLEWOOD CLIFFS, N.J., December 21, 2007 — Asta Funding, Inc., (Nasdaq: ASFI — News), a consumer receivable asset management and liquidation company, today reported results for the fourth quarter and fiscal year ended September 30, 2007.
Total revenue for the fourth quarter ended September 30, 2007 was $43.1 million, a 41.3% increase compared to total revenue of $30.5 million for the fourth quarter ended September 30, 2006. Finance income for the fourth quarter ended September 30, 2007, was $42.2 million, an increase of 41.6% compared to finance income of $29.8 million for the year ended September 30, 2006.
Total revenue for the year ended September 30, 2007 was $140.8 million, a 38.0% increase compared to total revenue of $102.0 million for the year ended September 30, 2006. Finance income for the year ended September 30, 2007, was $138.4 million, an increase of 37.0% compared to finance income of $101.0 million for the year ended September 30, 2006.
Net income for the fourth quarter ended September 30, 2007, decreased 3.7% to $13.1 million or $0.88 per diluted share, from $13.6 million or $0.93 per diluted share, in the same prior year period. Net income for the year ended September 30, 2007, rose 14.2% to $52.3 million or $3.56 per diluted share, from $45.8 million, or $3.13 per diluted share, in the same prior year period.
The company recorded impairments in the fourth quarter of 2007 of $6.7 million as compared with $1.4 million of impairments in the fourth quarter of 2006. Impairments for the year ended 2007 were $9.1 million as compared to net impairments of $2.2 million for the year ended 2006.
For fiscal 2007, the Company acquired portfolios for approximately $10.9 billion in face value receivables, at a purchase price of $440.9 million, more than double that of fiscal 2006, which amounted to $5.2 billion in face value receivables. For the fourth quarter of fiscal 2007, the Company acquired portfolios for approximately $644.8 million in face value receivables, at a purchase price of approximately $38.6 million.
Fiscal 2007 included $227.6 million in net cash collections from consumer receivables acquired for liquidation, up 42.8% from $159.4 million a year ago. Net cash collections represented by account sales of consumer receivables acquired for liquidation were $54.2 million, slightly lower from $55.0 million for the year ended

 

 

September 30, 2006. Collections represented by account sales as a percentage of total collections were 19.2% for fiscal 2007, down from 25.7% in the prior year.
Subsequent to September 30, 2007, the Company purchased portfolios of consumer receivables with a face value of $1.02 billion at cost purchase price of $35.9 million, including one of which included a portfolio from a major financial institution located in a South American country for a purchase price of approximately $8 million.
Stockholders’ equity continues to improve, with the tangible book value rising 26.8% to $16.81 per share at the end of the fiscal year, up from a tangible book value of $13.26 per share the same time last year. Return on average stockholders’ equity for fiscal 2007 was approximately 25.0%.
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, including any statement about the first quarter of fiscal 2008, 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, 2006, Form 10-Q for the quarter ended June 30, 2007, 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.
- Financial Tables to Follow -

 

 

Asta Funding, Inc.
Consolidated Statements of Operations Data
                                 
    Three Months Ended     Year Ended  
    September 30,     September 30,  
    2007     2006     2007     2006  
Revenues:
                                
Finance income
   $ 42,217,000     $ 29,845,000     $ 138,356,000     $ 101,024,000  
Other income
     1,679,000       69,000       2,181,000       405,000  
Equity in earnings of venture
     (800,000 )     550,000       225,000       550,000  
 
                        
 
     43,096,000       30,464,000       140,762,000       101,979,000  
 
                                
General and administrative expenses
     8,062,000       4,776,000       25,450,000       18,268,000  
 
                                
Interest expense
     6,297,000       1,427,000       18,246,000       4,641,000  
 
                                
Impairments
     6,685,000       1,570,000       9,097,000       2,245,000  
 
                        
 
                                
 
     21,044,000       7,773,000       52,793,000       25,154,000  
 
                        
 
                                
Income before provision for income taxes
     22,052,000       22,691,000       87,969,000       76,825,000  
 
                                
Provision for income taxes
     8,972,000       9,121,000       35,703,000       31,060,000  
 
                        
 
                                
Net income
   $ 13,080,000     $ 13,570,000     $ 52,266,000     $ 45,765,000  
 
                        
 
                                
Basic net income per share
   $ 0.94     $ 0.99     $ 3.79     $ 3.36  
 
                        
Diluted net income per share
   $ 0.88     $ 0.93     $ 3.56     $ 3.13  
 
                        
 
                                
Weighted average shares:
                                
Basic
     13,907,554       13,628,776       13,807,838       13,637,406  
Diluted
     14,819,926       14,639,432       14,691,861       14,615,148  

 

Asta Funding, Inc. and subsidiaries
Consolidated Balance Sheet Data
                 
    September 30,  
    2007     2006  
ASSETS
                
Cash and cash equivalents
   $ 4,525,000     $ 7,826,000  
Restricted cash
     5,694,000       —  
Consumer receivables acquired for liquidation (at net realizable value)
     545,623,000       257,275,000  
Due from third party collection agencies and attorneys
     4,909,000       3,062,000  
Investment in venture
     2,040,000       5,965,000  
Furniture and equipment (net of accumulated depreciation of $2,048,000 in 2007 and $1,769,000 in 2006)
     793,000       1,101,000  
Deferred income taxes
     12,349,000       7,577,000  
Other assets
     4,323,000       5,034,000  
 
            
 
   $ 580,256,000     $ 287,840,000  
 
            
 
                
LIABILITIES
                
Advances under lines of credit
   $ 326,466,000     $ 82,811,000  
Other liabilities
     7,537,000       4,338,000  
Dividends payable
     557,000       6,052,000  
Income taxes payable
     8,161,000       10,377,000  
 
            
Total liabilities
     342,721,000       103,578,000  
 
            
 
                
Commitments and contingencies
                
 
                
STOCKHOLDERS’ EQUITY
                
Preferred stock, $.01 par value; authorized 5,000,000; Issued — none
                
Common stock, $.01 par value, authorized 30,000,000 shares, issued and outstanding 13,918,158 shares in 2007 and 13,755,157 in 2006
     139,000       138,000  
Additional paid-in capital
     65,030,000       61,803,000  
Retained earnings
     172,366,000       122,321,000  
 
            
 
                
Total stockholders’ equity
     237,535,000       184,262,000  
 
            
 
                
 
   $ 580,256,000     $ 287,840,000