Exhibit 99.1
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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 athttp://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 athttp://www.astafunding.com.
- Financial Tables to Follow -
Asta Funding, Inc.
Consolidated Statements of Operations Data
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 | |||||