Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2014 | 8-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'ASFI | ' |
Entity Registrant Name | 'ASTA FUNDING INC | ' |
Entity Central Index Key | '0001001258 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 12,984,239 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
ASSETS | ' | ' |
Cash and cash equivalents | $28,275,000 | $35,179,000 |
Available for sale investments | 69,539,000 | 58,035,000 |
Restricted cash | 801,000 | 968,000 |
Consumer receivables acquired for liquidation (at net realizable value) | 52,071,000 | 57,900,000 |
Structured settlements | 33,330,000 | ' |
Investment in personal injury claims | 30,318,000 | 35,758,000 |
Due from third party collection agencies and attorneys | 1,554,000 | 1,169,000 |
Prepaid and income taxes receivable | ' | 1,496,000 |
Furniture and equipment, net | 806,000 | 1,106,000 |
Deferred income taxes | 9,691,000 | 10,443,000 |
Goodwill | 2,770,000 | 1,410,000 |
Other assets | 4,923,000 | 4,383,000 |
Total assets | 234,078,000 | 207,847,000 |
LIABILITIES | ' | ' |
Non-recourse debt - Bank of Montreal | 30,778,000 | 35,760,000 |
Other debt - CBC (including non-recourse notes payable amounting to $13.5 million at March 31, 2014) | 26,217,000 | ' |
Other liabilities | 2,425,000 | 2,486,000 |
Income taxes payable | 201,000 | ' |
Total liabilities | 59,621,000 | 38,246,000 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $.01 par value; authorized 5,000,000 shares; issued and outstanding - none | ' | ' |
Common stock, $.01 par value; authorized 30,000,000 shares; issued - 12,984,239 at March 31, 2014 and 14,917,977 at September 30, 2013; and outstanding 12,984,239 at March 31, 2014 and 12,974,239 at September 30, 2013 | 130,000 | 149,000 |
Additional paid-in capital | 62,189,000 | 79,104,000 |
Retained earnings | 112,842,000 | 109,011,000 |
Accumulated other comprehensive loss | -303,000 | -674,000 |
Treasury stock (at cost), 0 shares at March 31, 2014 and 1,943,738 shares at September 30, 2013 | ' | -17,805,000 |
Non-controlling interest | -401,000 | -184,000 |
Total stockholders' equity | 174,457,000 | 169,601,000 |
Total liabilities and stockholders' equity | $234,078,000 | $207,847,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Other debt, non-recourse notes payable | $13.50 | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,984,239 | 14,917,977 |
Common stock, shares outstanding | 12,984,239 | 12,974,239 |
Treasury stock, shares | 0 | 1,943,738 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |||||
Revenues: | ' | ' | ' | ' | ||||
Finance income on consumer receivables, net | $6,989,000 | [1] | $8,263,000 | [2] | $13,904,000 | [3] | $16,753,000 | [4] |
Personal injury claims income | 1,166,000 | 1,392,000 | 3,945,000 | 2,634,000 | ||||
Unrealized gain on structured settlements | 820,000 | ' | 820,000 | ' | ||||
Interest income on structured settlements | 715,000 | ' | 715,000 | ' | ||||
Other income (includes $0 during the three month periods ended March 31, 2014 and 2013, and ($25,000) and $175,000 during the six month periods ended March 31, 2014 and 2013, respectively, of accumulated other comprehensive income reclassification for unrealized net (losses) / gains on available for sale securities) | 491,000 | 430,000 | 1,034,000 | 1,250,000 | ||||
Total Revenue | 10,181,000 | 10,085,000 | 20,418,000 | 20,637,000 | ||||
Expenses: | ' | ' | ' | ' | ||||
General and administrative | 7,738,000 | 5,788,000 | 13,505,000 | 11,381,000 | ||||
Interest | 398,000 | 534,000 | 407,000 | 1,103,000 | ||||
Impairments of consumer receivables acquired for liquidation | ' | 2,203,000 | ' | 2,203,000 | ||||
Total expenses | 8,136,000 | 8,525,000 | 13,912,000 | 14,687,000 | ||||
Income before income tax | 2,045,000 | 1,560,000 | 6,506,000 | 5,950,000 | ||||
Income tax expense (includes tax benefit / (expense) of $0 during the three month periods ended March 31, 2014 and 2013, and $10,000 and ($71,000) during the six month periods ended March 31, 2014 and 2013, respectively, of accumulated other comprehensive income reclassifications for unrealized net (losses) gains on available for sale securities) | 589,000 | 600,000 | 2,212,000 | 2,357,000 | ||||
Net Income | 1,456,000 | 960,000 | 4,294,000 | 3,593,000 | ||||
Less: net income attributable to non-controlling interest | 14,000 | 78,000 | 463,000 | 123,000 | ||||
Net income attributable to Asta Funding, Inc. | $1,442,000 | $882,000 | $3,831,000 | $3,470,000 | ||||
Net income per share attributable to Asta Funding, Inc.: | ' | ' | ' | ' | ||||
Basic | $0.11 | $0.07 | $0.30 | $0.27 | ||||
Diluted | $0.11 | $0.07 | $0.29 | $0.26 | ||||
Weighted average number of common shares outstanding: | ' | ' | ' | ' | ||||
Basic | 12,979,350 | 12,943,896 | 12,976,766 | 12,942,554 | ||||
Diluted | 13,209,314 | 13,226,351 | 13,204,671 | 13,213,218 | ||||
[1] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 6,159,000 $ 710,000 $ 6,869,000 Non-fully amortized portfolios 120,000 - 120,000 Finance income recognized $ 6,279,000 $ 710,000 $ 6,989,000 | |||||||
[2] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 7,032,000 $ 895,000 $ 7,927,000 Non-fully amortized portfolios 336,000 - 336,000 Finance income recognized $ 7,368,000 $ 895,000 $ 8,263,000 | |||||||
[3] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 12,269,000 $ 1,394,000 $ 13,663,000 Non-fully amortized portfolios 241,000 - 241,000 Finance income recognized $ 12,510,000 $ 1,394,000 $ 13,904,000 | |||||||
[4] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 14,319,000 $ 1,756,000 $ 16,075,000 Non-fully amortized portfolios 678,000 - 678,000 Finance income recognized $ 14,997,000 $ 1,756,000 $ 16,753,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Reclassifications for unrealized net (losses) / gains on available for sale securities | $0 | $0 | ($25,000) | $175,000 |
Income tax expense, tax benefit / (expense) | $0 | $0 | $10,000 | ($71,000) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Comprehensive income is as follows: | ' | ' | ' | ' |
Net income | $1,456,000 | $960,000 | $4,294,000 | $3,593,000 |
Net unrealized securities gain / (loss), net of (taxes) / tax benefit of ($306,000) and ($18,000), during the 3 month periods ended March 31, 2014 and 2013, respectively, and ($248,000) and $128,000 during the 6 month periods ended March 31, 2014 and 2013, respectively. | 452,000 | 26,000 | 386,000 | -191,000 |
Reclassification adjustments for securities sold, net of tax benefit of $0 and $0, during both 3 month periods ended March 31, 2014 and 2013, and $10,000 and $71,000, during the 6 month periods ended March 31, 2014 and 2013, respectively. | ' | ' | -15,000 | -104,000 |
Other comprehensive income (loss) | 452,000 | 26,000 | 371,000 | -295,000 |
Total comprehensive income | $1,908,000 | $986,000 | $4,665,000 | $3,298,000 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Net unrealized securities gain / (loss) gain, (taxes) / tax benefit | ($306,000) | ($18,000) | ($248,000) | $128,000 |
Reclassification adjustments for securities, tax benefit | $0 | $0 | $10,000 | $71,000 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Non- Controlling Interest | |
Beginning balance at Sep. 30, 2013 | $169,601,000 | $149,000 | $79,104,000 | $109,011,000 | ($674,000) | ($17,805,000) | [1] | ($184,000) |
Beginning balance (in shares) at Sep. 30, 2013 | ' | 14,917,977 | ' | ' | ' | ' | ' | |
Exercise of options (in shares) | 10,000 | 10,000 | ' | ' | ' | ' | ' | |
Exercise of options | 30,000 | ' | 30,000 | ' | ' | ' | ' | |
Stock based compensation expense | 841,000 | ' | 841,000 | ' | ' | ' | ' | |
Net income | 4,294,000 | ' | ' | 3,831,000 | ' | ' | 463,000 | |
Unrealized loss on marketable securities | 371,000 | ' | ' | ' | 371,000 | ' | ' | |
Retirement of treasury stock (in shares) | ' | -1,943,738 | ' | ' | ' | ' | ' | |
Retirement of treasury stock | 0 | -19,000 | -17,786,000 | ' | ' | 17,805,000 | [1] | ' |
Distributions to non-controlling interest | -680,000 | ' | ' | ' | ' | ' | -680,000 | |
Ending balance at Mar. 31, 2014 | $174,457,000 | $130,000 | $62,189,000 | $112,842,000 | ($303,000) | $0 | [1] | ($401,000) |
Ending balance (in shares) at Mar. 31, 2014 | ' | 12,984,239 | ' | ' | ' | ' | ' | |
[1] | Treasury shares at September 30, 2013 totaled 1,943,738. |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) | Mar. 31, 2014 | Sep. 30, 2013 |
Treasury stock, shares | 0 | 1,943,738 |
Condensed_Consolidated_Stateme6
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities | ' | ' |
Net income | $4,294,000 | $3,593,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 300,000 | 300,000 |
Deferred income taxes | 514,000 | 518,000 |
Impairment of consumer receivables acquired for liquidation | ' | 2,203,000 |
Stock based compensation | 841,000 | 885,000 |
Loss / (gain) on sale of available-for-sale securities | 25,000 | -175,000 |
Structured settlements accrued interest and gains | -1,528,000 | ' |
Changes in: | ' | ' |
Prepaid and income taxes receivable | 1,496,000 | 1,809,000 |
Due from third party collection agencies and attorneys | -385,000 | 845,000 |
Other assets | -529,000 | -468,000 |
Income taxes payable | 201,000 | ' |
Other liabilities | -417,000 | -640,000 |
Net cash provided by operating activities | 4,812,000 | 8,870,000 |
Cash flows from investing activities | ' | ' |
Purchase of consumer receivables acquired for liquidation | -969,000 | ' |
Principal collected on receivables acquired for liquidation | 6,798,000 | 9,852,000 |
Principal collected on receivables accounts represented by account sales | ' | 8,000 |
Purchase of available-for-sale securities | -15,920,000 | -27,740,000 |
Proceeds from sale of available-for-sale securities | 5,000,000 | 27,008,000 |
Proceeds from maturities of certificates of deposit | ' | 22,726,000 |
Cash paid for acquisition (net of cash acquired) | -5,588,000 | ' |
Investments in personal injury claims - advances | -10,019,000 | -15,954,000 |
Investments in personal injury claims - receipts | 15,459,000 | 6,363,000 |
Investment in structured settlements - advances | -2,359,000 | ' |
Investments in structured settlements - receipts | 993,000 | ' |
Capital expenditures | ' | -725,000 |
Net cash (used in) provided by investing activities | -6,605,000 | 21,538,000 |
Cash flows from financing activities | ' | ' |
Proceeds from exercise of stock options | 30,000 | 24,000 |
Changes in restricted cash | 167,000 | 163,000 |
Distribution to non-controlling interest | -680,000 | ' |
Repayment of non-recourse debt | -4,982,000 | -4,640,000 |
Net borrowings of other debt | 354,000 | ' |
Dividends paid | ' | -1,290,000 |
Purchase of treasury stock | ' | -1,579,000 |
Net cash used in financing activities | -5,111,000 | -7,322,000 |
Net (decrease) increase in cash and cash equivalents | -6,904,000 | 23,086,000 |
Cash and cash equivalents at beginning of period | 35,179,000 | 4,953,000 |
Cash and cash equivalents at end of period | 28,275,000 | 28,039,000 |
Cash paid for: | ' | ' |
Interest | 420,000 | 1,113,000 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' |
Structured settlements | 30,436,000 | ' |
Other debt - CBC | 23,363,000 | ' |
Retirement of treasury stock | $17,805,000 | ' |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 6 Months Ended |
Mar. 31, 2014 | |
Business and Basis of Presentation | ' |
Note 1 — Business and Basis of Presentation | |
Business | |
Asta Funding, Inc., together with its wholly owned significant operating subsidiaries Palisades Collection LLC, Palisades Acquisition XVI, LLC (“Palisades XVI”), VATIV Recovery Solutions LLC (“VATIV”), ASFI Pegasus Holdings, LLC (“APH”), Fund Pegasus, LLC (“Fund Pegasus”), GAR National Disability Advocates, LLC (“GAR National Disability”) (formerly known as AGR Disability Help Center, LLC) and other subsidiaries, not all wholly owned (collectively, the “Company”), is engaged in the business of purchasing, managing for its own account and servicing distressed consumer receivables, including charged-off receivables, semi-performing receivables and performing receivables. The primary charged-off receivables are accounts that have been written-off by the originators and may have been previously serviced by collection agencies. Semi-performing receivables are accounts where the debtor is currently making partial or irregular monthly payments, but the accounts may have been written-off by the originators. Performing receivables are accounts where the debtor is making regular monthly payments that may or may not have been delinquent in the past. Distressed consumer receivables are the unpaid debts of individuals to banks, finance companies and other credit providers. A large portion of the Company’s distressed consumer receivables are MasterCard®, Visa®, other credit card accounts, and telecommunication accounts which were charged-off by the issuers for non-payment. The Company acquires these portfolios at substantial discounts from their face values. The discounts are based on the characteristics (issuer, account size, debtor residence and age of debt) of the underlying accounts of each portfolio. Litigation related receivables are semi-performing investments whereby the Company is assigned the revenue stream from the proceeds received. | |
The Company owns 80% of Pegasus Funding, LLC (“Pegasus”), which invests in funding personal injury claims and 80% of CBC Settlement Funding, LLC (“CBC”), which invests in structured settlements (see Note 5: Acquisition of CBC). | |
GAR National Disability is a non-attorney advocacy group, which obtains and represents individuals nationwide in their claims for social security disability and supplemental security income benefits from the Social Security Administration. | |
Basis of Presentation | |
The condensed consolidated balance sheet as of March 31, 2014, the condensed consolidated statements of income for the six and three month periods ended March 31, 2014 and 2013, the condensed consolidated statements of comprehensive income for the six and three month periods ended March 31, 2014 and 2013, the condensed consolidated statement of stockholders’ equity as of and for the six months ended March 31, 2014 and the condensed consolidated statements of cash flows for the six month periods ended March 31, 2014 and 2013, are unaudited. The September 30, 2013 financial information included in this report has been extracted from our audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2013. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly our financial position at March 31, 2014 and September 30, 2013, the results of operations for the six and three month periods ended March 31, 2014 and 2013 and cash flows for the six month periods ended March 31, 2014 and 2013 have been made. The results of operations for the six and three month periods ended March 31, 2014 and 2013 are not necessarily indicative of the operating results for any other interim period or the full fiscal year. | |
Palisades XVI is a variable interest entity (“VIE”). Asta Funding, Inc. is considered the primary beneficiary because it has the power to direct the significant activities of the VIE via its ownership and service contract. It also has the rights to receive benefits from the collections that exceed the payments to Bank of Montreal. Palisades XVI holds the Great Seneca portfolio of $38.4 million and the Bank of Montreal loan of $30.8 million as of March 31, 2014. | |
Blue Bell Receivables I, LLC, Blue Bells Receivables II, LLC and Blue Bell Receivables III, LLC (the “Blue Bell Entities”) are VIEs. CBC is considered the primary beneficiary because it has the power to direct the significant activities of the VIEs via its ownership and service contract. It also has the rights to receive benefits from the collections that exceed the payments to the note holders. The Blue Bell Entities hold structured settlements of $12.7 million and the non-recourse notes payable of $13.5 million as of March 31, 2014. | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission and therefore do not include all information and note disclosures required under generally accepted accounting principles. The Company suggests that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013 filed with the Securities and Exchange Commission. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates including management’s estimates of future cash flows and the resulting rates of return. | |
Concentration of Credit Risk – Cash | |
Cash balances are maintained at various depository institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company had cash balances with eight banks which amounted to approximately $27.7 million as of March 31, 2014. | |
Subsequent Events | |
The Company has evaluated events and transactions occurring subsequent to the Condensed Consolidated Balance Sheet date of March 31, 2014, for items that should potentially be recognized or disclosed in these financial statements. On May 2, 2014, the Company entered into a line of credit agreement with Bank Hapoalim. The line of credit is $20 million with a term of three years. See Note 20 for more information. | |
Reclassifications | |
Certain items in the prior period’s financial statements have been reclassified to conform to the current period’s presentation, primarily related to certain balance sheet, income statement and cash flow items. |
Principles_of_Consolidation
Principles of Consolidation | 6 Months Ended |
Mar. 31, 2014 | |
Principles of Consolidation | ' |
Note 2 — Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Investments
Investments | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments | ' | ||||||||||||||||
Note 3 — Investments | |||||||||||||||||
Available-for-Sale | |||||||||||||||||
Investments classified as available-for-sale at March 31, 2014 and September 30, 2013, consist of the following: | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
March 31, 2014 | $ | 70,046,000 | $ | 120,000 | $ | (627,000 | ) | $ | 69,539,000 | ||||||||
September 30, 2013 | $ | 59,151,000 | $ | 27,000 | $ | (1,143,000 | ) | $ | 58,035,000 | ||||||||
The available-for-sale investments do not have any contractual maturities. The Company sold one investment during the first six months of fiscal year 2014, with an aggregate realized loss of $25,000. In the first six months of fiscal year 2013, the Company sold two investments with an aggregate realized gain of $175,000. There was no sale of investments during the second quarter of either fiscal year 2014 or fiscal year 2013. | |||||||||||||||||
At March 31, 2014, there were six investments, four of which were in an unrealized loss position that had current unrealized losses existing for 12 months or more. All of these securities are considered to be acceptable credit risks. Based on the evaluation of the available evidence, including recent changes in market rates and credit rating information, management believes the aggregate decline in fair value for these instruments is temporary. In addition, management has the ability to hold these investment securities for a period of time sufficient to allow for an anticipated recovery or maturity. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period in which the other-than-temporary impairment is identified. |
Consumer_Receivables_Acquired_
Consumer Receivables Acquired for Liquidation | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Consumer Receivables Acquired for Liquidation | ' | ||||||||||||
Note 4 — Consumer Receivables Acquired for Liquidation | |||||||||||||
Accounts acquired for liquidation are stated at their net estimated realizable value and consist primarily of defaulted consumer loans to individuals primarily throughout the United States. | |||||||||||||
The Company accounts for its investments in consumer receivable portfolios, using either: | |||||||||||||
• | the interest method; or | ||||||||||||
• | the cost recovery method. | ||||||||||||
The Company accounts for its investment in finance receivables using the interest method under the guidance of FASB Accounting Standards Codification (“ASC”), Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality, (“ASC 310”). Under the guidance of ASC 310, static pools of accounts are established. These pools are aggregated based on certain common risk criteria. Each static pool is recorded at cost and is accounted for as a single unit for the recognition of income, principal payments and loss provision. | |||||||||||||
Once a static pool is established for a quarter, individual accounts receivable are not added to the pool (unless replaced by the seller) or removed from the pool (unless sold or returned to the seller). ASC 310 requires that the excess of the contractual cash flows over expected cash flows not be recognized as an adjustment of revenue or expense or on the balance sheet. ASC 310 initially freezes the internal rate of return, referred to as IRR, estimated when the accounts receivable are purchased, as the basis for subsequent impairment testing. Significant increases in actual or expected future cash flows may be recognized prospectively through an upward adjustment of the IRR over a portfolio’s remaining life. Any increase to the IRR then becomes the new benchmark for impairment testing. Rather than lowering the estimated IRR if the collection estimates are not received or projected to be received, the carrying value of a pool would be impaired, or written down to maintain the then current IRR. Under the interest method, income is recognized on the effective yield method based on the actual cash collected during a period and future estimated cash flows and timing of such collections and the portfolio’s cost. Revenue arising from collections in excess of anticipated amounts attributable to timing differences is deferred until such time as a review results in a change in the expected cash flows. The estimated future cash flows are reevaluated quarterly. | |||||||||||||
The Company uses the cost recovery method when collections on a particular pool of accounts cannot be reasonably predicted. Under the cost recovery method, no income is recognized until the cost of the portfolio has been fully recovered. A pool can become fully amortized (zero carrying balance on the balance sheet) while still generating cash collections. In this case, all cash collections are recognized as revenue when received. | |||||||||||||
The Company’s extensive liquidating experience is in the field of distressed credit card receivables, telecommunication receivables, consumer loan receivables, retail installment contracts, consumer receivables, and auto deficiency receivables. The Company uses the interest method for accounting for asset acquisitions within these classes of receivables when it believes it can reasonably estimate the timing of the cash flows. In those situations where the Company diversifies its acquisitions into other asset classes and the Company does not possess the same expertise, or the Company cannot reasonably estimate the timing of the cash flows, the Company utilizes the cost recovery method of accounting for those portfolios of receivables. At March 31, 2014, approximately $7.0 million of the consumer receivables acquired for liquidation are accounted for using the interest method, while approximately $45.1 million are accounted for using the cost recovery method, of which $38.4 million is concentrated in one portfolio, a $300 million portfolio purchase in March 2007 (the “Portfolio Purchase”). | |||||||||||||
The Company aggregates portfolios of receivables acquired sharing specific common characteristics which were acquired within a given quarter. The Company currently considers for aggregation portfolios of accounts, purchased within the same fiscal quarter, that generally meet the following characteristics: | |||||||||||||
• | same issuer/originator; | ||||||||||||
• | same underlying credit quality; | ||||||||||||
• | similar geographic distribution of the accounts; | ||||||||||||
• | similar age of the receivable; and | ||||||||||||
• | same type of asset class (credit cards, telecommunication, etc.) | ||||||||||||
The Company uses a variety of qualitative and quantitative factors to estimate collections and the timing thereof. This analysis includes the following variables: | |||||||||||||
• | the number of collection agencies previously attempting to collect the receivables in the portfolio; | ||||||||||||
• | the average balance of the receivables, as higher balances might be more difficult to collect while low balances might not be cost effective to collect; | ||||||||||||
• | the age of the receivables, as older receivables might be more difficult to collect or might be less cost effective. On the other hand, the passage of time, in certain circumstances, might result in higher collections due to changing life events of some individual debtors; | ||||||||||||
• | past history of performance of similar assets; | ||||||||||||
• | time since charge-off; | ||||||||||||
• | payments made since charge-off; | ||||||||||||
• | the credit originator and its credit guidelines; | ||||||||||||
• | our ability to analyze accounts and resell accounts that meet our criteria for resale; | ||||||||||||
• | the locations of the debtors, as there are better states to attempt to collect in and ultimately the Company has better predictability of the liquidations and the expected cash flows. Conversely, there are also states where the liquidation rates are not as favorable and that is factored into our cash flow analysis; | ||||||||||||
• | financial condition of the seller | ||||||||||||
• | jobs or property of the debtors found within portfolios. In the Company’s business model, this is of particular importance as debtors with jobs or property are more likely to repay their obligation and conversely, debtors without jobs or property are less likely to repay their obligation; and | ||||||||||||
• | the ability to obtain timely customer statements from the original issuer. | ||||||||||||
The Company obtains and utilizes, as appropriate, input, including but not limited to monthly collection projections and liquidation rates, from third party collection agencies and attorneys, as a further evidentiary matter, to assist in evaluating and developing collection strategies and in evaluating and modeling the expected cash flows for a given portfolio. | |||||||||||||
The following tables summarize the changes in the balance sheet account of consumer receivables acquired for liquidation during the following periods: | |||||||||||||
For the Six Months Ended March 31, 2014 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 8,071,000 | $ | 49,829,000 | $ | 57,900,000 | |||||||
Acquisition of receivable portfolios | — | 969,000 | 969,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (13,609,000 | ) | (7,091,000 | ) | (20,700,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (2,000 | ) | — | (2,000 | ) | ||||||||
Finance income recognized (1) | 12,510,000 | 1,394,000 | 13,904,000 | ||||||||||
Balance, end of period | $ | 6,970,000 | $ | 45,101,000 | $ | 52,071,000 | |||||||
Finance income as a percentage of collections | 91.9 | % | 19.7 | % | 67.2 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 12,269,000 | $ | 1,394,000 | $ | 13,663,000 | |||||||
Non-fully amortized portfolios | 241,000 | — | 241,000 | ||||||||||
Finance income recognized | $ | 12,510,000 | $ | 1,394,000 | $ | 13,904,000 | |||||||
For the Six Months Ended March 31, 2013 | |||||||||||||
Cost | |||||||||||||
Interest | Recovery | ||||||||||||
Method | Method | Total | |||||||||||
Balance, beginning of period | $ | 12,326,000 | $ | 74,561,000 | $ | 86,887,000 | |||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (18,290,000 | ) | (8,306,000 | ) | (26,596,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (17,000 | ) | — | (17,000 | ) | ||||||||
Impairment | (2,203,000 | ) | — | (2,203,000 | ) | ||||||||
Finance income recognized (1) | 14,997,000 | 1,756,000 | 16,753,000 | ||||||||||
Balance, end of period | $ | 6,813,000 | $ | 68,011,000 | $ | 74,824,000 | |||||||
Finance income as a percentage of collections | 81.9 | % | 21.1 | % | 63 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 14,319,000 | $ | 1,756,000 | $ | 16,075,000 | |||||||
Non-fully amortized portfolios | 678,000 | — | 678,000 | ||||||||||
Finance income recognized | $ | 14,997,000 | $ | 1,756,000 | $ | 16,753,000 | |||||||
For the Three Months Ended March 31, 2014 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 7,553,000 | $ | 47,578,000 | $ | 55,131,000 | |||||||
Acquisition of receivable portfolio | — | 449,000 | 449,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (6,861,000 | ) | (3,636,000 | ) | (10,497,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (1,000 | ) | — | (1,000 | ) | ||||||||
Finance income recognized (1) | 6,279,000 | 710,000 | 6,989,000 | ||||||||||
Balance, end of period | $ | 6,970,000 | $ | 45,101,000 | $ | 52,071,000 | |||||||
Finance income as a percentage of collections | 91.5 | % | 19.5 | % | 66.6 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 6,159,000 | $ | 710,000 | $ | 6,869,000 | |||||||
Non-fully amortized portfolios | 120,000 | — | 120,000 | ||||||||||
Finance income recognized | $ | 6,279,000 | $ | 710,000 | $ | 6,989,000 | |||||||
For the Three Months Ended March 31, 2013 | |||||||||||||
Interest | Cost Recovery | Total | |||||||||||
Method | Method | ||||||||||||
Balance, beginning of period | $ | 10,472,000 | $ | 71,296,000 | $ | 81,768,000 | |||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (8,817,000 | ) | (4,180,000 | ) | (12,997,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (7,000 | ) | — | (7,000 | ) | ||||||||
Impairment | (2,203,000 | ) | — | (2,203,000 | ) | ||||||||
Finance income recognized (1) | 7,368,000 | 895,000 | 8,263,000 | ||||||||||
Balance, end of period | $ | 6,813,000 | $ | 68,011,000 | $ | 74,824,000 | |||||||
Finance income as a percentage of collections | 83.5 | % | 21.4 | % | 63.5 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 7,032,000 | $ | 895,000 | $ | 7,927,000 | |||||||
Non-fully amortized portfolios | 336,000 | — | 336,000 | ||||||||||
Finance income recognized | $ | 7,368,000 | $ | 895,000 | $ | 8,263,000 | |||||||
The deferred finance income balance is reported as a part of the consumer receivables acquired for liquidation (at net realizable value) at March 31, 2014 as follows: | |||||||||||||
Gross consumer receivables acquired for liquidation | $ | 60,084,000 | |||||||||||
Accrued finance income, net | 1,092,000 | ||||||||||||
Impairment reserve | (9,105,000 | ) | |||||||||||
Consumer receivables acquired for liquidation (at net realizable value) | $ | 52,071,000 | |||||||||||
As of March 31, 2014, the Company had $52.1 million in consumer receivables acquired for liquidation, of which $7.0 million are accounted for on the interest method. Based upon current projections, net cash collections, applied to principal for interest method portfolios will be as follows for the twelve months in the periods ending: | |||||||||||||
September 30, 2014 (six months remaining) | $ | 2,814,000 | |||||||||||
September 30, 2015 | 1,156,000 | ||||||||||||
September 30, 2016 | 893,000 | ||||||||||||
September 30, 2017 | 699,000 | ||||||||||||
September 30, 2018 | 589,000 | ||||||||||||
September 30, 2019 | 509,000 | ||||||||||||
September 30, 2020 | 310,000 | ||||||||||||
Total | $ | 6,970,000 | |||||||||||
Accretable yield represents the amount of finance income the Company can expect to generate over the remaining life of its existing portfolios based on estimated future net cash flows as of March 31, 2014. There were no accretable yield adjustments in the six month periods ended March 2014 and 2013. Changes in accretable yield for the six month and three month periods ended March 31, 2014 and 2013 are as follows: | |||||||||||||
Six Months | Six Months | ||||||||||||
Ended | Ended | ||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||
Balance at beginning of period | $ | 1,116,000 | $ | 2,086,000 | |||||||||
Finance income recognized on finance receivables, net | (12,510,000 | ) | (14,997,000 | ) | |||||||||
Reclassifications from nonaccretable difference (1) | 12,255,000 | 13,853,000 | |||||||||||
Balance at end of period | $ | 861,000 | $ | 942,000 | |||||||||
Three Months | Three Months | ||||||||||||
Ended | Ended | ||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||
Balance at beginning of period | $ | 981,000 | $ | 1,722,000 | |||||||||
Finance income recognized on finance receivables, net | (6,279,000 | ) | (7,368,000 | ) | |||||||||
Reclassifications from nonaccretable difference (1) | 6,159,000 | 6,588,000 | |||||||||||
Balance at end of period | $ | 861,000 | $ | 942,000 | |||||||||
-1 | Includes portfolios that became zero basis during the period, removal of zero basis portfolios from the accretable yield calculation and other immaterial impairments and accretions based on the extension of certain collection curves. | ||||||||||||
During the six and three month periods ended March 31, 2014, the Company purchased $17.1 million and $8.5 million, respectively, of face value portfolios, at a cost of $1.0 million and $0.5 million, respectively, all of which are accounted for on the cost recovery method. There were no portfolio purchases during the six months ended March 31, 2013. | |||||||||||||
The following table summarizes collections on a gross basis as received by the Company’s third-party collection agencies and attorneys, less commissions and direct costs for the six and three month periods ended March 31, 2014 and 2013, respectively. | |||||||||||||
For the Six Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross collections (1) | $ | 33,692,000 | $ | 42,940,000 | |||||||||
Commissions and fees (2) | 12,990,000 | 16,327,000 | |||||||||||
Net collections | $ | 20,702,000 | $ | 26,613,000 | |||||||||
For the Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross collections (1) | $ | 16,367,000 | $ | 20,854,000 | |||||||||
Commissions and fees (2) | 5,869,000 | 7,850,000 | |||||||||||
Net collections | $ | 10,498,000 | $ | 13,004,000 | |||||||||
-1 | Gross collections include: collections from third-party collection agencies and attorneys, collections from in-house efforts, and collections represented by account sales. | ||||||||||||
-2 | Commissions and fees are the contractual commission earned by third party collection agencies and attorneys, and direct costs associated with the collection effort, generally court costs. Includes a 3% fee charged by a servicer on gross collections received by the Company in connection with the Portfolio Purchase. Such arrangement was consummated in December 2007. The fee is charged for asset location, skip tracing and ultimately suing debtors in connection with this portfolio purchase. |
Acquisition_of_CBC
Acquisition of CBC | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Acquisition of CBC | ' | ||||
Note 5 — Acquisition of CBC | |||||
On December 31, 2013, the Company acquired 80% ownership of CBC and its affiliate, CBC Management Services, LLC, for approximately $5.9 million. In addition, the Company will provide financing to CBC of up to $5 million. The 20% non-controlling interests are held by two of the original owners of CBC. The fair value of non-controlling interests at the acquisition date was determined to be immaterial. The non-controlling interests will not be entitled to any distributions from CBC until the Company receives distributions of $2,337,190. The non-controlling interests are entitled to two of the five seats of CBC’s Board of Managers and have the right to approve certain material transactions of CBC. The non-controlling interests owners are employed by CBC. If the employment is terminated, other than for cause, CBC could be required to purchase their membership interest in CBC. If the employment is terminated for any other reason, CBC has the right to purchase their non-controlling interests. The purchase price would be determined by a third party appraiser and is payable over a period of time. The fair value of the put right was determined to be $0 at December 31, 2013. No remeasurement is required at March 31, 2014 as it is not probable that the put option will become redeemable. The acquisition provides the Company with the opportunity to further diversify its portfolio. | |||||
CBC purchases periodic structured settlements and annuity policies from individuals in exchange for a lump sum payment. The Company accounted for this purchase in accordance with ASC Topic 805 “Business Combinations”. Under this guidance, an entity is required to recognize the assets acquired and liabilities assumed and the consideration given at their fair value on the acquisition date. The following table summarizes the fair value of the assets acquired and the liabilities assumed as of the December 31, 2013 acquisition date: | |||||
Cash | $ | 351,000 | |||
Structured settlements | 30,436,000 | ||||
Other assets | 11,000 | ||||
Other liabilities | (356,000 | ) | |||
Other debt (see Note 11: Other debt – CBC (including non-recourse notes payable amounting to $13.8 million) | (25,863,000 | ) | |||
Total identifiable net assets acquired | 4,579,000 | ||||
Goodwill (see Note 9: Goodwill) | 1,360,000 | ||||
Purchase Price | $ | 5,939,000 | |||
As the transaction consummated on December 31, 2013, there were no actual operational results that were attributable to the Company in the first quarter of fiscal year 2014 and the comparable period of fiscal year 2013. Total revenues, as reported, for the six months ended March 31 of fiscal year 2014, were $20,418,000. On a pro forma basis, total revenues for the six months ended March 31, 2014 would have been $21,510,000. Net income attributable to Asta Funding, Inc., as reported, for the six months ended March 31, 2014, was $3,831,000. On a pro forma basis, net income attributable to Asta Funding, Inc. for the six months ended March 31, 2014 would have been $3,873,000. Total revenues, as reported, for the six months ended March 31, 2013, were $20,637,000. On a pro forma basis, total revenues for the same prior year period would have been $22,442,000. Net income attributable to Asta Funding, Inc., as reported, for the six months ended March 31, 2013 was $3,470,000. On a pro forma basis, net income attributable to Asta Funding, Inc. would have been $3,384,000 for the same prior year period. The Company, through CBC, earned $1.5 million in settlement income during the three month period ended March 31, 2014. The Company had a net invested balance of $33.3 million in structured settlements as of March 31, 2014. The collections yielded net income attributable to non-controlling interest of $21,000 for the three and six month period ended March 31, 2014. |
Structured_Settlements
Structured Settlements | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Structured Settlements | ' | ||||
Note 6 — Structured Settlements | |||||
Structured settlements consist of the following as of March 31, 2014: | |||||
Maturity value | $ | 48,387,000 | |||
Unearned income | (15,057,000 | ) | |||
Net carrying value | $ | 33,330,000 | |||
Encumbrances on structured settlements at fair value as of March 31, 2014 are: | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 (1) | $ | 2,689,000 | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 (1) | 5,727,000 | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 (1) | 5,079,000 | ||||
$15,000,000 revolving line of credit (1) | 12,722,000 | ||||
Encumbered structured settlements | 26,217,000 | ||||
Structured settlements not encumbered | 7,113,000 | ||||
Total structured settlements | $ | 33,330,000 | |||
-1 | See Note 11 – Other Debt – CBC | ||||
At March 31, 2014, the expected cash flows of structured settlements at fair value based on maturity value are as follows: | |||||
September 30, 2014 (six months remaining) | $ | 2,315,000 | |||
September 30, 2015 | 3,918,000 | ||||
September 30, 2016 | 4,197,000 | ||||
September 30, 2017 | 3,362,000 | ||||
September 30, 2018 | 3,033,000 | ||||
Thereafter | 31,562,000 | ||||
Total | $ | 48,387,000 | |||
Other_Investments
Other Investments | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Investments | ' | ||||||||
Note 7 — Other Investments | |||||||||
Personal Injury Claims | |||||||||
Pegasus purchases interests in personal injury claims from claimants who are a party to personal injury litigation. Pegasus advances to each claimant funds on a non-recourse basis at an agreed upon interest rate, in anticipation of a future settlement. The interest in each claim purchased by Pegasus consists of the right to receive, from such claimant, part of the proceeds or recoveries which such claimant receives by reason of a settlement, judgment or award with respect to such claimant’s claim. The Company, through Pegasus, earned $1.2 million and $4.0 million, in interest and fees during the three and six month periods ending March 31, 2014, respectively, compared to $1.4 million and $2.6 million, respectively, during the three and six month periods ending March 31, 2013. The Company had a net invested balance of $30.3 million and $35.8 million on March 31, 2014 and September 30, 2013, respectively. The collections yielded net income/(loss) attributable to non-controlling interest of $443,000 and ($6,000) for the six and three month periods ended March 31, 2014, respectively, compared to $123,000 and $78,000 for the six and three month periods ended March 31, 2013, respectively. The reserve for bad debts is recorded based upon the historical trend for write off in the personal injury financing industry, the aging of the claims and other factors that could impact recoverability. Pegasus records reserves for bad debts, which, at March 31, 2014, amounted to $1.9 million as follows: | |||||||||
Six Months | Three Months | ||||||||
Ended | Ended | ||||||||
March 31, 2014 | March 31, 2014 | ||||||||
Balance at beginning of period | $ | 2,248,000 | $ | 1,884,000 | |||||
(Recoveries of) provisions for losses | (112,000 | ) | 252,000 | ||||||
Write offs | (220,000 | ) | (220,000 | ) | |||||
Balance at end of period | $ | 1,916,000 | $ | 1,916,000 | |||||
Matrimonial Claims (included in Other Assets) | |||||||||
On May 18, 2012, the Company formed BP Case Management, LLC (“BPCM”), a joint venture with California-based Balance Point Divorce Funding, LLC (“BP Divorce Funding”). BPCM provides non-recourse funding to a spouse in a matrimonial action. The Company provided a $1.0 million revolving line of credit to partially fund BP Divorce Funding’s operations, with such loan bearing interest at the prevailing prime rate, with an initial term of twenty-four months. The revolving line of credit is collateralized by BP Divorce Funding’s profit share in BPCM and other assets. As of March 31, 2014, the Company’s investment in cases through BPCM was approximately $2.2 million, against which a $0.5 million reserve has been established. The investment in matrimonial cases was $1.6 million at September 30, 2013. There was no income recognized in the first six months of fiscal years 2014 and 2013. |
Furniture_Equipment
Furniture & Equipment | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Furniture & Equipment | ' | ||||||||
Note 8 — Furniture & Equipment | |||||||||
Furniture and equipment consist of the following as of the dates indicated: | |||||||||
March 31, | September 30, | ||||||||
2014 | 2013 | ||||||||
Furniture | $ | 310,000 | $ | 310,000 | |||||
Equipment | 3,622,000 | 3,622,000 | |||||||
Software | 1,211,000 | 1,211,000 | |||||||
Leasehold improvements | 99,000 | 99,000 | |||||||
5,242,000 | 5,242,000 | ||||||||
Less accumulated depreciation | 4,436,000 | 4,136,000 | |||||||
Balance, end of period | $ | 806,000 | $ | 1,106,000 | |||||
Goodwill
Goodwill | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Goodwill | ' | ||||
Note 9 — Goodwill | |||||
Goodwill represents the excess of the purchase price of an acquired business over the fair value of amounts assigned to assets acquired and liabilities assumed. Goodwill is reviewed for impairment if events or circumstances indicate that impairment may be present. Any excess in carrying value over the estimated fair value is recorded as impairment loss and charged to results of operations in the period such determination is made. For each of the six and three month periods ended March 31, 2014 and 2013, management has determined that there was no impairment loss required to be recognized in the carrying value of goodwill. | |||||
The goodwill balances at September 30, 2013 and March 31, 2014 are as follows: | |||||
Balance, September 30, 2013 | $ | 1,410,000 | |||
Goodwill from acquisition (see Note 5: Acquisition of CBC) | 1,360,000 | ||||
Balance, March 31, 2014 | $ | 2,770,000 | |||
Non_Recourse_Debt_Bank_of_Mont
Non Recourse Debt - Bank of Montreal | 6 Months Ended |
Mar. 31, 2014 | |
Non Recourse Debt - Bank of Montreal | ' |
Note 10 — Non Recourse Debt – Bank of Montreal | |
In March 2007, Palisades XVI borrowed approximately $227 million under the Receivables Financing Agreement, as amended in July 2007, December 2007, May 2008, February 2009, October 2010 and August 2013 from Bank of Montreal (“BMO”), in order to finance the Portfolio Purchase which had a purchase price of $300 million. The original term of the agreement was three years. This term was extended by each of the Second, Third, Fourth, Fifth Amendments and the most recent agreement signed in August 2013. | |
Since the inception of the Receivables Financing Agreement amendments have been signed to revise various terms of the Receivables Financing Agreement. Currently, the Settlement Agreement and Omnibus Amendment (“Settlement Agreement”) is in effect on August 7, 2013, Palisades XVI, a 100% owned bankruptcy remote subsidiary, entered into a Settlement Agreement with BMO as an amendment to the Receivables Financing Agreement. In consideration for a $15 million prepayment funded by the Company, BMO has agreed to significantly reduce minimum monthly collection requirements and the interest rate. If and when BMO receives the next $15 million of collections from the Portfolio Purchase, less certain credits for payments made prior to the consummation of the Settlement Agreement, the Company is entitled to recover from future net collections the $15 million prepayment that it funded. Thereafter, BMO will have the right to receive 30% of future net collections. | |
The aggregate minimum repayment obligations required under the Settlement Amendment, including interest and principal, for the fiscal years ending September 30, 2014 (6 months) and 2015 is $2.2 million and $2.5 million, respectively. | |
On March 31, 2014 and September 30, 2013, the outstanding balance on this loan was approximately $30.8 million and $35.8 million, respectively. The applicable interest rate at March 31, 2014 and September 30, 2013 was 0.40% and 0.43%, respectively. |
Other_Debt_CBC
Other Debt - CBC | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Debt - CBC | ' | ||||||||
Note 11 — Other Debt - CBC | |||||||||
The Company assumed $25.9 million of debt related to the CBC acquisition (see Note 5, Acquisition of CBC) on December 31, 2013. On the same date, the Company paid down $2.5 million of the debt. On March 27, 2014, CBC entered into an amendment whereby it increased its revolving line of credit from $12.5 million to $15.0 million, the interest rate floor was reduced from 5.5% to 4.75% and the commitment was extended to February 28, 2015. The amendment also included changes in carrier concentration ratios and removal of the personal guarantees of the general managers and non-controlling interest partners. As of March 31, 2014, the debt amounted to $26.2 million, which consists of a $12.7 million drawdown from a line of credit ($2.3 million available) from an institutional source and $13.5 million notes issued by entities 100%-owned and consolidated by CBC. These entities are bankruptcy-remote entities created to issue notes secured by structured settlements. The following table details the other debt at March 31, 2014: | |||||||||
March 31, | |||||||||
Interest Rate | 2014 Balance | ||||||||
Notes payable with varying monthly installments: | |||||||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | 8.75 | % | $ | 2,689,000 | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | 7.25 | % | 5,727,000 | ||||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | 7.125 | % | 5,079,000 | ||||||
Subtotal notes payable | 13,495,000 | ||||||||
$15,000,000 revolving line of credit expiring on February 28, 2015 | 4.75 | % | 12,722,000 | ||||||
Total debt – CBC | $ | 26,217,000 | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies | ' |
Note 12 — Commitments and Contingencies | |
Employment Agreements | |
In January 2007, the Company entered into an employment agreement (the “Employment Agreement”) with Gary Stern, its Chairman, President and Chief Executive, which expired on December 31, 2009. This Employment Agreement was not renewed and Mr. Stern is continuing in his current roles at the discretion of the Board of Directors until a new agreement is signed. The Company intends to negotiate a new employment agreement with Mr. Stern during fiscal year 2014. The two CBC operating principals entered into renewable two-year employment contracts at the time of acquisition (see Note 5 Acquisition of CBC). | |
Leases | |
The Company leases its facilities in Englewood Cliffs, New Jersey, Houston, Texas, New York, New York and Conshohocken, Pennsylvania. Please refer to the Company’s consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended September 30, 2013, as filed with the Securities and Exchange Commission, for additional information. Upon the acquisition of CBC, the Company is a party to a lease agreement for a facility located in Conshohocken, Pennsylvania. The lease expires in August 2014. | |
Litigation | |
In the ordinary course of its business, the Company is involved in numerous legal proceedings. The Company regularly initiates collection lawsuits, using its network of third party law firms, against consumers. Also, consumers occasionally initiate litigation against the Company, in which they allege that the Company has violated a federal or state law in the process of collecting their account. The Company does not believe that these matters are material to its business or financial condition. The Company is not involved in any material litigation in which it is a defendant. |
Finance_Income_Recognition_Imp
Finance Income Recognition, Impairments, and Commissions and Fees | 6 Months Ended | |||
Mar. 31, 2014 | ||||
Finance Income Recognition, Impairments, and Commissions and Fees | ' | |||
Note 13 — Finance Income Recognition, Impairments, and Commissions and Fees | ||||
Income Recognition | ||||
The Company accounts for its investment in consumer receivables acquired for liquidation using the interest method under the guidance of ASC 310. In ASC 310 static pools of accounts are established. These pools are aggregated based on certain common risk criteria. Each static pool is recorded at cost and is accounted for as a single unit for the recognition of income, principal payments and loss provision. | ||||
Once a static pool is established for a quarter, individual accounts receivable are not added to the pool (unless replaced by the seller) or removed from the pool (unless sold or returned to the seller). ASC 310 requires that the excess of the contractual cash flows over expected cash flows not be recognized as an adjustment of income or expense or on the balance sheet. ASC 310 initially freezes the internal rate of return (“IRR”), estimated when the accounts receivable are purchased, as the basis for subsequent impairment testing. Significant increases in actual, or expected future cash flows may be recognized prospectively through an upward adjustment of the IRR over a portfolio’s remaining life. Any increase to the IRR then becomes the new benchmark for impairment testing. Under ASC 310, rather than lowering the estimated IRR if the collection estimates are not received or projected to be received, the carrying value of a pool would be written down to maintain the then current IRR. | ||||
Finance income is recognized on cost recovery portfolios after the carrying value has been fully recovered through collections or amounts written down. | ||||
The Company accounts for its investments in personal injury claims at an agreed upon interest rate, in anticipation of a future settlement. The interest purchased by Pegasus in each claim consists of the right to receive from such claimant part of the proceeds or recoveries which such claimant receives by reason of a settlement, judgment or reward with respect to such claimant’s claim. Open case revenue is estimated, recognized and accrued at a rate based on the expected realization and underwriting guidelines and facts and circumstances for each individual case. These personal injury claims are non-recourse. When a case is closed and the cash is received for the advance provided to a claimant, income is recognized based upon the contractually agreed upon interest rate, and, if applicable, adjusted for any changes due to a settled amount and fees charged to the claimant. | ||||
The funding of BPCM matrimonial actions is on a non-recourse basis. BPCM income is recognized under the cost recovery method. | ||||
CBC purchases periodic payments under structured settlements and annuity policies from individuals in exchange for a lump sum payment. The Company elected to carry the structured settlements at fair value. Unearned income on structured settlements is recognized as interest income using the effective interest method over the life of the related structured settlement. Changes in fair value are recorded in unrealized gain (loss) in structured settlements in the Company’s statements of income. | ||||
Impairments | ||||
The Company accounts for its impairments in accordance with ASC 310, which provides guidance on how to account for differences between contractual and expected cash flows from an investor’s initial investment in loans or debt securities acquired in a transfer if those differences are attributable, at least in part, to credit quality. Increases in expected cash flows are recognized prospectively through an adjustment of the internal rate of return while decreases in expected cash flows are recognized as impairments. ASC 310 makes it more likely that impairment losses and accretable yield adjustments for portfolios’ performances which exceed original collection projections will be recorded, as all downward revisions in collection estimates will result in impairment charges, given the requirement that the IRR of the affected pool be held constant. There were no impairments recorded during the six month period ended March 31, 2014. An impairment of $2.2 million was recorded during the six month period ended March 31, 2013. | ||||
The Company’s analysis of the timing and amount of cash flows to be generated by our portfolio purchases are based on the following attributes: | ||||
• | the type of receivable, the location of the debtor and the number of collection agencies previously attempting to collect the receivables in the portfolio. The Company has found that there are better states to try to collect receivables and it factors in both better and worse states when establishing its initial cash flow expectations. | |||
• | the average balance of the receivables influences our analysis in that lower average balance portfolios tend to be more collectible in the short-term and higher average balance portfolios are more appropriate for our law suit strategy and thus yield better results over the longer term. As the Company has significant experience with both types of balances, it is able to factor these variables into our initial expected cash flows; | |||
• | the age of the receivables, the number of days since charge-off, any payments since charge-off, and the credit guidelines of the credit originator also represent factors taken into consideration in our estimation process. For example, older receivables might be more difficult and/or require more time and effort to collect; | |||
• | past history and performance of similar assets acquired. As the Company purchase portfolios of like assets, it accumulates a significant historical data base on the tendencies of debtor repayments and factor this into our initial expected cash flows; | |||
• | the Company’s ability to analyze accounts and resell accounts that meet its criteria; | |||
• | jobs or property of the debtors found within portfolios. With our business model, this is of particular importance. Debtors with jobs or property are more likely to repay their obligation through the lawsuit strategy and, conversely, debtors without jobs or property are less likely to repay their obligation. The Company believes that debtors with jobs or property are more likely to repay because courts have mandated the debtor must pay the debt. Ultimately, the debtor with property will pay to clear title or release a lien. The Company also believes that these debtors generally might take longer to repay and that is factored into our initial expected cash flows; and | |||
• | credit standards of the issuer. | |||
The Company believes it has significant experience in acquiring certain distressed consumer receivable portfolios at a significant discount to the amount actually owed by underlying debtors. The Company acquires these portfolios only after both qualitative and quantitative analyses of the underlying receivables are performed and a calculated purchase price is paid, so that we believe our estimated cash flow offers us an adequate return on our acquisition costs after servicing expense. Additionally, when considering larger portfolio purchases of accounts, or portfolios from issuers with whom the Company has limited experience, it has the added benefit of soliciting its third party collection agencies and attorneys for their input on liquidation rates and, at times, incorporates such input into the estimates that the Company uses for its expected cash flows. | ||||
On the interest method portfolios, the Company uses a time frame of the expectation of recovering 100% of its capital within 24-29 month period and the expectation of recovering 150% of invested capital over a 7 year period. The Company routinely monitors these expectations against the actual cash flows and, in the event the cash flows are below its expectations and it believes there are no reasons relating to mere timing differences or explainable delays (such as can occur particularly when the court system is involved) for the reduced collections, an impairment would be recorded as a provision for credit losses. Conversely, in the event the cash flows are in excess of our expectations and the reason is due to timing, it would defer the “excess” collection as deferred revenue. | ||||
The Company acquires accounts that have experienced deterioration of credit quality between origination and the date of its acquisition of the accounts. The amount paid for a portfolio of accounts reflects the Company’s determination that it is probable that the Company will be unable to collect all amounts due according to the portfolio of accounts’ contractual terms. The Company considers the expected payments and estimates the amount and timing of undiscounted expected principal, interest and other cash flows for each acquired portfolio coupled with expected cash flows from accounts available for sales. The excess of this amount over the cost of the portfolio, representing the excess of the accounts’ cash flows expected to be collected over the amount paid, is accreted into income recognized on finance receivables accounted for on the interest method over the expected remaining life of the portfolio. | ||||
The Company believes it has significant experience in acquiring certain distressed consumer receivable portfolios at a significant discount to the amount actually owed by underlying debtors. The Company acquires these portfolios only after both qualitative and quantitative analyses of the underlying receivables are performed and a calculated purchase price is paid so that we believe our estimated cash flow offers us an adequate return on our acquisition costs after our servicing expenses. Additionally, when considering larger portfolio purchases of accounts, or portfolios from issuers with whom the Company has limited experience, it has the added benefit of soliciting its third party collection agencies and attorneys for their input on liquidation rates and, at times, incorporates such input into the estimates that the Company uses for its expected cash flows. | ||||
Commissions and fees | ||||
Commissions and fees are the contractual commissions earned by third party collection agencies and attorneys, and direct costs associated with the collection effort, generally court costs. The Company expects to continue to purchase portfolios and utilize third party collection agencies and attorney networks. |
Income_Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
Note 14 — Income Taxes | |
Deferred federal and state taxes principally arise from (i) recognition of finance income collected for tax purposes, but not yet recognized for financial reporting; (ii) provision for impairments/credit losses; and (iii) stock based compensation expense for stock option grants and restricted stock awards recorded in the statement of operations for which no cash distribution has been made. Other components consist of state net operating loss (“NOL”) carry-forwards, which expire in September 2029. The provision for income tax expense for the three month periods ended March 31, 2014 and 2013 reflects income tax expense at an effective rate of 28.8% and 38.5%, respectively. The provision for income tax expense for the six month periods ended March 31, 2014 and 2013 reflects income tax expense at an effective rate of 34.0% and 39.6%, respectively. The lower effective tax rate is the result of higher level of investments in tax exempt securities and the income tax effect on non-controlling interests. | |
The corporate federal income tax returns of the Company for the years 2009 through 2013 are subject to examination by the IRS, generally for three years after they are filed. The state income tax returns and other state filings of the Company are subject to examination by the state taxing authorities, for various periods generally up to four years after they are filed. | |
In April 2010, the Company received notification from the IRS that the Company’s 2008, 2009 and 2010 federal income tax returns would be audited. This audit is currently in progress. |
Net_Income_per_Share
Net Income per Share | 6 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Net Income per Share | ' | ||||||||||||||||||||||||
Note 15 — Net Income per Share | |||||||||||||||||||||||||
Basic per share data is calculated by dividing net income by the weighted average shares outstanding during the period. Diluted earnings per share is calculated similarly, except that it includes the dilutive effect of the assumed exercise of securities, including the effect of shares issuable under the Company’s stock based compensation plans. With respect to the assumed proceeds from the exercise of dilutive options, the treasury stock method is calculated using the average market price for the period. | |||||||||||||||||||||||||
The following table presents the computation of basic and diluted per share data for the six months ended March 31, 2014 and 2013: | |||||||||||||||||||||||||
Six Months Ended March 31, 2014 | Six Months Ended March 31, 2013 | ||||||||||||||||||||||||
Weighted | Per | Weighted | Per | ||||||||||||||||||||||
Net | Average | Share | Net | Average | Share | ||||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||||
Basic | $ | 3,831,000 | 12,976,766 | $ | 0.3 | $ | 3,470,000 | 12,942,554 | $ | 0.27 | |||||||||||||||
Effect of Dilutive Stock | 227,905 | (0.01 | ) | 270,664 | (0.01 | ) | |||||||||||||||||||
Diluted | $ | 3,831,000 | 13,204,671 | $ | 0.29 | $ | 3,470,000 | 13,213,218 | $ | 0.26 | |||||||||||||||
At March 31, 2014, 1,088,304 options at a weighted average exercise price of $11.88 were not included in the diluted earnings per share calculation as they were antidilutive. | |||||||||||||||||||||||||
At March 31, 2013, 1,123,169 options at a weighted average exercise price of $12.40 were not included in the diluted earnings per share calculation as they were antidilutive. | |||||||||||||||||||||||||
The following table presents the computation of basic and diluted per share data for the three months ended March 31, 2014 and 2013: | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | ||||||||||||||||||||||||
Weighted | Per | Weighted | Per | ||||||||||||||||||||||
Net | Average | Share | Net | Average | Share | ||||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||||
Basic | $ | 1,442,000 | 12,979,350 | $ | 0.11 | $ | 882,000 | 12,943,896 | $ | 0.07 | |||||||||||||||
Effect of Dilutive Stock | 229,964 | 282,455 | |||||||||||||||||||||||
Diluted | $ | 1,442,000 | 13,209,314 | $ | 0.11 | $ | 882,000 | 13,226,351 | $ | 0.07 | |||||||||||||||
Stock_Based_Compensation
Stock Based Compensation | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Stock Based Compensation | ' | ||||
Note 16 — Stock Based Compensation | |||||
The Company accounts for stock-based employee compensation under ASC 718, Compensation — Stock Compensation (“ASC 718”). ASC 718 requires that compensation expense associated with stock options and other stock based awards be recognized in the statement of operations, rather than a disclosure in the notes to the Company’s consolidated financial statements. | |||||
In February 2014, the Compensation Committee of the Board of Directors of the Company (“Compensation Committee”) granted 5,000 options to a former employee for past services. The exercise price of these options, issued on February 4, 2014, was at the market price on that date. The options vested immediately. The weighted average assumptions used in the option pricing model were as follows: | |||||
Risk-free interest rate | 0.06 | % | |||
Expected term (years) | 5.9 | ||||
Expected volatility | 35.3 | % | |||
Dividend yield | 0 | % | |||
In December 2013, the Compensation Committee granted 156,700 stock options, of which 70,000 options were awarded to the Officers of the Company and the remaining 86,700 stock options were awarded to non-officer employees of the Company. The exercise price of these options, issued on December 12, 2013, was at the market price on that date. The options vest in three equal annual installments and accounted for as one graded vesting award. The weighted average assumptions used in the option pricing model were as follows: | |||||
Risk-free interest rate | 0.08 | % | |||
Expected term (years) | 6.5 | ||||
Expected volatility | 98.3 | % | |||
Dividend yield | 0 | % | |||
In December 2012, the Compensation Committee granted 160,000 stock options, of which 65,000 options were awarded to three officers of the Company and 20,000 options were awarded to an employee of the Company. The remaining 75,000 shares were issued to six non-employee directors of the Company. The exercise price of these options, issued on December 18, 2012, was at the market price on that date. The options vest in three equal annual installments and accounted for as one graded vesting award. The weighted average assumptions used in the option pricing model were as follows: | |||||
Risk-free interest rate | 0.16 | % | |||
Expected term (years) | 6 | ||||
Expected volatility | 101 | % | |||
Dividend yield | 1.67 | % | |||
In addition, the Company granted 102,321 restricted shares to the Chief Executive Officer of the Company. The shares vest in three equal annual installments. |
Stock_Option_Plans
Stock Option Plans | 6 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Stock Option Plans | ' | ||||||||||||||||||||
Note 17 — Stock Option Plans | |||||||||||||||||||||
2012 Stock Option and Performance Award Plan | |||||||||||||||||||||
On February 7, 2012, the Board of Directors adopted the Company’s 2012 Stock Option and Performance Award Plan (the “2012 Plan”), which was approved by the stockholders of the Company on March 21, 2012. The 2012 Plan replaces the Equity Compensation Plan (as defined below). | |||||||||||||||||||||
The 2012 Plan provides the Company with flexibility with respect to equity awards by providing for grants of stock awards (i.e. restricted or unrestricted), stock purchase rights and stock appreciation rights, in addition to the granting of stock options. | |||||||||||||||||||||
The Company authorized 2,000,000 shares of Common Stock for issuance under the 2012 Plan. Under the 2012 Plan, the Company has granted options to purchase an aggregate of 371,700 shares and an award of 102,321 shares of restricted stock, leaving 1,525,979 shares available as of March 31, 2014. As of March 31, 2014, approximately 61 of the Company’s employees were able to participate in the 2012 Plan. | |||||||||||||||||||||
Equity Compensation Plan | |||||||||||||||||||||
On December 1, 2005, the Board of Directors adopted the Company’s Equity Compensation Plan (the “Equity Compensation Plan”), which was approved by the stockholders of the Company on March 1, 2006. The Equity Compensation Plan was adopted to supplement the Company’s 2002 Stock Option Plan (as defined below). | |||||||||||||||||||||
In addition to permitting the grant of stock options as are permitted under the 2002 Stock Option Plan, the Equity Compensation Plan allows the Company flexibility with respect to equity awards by also providing for grants of stock awards (i.e. restricted or unrestricted), stock purchase rights and stock appreciation rights. | |||||||||||||||||||||
The Company authorized 1,000,000 shares of Common Stock for issuance under the Equity Compensation Plan. As of March 21, 2012, no more awards could be issued under this plan. | |||||||||||||||||||||
2002 Stock Option Plan | |||||||||||||||||||||
On March 5, 2002, the Board of Directors adopted the Company’s 2002 Stock Option Plan (the “2002 Plan”), which plan was approved by the stockholders of the Company on May 1, 2002. The 2002 Plan was adopted in order to attract and retain qualified directors, officers and employees of, and consultants to, the Company. | |||||||||||||||||||||
The 2002 Plan authorizes the granting of incentive stock options (as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”)) and non-qualified stock options to eligible employees of the Company, including officers and directors of the Company (whether or not employees) and consultants of the Company. | |||||||||||||||||||||
The Company authorized 1,000,000 shares of Common Stock authorized for issuance under the 2002 Plan. As of March 5, 2012, no more awards could be issued under this plan. | |||||||||||||||||||||
Summary of the Plans | |||||||||||||||||||||
Compensation expense for stock options and restricted stock is recognized over the vesting period. Compensation expense for restricted stock is based upon the market price of the shares underlying the awards on the grant date. | |||||||||||||||||||||
The following table summarizes stock option transactions under the 2012 Plan, the 2002 Plan, and the Equity Compensation Plan: | |||||||||||||||||||||
Six Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Shares | Price | Shares | Price | ||||||||||||||||||
Outstanding options at the beginning of period | 1,622,771 | $ | 11.31 | 1,499,471 | $ | 11.27 | |||||||||||||||
Options granted | 161,700 | 8.48 | 160,000 | 9.57 | |||||||||||||||||
Options exercised | (10,000 | ) | 2.95 | (3,600 | ) | 6.77 | |||||||||||||||
Options forfeited/canceled | (210,767 | ) | 14.87 | — | — | ||||||||||||||||
Outstanding options at the end of period | 1,563,704 | $ | 10.65 | 1,655,871 | $ | 11.12 | |||||||||||||||
Exercisable options at the end of period | 972,035 | $ | 12.02 | 1,121,070 | $ | 12.37 | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Shares | Price | Shares | Price | ||||||||||||||||||
Outstanding options at the beginning of period | 1,568,704 | $ | 10.61 | 1,657,871 | $ | 11.11 | |||||||||||||||
Options granted | 5,000 | 8.31 | — | — | |||||||||||||||||
Options exercised | (10,000 | ) | 2.95 | (2,000 | ) | 6.61 | |||||||||||||||
Options forfeited/canceled | — | — | — | — | |||||||||||||||||
Outstanding options at the end of period | 1,563,704 | $ | 10.65 | 1,655,871 | $ | 11.12 | |||||||||||||||
Exercisable options at the end of period | 972,035 | $ | 12.02 | 1,121,070 | $ | 12.37 | |||||||||||||||
The following table summarizes information about the 2012 Plan, 2002 Plan, and the Equity Compensation Plan outstanding options as of March 31, 2014: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||
Weighted | Remaining | Average | Average | ||||||||||||||||||
Number | Contractual | Exercise | Number | Exercise | |||||||||||||||||
Range of Exercise Price | Outstanding | Life (in Years) | Price | Exercisable | Price | ||||||||||||||||
$2.8751 – $5.7500 | 7,500 | 5.1 | $ | 2.95 | 7,500 | $ | 2.95 | ||||||||||||||
$5.7501 – $8.6250 | 939,600 | 7.4 | 7.92 | 504,600 | 7.78 | ||||||||||||||||
$8.6251 – $14.3750 | 260,000 | 8.5 | 9.77 | 103,331 | 10.5 | ||||||||||||||||
$14.3751 – $17.2500 | 1,944 | 0.2 | 15.99 | 1,944 | 15.99 | ||||||||||||||||
$17.2501 – $20.1250 | 339,660 | 0.6 | 18.23 | 339,660 | 18.23 | ||||||||||||||||
$25.8751 – $28.7500 | 15,000 | 2.7 | 28.75 | 15,000 | 28.75 | ||||||||||||||||
1,563,704 | 6 | $ | 10.65 | 972,035 | $ | 12.02 | |||||||||||||||
The Company recognized $679,000 and $343,000 of compensation expense related to stock option during the six and three month periods ended March 31, 2014, respectively. The Company recognized $775,000 and $366,000 of compensation expense related to stock options during the six and three months ended March 31, 2013. As March 31, 2014, there was $2,324,000 of unrecognized compensation cost related to stock option awards. The weighted average period over which such costs are expected to be recognized is 1.8 years. | |||||||||||||||||||||
The intrinsic value of the outstanding and exercisable options as of March 31, 2014 was approximately $408,000 and $293,000, respectively. The weighted average remaining contractual life of exercisable options is 4.5 years. The intrinsic value and the fair value of the options exercised during both the six and three month period ended March 31, 2014 was approximately $55,000 and $84,000, respectively. The intrinsic and fair value of the stock options exercised during the six month period ended March 31, 2013 was approximately $11,000 and $35,000, respectively. The intrinsic and fair value of the stock options exercised during the three month period ended March 31, 2013 was approximately $5,000 and $19,000, respectively. The proceeds from the exercise of the stock options during the second quarter of fiscal year 2014 were approximately $30,000. The proceeds from the exercise of options exercised during the six and three month periods ended March 31, 2014 were approximately $24,000 and $13,000, respectively. There was no tax effect associated with these exercises. The fair value of the stock options that vested during the six and three month periods ended March 31, 2014 was approximately $607,000 and $41,000, respectively. The fair value of the options that vested during the six and three month periods ended March 31, 2013 was approximately $1,115,000 and $0, respectively. The fair value of the awards granted during the six and three month periods ended March 31, 2014 was $1,372,000 and $42,000, respectively. The fair value of the awards granted during the six and three month period ended March 31, 2013 was approximately $1,531,000 and $0, respectively. | |||||||||||||||||||||
The following table summarizes information about restricted stock transactions: | |||||||||||||||||||||
Six Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||||||
Unvested at the beginning of period | 102,321 | $ | 9.57 | 10,922 | $ | 7.63 | |||||||||||||||
Awards granted | — | — | 102,321 | 9.57 | |||||||||||||||||
Vested | (34,107 | ) | 9.57 | (10,922 | ) | 7.63 | |||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||
Unvested at the end of period | 68,214 | $ | 9.57 | 102,321 | $ | 9.57 | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||||||
Unvested at the beginning of period | 68,214 | $ | 9.57 | 102,321 | $ | 9.57 | |||||||||||||||
Awards granted | — | — | — | — | |||||||||||||||||
Vested | — | — | — | — | |||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||
Unvested at the end of period | 68,214 | $ | 9.57 | 102,321 | $ | 9.57 | |||||||||||||||
The Company recognized $162,000 and $80,000 of compensation expense related to the restricted stock awards during the six and three month periods ended March 31, 2014, respectively. The Company recognized $110,000 and $80,000 of compensation expense related to the restricted stock awards for the six and three month periods ended March 31, 2013. As of March 31, 2014, there was $561,000 of unrecognized compensation cost related to restricted stock awards. The weighted average remaining period over which such costs expected to be recognized is 1.7 years. There were no restricted stock awards granted during the first six months of fiscal year 2014. The fair value of the restricted stock awards granted during the first quarter of fiscal year 2013 was approximately $979,000. The fair value of the awards vested during the six month periods ended March 31, 2014 and 2013 was $326,000 and 83,000, respectively. There were no awards vested in the second quarter of fiscal years 2014 and 2013. | |||||||||||||||||||||
The Company recognized an aggregate total of $841,000 and $423,000, respectively, in compensation expense for the six and three month periods ended March 31, 2014, for the stock options and restricted stock grants. The Company recognized an aggregate of $885,000 and $446,000, respectively, for the six and three month periods ended March 31, 2013, for the stock options and restricted stock grants. As of March 31, 2014, there was a total of $2,885,000 of unrecognized compensation cost related to unvested stock options and restricted stock grants. The method used to calculate stock based compensation is the straight line pro-rated method. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity | ' |
Note 18 — Stockholders’ Equity | |
There were no dividends declared or paid during the six months ended March 31, 2014. During September 2012, the Company declared a cash dividend aggregating $260,000 ($0.02 per share) which was paid November 1, 2012. On December 13, 2012, the Board of Directors of the Company approved the payment of a special accelerated annual dividend of $0.08 per share to shareholders of record on December 24, 2012. The aggregate dividend of $1,030,000 was paid on December 28, 2012. | |
On March 9, 2012, the Company adopted a Rule 10b5-1 Plan in conjunction with its share repurchase program. The Board of Directors approved the repurchase of up to $20 million of the Company’s common stock, which was effective through March 11, 2013. During the six and three month period ended March 31, 2013 the Company purchased approximately 172,000 and 151,000 shares, respectively, at an aggregate cost of approximately $1,574,000 and $1,386,000, respectively, under the plan. The Plan expired in March 2013. |
Fair_Value_of_Financial_Measur
Fair Value of Financial Measurements and Disclosures | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value of Financial Measurements and Disclosures | ' | ||||||||||||||||
Note 19 — Fair Value of Financial Measurements and Disclosures | |||||||||||||||||
Disclosures about Fair Value of Financial Instruments | |||||||||||||||||
FASB ASC 825, Financial Instruments, (“ASC 825”), requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practicable to estimate that value. Because there are a limited number of market participants for certain of the Company’s assets and liabilities, fair value estimates are based upon judgments regarding credit risk, investor expectation of economic conditions, normal cost of administration and other risk characteristics, including interest rate and prepayment risk. These estimates are subjective in nature and involve uncertainties and matters of judgment, which significantly affect the estimates. | |||||||||||||||||
The estimated fair value of the Company’s financial instruments is summarized as follows: | |||||||||||||||||
31-Mar-14 | 30-Sep-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets | |||||||||||||||||
Available-for-sale investments (Level 1) | $ | 69,539,000 | $ | 69,539,000 | $ | 58,035,000 | $ | 58,035,000 | |||||||||
Consumer receivables acquired for liquidation (Level 3) | 52,071,000 | 53,990,000 | 57,900,000 | 70,875,000 | |||||||||||||
Structured settlements (Level 3) | 33,300,000 | 33,300,000 | — | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Non-recourse debt – BMO (Level 3) | 30,778,000 | 21,487,000 | 35,760,000 | 27,000,000 | |||||||||||||
Other debt – CBC, revolving line of credit (Level 3) | 12,722,000 | 12,722,000 | — | — | |||||||||||||
Other debt – CBC, non-recourse notes payable with varying installments (Level 3) | 13,495,000 | 13,495,000 | — | — | |||||||||||||
Disclosure of the estimated fair values of financial instruments often requires the use of estimates. The Company uses the following methods and assumptions to estimate the fair value of financial instruments: | |||||||||||||||||
Available-for-sale investments – The available-for-sale securities consist of mutual funds that are valued based on quoted prices in active markets. | |||||||||||||||||
Consumer receivables acquired for liquidation – The Company computed the fair value of the consumer receivables acquired for liquidation using its proprietary forecasting model. The Company’s forecasting model utilizes a discounted cash flow analysis. The Company’s cash flows are an estimate of collections for consumer receivables based on variables fully described in Note 4: Consumer Receivables Acquired for Liquidation. These cash flows are discounted to determine the fair value. | |||||||||||||||||
Structured settlements – The Company determined the fair value based on the discounted forecasted future collections of the structured settlements. | |||||||||||||||||
Non-recourse Debt – Bank of Montreal—carries a variable rate. The fair value at March 31, 2014 and September 30, 2013 was based on the discounted weighted average forecasted future collections of the Portfolio Purchase. | |||||||||||||||||
Other debt CBC, revolving line of credit—The Company determined the fair value based on similar instruments in the market. | |||||||||||||||||
Other debt CBC, notes payable with varying installments—The fair value at March 31, 2014 was based on the discounted forecasted future collections of the structured settlements. | |||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||
The Company recorded its available-for-sale investments at estimated fair value on a recurring basis. The accompanying consolidated financial statements include estimated fair value information regarding its available-for-sale investments as of March 31, 2014, as required by FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. | |||||||||||||||||
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to assess at the measurement date. | |||||||||||||||||
Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices in markets that are not active for identical or similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | |||||||||||||||||
Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the fair value of the liabilities that are developed using the reporting entities’ estimates and assumptions, which reflect those that market participants would use. | |||||||||||||||||
The Company’s available-for-sale investments are classified as Level 1 financial instruments based on the classifications described above. The Company did not have transfers into or (out of) Level 1 investments during the six month period ended March 31, 2014. The Company had no Level 2 or Level 3 available-for-sale investments during the first six months of fiscal year 2014. | |||||||||||||||||
The following table sets forth the Company’s quantitative information about its Level 3 fair value measurements as of March 31, 2014: | |||||||||||||||||
Fair Value | Valuation | Unobservable | Rate | ||||||||||||||
Technique | Input | ||||||||||||||||
Structured settlements at fair value | $ | 33,330,000 | Discounted | Discount | 5.5 | % | |||||||||||
cash flow | rate | ||||||||||||||||
The changes in structured settlements at fair value using significant unobservable inputs (Level 3) during the six months ended March 31, 2014 were as follows: | |||||||||||||||||
Balance at September 30, 2013 | $ | 0 | |||||||||||||||
Acquisition of CBC (see Note 5) | 30,436,000 | ||||||||||||||||
Total gains included in earnings | 820,000 | ||||||||||||||||
Purchases | 2,359,000 | ||||||||||||||||
Sales | — | ||||||||||||||||
Interest accreted | 708,000 | ||||||||||||||||
Payments received | (993,000 | ) | |||||||||||||||
Total | $ | 33,330,000 | |||||||||||||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets held at March 31, 2014 | $ | 820,000 | |||||||||||||||
Realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of income for the six months ended March 2014 are reported in the following revenue categories: | |||||||||||||||||
Total gains (losses) included in earnings in fiscal year 2014 | $ | 820,000 | |||||||||||||||
Change in unrealized gains (losses) relating to assets still held at March 31, 2014 | $ | 820,000 | |||||||||||||||
Subsequent_Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
Note 20 — Subsequent Events | |
On May 2, 2014 the Company entered into a new credit line agreement with Bank Hapoalim. The credit line is $20.0 million with a term of three years and an interest rate of LIBOR plus 275 basis points or prime, at the Company’s option. The Company is subject to an unused line fee. The Company is required to maintain a $150 million tangible net worth. The credit line can be increased $30.0 million, subject to the bank’s approval. |
Business_and_Basis_of_Presenta1
Business and Basis of Presentation (Policies) | 6 Months Ended |
Mar. 31, 2014 | |
Business | ' |
Business | |
Asta Funding, Inc., together with its wholly owned significant operating subsidiaries Palisades Collection LLC, Palisades Acquisition XVI, LLC (“Palisades XVI”), VATIV Recovery Solutions LLC (“VATIV”), ASFI Pegasus Holdings, LLC (“APH”), Fund Pegasus, LLC (“Fund Pegasus”), GAR National Disability Advocates, LLC (“GAR National Disability”) (formerly known as AGR Disability Help Center, LLC) and other subsidiaries, not all wholly owned (collectively, the “Company”), is engaged in the business of purchasing, managing for its own account and servicing distressed consumer receivables, including charged-off receivables, semi-performing receivables and performing receivables. The primary charged-off receivables are accounts that have been written-off by the originators and may have been previously serviced by collection agencies. Semi-performing receivables are accounts where the debtor is currently making partial or irregular monthly payments, but the accounts may have been written-off by the originators. Performing receivables are accounts where the debtor is making regular monthly payments that may or may not have been delinquent in the past. Distressed consumer receivables are the unpaid debts of individuals to banks, finance companies and other credit providers. A large portion of the Company’s distressed consumer receivables are MasterCard®, Visa®, other credit card accounts, and telecommunication accounts which were charged-off by the issuers for non-payment. The Company acquires these portfolios at substantial discounts from their face values. The discounts are based on the characteristics (issuer, account size, debtor residence and age of debt) of the underlying accounts of each portfolio. Litigation related receivables are semi-performing investments whereby the Company is assigned the revenue stream from the proceeds received. | |
The Company owns 80% of Pegasus Funding, LLC (“Pegasus”), which invests in funding personal injury claims and 80% of CBC Settlement Funding, LLC (“CBC”), which invests in structured settlements (see Note 5: Acquisition of CBC). | |
GAR National Disability is a non-attorney advocacy group, which obtains and represents individuals nationwide in their claims for social security disability and supplemental security income benefits from the Social Security Administration. | |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated balance sheet as of March 31, 2014, the condensed consolidated statements of income for the six and three month periods ended March 31, 2014 and 2013, the condensed consolidated statements of comprehensive income for the six and three month periods ended March 31, 2014 and 2013, the condensed consolidated statement of stockholders’ equity as of and for the six months ended March 31, 2014 and the condensed consolidated statements of cash flows for the six month periods ended March 31, 2014 and 2013, are unaudited. The September 30, 2013 financial information included in this report has been extracted from our audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2013. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly our financial position at March 31, 2014 and September 30, 2013, the results of operations for the six and three month periods ended March 31, 2014 and 2013 and cash flows for the six month periods ended March 31, 2014 and 2013 have been made. The results of operations for the six and three month periods ended March 31, 2014 and 2013 are not necessarily indicative of the operating results for any other interim period or the full fiscal year. | |
Palisades XVI is a variable interest entity (“VIE”). Asta Funding, Inc. is considered the primary beneficiary because it has the power to direct the significant activities of the VIE via its ownership and service contract. It also has the rights to receive benefits from the collections that exceed the payments to Bank of Montreal. Palisades XVI holds the Great Seneca portfolio of $38.4 million and the Bank of Montreal loan of $30.8 million as of March 31, 2014. | |
Blue Bell Receivables I, LLC, Blue Bells Receivables II, LLC and Blue Bell Receivables III, LLC (the “Blue Bell Entities”) are VIEs. CBC is considered the primary beneficiary because it has the power to direct the significant activities of the VIEs via its ownership and service contract. It also has the rights to receive benefits from the collections that exceed the payments to the note holders. The Blue Bell Entities hold structured settlements of $12.7 million and the non-recourse notes payable of $13.5 million as of March 31, 2014. | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission and therefore do not include all information and note disclosures required under generally accepted accounting principles. The Company suggests that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013 filed with the Securities and Exchange Commission. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates including management’s estimates of future cash flows and the resulting rates of return. | |
Concentration of Credit Risk - Cash | ' |
Concentration of Credit Risk – Cash | |
Cash balances are maintained at various depository institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company had cash balances with eight banks which amounted to approximately $27.7 million as of March 31, 2014. | |
Subsequent Events | ' |
Subsequent Events | |
The Company has evaluated events and transactions occurring subsequent to the Condensed Consolidated Balance Sheet date of March 31, 2014, for items that should potentially be recognized or disclosed in these financial statements. On May 2, 2014, the Company entered into a line of credit agreement with Bank Hapoalim. The line of credit is $20 million with a term of three years. See Note 20 for more information. | |
Reclassifications | ' |
Reclassifications | |
Certain items in the prior period’s financial statements have been reclassified to conform to the current period’s presentation, primarily related to certain balance sheet, income statement and cash flow items. |
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Available-for-Sale | ' | ||||||||||||||||
Investments classified as available-for-sale at March 31, 2014 and September 30, 2013, consist of the following: | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
March 31, 2014 | $ | 70,046,000 | $ | 120,000 | $ | (627,000 | ) | $ | 69,539,000 | ||||||||
September 30, 2013 | $ | 59,151,000 | $ | 27,000 | $ | (1,143,000 | ) | $ | 58,035,000 |
Consumer_Receivables_Acquired_1
Consumer Receivables Acquired for Liquidation (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Changes in Balance Sheet Account of Consumer Receivables Acquired for Liquidation | ' | ||||||||||||
The following tables summarize the changes in the balance sheet account of consumer receivables acquired for liquidation during the following periods: | |||||||||||||
For the Six Months Ended March 31, 2014 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 8,071,000 | $ | 49,829,000 | $ | 57,900,000 | |||||||
Acquisition of receivable portfolios | — | 969,000 | 969,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (13,609,000 | ) | (7,091,000 | ) | (20,700,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (2,000 | ) | — | (2,000 | ) | ||||||||
Finance income recognized (1) | 12,510,000 | 1,394,000 | 13,904,000 | ||||||||||
Balance, end of period | $ | 6,970,000 | $ | 45,101,000 | $ | 52,071,000 | |||||||
Finance income as a percentage of collections | 91.9 | % | 19.7 | % | 67.2 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 12,269,000 | $ | 1,394,000 | $ | 13,663,000 | |||||||
Non-fully amortized portfolios | 241,000 | — | 241,000 | ||||||||||
Finance income recognized | $ | 12,510,000 | $ | 1,394,000 | $ | 13,904,000 | |||||||
For the Six Months Ended March 31, 2013 | |||||||||||||
Cost | |||||||||||||
Interest | Recovery | ||||||||||||
Method | Method | Total | |||||||||||
Balance, beginning of period | $ | 12,326,000 | $ | 74,561,000 | $ | 86,887,000 | |||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (18,290,000 | ) | (8,306,000 | ) | (26,596,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (17,000 | ) | — | (17,000 | ) | ||||||||
Impairment | (2,203,000 | ) | — | (2,203,000 | ) | ||||||||
Finance income recognized (1) | 14,997,000 | 1,756,000 | 16,753,000 | ||||||||||
Balance, end of period | $ | 6,813,000 | $ | 68,011,000 | $ | 74,824,000 | |||||||
Finance income as a percentage of collections | 81.9 | % | 21.1 | % | 63 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 14,319,000 | $ | 1,756,000 | $ | 16,075,000 | |||||||
Non-fully amortized portfolios | 678,000 | — | 678,000 | ||||||||||
Finance income recognized | $ | 14,997,000 | $ | 1,756,000 | $ | 16,753,000 | |||||||
For the Three Months Ended March 31, 2014 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 7,553,000 | $ | 47,578,000 | $ | 55,131,000 | |||||||
Acquisition of receivable portfolio | — | 449,000 | 449,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (6,861,000 | ) | (3,636,000 | ) | (10,497,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (1,000 | ) | — | (1,000 | ) | ||||||||
Finance income recognized (1) | 6,279,000 | 710,000 | 6,989,000 | ||||||||||
Balance, end of period | $ | 6,970,000 | $ | 45,101,000 | $ | 52,071,000 | |||||||
Finance income as a percentage of collections | 91.5 | % | 19.5 | % | 66.6 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 6,159,000 | $ | 710,000 | $ | 6,869,000 | |||||||
Non-fully amortized portfolios | 120,000 | — | 120,000 | ||||||||||
Finance income recognized | $ | 6,279,000 | $ | 710,000 | $ | 6,989,000 | |||||||
For the Three Months Ended March 31, 2013 | |||||||||||||
Interest | Cost Recovery | Total | |||||||||||
Method | Method | ||||||||||||
Balance, beginning of period | $ | 10,472,000 | $ | 71,296,000 | $ | 81,768,000 | |||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (8,817,000 | ) | (4,180,000 | ) | (12,997,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (7,000 | ) | — | (7,000 | ) | ||||||||
Impairment | (2,203,000 | ) | — | (2,203,000 | ) | ||||||||
Finance income recognized (1) | 7,368,000 | 895,000 | 8,263,000 | ||||||||||
Balance, end of period | $ | 6,813,000 | $ | 68,011,000 | $ | 74,824,000 | |||||||
Finance income as a percentage of collections | 83.5 | % | 21.4 | % | 63.5 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 7,032,000 | $ | 895,000 | $ | 7,927,000 | |||||||
Non-fully amortized portfolios | 336,000 | — | 336,000 | ||||||||||
Finance income recognized | $ | 7,368,000 | $ | 895,000 | $ | 8,263,000 | |||||||
Deferred Finance Income Balance Reported As Part of Consumer Receivables Acquired For Liquidation (At Net Realizable Value) | ' | ||||||||||||
The deferred finance income balance is reported as a part of the consumer receivables acquired for liquidation (at net realizable value) at March 31, 2014 as follows: | |||||||||||||
Gross consumer receivables acquired for liquidation | $ | 60,084,000 | |||||||||||
Accrued finance income, net | 1,092,000 | ||||||||||||
Impairment reserve | (9,105,000 | ) | |||||||||||
Consumer receivables acquired for liquidation (at net realizable value) | $ | 52,071,000 | |||||||||||
Net Cash Collections, Applied to Principal for Interest Method Portfolios | ' | ||||||||||||
Based upon current projections, net cash collections, applied to principal for interest method portfolios will be as follows for the twelve months in the periods ending: | |||||||||||||
September 30, 2014 (six months remaining) | $ | 2,814,000 | |||||||||||
September 30, 2015 | 1,156,000 | ||||||||||||
September 30, 2016 | 893,000 | ||||||||||||
September 30, 2017 | 699,000 | ||||||||||||
September 30, 2018 | 589,000 | ||||||||||||
September 30, 2019 | 509,000 | ||||||||||||
September 30, 2020 | 310,000 | ||||||||||||
Total | $ | 6,970,000 | |||||||||||
Changes in Accretable Yield | ' | ||||||||||||
Changes in accretable yield for the six month and three month periods ended March 31, 2014 and 2013 are as follows: | |||||||||||||
Six Months | Six Months | ||||||||||||
Ended | Ended | ||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||
Balance at beginning of period | $ | 1,116,000 | $ | 2,086,000 | |||||||||
Finance income recognized on finance receivables, net | (12,510,000 | ) | (14,997,000 | ) | |||||||||
Reclassifications from nonaccretable difference (1) | 12,255,000 | 13,853,000 | |||||||||||
Balance at end of period | $ | 861,000 | $ | 942,000 | |||||||||
Three Months | Three Months | ||||||||||||
Ended | Ended | ||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||
Balance at beginning of period | $ | 981,000 | $ | 1,722,000 | |||||||||
Finance income recognized on finance receivables, net | (6,279,000 | ) | (7,368,000 | ) | |||||||||
Reclassifications from nonaccretable difference (1) | 6,159,000 | 6,588,000 | |||||||||||
Balance at end of period | $ | 861,000 | $ | 942,000 | |||||||||
-1 | Includes portfolios that became zero basis during the period, removal of zero basis portfolios from the accretable yield calculation and other immaterial impairments and accretions based on the extension of certain collection curves. | ||||||||||||
Collections on Gross Basis Less Commissions and Direct Costs | ' | ||||||||||||
The following table summarizes collections on a gross basis as received by the Company’s third-party collection agencies and attorneys, less commissions and direct costs for the six and three month periods ended March 31, 2014 and 2013, respectively. | |||||||||||||
For the Six Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross collections (1) | $ | 33,692,000 | $ | 42,940,000 | |||||||||
Commissions and fees (2) | 12,990,000 | 16,327,000 | |||||||||||
Net collections | $ | 20,702,000 | $ | 26,613,000 | |||||||||
For the Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross collections (1) | $ | 16,367,000 | $ | 20,854,000 | |||||||||
Commissions and fees (2) | 5,869,000 | 7,850,000 | |||||||||||
Net collections | $ | 10,498,000 | $ | 13,004,000 | |||||||||
-1 | Gross collections include: collections from third-party collection agencies and attorneys, collections from in-house efforts, and collections represented by account sales. | ||||||||||||
-2 | Commissions and fees are the contractual commission earned by third party collection agencies and attorneys, and direct costs associated with the collection effort, generally court costs. Includes a 3% fee charged by a servicer on gross collections received by the Company in connection with the Portfolio Purchase. Such arrangement was consummated in December 2007. The fee is charged for asset location, skip tracing and ultimately suing debtors in connection with this portfolio purchase. |
Acquisition_of_CBC_Tables
Acquisition of CBC (Tables) | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Fair Value of Assets Acquired and Liabilities Assumed | ' | ||||
The following table summarizes the fair value of the assets acquired and the liabilities assumed as of the December 31, 2013 acquisition date: | |||||
Cash | $ | 351,000 | |||
Structured settlements | 30,436,000 | ||||
Other assets | 11,000 | ||||
Other liabilities | (356,000 | ) | |||
Other debt (see Note 11: Other debt – CBC (including non-recourse notes payable amounting to $13.8 million) | (25,863,000 | ) | |||
Total identifiable net assets acquired | 4,579,000 | ||||
Goodwill (see Note 9: Goodwill) | 1,360,000 | ||||
Purchase Price | $ | 5,939,000 | |||
Structured_Settlements_Tables
Structured Settlements (Tables) | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Components of Structured Settlements | ' | ||||
Structured settlements consist of the following as of March 31, 2014: | |||||
Maturity value | $ | 48,387,000 | |||
Unearned income | (15,057,000 | ) | |||
Net carrying value | $ | 33,330,000 | |||
Fair Value of Structured Settlements | ' | ||||
Encumbrances on structured settlements at fair value as of March 31, 2014 are: | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 (1) | $ | 2,689,000 | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 (1) | 5,727,000 | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 (1) | 5,079,000 | ||||
$15,000,000 revolving line of credit (1) | 12,722,000 | ||||
Encumbered structured settlements | 26,217,000 | ||||
Structured settlements not encumbered | 7,113,000 | ||||
Total structured settlements | $ | 33,330,000 | |||
-1 | See Note 11 – Other Debt – CBC | ||||
Expected Cash Flows of Structured Settlements at Fair Value Based on Maturity Value | ' | ||||
At March 31, 2014, the expected cash flows of structured settlements at fair value based on maturity value are as follows: | |||||
September 30, 2014 (six months remaining) | $ | 2,315,000 | |||
September 30, 2015 | 3,918,000 | ||||
September 30, 2016 | 4,197,000 | ||||
September 30, 2017 | 3,362,000 | ||||
September 30, 2018 | 3,033,000 | ||||
Thereafter | 31,562,000 | ||||
Total | $ | 48,387,000 | |||
Other_Investments_Tables
Other Investments (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Reserves for Bad Debts | ' | ||||||||
Pegasus records reserves for bad debts, which, at March 31, 2014, amounted to $1.9 million as follows: | |||||||||
Six Months | Three Months | ||||||||
Ended | Ended | ||||||||
March 31, 2014 | March 31, 2014 | ||||||||
Balance at beginning of period | $ | 2,248,000 | $ | 1,884,000 | |||||
(Recoveries of) provisions for losses | (112,000 | ) | 252,000 | ||||||
Write offs | (220,000 | ) | (220,000 | ) | |||||
Balance at end of period | $ | 1,916,000 | $ | 1,916,000 | |||||
Furniture_Equipment_Tables
Furniture & Equipment (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Furniture and Equipment | ' | ||||||||
Furniture and equipment consist of the following as of the dates indicated: | |||||||||
March 31, | September 30, | ||||||||
2014 | 2013 | ||||||||
Furniture | $ | 310,000 | $ | 310,000 | |||||
Equipment | 3,622,000 | 3,622,000 | |||||||
Software | 1,211,000 | 1,211,000 | |||||||
Leasehold improvements | 99,000 | 99,000 | |||||||
5,242,000 | 5,242,000 | ||||||||
Less accumulated depreciation | 4,436,000 | 4,136,000 | |||||||
Balance, end of period | $ | 806,000 | $ | 1,106,000 | |||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Goodwill | ' | ||||
The goodwill balances at September 30, 2013 and March 31, 2014 are as follows: | |||||
Balance, September 30, 2013 | $ | 1,410,000 | |||
Goodwill from acquisition (see Note 5: Acquisition of CBC) | 1,360,000 | ||||
Balance, March 31, 2014 | $ | 2,770,000 | |||
Other_Debt_CBC_Tables
Other Debt - CBC (Tables) (CBC) | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
CBC | ' | ||||||||
Components of Other Debt from Acquisition | ' | ||||||||
The following table details the other debt at March 31, 2014: | |||||||||
March 31, | |||||||||
Interest Rate | 2014 Balance | ||||||||
Notes payable with varying monthly installments: | |||||||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | 8.75 | % | $ | 2,689,000 | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | 7.25 | % | 5,727,000 | ||||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | 7.125 | % | 5,079,000 | ||||||
Subtotal notes payable | 13,495,000 | ||||||||
$15,000,000 revolving line of credit expiring on February 28, 2015 | 4.75 | % | 12,722,000 | ||||||
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Computation of Basic and Diluted per Share | ' | ||||||||||||||||||||||||
The following table presents the computation of basic and diluted per share data for the six months ended March 31, 2014 and 2013: | |||||||||||||||||||||||||
Six Months Ended March 31, 2014 | Six Months Ended March 31, 2013 | ||||||||||||||||||||||||
Weighted | Per | Weighted | Per | ||||||||||||||||||||||
Net | Average | Share | Net | Average | Share | ||||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||||
Basic | $ | 3,831,000 | 12,976,766 | $ | 0.3 | $ | 3,470,000 | 12,942,554 | $ | 0.27 | |||||||||||||||
Effect of Dilutive Stock | 227,905 | (0.01 | ) | 270,664 | (0.01 | ) | |||||||||||||||||||
Diluted | $ | 3,831,000 | 13,204,671 | $ | 0.29 | $ | 3,470,000 | 13,213,218 | $ | 0.26 | |||||||||||||||
The following table presents the computation of basic and diluted per share data for the three months ended March 31, 2014 and 2013: | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | ||||||||||||||||||||||||
Weighted | Per | Weighted | Per | ||||||||||||||||||||||
Net | Average | Share | Net | Average | Share | ||||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||||
Basic | $ | 1,442,000 | 12,979,350 | $ | 0.11 | $ | 882,000 | 12,943,896 | $ | 0.07 | |||||||||||||||
Effect of Dilutive Stock | 229,964 | 282,455 | |||||||||||||||||||||||
Diluted | $ | 1,442,000 | 13,209,314 | $ | 0.11 | $ | 882,000 | 13,226,351 | $ | 0.07 | |||||||||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Weighted Average Assumptions Used in Option Pricing Model | ' | ||||
The weighted average assumptions used in the option pricing model were as follows: | |||||
Risk-free interest rate | 0.06 | % | |||
Expected term (years) | 5.9 | ||||
Expected volatility | 35.3 | % | |||
Dividend yield | 0 | % | |||
The weighted average assumptions used in the option pricing model were as follows: | |||||
Risk-free interest rate | 0.08 | % | |||
Expected term (years) | 6.5 | ||||
Expected volatility | 98.3 | % | |||
Dividend yield | 0 | % | |||
The weighted average assumptions used in the option pricing model were as follows: | |||||
Risk-free interest rate | 0.16 | % | |||
Expected term (years) | 6 | ||||
Expected volatility | 101 | % | |||
Dividend yield | 1.67 | % |
Stock_Option_Plans_Tables
Stock Option Plans (Tables) | 6 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Stock Option Transactions | ' | ||||||||||||||||||||
The following table summarizes stock option transactions under the 2012 Plan, the 2002 Plan, and the Equity Compensation Plan: | |||||||||||||||||||||
Six Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Shares | Price | Shares | Price | ||||||||||||||||||
Outstanding options at the beginning of period | 1,622,771 | $ | 11.31 | 1,499,471 | $ | 11.27 | |||||||||||||||
Options granted | 161,700 | 8.48 | 160,000 | 9.57 | |||||||||||||||||
Options exercised | (10,000 | ) | 2.95 | (3,600 | ) | 6.77 | |||||||||||||||
Options forfeited/canceled | (210,767 | ) | 14.87 | — | — | ||||||||||||||||
Outstanding options at the end of period | 1,563,704 | $ | 10.65 | 1,655,871 | $ | 11.12 | |||||||||||||||
Exercisable options at the end of period | 972,035 | $ | 12.02 | 1,121,070 | $ | 12.37 | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Shares | Price | Shares | Price | ||||||||||||||||||
Outstanding options at the beginning of period | 1,568,704 | $ | 10.61 | 1,657,871 | $ | 11.11 | |||||||||||||||
Options granted | 5,000 | 8.31 | — | — | |||||||||||||||||
Options exercised | (10,000 | ) | 2.95 | (2,000 | ) | 6.61 | |||||||||||||||
Options forfeited/canceled | — | — | — | — | |||||||||||||||||
Outstanding options at the end of period | 1,563,704 | $ | 10.65 | 1,655,871 | $ | 11.12 | |||||||||||||||
Exercisable options at the end of period | 972,035 | $ | 12.02 | 1,121,070 | $ | 12.37 | |||||||||||||||
Summary of Outstanding Options | ' | ||||||||||||||||||||
The following table summarizes information about the 2012 Plan, 2002 Plan, and the Equity Compensation Plan outstanding options as of March 31, 2014: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||
Weighted | Remaining | Average | Average | ||||||||||||||||||
Number | Contractual | Exercise | Number | Exercise | |||||||||||||||||
Range of Exercise Price | Outstanding | Life (in Years) | Price | Exercisable | Price | ||||||||||||||||
$2.8751 – $5.7500 | 7,500 | 5.1 | $ | 2.95 | 7,500 | $ | 2.95 | ||||||||||||||
$5.7501 – $8.6250 | 939,600 | 7.4 | 7.92 | 504,600 | 7.78 | ||||||||||||||||
$8.6251 – $14.3750 | 260,000 | 8.5 | 9.77 | 103,331 | 10.5 | ||||||||||||||||
$14.3751 – $17.2500 | 1,944 | 0.2 | 15.99 | 1,944 | 15.99 | ||||||||||||||||
$17.2501 – $20.1250 | 339,660 | 0.6 | 18.23 | 339,660 | 18.23 | ||||||||||||||||
$25.8751 – $28.7500 | 15,000 | 2.7 | 28.75 | 15,000 | 28.75 | ||||||||||||||||
1,563,704 | 6 | $ | 10.65 | 972,035 | $ | 12.02 | |||||||||||||||
Summary of Restricted Stock Transactions | ' | ||||||||||||||||||||
The following table summarizes information about restricted stock transactions: | |||||||||||||||||||||
Six Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||||||
Unvested at the beginning of period | 102,321 | $ | 9.57 | 10,922 | $ | 7.63 | |||||||||||||||
Awards granted | — | — | 102,321 | 9.57 | |||||||||||||||||
Vested | (34,107 | ) | 9.57 | (10,922 | ) | 7.63 | |||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||
Unvested at the end of period | 68,214 | $ | 9.57 | 102,321 | $ | 9.57 | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||||||
Unvested at the beginning of period | 68,214 | $ | 9.57 | 102,321 | $ | 9.57 | |||||||||||||||
Awards granted | — | — | — | — | |||||||||||||||||
Vested | — | — | — | — | |||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||
Unvested at the end of period | 68,214 | $ | 9.57 | 102,321 | $ | 9.57 | |||||||||||||||
Fair_Value_of_Financial_Measur1
Fair Value of Financial Measurements and Disclosures (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Estimated Fair Value of Company's Financial Instruments | ' | ||||||||||||||||
The estimated fair value of the Company’s financial instruments is summarized as follows: | |||||||||||||||||
31-Mar-14 | 30-Sep-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets | |||||||||||||||||
Available-for-sale investments (Level 1) | $ | 69,539,000 | $ | 69,539,000 | $ | 58,035,000 | $ | 58,035,000 | |||||||||
Consumer receivables acquired for liquidation (Level 3) | 52,071,000 | 53,990,000 | 57,900,000 | 70,875,000 | |||||||||||||
Structured settlements (Level 3) | 33,300,000 | 33,300,000 | — | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Non-recourse debt – BMO (Level 3) | 30,778,000 | 21,487,000 | 35,760,000 | 27,000,000 | |||||||||||||
Other debt – CBC, revolving line of credit (Level 3) | 12,722,000 | 12,722,000 | — | — | |||||||||||||
Other debt – CBC, non-recourse notes payable with varying installments (Level 3) | 13,495,000 | 13,495,000 | — | — | |||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ' | ||||||||||||||||
The following table sets forth the Company’s quantitative information about its Level 3 fair value measurements as of March 31, 2014: | |||||||||||||||||
Fair Value | Valuation | Unobservable | Rate | ||||||||||||||
Technique | Input | ||||||||||||||||
Structured settlements at fair value | $ | 33,330,000 | Discounted | Discount | 5.5 | % | |||||||||||
cash flow | rate | ||||||||||||||||
Changes in Structured Settlements at Fair Value Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||
The changes in structured settlements at fair value using significant unobservable inputs (Level 3) during the six months ended March 31, 2014 were as follows: | |||||||||||||||||
Balance at September 30, 2013 | $ | 0 | |||||||||||||||
Acquisition of CBC (see Note 5) | 30,436,000 | ||||||||||||||||
Total gains included in earnings | 820,000 | ||||||||||||||||
Purchases | 2,359,000 | ||||||||||||||||
Sales | — | ||||||||||||||||
Interest accreted | 708,000 | ||||||||||||||||
Payments received | (993,000 | ) | |||||||||||||||
Total | $ | 33,330,000 | |||||||||||||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets held at March 31, 2014 | $ | 820,000 | |||||||||||||||
Schedule of Realized and Unrealized Gains and Losses Included in Earnings in Accompanying Consolidated Statements of Income | ' | ||||||||||||||||
Realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of income for the six months ended March 2014 are reported in the following revenue categories: | |||||||||||||||||
Total gains (losses) included in earnings in fiscal year 2014 | $ | 820,000 | |||||||||||||||
Change in unrealized gains (losses) relating to assets still held at March 31, 2014 | $ | 820,000 | |||||||||||||||
Business_and_Basis_of_Presenta2
Business and Basis of Presentation - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | 2-May-14 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Subsequent Event | Palisades XVI | Palisades XVI | Blue Bell Entities | Pegasus | CBC | ||
Great Seneca | BMO | ||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Ownership interest | ' | ' | ' | ' | ' | 80.00% | 80.00% |
Portfolio holdings amount | ' | ' | $38.40 | ' | ' | ' | ' |
Variable interest entity carrying amount loan costs | ' | ' | ' | 30.8 | ' | ' | ' |
Structured settlement holding amount | ' | ' | ' | ' | 12.7 | ' | ' |
Non-recourse notes payable | ' | ' | ' | ' | 13.5 | ' | ' |
Number of banks in which cash balances maintained | 8 | ' | ' | ' | ' | ' | ' |
Cash | 27.7 | ' | ' | ' | ' | ' | ' |
Line of credit agreement, entered date | ' | 2-May-14 | ' | ' | ' | ' | ' |
Line of credit | ' | $20 | ' | ' | ' | ' | ' |
Line of credit agreement, term | ' | '3 years | ' | ' | ' | ' | ' |
Available_for_Sale_Detail
Available for Sale (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $70,046,000 | $59,151,000 |
Unrealized Gains | 120,000 | 27,000 |
Unrealized Losses | -627,000 | -1,143,000 |
Fair Value | $69,539,000 | $58,035,000 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Investment | Investment | |
Investments [Line Items] | ' | ' |
Number of investments sold | 1 | 2 |
Realized gain (loss) of investment | ($25,000) | $175,000 |
Number of investments | 6 | ' |
Number of unrealized loss position existed for 12 months or more | 4 | ' |
Consumer_Receivables_Acquired_2
Consumer Receivables Acquired for Liquidation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | |
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' |
Consumer receivables acquired for liquidation using interest method | $6,970,000 | $6,970,000 | ' | ' |
Consumer receivables acquired for liquidation using cost recovery method | 45,100,000 | 45,100,000 | ' | ' |
Consumer receivables acquired for liquidation concentrated in one portfolio | 38,400,000 | 38,400,000 | ' | ' |
Portfolio purchase | 300,000,000 | 300,000,000 | ' | ' |
Consumer receivables acquired for liquidation (at net realizable value) | 52,071,000 | 52,071,000 | ' | 57,900,000 |
Face value of charged-off consumer receivables | 8,500,000 | 17,100,000 | ' | ' |
Purchased cost of charged-off consumer receivables | $500,000 | $1,000,000 | ' | ' |
Number of portfolio purchases | ' | ' | 0 | ' |
Changes_in_Balance_Sheet_Accou
Changes in Balance Sheet Account of Consumer Receivables Acquired for Liquidation (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Balance, beginning of period | $55,131,000 | $81,768,000 | $57,900,000 | $86,887,000 | ||||
Acquisition of receivable portfolios | 449,000 | ' | 969,000 | ' | ||||
Net cash collections from collection of consumer receivables acquired for liquidation | -10,497,000 | -12,997,000 | -20,700,000 | -26,596,000 | ||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | -1,000 | -7,000 | -2,000 | -17,000 | ||||
Impairment | ' | -2,203,000 | ' | -2,203,000 | ||||
Finance income recognized | 6,989,000 | [1] | 8,263,000 | [2] | 13,904,000 | [3] | 16,753,000 | [4] |
Balance, end of period | 52,071,000 | 74,824,000 | 52,071,000 | 74,824,000 | ||||
Finance income as a percentage of collections | 66.60% | 63.50% | 67.20% | 63.00% | ||||
Interest Method | ' | ' | ' | ' | ||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Balance, beginning of period | 7,553,000 | 10,472,000 | 8,071,000 | 12,326,000 | ||||
Net cash collections from collection of consumer receivables acquired for liquidation | -6,861,000 | -8,817,000 | -13,609,000 | -18,290,000 | ||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | -1,000 | -7,000 | -2,000 | -17,000 | ||||
Impairment | ' | -2,203,000 | ' | -2,203,000 | ||||
Finance income recognized | 6,279,000 | [1] | 7,368,000 | [2] | 12,510,000 | [3] | 14,997,000 | [4] |
Balance, end of period | 6,970,000 | 6,813,000 | 6,970,000 | 6,813,000 | ||||
Finance income as a percentage of collections | 91.50% | 83.50% | 91.90% | 81.90% | ||||
Cost Recovery Method | ' | ' | ' | ' | ||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Balance, beginning of period | 47,578,000 | 71,296,000 | 49,829,000 | 74,561,000 | ||||
Acquisition of receivable portfolios | 449,000 | ' | 969,000 | ' | ||||
Net cash collections from collection of consumer receivables acquired for liquidation | -3,636,000 | -4,180,000 | -7,091,000 | -8,306,000 | ||||
Finance income recognized | 710,000 | [1] | 895,000 | [2] | 1,394,000 | [3] | 1,756,000 | [4] |
Balance, end of period | $45,101,000 | $68,011,000 | $45,101,000 | $68,011,000 | ||||
Finance income as a percentage of collections | 19.50% | 21.40% | 19.70% | 21.10% | ||||
[1] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 6,159,000 $ 710,000 $ 6,869,000 Non-fully amortized portfolios 120,000 - 120,000 Finance income recognized $ 6,279,000 $ 710,000 $ 6,989,000 | |||||||
[2] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 7,032,000 $ 895,000 $ 7,927,000 Non-fully amortized portfolios 336,000 - 336,000 Finance income recognized $ 7,368,000 $ 895,000 $ 8,263,000 | |||||||
[3] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 12,269,000 $ 1,394,000 $ 13,663,000 Non-fully amortized portfolios 241,000 - 241,000 Finance income recognized $ 12,510,000 $ 1,394,000 $ 13,904,000 | |||||||
[4] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 14,319,000 $ 1,756,000 $ 16,075,000 Non-fully amortized portfolios 678,000 - 678,000 Finance income recognized $ 14,997,000 $ 1,756,000 $ 16,753,000 |
Changes_in_Balance_Sheet_Accou1
Changes in Balance Sheet Account of Consumer Receivables Acquired for Liquidation (Parenthetical) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Fully amortized portfolios | $6,869,000 | $7,927,000 | $13,663,000 | $16,075,000 | ||||
Non-fully amortized portfolios | 120,000 | 336,000 | 241,000 | 678,000 | ||||
Finance income recognized | 6,989,000 | [1] | 8,263,000 | [2] | 13,904,000 | [3] | 16,753,000 | [4] |
Interest Method | ' | ' | ' | ' | ||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Fully amortized portfolios | 6,159,000 | 7,032,000 | 12,269,000 | 14,319,000 | ||||
Non-fully amortized portfolios | 120,000 | 336,000 | 241,000 | 678,000 | ||||
Finance income recognized | 6,279,000 | [1] | 7,368,000 | [2] | 12,510,000 | [3] | 14,997,000 | [4] |
Cost Recovery Method | ' | ' | ' | ' | ||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Fully amortized portfolios | 710,000 | 895,000 | 1,394,000 | 1,756,000 | ||||
Finance income recognized | $710,000 | [1] | $895,000 | [2] | $1,394,000 | [3] | $1,756,000 | [4] |
[1] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 6,159,000 $ 710,000 $ 6,869,000 Non-fully amortized portfolios 120,000 - 120,000 Finance income recognized $ 6,279,000 $ 710,000 $ 6,989,000 | |||||||
[2] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 7,032,000 $ 895,000 $ 7,927,000 Non-fully amortized portfolios 336,000 - 336,000 Finance income recognized $ 7,368,000 $ 895,000 $ 8,263,000 | |||||||
[3] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 12,269,000 $ 1,394,000 $ 13,663,000 Non-fully amortized portfolios 241,000 - 241,000 Finance income recognized $ 12,510,000 $ 1,394,000 $ 13,904,000 | |||||||
[4] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 14,319,000 $ 1,756,000 $ 16,075,000 Non-fully amortized portfolios 678,000 - 678,000 Finance income recognized $ 14,997,000 $ 1,756,000 $ 16,753,000 |
Deferred_Finance_Income_Balanc
Deferred Finance Income Balance Reported As Part of Consumer Receivables Acquired For Liquidation (At Net Realizable Value) (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' |
Consumer receivables acquired for liquidation | $60,084,000 | ' |
Accrued finance income, net | 1,092,000 | ' |
Impairment reserve | -9,105,000 | ' |
Consumer receivables acquired for liquidation (at net realizable value) | $52,071,000 | $57,900,000 |
Net_Cash_Collections_Applied_t
Net Cash Collections Applied to Principal for Interest Method Portfolios (Detail) (USD $) | Mar. 31, 2014 |
Cash, Cash Equivalents and Investments [Line Items] | ' |
September 30, 2014 (six months remaining) | $2,814,000 |
30-Sep-15 | 1,156,000 |
30-Sep-16 | 893,000 |
30-Sep-17 | 699,000 |
30-Sep-18 | 589,000 |
30-Sep-19 | 509,000 |
30-Sep-20 | 310,000 |
Total | $6,970,000 |
Changes_in_Accretable_Yield_De
Changes in Accretable Yield (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Balance at beginning of period | $981,000 | $1,722,000 | $1,116,000 | $2,086,000 | ||||
Finance income recognized on finance receivables, net | -6,279,000 | -7,368,000 | -12,510,000 | -14,997,000 | ||||
Reclassifications from nonaccretable difference | 6,159,000 | [1] | 6,588,000 | [1] | 12,255,000 | [1] | 13,853,000 | [1] |
Balance at end of period | $861,000 | $942,000 | $861,000 | $942,000 | ||||
[1] | Includes portfolios that became zero basis during the period, removal of zero basis portfolios from the accretable yield calculation and other immaterial impairments and accretions based on the extension of certain collection curves. |
Collections_on_Gross_Basis_Les
Collections on Gross Basis Less Commissions and Direct Costs (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Gross collections | $16,367,000 | [1] | $20,854,000 | [1] | $33,692,000 | [1] | $42,940,000 | [1] |
Commissions and fees | 5,869,000 | [2] | 7,850,000 | [2] | 12,990,000 | [2] | 16,327,000 | [2] |
Net collections | $10,498,000 | $13,004,000 | $20,702,000 | $26,613,000 | ||||
[1] | Gross collections include: collections from third-party collection agencies and attorneys, collections from in-house efforts, and collections represented by account sales. | |||||||
[2] | Commissions and fees are the contractual commission earned by third party collection agencies and attorneys, and direct costs associated with the collection effort, generally court costs. Includes a 3% fee charged by a servicer on gross collections received by the Company in connection with the Portfolio Purchase. Such arrangement was consummated in December 2007. The fee is charged for asset location, skip tracing and ultimately suing debtors in connection with this portfolio purchase. |
Collections_on_Gross_Basis_Les1
Collections on Gross Basis Less Commissions and Direct Costs (Parenthetical) (Detail) | 6 Months Ended |
Mar. 31, 2014 | |
Consumer Receivables Acquired For Liquidation [Line Items] | ' |
Fee charged on portfolio purchase | 3.00% |
Acquisition_of_CBC_Additional_
Acquisition of CBC - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
CBC | CBC | CBC | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest acquired, percent | ' | ' | ' | ' | ' | ' | 80.00% | ' |
Purchase price | ' | ' | ' | ' | ' | ' | $5,900,000 | ' |
Financing to CBC | ' | ' | ' | ' | ' | ' | 5,000,000 | ' |
Non-controlling ownership interest, percent | ' | ' | ' | ' | ' | ' | 20.00% | ' |
Minimum distribution to be received by parent before distribution to noncontrolling Interests | ' | ' | ' | ' | ' | ' | 2,337,190 | ' |
Fair value of non controlling interest | ' | ' | ' | ' | ' | ' | 0 | ' |
Total Revenue | 10,181,000 | 10,085,000 | 20,418,000 | 20,637,000 | ' | ' | ' | ' |
Pro forma basis, total revenues | ' | ' | 21,510,000 | 22,442,000 | ' | ' | ' | ' |
Net income attributable to Asta Funding, Inc. | 1,442,000 | 882,000 | 3,831,000 | 3,470,000 | ' | ' | ' | ' |
Pro forma basis, net income attributable to Asta Funding, Inc | ' | ' | 3,873,000 | 3,384,000 | ' | ' | ' | ' |
Settlement income earned | 1,500,000 | ' | ' | ' | ' | ' | ' | ' |
Net invested balance in structured settlements | 33,330,000 | ' | 33,330,000 | ' | 30,436,000 | ' | ' | ' |
Net income attributable to non-controlling interest | $14,000 | $78,000 | $463,000 | $123,000 | ' | $21,000 | ' | $21,000 |
Fair_Value_of_Assets_Acquired_
Fair Value of Assets Acquired and Liabilities Assumed (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2013 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ' | ' |
Cash | $351,000 | ' |
Structured settlements | 30,436,000 | 33,330,000 |
Other assets | 11,000 | ' |
Other liabilities | -356,000 | ' |
Other debt (see Note 11: Other debt - CBC (including non-recourse notes payable amounting to $13.8 million) | -25,863,000 | ' |
Total identifiable net assets acquired | 4,579,000 | ' |
Goodwill (see Note 9: Goodwill) | 1,360,000 | 1,360,000 |
Purchase Price | $5,939,000 | ' |
Fair_Value_of_Assets_Acquired_1
Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | ' |
Non-recourse notes payable | $13.50 | $13.80 |
Components_of_Structured_Settl
Components of Structured Settlements (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Maturity value | $48,387,000 | ' |
Unearned income | -15,057,000 | ' |
Net carrying value | $33,330,000 | $30,436,000 |
Fair_Value_of_Structured_Settl
Fair Value of Structured Settlements (Detail) (Structured Settlement, USD $) | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ' | |
$15,000,000 revolving line of credit | $12,722,000 | [1] |
Total structured settlements | 33,330,000 | |
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | ' | |
Debt Instrument [Line Items] | ' | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, Fair value | 2,689,000 | [1] |
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | ' | |
Debt Instrument [Line Items] | ' | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, Fair value | 5,727,000 | [1] |
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | ' | |
Debt Instrument [Line Items] | ' | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, Fair value | 5,079,000 | [1] |
Structured Settlements Encumbered | ' | |
Debt Instrument [Line Items] | ' | |
Total structured settlements | 26,217,000 | |
Structured Settlements Not Encumbered | ' | |
Debt Instrument [Line Items] | ' | |
Total structured settlements | $7,113,000 | |
[1] | See Note 11 - Other Debt - CBC |
Fair_Value_of_Structured_Settl1
Fair Value of Structured Settlements (Parenthetical) (Detail) (Structured Settlement, USD $) | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ' | |
Line of credit, Current borrowing capacity | $15,000,000 | |
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | ' | |
Debt Instrument [Line Items] | ' | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | '2025-06 | [1] |
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | ' | |
Debt Instrument [Line Items] | ' | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | '2026-08 | [1] |
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | ' | |
Debt Instrument [Line Items] | ' | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | '2032-04 | [1] |
[1] | See Note 11 - Other Debt - CBC |
Expected_Cash_Flows_of_Structu
Expected Cash Flows of Structured Settlements at Fair Value Based on Maturity Value (Detail) (USD $) | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
September 30, 2014 (six months remaining) | $2,315,000 |
30-Sep-15 | 3,918,000 |
30-Sep-16 | 4,197,000 |
30-Sep-17 | 3,362,000 |
30-Sep-18 | 3,033,000 |
Thereafter | 31,562,000 |
Total | $48,387,000 |
Other_Investments_Additional_I
Other Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | 18-May-12 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | |
Pegasus Legal Funding LLC | Pegasus Legal Funding LLC | Pegasus Legal Funding LLC | Pegasus Legal Funding LLC | Pegasus Legal Funding LLC | |||||||
Other Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings in interest and fees | ' | ' | ' | ' | ' | ' | $1,200,000 | $1,400,000 | $4,000,000 | $2,600,000 | ' |
Company's investment in personal injury | ' | ' | ' | ' | ' | ' | ' | ' | 30,300,000 | ' | 35,800,000 |
Net income/(loss) attributable to non-controlling interest | 14,000 | 78,000 | 463,000 | 123,000 | ' | ' | -6,000 | 78,000 | 443,000 | 123,000 | ' |
Reserves for bad debts | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | 1,900,000 | ' | ' |
Revolving line of credit | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' |
Bearing interest at prime rate, with initial term | ' | ' | ' | ' | ' | 'Twenty-four months | ' | ' | ' | ' | ' |
Company's investment in cases through BPCM | 2,200,000 | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Company's investment in cases through BPCM, reserve established amount | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
investment in matrimonial cases | ' | ' | ' | ' | 1,600,000 | ' | ' | ' | ' | ' | ' |
Recognized revenue through BPCM | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' |
Reserves_for_Bad_Debts_Detail
Reserves for Bad Debts (Detail) (Pegasus Legal Funding LLC, USD $) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2014 | Mar. 31, 2014 | |
Pegasus Legal Funding LLC | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Balance at beginning of period | $1,884,000 | $2,248,000 |
(Recoveries of) provisions for losses | 252,000 | -112,000 |
Write offs | -220,000 | -220,000 |
Balance at end of period | $1,916,000 | $1,916,000 |
Furniture_and_Equipment_Detail
Furniture and Equipment (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $5,242,000 | $5,242,000 |
Less accumulated depreciation | 4,436,000 | 4,136,000 |
Furniture and equipment, net | 806,000 | 1,106,000 |
Furniture | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 310,000 | 310,000 |
Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 3,622,000 | 3,622,000 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 1,211,000 | 1,211,000 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $99,000 | $99,000 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Goodwill [Line Items] | ' | ' | ' | ' |
Impairment loss | $0 | $0 | $0 | $0 |
Goodwill_Detail
Goodwill (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2013 | Mar. 31, 2014 | |
Goodwill [Line Items] | ' | ' |
Beginning balance | $1,410,000 | $1,410,000 |
Goodwill from acquisition (see Note 5: Acquisition of CBC) | 1,360,000 | 1,360,000 |
Ending balance | ' | $2,770,000 |
Non_Recourse_Debt_Additional_I
Non Recourse Debt - Additional Information (Detail) (USD $) | 1 Months Ended | |||
In Millions, unless otherwise specified | Aug. 07, 2013 | Mar. 31, 2007 | Mar. 31, 2014 | Sep. 30, 2013 |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Portfolio Purchase had a purchase price | ' | $300 | ' | ' |
Receivables financing agreement, consecutive months | ' | '3 years | ' | ' |
Percentage of ownership in Palisades XVI | 100.00% | ' | ' | ' |
Prepayment fund | 15 | ' | ' | ' |
BMO right to receive from future net collections | 30.00% | ' | ' | ' |
Aggregate minimum repayment obligations 2014 | ' | ' | 2.2 | ' |
Aggregate minimum repayment obligations 2015 | ' | ' | 2.5 | ' |
Revolving debt level Liquidity | ' | ' | 30.8 | 35.8 |
Fifth Amendment | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Applicable interest rate | ' | ' | 0.40% | 0.43% |
Receivables Financing Agreement | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Receivables Financing Agreement | ' | $227 | ' | ' |
Other_DebtCBC_Additional_Infor
Other Debt-CBC - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Mar. 27, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ' | ' | ' |
Assumed debt related to acquisition | ' | $25,863,000 | ' |
Debt outstanding amount | ' | ' | 23,363,000 |
Issuance of debt notes by Special Purpose Entities | ' | 13,800,000 | 13,500,000 |
CBC | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Assumed debt related to acquisition | ' | 25,900,000 | ' |
Debt amount of settlement | ' | 2,500,000 | ' |
Line of credit, Current borrowing capacity | 15,000,000 | 12,500,000 | 15,000,000 |
Revolving line of credit, interest rate | 4.75% | 5.50% | 4.75% |
Revolving line of credit, expiring date | 28-Feb-15 | ' | 28-Feb-15 |
Debt outstanding amount | ' | ' | 26,217,000 |
Amount from line of credit facility | ' | ' | 12,722,000 |
Line of credit, available balance | ' | ' | 2,300,000 |
Issuance of debt notes by Special Purpose Entities | ' | ' | $13,495,000 |
Ownership interest acquired, percent | ' | 80.00% | ' |
CBC | SPE | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Ownership interest acquired, percent | ' | ' | 100.00% |
Component_of_Other_Debt_from_A
Component of Other Debt from Acquisition (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Mar. 27, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | ' | 13,800,000 | $13,500,000 |
Total debt - CBC | ' | ' | 23,363,000 |
CBC | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Revolving line of credit, interest rate | 4.75% | 5.50% | 4.75% |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | ' | ' | 13,495,000 |
$15,000,000 revolving line of credit expiring on February 28, 2015 | ' | ' | 12,722,000 |
Total debt - CBC | ' | ' | 26,217,000 |
CBC | Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, interest rate | ' | ' | 8.75% |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | ' | ' | 2,689,000 |
CBC | Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, interest rate | ' | ' | 7.25% |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | ' | ' | 5,727,000 |
CBC | Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, interest rate | ' | ' | 7.13% |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | ' | ' | $5,079,000 |
Component_of_Other_Debt_from_A1
Component of Other Debt from Acquisition (Parenthetical) (Detail) (CBC, USD $) | 1 Months Ended | 6 Months Ended | |
Mar. 27, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' |
Line of credit, Current borrowing capacity | $15,000,000 | $15,000,000 | $12,500,000 |
Revolving line of credit, expiring date | 28-Feb-15 | 28-Feb-15 | ' |
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | ' | '2025-06 | ' |
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | ' | '2026-08 | ' |
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | ' | '2032-04 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Mar. 31, 2014 | |
Commitments Disclosure [Line Items] | ' |
Lease expiry, year and month | '2014-08 |
Finance_Income_Recognition_Imp1
Finance Income Recognition, Impairments, and Commissions and Fees - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income Recognition And Impairments [Line Items] | ' | ' | ' |
Impairment charges | $2,203,000 | ' | $2,203,000 |
Recovering percentage from invested capital | ' | 100.00% | ' |
Expected time period for recovering of capital | ' | '7 years | ' |
Maximum | ' | ' | ' |
Income Recognition And Impairments [Line Items] | ' | ' | ' |
Recovering percentage from invested capital | ' | 150.00% | ' |
Time frame for recovering invested capital | ' | '29 months | ' |
Minimum | ' | ' | ' |
Income Recognition And Impairments [Line Items] | ' | ' | ' |
Time frame for recovering invested capital | ' | '24 months | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax [Line Items] | ' | ' | ' | ' |
Provision for income tax expense | 28.80% | 38.50% | 34.00% | 39.60% |
State and local net operating loss carry forwards expiration dates | ' | ' | 'September 2029 | ' |
Federal Income Tax | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Income tax returns subject to examination in years | ' | ' | '3 years | ' |
State and Local Jurisdiction | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Income tax returns subject to examination in years | ' | ' | '4 years | ' |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Per Share Data (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ' | ' | ' | ' |
Basic, Net Income | $1,442,000 | $882,000 | $3,831,000 | $3,470,000 |
Effect of Dilutive Stock | ' | ' | ' | ' |
Diluted, Net Income | $1,442,000 | $882,000 | $3,831,000 | $3,470,000 |
Basic, Weighted Average Shares | 12,979,350 | 12,943,896 | 12,976,766 | 12,942,554 |
Effect of Dilutive Stock, Weighted Average Shares | 229,964 | 282,455 | 227,905 | 270,664 |
Diluted, Weighted Average Shares | 13,209,314 | 13,226,351 | 13,204,671 | 13,213,218 |
Basic, Per share amount | $0.11 | $0.07 | $0.30 | $0.27 |
Effect of Dilutive Stock, Per share amount | ' | ' | ($0.01) | ($0.01) |
Diluted, Per share amount | $0.11 | $0.07 | $0.29 | $0.26 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Computation Of Earnings Per Share Line Items | ' | ' |
Shares excluded from diluted earnings per share calculation | 1,088,304 | 1,123,169 |
Weighted average exercise price | $11.88 | $12.40 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Feb. 28, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Installment | Person | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares utilized | 5,000 | 156,700 | 5,000 | 161,700 | 160,000 | 160,000 | ' | ' |
Stock option awarded | ' | 1,568,704 | 1,563,704 | 1,563,704 | 1,655,871 | 1,657,871 | 1,622,771 | 1,499,471 |
Number of installment period of stock options vested | ' | '3 years | ' | ' | ' | '3 years | ' | ' |
Number of non-employee directors | ' | ' | ' | ' | ' | 6 | ' | ' |
Number of shares vesting installments | ' | ' | ' | 3 | ' | ' | ' | ' |
Restricted stock to Chief Executive Officer | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options issued | ' | ' | ' | 102,321 | ' | ' | ' | ' |
Officers | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option awarded | ' | 70,000 | ' | ' | ' | 65,000 | ' | ' |
Number of officers awarded | ' | ' | ' | ' | ' | 3 | ' | ' |
Non Officer Employees | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option awarded | ' | 86,700 | ' | ' | ' | 75,000 | ' | ' |
Employee | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option awarded | ' | ' | ' | ' | ' | 20,000 | ' | ' |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used in Option Pricing Model (Detail) | 1 Months Ended | ||
Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.06% | 0.08% | 0.16% |
Expected term (years) | '5 years 10 months 24 days | '6 years 6 months | '6 years |
Expected volatility | 35.30% | 98.30% | 101.00% |
Dividend yield | 0.00% | 0.00% | 1.67% |
Stock_Option_Plans_Additional_
Stock Option Plans - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Stock Options And Restricted Stock | Stock Options And Restricted Stock | Stock Options And Restricted Stock | Stock Options And Restricted Stock | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Restricted stock to Chief Executive Officer | Restricted stock to Chief Executive Officer | Restricted stock to Chief Executive Officer | Restricted stock to Chief Executive Officer | Restricted stock to Chief Executive Officer | Options | Options | Two Thousand And Twelve Plan | Two Thousand And Twelve Plan | Two Thousand And Twelve Plan | Equity Compensation Plan | Two Thousand And Two Plan | Two Thousand And Two Plan | ||||||||
Employee | Common Stock | Options to purchase | Common Stock | Common Stock | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | 1,000,000 | ' | 1,000,000 |
Number of shares utilized | 5,000 | 156,700 | 5,000 | ' | 161,700 | 160,000 | 160,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,321 | ' | 371,700 | ' | ' | ' |
Eligible employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61 | ' | ' | ' | ' | ' |
Number of shares available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,525,979 | ' | ' | ' | ' | ' |
Stock option awarded stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 |
Stock Option Plan expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21-Mar-12 | 5-Mar-12 | ' |
Stock-based employee compensation | ' | ' | ' | ' | ' | ' | ' | $423,000 | $446,000 | $841,000 | $885,000 | $343,000 | $366,000 | $679,000 | $775,000 | $80,000 | $80,000 | ' | $162,000 | $110,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | 2,885,000 | ' | 2,885,000 | ' | 2,324,000 | ' | 2,324,000 | ' | 561,000 | ' | ' | 561,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, weighted average remaining period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 9 months 18 days | ' | ' | ' | ' | '1 year 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of the stock options outstanding | ' | ' | 408,000 | ' | 408,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of the stock options exercisable | ' | ' | ' | ' | 293,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life of exercisable options | ' | ' | ' | ' | '4 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of the stock options exercised | ' | ' | 55,000 | 5,000 | 55,000 | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options exercised | ' | ' | 84,000 | 19,000 | 84,000 | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of stock options | ' | ' | ' | ' | 30,000 | 24,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000 | 24,000 | ' | ' | ' | ' | ' | ' |
Tax effect, options exercised | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the stock options, vested | ' | ' | 41,000 | 0 | 607,000 | 1,115,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the stock options, granted | ' | ' | 42,000 | 0 | 1,372,000 | 1,531,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards granted during period | ' | ' | ' | ' | ' | 102,321 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of awards, granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 979,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of awards, vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | $326,000 | $83,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Option_Plans_Detail
Stock Option Plans (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 28, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Outstanding options at the beginning of period, Shares | ' | ' | 1,568,704 | 1,657,871 | 1,622,771 | 1,499,471 | ' |
Options granted, Shares | 5,000 | 156,700 | 5,000 | ' | 161,700 | 160,000 | 160,000 |
Options exercised, Shares | ' | ' | -10,000 | -2,000 | -10,000 | -3,600 | ' |
Options forfeited/ canceled, Shares | ' | ' | ' | ' | -210,767 | ' | ' |
Outstanding options at the end of period, Shares | ' | 1,568,704 | 1,563,704 | 1,655,871 | 1,563,704 | 1,655,871 | 1,657,871 |
Exercisable options at the end of period, Shares | ' | ' | 972,035 | 1,121,070 | 972,035 | 1,121,070 | ' |
Outstanding options at the beginning of period, Weighted Average Exercise Price | ' | ' | $10.61 | $11.11 | $11.31 | $11.27 | ' |
Options granted, Weighted Average Exercise Price | ' | ' | $8.31 | ' | $8.48 | $9.57 | ' |
Options exercised, Weighted Average Exercise Price | ' | ' | $2.95 | $6.61 | $2.95 | $6.77 | ' |
Options forfeited/ canceled, Weighted Average Exercise Price | ' | ' | ' | ' | $14.87 | ' | ' |
Outstanding options at the end of period, Weighted Average Exercise Price | ' | $10.61 | $10.65 | $11.12 | $10.65 | $11.12 | $11.11 |
Exercisable options at the end of period, Weighted Average Exercise Price | ' | ' | $12.02 | $12.37 | $12.02 | $12.37 | ' |
Summary_of_Outstanding_Options
Summary of Outstanding Options (Detail) (USD $) | 6 Months Ended | |||||
Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Number Outstanding | 1,563,704 | 1,568,704 | 1,622,771 | 1,655,871 | 1,657,871 | 1,499,471 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '6 years | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $10.65 | $10.61 | $11.31 | $11.12 | $11.11 | $11.27 |
Options Exercisable, Number Exercisable | 972,035 | ' | ' | 1,121,070 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $12.02 | ' | ' | $12.37 | ' | ' |
$2.8751 - $ 5.7500 | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Range of Exercise Price, Lower Range | $2.88 | ' | ' | ' | ' | ' |
Range of Exercise Price, Upper Range | $5.75 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Number Outstanding | 7,500 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '5 years 1 month 6 days | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $2.95 | ' | ' | ' | ' | ' |
Options Exercisable, Number Exercisable | 7,500 | ' | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $2.95 | ' | ' | ' | ' | ' |
$5.7501 - $8.6250 | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Range of Exercise Price, Lower Range | $5.75 | ' | ' | ' | ' | ' |
Range of Exercise Price, Upper Range | $8.63 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Number Outstanding | 939,600 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '7 years 4 months 24 days | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $7.92 | ' | ' | ' | ' | ' |
Options Exercisable, Number Exercisable | 504,600 | ' | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $7.78 | ' | ' | ' | ' | ' |
$8.6251 - $14.3750 | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Range of Exercise Price, Lower Range | $8.63 | ' | ' | ' | ' | ' |
Range of Exercise Price, Upper Range | $14.38 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Number Outstanding | 260,000 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '8 years 6 months | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $9.77 | ' | ' | ' | ' | ' |
Options Exercisable, Number Exercisable | 103,331 | ' | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $10.50 | ' | ' | ' | ' | ' |
$14.3751 - $17.2500 | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Range of Exercise Price, Lower Range | $14.38 | ' | ' | ' | ' | ' |
Range of Exercise Price, Upper Range | $17.25 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Number Outstanding | 1,944 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '2 months 12 days | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $15.99 | ' | ' | ' | ' | ' |
Options Exercisable, Number Exercisable | 1,944 | ' | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $15.99 | ' | ' | ' | ' | ' |
$17.2501 - $20.1250 | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Range of Exercise Price, Lower Range | $17.25 | ' | ' | ' | ' | ' |
Range of Exercise Price, Upper Range | $20.13 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Number Outstanding | 339,660 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '7 months 6 days | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $18.23 | ' | ' | ' | ' | ' |
Options Exercisable, Number Exercisable | 339,660 | ' | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $18.23 | ' | ' | ' | ' | ' |
$25.8751 - $28.7500 | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Range of Exercise Price, Lower Range | $25.88 | ' | ' | ' | ' | ' |
Range of Exercise Price, Upper Range | $28.75 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Number Outstanding | 15,000 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '2 years 8 months 12 days | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $28.75 | ' | ' | ' | ' | ' |
Options Exercisable, Number Exercisable | 15,000 | ' | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $28.75 | ' | ' | ' | ' | ' |
Summary_of_Restricted_Stock_Tr
Summary of Restricted Stock Transactions (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unvested at the beginning of period, Shares | 68,214 | 102,321 | 102,321 | 10,922 |
Awards granted, Shares | ' | ' | ' | 102,321 |
Vested, Shares | ' | ' | -34,107 | -10,922 |
Forfeited, Shares | ' | ' | ' | ' |
Unvested at the end of period, Shares | 68,214 | 102,321 | 68,214 | 102,321 |
Unvested at the beginning of period, Weighted Average Grant Date Fair Value | $9.57 | $9.57 | $9.57 | $7.63 |
Awards granted, Weighted Average Grant Date Fair Value | ' | ' | ' | $9.57 |
Vested, Weighted Average Grant Date Fair Value | ' | ' | $9.57 | $7.63 |
Forfeited, Weighted Average Grant Date Fair Value | ' | ' | ' | ' |
Unvested at the end of period, Weighted Average Grant Date Fair Value | $9.57 | $9.57 | $9.57 | $9.57 |
Stockholders_Equity_Additional
Stockholder's Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 13, 2012 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' |
Dividend per share | $0.08 | $0.02 | ' | ' | ' |
Cash dividends | $1,030,000 | $260,000 | ' | $0 | ' |
Dividend payment, date of record | 24-Dec-12 | ' | ' | ' | ' |
Dividend, date of payment | 28-Dec-12 | 1-Nov-12 | ' | ' | ' |
Stock repurchase program authorized amount | ' | ' | 20,000,000 | ' | ' |
Aggregate cost | ' | ' | ' | ' | 1,579,000 |
Additional Stock | ' | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' |
Treasury stock, shares | ' | ' | 151,000 | ' | 172,000 |
Aggregate cost | ' | ' | $1,386,000 | ' | $1,574,000 |
Fair_Value_of_Financial_Measur2
Fair Value of Financial Measurements (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Financial assets | ' | ' | ' |
Available-for-sale investments | $69,539,000 | ' | $58,035,000 |
Consumer receivables acquired for liquidation | 60,084,000 | ' | ' |
Structured settlements | 33,330,000 | 30,436,000 | ' |
Financial liabilities | ' | ' | ' |
Non-recourse debt - BMO (Level 3) | 30,778,000 | ' | 35,760,000 |
Other debt - CBC, non-recourse notes payable with varying installments | 13,500,000 | 13,800,000 | ' |
Carrying Amount | Level 1 | ' | ' | ' |
Financial assets | ' | ' | ' |
Available-for-sale investments | 69,539,000 | ' | 58,035,000 |
Carrying Amount | Level 3 | ' | ' | ' |
Financial assets | ' | ' | ' |
Consumer receivables acquired for liquidation | 52,071,000 | ' | 57,900,000 |
Structured settlements | 33,300,000 | ' | ' |
Financial liabilities | ' | ' | ' |
Non-recourse debt - BMO (Level 3) | 30,778,000 | ' | 35,760,000 |
Other debt - CBC, revolving line of credit | 12,722,000 | ' | ' |
Other debt - CBC, non-recourse notes payable with varying installments | 13,495,000 | ' | ' |
Fair Value | Level 1 | ' | ' | ' |
Financial assets | ' | ' | ' |
Available-for-sale investments | 69,539,000 | ' | 58,035,000 |
Fair Value | Level 3 | ' | ' | ' |
Financial assets | ' | ' | ' |
Consumer receivables acquired for liquidation | 53,990,000 | ' | 70,875,000 |
Structured settlements | 33,300,000 | ' | ' |
Financial liabilities | ' | ' | ' |
Non-recourse debt - BMO (Level 3) | 21,487,000 | ' | 27,000,000 |
Other debt - CBC, revolving line of credit | 12,722,000 | ' | ' |
Other debt - CBC, non-recourse notes payable with varying installments | $13,495,000 | ' | ' |
Quantitative_Information_about
Quantitative Information about Level 3 Fair Value Measurements (Detail) (USD $) | 6 Months Ended |
Mar. 31, 2014 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair Value | $33,330,000 |
Valuation Technique | 'Discounted cash flow |
Unobservable Input | 'Discount rate |
Rate | 5.50% |
Changes_in_Structured_Settleme
Changes in Structured Settlements at Fair Value using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 6 Months Ended |
Mar. 31, 2014 | |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' |
Balance at September 30, 2013 | $0 |
Acquisition of CBC | 30,436,000 |
Total gains included in earnings | 820,000 |
Purchases | 2,359,000 |
Sales | ' |
Interest accreted | 708,000 |
Payments received | -993,000 |
Total | 33,330,000 |
The amount of total gains for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets held at March 31, 2014 | $820,000 |
Schedule_of_Realized_and_Unrea
Schedule of Realized and Unrealized Gains and Losses Included in Earnings in Accompanying Consolidated Statements of Income (Detail) (USD $) | 6 Months Ended |
Mar. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Total gains (losses) included in earnings in fiscal year 2014 | $820,000 |
Change in unrealized gains (losses) relating to assets still held at March 31, 2014 | $820,000 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | 2-May-14 |
Subsequent Event | ' |
Subsequent Event [Line Items] | ' |
Line of credit | $20 |
Line of credit agreement, term | '3 years |
Line of credit agreement, interest rate of basis points over LIBOR | 2.75% |
Line of credit agreement, tangible net worth required to be maintained | 150 |
Line of credit borrowing capacity subject to bank's approval | $30 |