Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Jun. 30, 2014 | Aug. 14, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
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 | ' | 12,985,739 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
ASSETS | ' | ' |
Cash and cash equivalents | $26,017,000 | $35,179,000 |
Available for sale investments | 70,205,000 | 58,035,000 |
Restricted cash | ' | 968,000 |
Consumer receivables acquired for liquidation (at net realizable value) | 31,514,000 | 57,900,000 |
Structured settlements | 35,892,000 | ' |
Investment in personal injury claims | 31,733,000 | 35,758,000 |
Due from third party collection agencies and attorneys | 1,138,000 | 1,169,000 |
Prepaid and income taxes receivable | ' | 1,496,000 |
Furniture and equipment, net | 656,000 | 1,106,000 |
Deferred income taxes | 8,894,000 | 10,443,000 |
Goodwill | 2,770,000 | 1,410,000 |
Other assets | 4,990,000 | 4,383,000 |
Total assets | 213,809,000 | 207,847,000 |
LIABILITIES | ' | ' |
Non-recourse debt - Bank of Montreal | ' | 35,760,000 |
Other debt - CBC (including non-recourse notes payable amounting to $13.0 million at June 30, 2014) | 27,434,000 | ' |
Other liabilities | 2,723,000 | 2,486,000 |
Income taxes payable | 3,084,000 | ' |
Total liabilities | 33,241,000 | 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 - 12,985,739 at June 30, 2014 and 14,917,977 at September 30, 2013; and outstanding 12,985,739 at June 30, 2014 and 12,974,239 at September 30, 2013 | 130,000 | 149,000 |
Additional paid-in capital | 62,648,000 | 79,104,000 |
Retained earnings | 118,306,000 | 109,011,000 |
Accumulated other comprehensive income (loss) | 22,000 | -674,000 |
Treasury stock (at cost), 0 shares at June 30, 2014 and 1,943,738 shares at September 30, 2013 | ' | -17,805,000 |
Non-controlling interest | -538,000 | -184,000 |
Total stockholders' equity | 180,568,000 | 169,601,000 |
Total liabilities and stockholders' equity | $213,809,000 | $207,847,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Other debt, non-recourse notes payable | $13 | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,985,739 | 14,917,977 |
Common stock, shares outstanding | 12,985,739 | 12,974,239 |
Treasury stock, shares | 0 | 1,943,738 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Revenues: | ' | ' | ' | ' | ||||
Finance income on consumer receivables, net | $6,652,000 | [1] | $10,003,000 | [2] | $20,556,000 | [3] | $26,756,000 | [4] |
Personal injury claims income | 1,779,000 | 2,287,000 | 5,724,000 | 4,921,000 | ||||
Unrealized gain on structured settlements | 620,000 | ' | 1,440,000 | ' | ||||
Interest income on structured settlements | 786,000 | ' | 1,501,000 | ' | ||||
Total Revenue | 9,837,000 | 12,290,000 | 29,221,000 | 31,677,000 | ||||
Forgiveness of non-recourse debt | 26,101,000 | ' | 26,101,000 | ' | ||||
Other income (includes ($116,000) and $17,000 during the three month periods ended June 30, 2014 and 2013, and ($141,000) and $192,000 during the nine month periods ended June 30, 2014 and 2013, respectively, of accumulated other comprehensive income reclassification for unrealized net (losses) / gains on available for sale securities) | 336,000 | 378,000 | 1,370,000 | 1,628,000 | ||||
Revenues, Total | 36,274,000 | 12,668,000 | 56,692,000 | 33,305,000 | ||||
Expenses: | ' | ' | ' | ' | ||||
General and administrative | 7,012,000 | 6,545,000 | 20,517,000 | 17,926,000 | ||||
Interest | 413,000 | 518,000 | 820,000 | 1,621,000 | ||||
Impairments of consumer receivables acquired for liquidation | 19,901,000 | 10,148,000 | 19,901,000 | 12,351,000 | ||||
Total expenses | 27,326,000 | 17,211,000 | 41,238,000 | 31,898,000 | ||||
Income (loss) before income tax expense (benefit) | 8,948,000 | -4,543,000 | 15,454,000 | 1,407,000 | ||||
Income tax expense (benefit) (includes tax (benefit) expense of ($47,000) and $5,000 during the three month periods ended June 30, 2014 and 2013, and ($57,000) and $76,000 during the nine month periods ended June 30, 2014 and 2013, respectively, of accumulated other comprehensive income reclassifications for unrealized net (losses) gains on available for sale securities) | 3,464,000 | -1,859,000 | 5,676,000 | 498,000 | ||||
Net income (loss) | 5,484,000 | -2,684,000 | 9,778,000 | 909,000 | ||||
Less: net income attributable to non-controlling interest | 20,000 | 53,000 | 483,000 | 176,000 | ||||
Net income (loss) attributable to Asta Funding, Inc. | $5,464,000 | ($2,737,000) | $9,295,000 | $733,000 | ||||
Net income (loss) per share attributable to Asta Funding, Inc.: | ' | ' | ' | ' | ||||
Basic | $0.42 | ($0.21) | $0.72 | $0.06 | ||||
Diluted | $0.41 | ($0.21) | $0.70 | $0.06 | ||||
Weighted average number of common shares outstanding: | ' | ' | ' | ' | ||||
Basic | 12,984,882 | 12,954,455 | 12,979,472 | 12,946,521 | ||||
Diluted | 13,214,703 | 12,954,455 | 13,208,015 | 13,217,656 | ||||
[1] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 5,777,000 $ 755,000 $ 6,532,000 Non-fully amortized portfolios 120,000 - 120,000 Finance income recognized $ 5,897,000 $ 755,000 $ 6,652,000 | |||||||
[2] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 8,280,000 $ 1,469,000 $ 9,749,000 Non-fully amortized portfolios 254,000 - 254,000 Finance income recognized $ 8,534,000 $ 1,469,000 $ 10,003,000 | |||||||
[3] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 18,046,000 $ 2,149,000 $ 20,195,000 Non-fully amortized portfolios 361,000 - 361,000 Finance income recognized $ 18,407,000 $ 2,149,000 $ 20,556,000 | |||||||
[4] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 22,599,000 $ 3,225,000 $ 25,824,000 Non-fully amortized portfolios 932,000 - 932,000 Finance income recognized $ 23,531,000 $ 3,225,000 $ 26,756,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reclassifications for unrealized net (losses) / gains on available for sale securities | ($116,000) | $17,000 | ($141,000) | $192,000 |
Income tax expense, tax benefit | ($47,000) | $5,000 | ($57,000) | $76,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income ( Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Comprehensive income (loss) is as follows: | ' | ' | ' | ' |
Net income (loss) | $5,484,000 | ($2,684,000) | $9,778,000 | $909,000 |
Net unrealized securities gain / (loss), net of tax expense (benefit) of $263,000 and ($415,000), during the 3 month periods ended June 30, 2014 and 2013, respectively, and $511,000 and ($543,000) during the 9 month periods ended June 30, 2014 and 2013, respectively. | 394,000 | -631,000 | 780,000 | -822,000 |
Reclassification adjustments for securities sold, net of tax (benefit) expense of ($47,000) and $5,000, during the 3 month periods ended June 30, 2014 and 2013, respectively, and ($57,000) and $76,000, during the 9 month periods ended June 30, 2014 and 2013, respectively. | -69,000 | -12,000 | -84,000 | -116,000 |
Other comprehensive income (loss) | 325,000 | -643,000 | 696,000 | -938,000 |
Total comprehensive income (loss) | $5,809,000 | ($3,327,000) | $10,474,000 | ($29,000) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Income ( Loss) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net unrealized securities gain / (loss) gain, (taxes) / tax benefit | $263,000 | ($415,000) | $511,000 | ($543,000) |
Reclassification adjustments for securities, tax (benefit) expense | ($47,000) | $5,000 | ($57,000) | $76,000 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements 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, 2012 | $168,521,000 | $148,000 | $77,024,000 | $107,303,000 | $241,000 | ($16,226,000) | [1] | $31,000 |
Beginning balance (in shares) at Sep. 30, 2012 | ' | 14,778,956 | ' | ' | ' | ' | ' | |
Exercise of options (in shares) | 29,500 | 29,500 | ' | ' | ' | ' | ' | |
Exercise of options | 103,000 | ' | 103,000 | ' | ' | ' | ' | |
Stock based compensation expense | 1,498,000 | ' | 1,498,000 | ' | ' | ' | ' | |
Net income | 909,000 | ' | ' | 733,000 | ' | ' | 176,000 | |
Unrealized loss on marketable securities | -938,000 | ' | ' | ' | -938,000 | ' | ' | |
Restricted stock (in shares) | ' | 102,321 | ' | ' | ' | ' | ' | |
Restricted stock | ' | 1,000 | -1,000 | ' | ' | ' | ' | |
Dividends | -1,030,000 | ' | ' | -1,030,000 | ' | ' | ' | |
Purchase of treasury stock | -1,579,000 | ' | ' | ' | ' | -1,579,000 | [1] | ' |
Ending balance at Jun. 30, 2013 | 167,484,000 | 149,000 | 78,624,000 | 107,006,000 | -697,000 | -17,805,000 | [1] | 207,000 |
Ending balance (in shares) at Jun. 30, 2013 | ' | 14,910,777 | ' | ' | ' | ' | ' | |
Beginning balance at Sep. 30, 2013 | 169,601,000 | 149,000 | 79,104,000 | 109,011,000 | -674,000 | ' | -184,000 | |
Beginning balance (in shares) at Sep. 30, 2013 | ' | 14,917,977 | ' | ' | ' | ' | ' | |
Exercise of options (in shares) | 11,500 | 11,500 | ' | ' | ' | ' | ' | |
Exercise of options | 40,000 | ' | 40,000 | ' | ' | ' | ' | |
Stock based compensation expense | 1,290,000 | ' | 1,290,000 | ' | ' | ' | ' | |
Net income | 9,778,000 | ' | ' | 9,295,000 | ' | ' | 483,000 | |
Unrealized loss on marketable securities | 696,000 | ' | ' | ' | 696,000 | ' | ' | |
Retirement of treasury stock (in shares) | ' | -1,943,738 | ' | ' | ' | ' | ' | |
Retirement of treasury stock | 0 | -19,000 | -17,786,000 | ' | ' | 17,805,000 | [2] | ' |
Distributions to non-controlling interest | -837,000 | ' | ' | ' | ' | ' | -837,000 | |
Ending balance at Jun. 30, 2014 | $180,568,000 | $130,000 | $62,648,000 | $118,306,000 | $22,000 | $0 | [2] | ($538,000) |
Ending balance (in shares) at Jun. 30, 2014 | ' | 12,985,739 | ' | ' | ' | ' | ' | |
[1] | Treasury shares are as follows: September 30, 2012, 1,772,038; Purchase of treasury stock, 171,700; June 30, 2013, 1,943,738. | |||||||
[2] | Treasury shares at September 30, 2013 totaled 1,943,738. |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended | |||
Sep. 30, 2012 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | |
Treasury stock, shares | 1,772,038 | 0 | 1,943,738 | 1,943,738 |
Purchase of treasury Stock | 171,700 | ' | ' | ' |
Condensed_Consolidated_Stateme6
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities | ' | ' |
Net income | $9,778,000 | $909,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 450,000 | 450,000 |
Deferred income taxes | 1,095,000 | 85,000 |
Impairment of consumer receivables acquired for liquidation | 19,901,000 | 12,351,000 |
Stock based compensation | 1,290,000 | 1,498,000 |
Loss / (gain) on sale of available-for-sale securities | 141,000 | -192,000 |
Structured settlements - accrued interest | -1,475,000 | ' |
Structured settlements - gains | -1,440,000 | ' |
Forgiveness of non-recourse debt | -26,101,000 | ' |
Changes in: | ' | ' |
Prepaid and income taxes receivable | 1,496,000 | 382,000 |
Due from third party collection agencies and attorneys | 31,000 | 802,000 |
Other assets | -596,000 | -2,369,000 |
Income taxes payable | 3,084,000 | ' |
Other liabilities | -119,000 | -1,104,000 |
Net cash provided by operating activities | 7,535,000 | 12,812,000 |
Cash flows from investing activities | ' | ' |
Purchase of consumer receivables acquired for liquidation | -3,702,000 | -3,340,000 |
Principal collected on receivables acquired for liquidation | 10,186,000 | 14,850,000 |
Principal collected on receivables accounts represented by account sales | 1,000 | 432,000 |
Purchase of available-for-sale securities | -19,845,000 | -29,907,000 |
Proceeds from sale of available-for-sale securities | 8,684,000 | 28,918,000 |
Proceeds from maturities of certificates of deposit | ' | 33,918,000 |
Cash paid for acquisition (net of cash acquired) | -5,588,000 | ' |
Investments in personal injury claims - advances | -16,392,000 | -22,863,000 |
Investments in personal injury claims - receipts | 20,417,000 | 9,162,000 |
Investment in structured settlements - advances | -4,696,000 | ' |
Investments in structured settlements - receipts | 2,155,000 | ' |
Capital expenditures | ' | -725,000 |
Net cash (used in) provided by investing activities | -8,780,000 | 30,445,000 |
Cash flows from financing activities | ' | ' |
Proceeds from exercise of stock options | 40,000 | 103,000 |
Changes in restricted cash | 968,000 | 21,000 |
Distribution to non-controlling interest | -837,000 | ' |
Repayment of non-recourse debt | -9,659,000 | -7,213,000 |
Borrowings of other debt | 4,131,000 | ' |
Repayments of other debt | -2,560,000 | ' |
Dividends paid | ' | -1,290,000 |
Purchase of treasury stock | ' | -1,579,000 |
Net cash used in financing activities | -7,917,000 | -9,958,000 |
Net (decrease) increase in cash and cash equivalents | -9,162,000 | 33,299,000 |
Cash and cash equivalents at beginning of period | 35,179,000 | 4,953,000 |
Cash and cash equivalents at end of period | 26,017,000 | 38,252,000 |
Cash paid for: | ' | ' |
Interest | 678,000 | 1,645,000 |
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 | 9 Months Ended |
Jun. 30, 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 June 30, 2014, the condensed consolidated statements of operations for the nine and three month periods ended June 30, 2014 and 2013, the condensed consolidated statements of comprehensive income (loss) for the nine and three month periods ended June 30, 2014 and 2013, the condensed consolidated statement of stockholders’ equity as of and for the nine months ended June 30, 2014 and 2013 and the condensed consolidated statements of cash flows for the nine month periods ended June 30, 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 June 30, 2014 and September 30, 2013, the results of operations for the nine and three month periods ended June 30, 2014 and 2013 and cash flows for the nine month periods ended June 30, 2014 and 2013 have been made. The results of operations for the nine and three month periods ended June 30, 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. Palisades XVI holds the Great Seneca portfolio of $21.6 million as of June 30, 2014. See Note 10-Debt, Non-Recourse Debt-Bank of Montreal for additional details. | |
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 $14.4 million and non-recourse notes payable of $13.0 million as of June 30, 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. | |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued an update to ASC 606, “Revenue from Contracts with Customers,” that will supersede virtually all existing revenue guidance. Under this update, an entity is required to recognize revenue upon transfer of promised goods or services to customers, in an amount that reflects the entitled consideration received in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the customer contracts. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. We are currently evaluating the impact this update will have on our consolidated financial statements as well as the expected adoption method. | |
In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” The amendments in this ASU require two accounting changes. First, the amendments in this ASU change the accounting for repurchase-to maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. This ASU also includes new disclosure requirements. The accounting changes in this Update are effective for public business entities for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application for a public business entity is prohibited. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. | |
Concentration of Credit Risk — Cash | |
Cash balances are maintained at various high credit quality depository institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company believes it is not exposed to any significant credit risk for cash. | |
Reclassifications | |
Certain items in the three months and nine months ended June 30, 2013 condensed consolidated financial statements have been reclassified to conform to the current period’s presentation, primarily related to certain balance sheet and statement of operations items. |
Principles_of_Consolidation
Principles of Consolidation | 9 Months Ended |
Jun. 30, 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 | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments | ' | ||||||||||||||||
Note 3 — Investments | |||||||||||||||||
Available-for-Sale | |||||||||||||||||
Investments classified as available-for-sale at June 30, 2014 and September 30, 2013, consist of the following: | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
June 30, 2014 | $ | 70,171,000 | $ | 292,000 | $ | (258,000 | ) | $ | 70,205,000 | ||||||||
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 two investments during the first nine months of fiscal year 2014, with an aggregate realized loss of $141,000. In the first nine months of fiscal year 2013, the Company sold three investments with an aggregate realized gain of $192,000. The Company sold one investment during the three month period ended June 30, 2014, with a realized loss of $116,000. The Company sold one investment during the three month period ended June 30, 2013, with a realized gain of $17,000. | |||||||||||||||||
At June 30, 2014, there were seven investments, five of which were in a net unrealized loss position. 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 | 9 Months Ended | ||||||||||||
Jun. 30, 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 were 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 temporary timing differences is deferred until such time as a review results in a change in the expected cash flows that is deemed permanent. 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 has used the interest method for accounting for asset acquisitions within these classes of receivables when it believed it could 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 has utilized the cost recovery method of accounting for those portfolios of receivables. At June 30, 2014, the Company transferred its remaining balance of approximately $5.5 million of the consumer receivables acquired for liquidation from the interest method to the cost recovery method, resulting in approximately $31.5 million accounted for using the cost recovery method, of which approximately $21.6 million is concentrated in one portfolio. The Company transferred the remaining balance to cost recovery method because it did not have a reasonable expectation about timing and amount of cash flows expected to be collected. | |||||||||||||
The Company aggregates portfolios of receivables acquired sharing specific common characteristics which were acquired within a given quarter. The Company has considered 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 Nine Months Ended June 30, 2014 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 8,071,000 | $ | 49,829,000 | $ | 57,900,000 | |||||||
Acquisition of receivable portfolios | — | 3,702,000 | 3,702,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (19,957,000 | ) | (10,782,000 | ) | (30,739,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (4,000 | ) | — | (4,000 | ) | ||||||||
Impairment | (1,056,000 | ) | (18,845,000 | ) | (19,901,000 | ) | |||||||
Transfer to cost recovery | (5,461,000 | ) | 5,461,000 | — | |||||||||
Finance income recognized (1) | 18,407,000 | 2,149,000 | 20,556,000 | ||||||||||
Balance, end of period | $ | 0 | $ | 31,514,000 | $ | 31,514,000 | |||||||
Finance income as a percentage of collections | 92.2 | % | 19.9 | % | 66.9 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 18,046,000 | $ | 2,149,000 | $ | 20,195,000 | |||||||
Non-fully amortized portfolios | 361,000 | — | 361,000 | ||||||||||
Finance income recognized | $ | 18,407,000 | $ | 2,149,000 | $ | 20,556,000 | |||||||
For the Nine Months Ended June 30, 2013 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 12,326,000 | $ | 74,561,000 | $ | 86,887,000 | |||||||
Acquisition of receivable portfolios | 3,340,000 | — | 3,340,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (26,901,000 | ) | (13,113,000 | ) | (40,014,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (987,000 | ) | (1,037,000 | ) | (2,024,000 | ) | |||||||
Impairment | (2,203,000 | ) | (10,148,000 | ) | (12,351,000 | ) | |||||||
Finance income recognized (1) | 23,531,000 | 3,225,000 | 26,756,000 | ||||||||||
Balance, end of period | $ | 9,106,000 | $ | 53,488,000 | $ | 62,594,000 | |||||||
Finance income as a percentage of collections | 84.4 | % | 22.8 | % | 63.6 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 22,599,000 | $ | 3,225,000 | $ | 25,824,000 | |||||||
Non-fully amortized portfolios | 932,000 | — | 932,000 | ||||||||||
Finance income recognized | $ | 23,531,000 | $ | 3,225,000 | $ | 26,756,000 | |||||||
For the Three Months Ended June 30, 2014 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 6,970,000 | $ | 45,101,000 | $ | 52,071,000 | |||||||
Acquisition of receivable portfolio | — | 2,733,000 | 2,733,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (6,348,000 | ) | (3,691,000 | ) | (10,039,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (2,000 | ) | — | (2,000 | ) | ||||||||
Impairment | (1,056,000 | ) | (18,845,000 | ) | (19,901,000 | ) | |||||||
Transfer to cost recovery | (5,461,000 | ) | 5,461,000 | — | |||||||||
Finance income recognized (1) | 5,897,000 | 755,000 | 6,652,000 | ||||||||||
Balance, end of period | $ | 0 | $ | 31,514,000 | $ | 31,514,000 | |||||||
Finance income as a percentage of collections | 92.9 | % | 20.5 | % | 66.2 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 5,777,000 | $ | 755,000 | $ | 6,532,000 | |||||||
Non-fully amortized portfolios | 120,000 | — | 120,000 | ||||||||||
Finance income recognized | $ | 5,897,000 | $ | 755,000 | $ | 6,652,000 | |||||||
For the Three Months Ended June 30, 2013 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 6,813,000 | $ | 68,011,000 | $ | 74,824,000 | |||||||
Acquisition of receivable portfolio | 3,340,000 | — | 3,340,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (8,611,000 | ) | (4,807,000 | ) | (13,418,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (970,000 | ) | (1,037,000 | ) | (2,007,000 | ) | |||||||
Impairment | — | (10,148,000 | ) | (10,148,000 | ) | ||||||||
Finance income recognized (1) | 8,534,000 | 1,469,000 | 10,003,000 | ||||||||||
Balance, end of period | $ | 9,106,000 | $ | 53,488,000 | $ | 62,594,000 | |||||||
Finance income as a percentage of collections | 89.1 | % | 25.1 | % | 64.8 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 8,280,000 | $ | 1,469,000 | $ | 9,749,000 | |||||||
Non-fully amortized portfolios | 254,000 | — | 254,000 | ||||||||||
Finance income recognized | $ | 8,534,000 | $ | 1,469,000 | $ | 10,003,000 | |||||||
All remaining interest method portfolios were transferred to cost recovery effective June 30, 2014. As of that date, the Company no longer recognizes deferred finance income. | |||||||||||||
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. Changes in accretable yield for the nine month and three month periods ended June 30, 2014 and 2013 are as follows: | |||||||||||||
Nine Months | Nine Months | ||||||||||||
Ended | Ended | ||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||
Balance at beginning of period | $ | 1,116,000 | $ | 2,086,000 | |||||||||
Finance income recognized on finance receivables, net | (18,407,000 | ) | (23,531,000 | ) | |||||||||
Additions representing expected revenue from purchases | — | 983,000 | |||||||||||
Transfer to cost recovery | (500,000 | ) | — | ||||||||||
Reclassifications from nonaccretable difference (1) | 17,791,000 | 21,874,000 | |||||||||||
Balance at end of period | $ | 0 | $ | 1,412,000 | |||||||||
Three Months | Three Months | ||||||||||||
Ended | Ended | ||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||
Balance at beginning of period | $ | 861,000 | $ | 942,000 | |||||||||
Finance income recognized on finance receivables, net | (5,897,000 | ) | (8,534,000 | ) | |||||||||
Additions representing expected revenue from purchases | — | 983,000 | |||||||||||
Transfer to cost recovery | (500,000 | ) | — | ||||||||||
Reclassifications from nonaccretable difference (1) | 5,536,000 | 8,021,000 | |||||||||||
Balance at end of period | $ | 0 | $ | 1,412,000 | |||||||||
-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 nine and three month periods ended June 30, 2014, the Company purchased $53.0 million and $35.9 million, respectively, of face value portfolios, at a cost of $3.7 million and $2.7 million, respectively. During both the nine and three month periods ended June 30, 2013, the Company purchased $53.5 million of face value receivables at a cost of $3.3 million. | |||||||||||||
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 nine and three month periods ended June 30, 2014 and 2013, respectively. | |||||||||||||
For the Nine Months Ended June 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross collections (1) | $ | 51,884,000 | $ | 66,371,000 | |||||||||
Commissions and fees (2) | 21,141,000 | 24,333,000 | |||||||||||
Net collections | $ | 30,743,000 | $ | 42,038,000 | |||||||||
For the Three Months Ended June 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross collections (1) | $ | 18,192,000 | $ | 23,432,000 | |||||||||
Commissions and fees (2) | 8,151,000 | 8,007,000 | |||||||||||
Net collections | $ | 10,041,000 | $ | 15,425,000 | |||||||||
-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 one portfolio. 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 | 9 Months Ended | ||||
Jun. 30, 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 interest 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 re-measurement is required at June 30, 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 nine months ended June 30, 2014, were $29,221,000. On a pro forma basis, total revenues for the nine months ended June 30, 2014 would have been $30,856,000. Net income attributable to Asta Funding, Inc., as reported, for the nine months ended June 30, 2014, was $9,295,000. On a pro forma basis, net income attributable to Asta Funding, Inc. for the nine months ended June 30, 2014 would have been $9,337,000. Total revenues, as reported, for the nine months ended June 30, 2013, were $31,677,000. On a pro forma basis, total revenues for the same prior year period would have been $35,417,000. Net income attributable to Asta Funding, Inc., as reported, for the nine months ended June 30, 2013 was $733,000. On a pro forma basis, net income attributable to Asta Funding, Inc. would have been $712,000 for the same prior year period. The Company, through CBC, earned $1.4 million and $2.9 million in settlement income during the three and nine month periods ended June 30, 2014. The Company had a net invested balance of $35.9 million in structured settlements as of June 30, 2014. The collections yielded a net loss attributable to non-controlling interest of $34,000 and $13,000 for the three and nine month periods, respectively, ended June 30, 2014. | |||||
Structured_Settlements
Structured Settlements | 9 Months Ended | ||||
Jun. 30, 2014 | |||||
Structured Settlements | ' | ||||
Note 6 — Structured Settlements | |||||
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) on structured settlements in the Company’s statements of operations. | |||||
Structured settlements consist of the following as of June 30, 2014: | |||||
Maturity value | $ | 52,551,000 | |||
Unearned income | (16,659,000 | ) | |||
Net carrying value | $ | 35,892,000 | |||
Encumbrances on structured settlements as of June 30, 2014 are: | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 (1) | $ | 2,599,000 | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 (1) | 5,498,000 | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 (1) | 4,894,000 | ||||
$15,000,000 revolving line of credit (1) | 14,443,000 | ||||
Encumbered structured settlements | 27,434,000 | ||||
Structured settlements not encumbered | 8,458,000 | ||||
Total structured settlements | $ | 35,892,000 | |||
-1 | See Note 11 — Other Debt — CBC | ||||
At June 30, 2014, the expected cash flows of structured settlements based on maturity value are as follows: | |||||
September 30, 2014 (three months remaining) | $ | 1,101,000 | |||
September 30, 2015 | 4,309,000 | ||||
September 30, 2016 | 4,469,000 | ||||
September 30, 2017 | 3,977,000 | ||||
September 30, 2018 | 3,187,000 | ||||
Thereafter | 35,508,000 | ||||
Total | $ | 52,551,000 | |||
Other_Investments
Other Investments | 9 Months Ended | ||||||||
Jun. 30, 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 $1.7 million and $5.7 million, in interest and fees during the three and nine month periods ending June 30, 2014, respectively, compared to $2.3 million and $4.9 million, respectively, during the three and nine month periods ending June 30, 2013. The Company had a net invested balance of $31.7 million and $35.8 million on June 30, 2014 and September 30, 2013, respectively. The collections yielded net income attributable to non-controlling interest of $53,000 and $496,000 for the three and nine month periods ended June 30, 2014, respectively, compared to $53,000 and $176,000 for the three and nine month periods ended June 30, 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 June 30, 2014, amounted to $2.1 million as follows: | |||||||||
Nine Months | Three Months | ||||||||
Ended | Ended | ||||||||
June 30, 2014 | June 30, 2014 | ||||||||
Balance at beginning of period | $ | 2,248,000 | $ | 1,916,000 | |||||
Provisions for losses | 955,000 | 756,000 | |||||||
Write offs | (1,153,000 | ) | (622,000 | ) | |||||
Balance at end of period | $ | 2,050,000 | $ | 2,050,000 | |||||
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 contract term has been extended an additional six months to October 2014. The revolving line of credit is collateralized by BP Divorce Funding’s profit share in BPCM and other assets. As of June 30, 2014, the Company’s investment in cases through BPCM was approximately $2.3 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 nine months of fiscal years 2014 and 2013. |
Furniture_Equipment
Furniture & Equipment | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Furniture & Equipment | ' | ||||||||
Note 8 — Furniture & Equipment | |||||||||
Furniture and equipment consist of the following as of the dates indicated: | |||||||||
June 30, | 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 | 4,586,000 | 4,136,000 | |||||||
Balance, end of period | $ | 656,000 | $ | 1,106,000 | |||||
Goodwill
Goodwill | 9 Months Ended | ||||
Jun. 30, 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 nine and three month periods ended June 30, 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 June 30, 2014 are as follows: | |||||
Balance, September 30, 2013 | $ | 1,410,000 | |||
Goodwill from acquisition (see Note 5: Acquisition of CBC) | 1,360,000 | ||||
Balance, June 30, 2014 | $ | 2,770,000 | |||
Debt
Debt | 9 Months Ended |
Jun. 30, 2014 | |
Debt | ' |
Note 10 — Debt | |
Non-Recourse Debt — Bank of Montreal (“BMO”) | |
In March 2007, Palisades XVI borrowed approximately $227 million under the Receivables Financing Agreement (“RFA”), as amended in July 2007, December 2007, May 2008, February 2009, October 2010 and August 2013 from BMO, in order to finance a $300 million portfolio purchase in March 2007 (the “Portfolio Purchase”). The original term of the agreement was three years. This term was extended by each of the Second, Third, Fourth and Fifth Amendments and the most recent agreement signed in August 2013. | |
On August 7, 2013, Palisades XVI, a 100% owned bankruptcy remote subsidiary, entered into a Settlement Agreement and Omnibus Amendment (the “Settlement Agreement”) with BMO as an amendment to the RFA. In consideration for a $15 million prepayment funded by the Company, BMO 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 or from voluntary prepayments by Asta Funding, Inc., less certain credits for payments made prior to the consummation of the Settlement Agreement (the “Remaining Amount”), Palisades XVI and its affiliates would be automatically released from liability in connection with the RFA (subject to customary exceptions). A condition to the release was Palisade XVI’s agreement to grant BMO, as of the time of the payment of the Remaining Amount, the right to receive 30% of net collections from the Portfolio Purchase once Palisades XVI has received from future net collections, the sum of $15 million plus voluntary prepayments included in the payment of the Remaining Amount (the “Income Interest”). The Company estimated the Income Interest to be between $0 and $1.4 million. However, the Company believes that no amount would be incurred because of the continued deterioration of collections from the Portfolio Purchase. | |
On June 3, 2014, Palisades XVI paid the Remaining Amount. The final principal payment of $2,901,199 included a voluntary prepayment of $1,866,036 provided from funds of the Company. Accordingly, Palisades XVI will be entitled to receive $16.9 million of future collections from the Portfolio Purchase before BMO is entitled to receive any payments with respect to its Income Interest. | |
With the payment of the Remaining Amount and upon completion of the documents granting the Palisades XVI Income Interest, including a written confirmation from BMO that the obligation has been paid in full, Palisades XVI has been released from further debt obligations from the RFA. The Company has recorded as other income, forgiveness of non-recourse debt, in the amount of approximately $26.1 million in the third quarter of fiscal year 2014. | |
Bank Hapoalim B.M. (“Bank Hapoalim”) Line of Credit | |
On May 2, 2014, the Company obtained a $20 million line of credit facility from Bank Hapoalim, pursuant to a Loan Agreement (the “Loan Agreement”) among the Company and its subsidiary, Palisades Collection, LLC, as borrowers, and Bank Hapoalim, as agent and lender. The Loan Agreement provides for a $20.0 million committed line of credit and an accordion feature providing an increase in the line of credit of up to $30 million, at the discretion of the lenders. The facility is for a term of three years at an interest rate of either LIBOR plus 275 basis points or prime, at the Company’s option. The Loan Agreement includes covenants that require the Company to maintain a minimum net worth of $150 million and pay an unused line fee. The facility is secured pursuant to a Security Agreement (“Security Agreement”) among the parties to the Loan Agreement. As of June 30, 2014, the Company has not used this facility. |
Other_Debt_CBC
Other Debt - CBC | 9 Months Ended | ||||||||
Jun. 30, 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 June 30, 2014, the debt amounted to $27.4 million, which consists of a $14.4 million drawdown from a line of credit ($0.6 million available) from an institutional source and $13.0 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 June 30, 2014: | |||||||||
Interest Rate | June 30, | ||||||||
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 | % | $ | 2,599,000 | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | 7.25 | % | 5,498,000 | ||||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | 7.125 | % | 4,894,000 | ||||||
Subtotal notes payable | 12,991,000 | ||||||||
$15,000,000 revolving line of credit expiring on February 28, 2015 | 4.75 | % | 14,443,000 | ||||||
Total debt – CBC | $ | 27,434,000 | |||||||
On July 15, 2014, CBC entered into an amendment whereby it increased its revolving line of credit from $15.0 million to $20.0 million and the maturity date was changed to December 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 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. CBC is a party to a lease agreement for a facility located in Conshohocken, Pennsylvania. The lease expires in August 2014. CBC is not renewing the lease. Rather it is planning on relocating to a different (leased) facility within the same town. | |
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 | 9 Months Ended | |||
Jun. 30, 2014 | ||||
Finance Income Recognition, Impairments, and Commissions and Fees | ' | |||
Note 13 — Finance Income Recognition, Impairments, and Commissions and Fees | ||||
Income Recognition | ||||
The Company has accounted 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. At June 30, 2014, the Company transferred its remaining balance of approximately $5.5 million of the consumer receivables acquired for liquidation from the interest method to the cost recovery method, resulting in approximately $31.5 million accounted for using the cost recovery method, of which approximately $21.6 million is concentrated in one portfolio. The Company transferred the remaining balance to cost recovery method because it did not have a reasonable expectation about timing and amount of cash flows expected to be collected. | ||||
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. | ||||
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 that were deemed permanent were recognized prospectively through an adjustment to the internal rate of return while decreases in expected cash flows that were deemed permanent 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 $19.9 million of impairment charges recorded during the three and nine month periods ended June 30, 2014. An impairment of $10.1 million and $12.4 was recorded during the three and nine month periods ended June 30, 2013, respectively. | ||||
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 receivables portfolios at a significant discount to the amount actually owed to the 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 has used 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 continually 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, or temporary 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, or temporary differences, 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, was accreted into income recognized on finance receivables accounted for on the interest method over the expected remaining life of the portfolio. | ||||
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 | 9 Months Ended |
Jun. 30, 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 (benefit) for the three month periods ended June 30, 2014 and 2013 reflects income tax expense (benefit) at an effective rate of 38.7% and (40.9)%, respectively. The provision for income tax expense for the nine month periods ended June 30, 2014 and 2013 reflects income tax expense at an effective rate of 36.7% and 35.4%, respectively. | |
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_Loss_per_Share
Net Income (Loss) per Share | 9 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Net Income (Loss) per Share | ' | ||||||||||||||||||||||||
Note 15 — Net Income (Loss) 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 nine months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||
Nine Months Ended June 30, 2014 | Nine Months Ended June 30, 2013 | ||||||||||||||||||||||||
Net | Weighted | Per | Net | Weighted | Per | ||||||||||||||||||||
Income | Average | Share | Income | Average | Share | ||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic | $ | 9,295,000 | 12,979,472 | $ | 0.72 | $ | 733,000 | 12,946,521 | $ | 0.06 | |||||||||||||||
Effect of Dilutive Stock | 228,543 | (0.02 | ) | 271,135 | — | ||||||||||||||||||||
Diluted | $ | 9,295,000 | 13,208,015 | $ | 0.7 | $ | 733,000 | 13,217,656 | $ | 0.06 | |||||||||||||||
At June 30, 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 June 30, 2013, 575,669 options at a weighted average exercise price of $8.07 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 June 30, 2014 and 2013: | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
Net | Weighted | Per | Net | Weighted | Per | ||||||||||||||||||||
Income | Average | Share | Income | Average | Share | ||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic | $ | 5,464,000 | 12,984,882 | $ | 0.42 | $ | (2,737,000 | ) | 12,954,455 | $ | (0.21 | ) | |||||||||||||
Effect of Dilutive Stock | 229,821 | (0.01 | ) | — | — | ||||||||||||||||||||
Diluted | $ | 5,464,000 | 13,214,703 | $ | 0.41 | $ | (2,737,000 | ) | 12,954,455 | $ | (0.21 | ) | |||||||||||||
Stock_Based_Compensation
Stock Based Compensation | 9 Months Ended | ||||
Jun. 30, 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 | 9 Months Ended | ||||||||||||||||||||
Jun. 30, 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 June 30, 2014. As of June 30, 2014, approximately 49 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: | |||||||||||||||||||||
Nine Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Price | Price | ||||||||||||||||||||
Outstanding options at the beginning of period | 1,622,771 | $ | 11.31 | 1,499,471 | $ | 11.27 | |||||||||||||||
Options granted | 161,700 | 8.48 | 210,000 | 9.36 | |||||||||||||||||
Options exercised | (11,500 | ) | 3.46 | (29,500 | ) | 3.51 | |||||||||||||||
Options forfeited/canceled | (210,767 | ) | 14.87 | (50,000 | ) | 7.77 | |||||||||||||||
Outstanding options at the end of period | 1,562,204 | $ | 10.66 | 1,629,971 | $ | 11.27 | |||||||||||||||
Exercisable options at the end of period | 987,198 | $ | 11.97 | 1,112,037 | $ | 12.57 | |||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Price | Price | ||||||||||||||||||||
Outstanding options at the beginning of period | 1,563,704 | $ | 10.65 | 1,655,871 | $ | 11.12 | |||||||||||||||
Options granted | — | — | 50,000 | 8.69 | |||||||||||||||||
Options exercised | (1,500 | ) | 6.89 | (25,900 | ) | 3.06 | |||||||||||||||
Options forfeited/canceled | — | — | (50,000 | ) | 7.77 | ||||||||||||||||
Outstanding options at the end of period | 1,562,204 | $ | 10.66 | 1,629,971 | $ | 11.27 | |||||||||||||||
Exercisable options at the end of period | 987,198 | $ | 11.97 | 1,112,037 | $ | 12.57 | |||||||||||||||
The following table summarizes information about the 2012 Plan, 2002 Plan, and the Equity Compensation Plan outstanding options as of June 30, 2014: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Price | Weighted | Weighted | Weighted | Number | Weighted | ||||||||||||||||
Number | Remaining | Average | Exercisable | Average | |||||||||||||||||
Outstanding | Contractual | Exercise | Exercise | ||||||||||||||||||
Life (in Years) | Price | Price | |||||||||||||||||||
$ 2.8751 – $ 5.7500 | 7,500 | 4.8 | $ | 2.95 | 7,500 | $ | 2.95 | ||||||||||||||
$ 5.7501 – $ 8.6250 | 938,100 | 7.1 | 7.92 | 503,100 | 7.78 | ||||||||||||||||
$ 8.6251 – $14.3750 | 260,000 | 8.3 | 9.77 | 119,994 | 10.25 | ||||||||||||||||
$14.3751 – $17.2500 | 1,944 | 0 | 15.99 | 1,944 | 15.99 | ||||||||||||||||
$17.2501 – $20.1250 | 339,660 | 0.3 | 18.23 | 339,660 | 18.23 | ||||||||||||||||
$25.8751 – $28.7500 | 15,000 | 2.5 | 28.75 | 15,000 | 28.75 | ||||||||||||||||
1,562,204 | 5.8 | $ | 10.66 | 987,198 | $ | 11.97 | |||||||||||||||
The Company recognized $1,046,000 and $367,000 of compensation expense related to stock option during the nine and three month periods ended June 30, 2014, respectively. The Company recognized $1,307,000 and $532,000 of compensation expense related to stock options during the nine and three months ended June 31, 2013. As June 30, 2014, there was $1,796,000 of unrecognized compensation cost related to stock option awards. The weighted average period over which such costs are expected to be recognized is 1.45 years. | |||||||||||||||||||||
The intrinsic value of the outstanding and exercisable options as of June 30, 2014 was approximately $391,000 and $281,000, respectively. The weighted average remaining contractual life of exercisable options is 4.3 years. The intrinsic and the fair value of the options exercised during the nine month period ended June 30, 2014 was approximately $57,000 and $95,000, respectively. The intrinsic and fair value of the stock options exercised during the three month period ended June 30, 2014 was approximately $2,000 and $12,000, respectively. The intrinsic and fair value of the stock options exercised during the nine month period ended June 30, 2013 was approximately $172,000 and $276,000, respectively. The intrinsic and fair value of the stock options exercised during the three month period ended June 30, 2013 was approximately $162,000 and $241,000, respectively. The proceeds from the exercise of options exercised during the nine and three month periods ended June 30, 2014 were approximately $40,000 and $10,000, respectively. There was no tax effect associated with these exercises. The fair value of the stock options that vested during the nine and three month periods ended June 30, 2014 was approximately $743,000 and $137,000, respectively. The fair value of the options that vested during the nine and three month periods ended June 30, 2013 was approximately $1,259,000 and $144,000, respectively. The fair value of the awards granted during the nine and three month periods ended June 30, 2014 was $1,372,000 and $0, respectively. The fair value of the awards granted during the nine and three month period ended June 30, 2013 was approximately $1,702,000 and $341,000, respectively. | |||||||||||||||||||||
The following table summarizes information about restricted stock transactions: | |||||||||||||||||||||
Nine Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||
Value | 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 June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||
Value | 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 $244,000 and $82,000 of compensation expense related to the restricted stock awards during the nine and three month periods ended June 30, 2014, respectively. The Company recognized $191,000 and $81,000 of compensation expense related to the restricted stock awards for the nine and three month periods ended June 30, 2013. As of June 30, 2014, there was $479,000 of unrecognized compensation cost related to restricted stock awards. The weighted average remaining period over which such costs expected to be recognized is 1.47 years. There were no restricted stock awards granted during the first nine 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 nine month periods ended June 30, 2014 and 2013 was $326,000 and $83,000, respectively. There were no awards vested in the third quarter of fiscal years 2014 and 2013. | |||||||||||||||||||||
The Company recognized an aggregate total of $1,290,000 and $449,000, respectively, in compensation expense for the nine and three month periods ended June 30, 2014, for the stock options and restricted stock grants. The Company recognized an aggregate of $1,498,000 and $613,000, respectively, for the nine and three month periods ended June 30, 2013, for the stock options and restricted stock grants. As of June 30, 2014, there was a total of $2,275,000 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 | 9 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity | ' |
Note 18 — Stockholders’ Equity | |
There were no dividends declared or paid during the nine months ended June 30, 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 nine and three month period ended June 31, 2013 the Company purchased approximately 172,000 and 0 shares, respectively, at an aggregate cost of approximately $1,574,000 and $0, respectively, under the plan. The Plan expired in March 2013. |
Fair_Value_of_Financial_Measur
Fair Value of Financial Measurements and Disclosures | 9 Months Ended | ||||||||||||||||
Jun. 30, 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: | |||||||||||||||||
30-Jun-14 | 30-Sep-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets | |||||||||||||||||
Available-for-sale investments (Level 1) | $ | 70,205,000 | $ | 70,205,000 | $ | 58,035,000 | $ | 58,035,000 | |||||||||
Consumer receivables acquired for liquidation (Level 3) | 31,514,000 | 60,490,000 | 57,900,000 | 70,875,000 | |||||||||||||
Structured settlements (Level 3) | 35,892,000 | 35,892,000 | — | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Non-recourse debt – BMO (Level 3) | — | — | 35,760,000 | 27,000,000 | |||||||||||||
Other debt – CBC, revolving line of credit (Level 3) | 14,443,000 | 14,443,000 | — | — | |||||||||||||
Other debt – CBC, non-recourse notes payable with varying installments (Level 3) | 12,991,000 | 12,991,000 | — | — | |||||||||||||
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 — carried a variable rate. The fair value at 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 June 30, 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 June 30, 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 nine month period ended June 30, 2014. The Company had no Level 2 or Level 3 available-for-sale investments during the first nine months of fiscal year 2014. | |||||||||||||||||
The following table sets forth the Company’s quantitative information about its Level 3 fair value measurements as of June 30, 2014: | |||||||||||||||||
Fair Value | Valuation | Unobservable | Rate | ||||||||||||||
Technique | Input | ||||||||||||||||
Structured settlements at fair value | $ | 35,892,000 | Discounted | Discount | 5.5 | % | |||||||||||
cash flow | rate | ||||||||||||||||
The changes in structured settlements at fair value using significant unobservable inputs (Level 3) during the nine months ended June 30, 2014 were as follows: | |||||||||||||||||
Balance at September 30, 2013 | $ | 0 | |||||||||||||||
Acquisition of CBC (see Note 5) | 30,436,000 | ||||||||||||||||
Total gains included in earnings | 1,440,000 | ||||||||||||||||
Purchases | 4,696,000 | ||||||||||||||||
Sales | — | ||||||||||||||||
Interest accreted | 1,475,000 | ||||||||||||||||
Payments received | (2,155,000 | ) | |||||||||||||||
Total | $ | 35,892,000 | |||||||||||||||
The amount of total gains for the nine month period included in earnings attributable to the change in unrealized gains (losses) relating to assets held at June 30, 2014 | $ | 1,440,000 | |||||||||||||||
Realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of income for the nine months ended June 30, 2014 are reported in the following revenue categories: | |||||||||||||||||
Total gains (losses) included in earnings in fiscal year 2014 | $ | 1,440,000 | |||||||||||||||
Change in unrealized gains (losses) relating to assets still held at June 30, 2014 | $ | 1,440,000 | |||||||||||||||
The changes in structured settlements at fair value using significant observable inputs (Level 3) during the three months ended June 30, 2014 were as follows: | |||||||||||||||||
Balance at March 31, 2014 | $ | 33,330,000 | |||||||||||||||
Total gains included in earnings | 620,000 | ||||||||||||||||
Purchases | 2,337,000 | ||||||||||||||||
Sales | — | ||||||||||||||||
Interest accreted | 767,000 | ||||||||||||||||
Payments received | (1,162,000 | ) | |||||||||||||||
Total | $ | 35,892,000 | |||||||||||||||
The amount of total gains for the three month period included in earnings attributable to the change in unrealized gains (losses) relating to assets held at June 30, 2014 | $ | 620,000 | |||||||||||||||
Realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of income for the three months ended June 30, 2014 are reported in the following revenue categories: | |||||||||||||||||
Total gains included in earnings in the three months ended June 30, 2014 | $ | 620,000 | |||||||||||||||
Change in unrealized gains (losses) relating to assets still held at June 30, 2014 | $ | 620,000 | |||||||||||||||
Business_and_Basis_of_Presenta1
Business and Basis of Presentation (Policies) | 9 Months Ended |
Jun. 30, 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 June 30, 2014, the condensed consolidated statements of operations for the nine and three month periods ended June 30, 2014 and 2013, the condensed consolidated statements of comprehensive income (loss) for the nine and three month periods ended June 30, 2014 and 2013, the condensed consolidated statement of stockholders’ equity as of and for the nine months ended June 30, 2014 and 2013 and the condensed consolidated statements of cash flows for the nine month periods ended June 30, 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 June 30, 2014 and September 30, 2013, the results of operations for the nine and three month periods ended June 30, 2014 and 2013 and cash flows for the nine month periods ended June 30, 2014 and 2013 have been made. The results of operations for the nine and three month periods ended June 30, 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. Palisades XVI holds the Great Seneca portfolio of $21.6 million as of June 30, 2014. See Note 10-Debt, Non-Recourse Debt-Bank of Montreal for additional details. | |
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 $14.4 million and non-recourse notes payable of $13.0 million as of June 30, 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. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued an update to ASC 606, “Revenue from Contracts with Customers,” that will supersede virtually all existing revenue guidance. Under this update, an entity is required to recognize revenue upon transfer of promised goods or services to customers, in an amount that reflects the entitled consideration received in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the customer contracts. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. We are currently evaluating the impact this update will have on our consolidated financial statements as well as the expected adoption method. | |
In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” The amendments in this ASU require two accounting changes. First, the amendments in this ASU change the accounting for repurchase-to maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. This ASU also includes new disclosure requirements. The accounting changes in this Update are effective for public business entities for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application for a public business entity is prohibited. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. | |
Concentration of Credit Risk - Cash | ' |
Concentration of Credit Risk — Cash | |
Cash balances are maintained at various high credit quality depository institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company believes it is not exposed to any significant credit risk for cash. | |
Reclassifications | ' |
Reclassifications | |
Certain items in the three months and nine months ended June 30, 2013 condensed consolidated financial statements have been reclassified to conform to the current period’s presentation, primarily related to certain balance sheet and statement of operations items. |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Available-for-Sale | ' | ||||||||||||||||
Investments classified as available-for-sale at June 30, 2014 and September 30, 2013, consist of the following: | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
June 30, 2014 | $ | 70,171,000 | $ | 292,000 | $ | (258,000 | ) | $ | 70,205,000 | ||||||||
September 30, 2013 | $ | 59,151,000 | $ | 27,000 | $ | (1,143,000 | ) | $ | 58,035,000 |
Consumer_Receivables_Acquired_1
Consumer Receivables Acquired for Liquidation (Tables) | 9 Months Ended | ||||||||||||
Jun. 30, 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 Nine Months Ended June 30, 2014 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 8,071,000 | $ | 49,829,000 | $ | 57,900,000 | |||||||
Acquisition of receivable portfolios | — | 3,702,000 | 3,702,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (19,957,000 | ) | (10,782,000 | ) | (30,739,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (4,000 | ) | — | (4,000 | ) | ||||||||
Impairment | (1,056,000 | ) | (18,845,000 | ) | (19,901,000 | ) | |||||||
Transfer to cost recovery | (5,461,000 | ) | 5,461,000 | — | |||||||||
Finance income recognized (1) | 18,407,000 | 2,149,000 | 20,556,000 | ||||||||||
Balance, end of period | $ | 0 | $ | 31,514,000 | $ | 31,514,000 | |||||||
Finance income as a percentage of collections | 92.2 | % | 19.9 | % | 66.9 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 18,046,000 | $ | 2,149,000 | $ | 20,195,000 | |||||||
Non-fully amortized portfolios | 361,000 | — | 361,000 | ||||||||||
Finance income recognized | $ | 18,407,000 | $ | 2,149,000 | $ | 20,556,000 | |||||||
For the Nine Months Ended June 30, 2013 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 12,326,000 | $ | 74,561,000 | $ | 86,887,000 | |||||||
Acquisition of receivable portfolios | 3,340,000 | — | 3,340,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (26,901,000 | ) | (13,113,000 | ) | (40,014,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (987,000 | ) | (1,037,000 | ) | (2,024,000 | ) | |||||||
Impairment | (2,203,000 | ) | (10,148,000 | ) | (12,351,000 | ) | |||||||
Finance income recognized (1) | 23,531,000 | 3,225,000 | 26,756,000 | ||||||||||
Balance, end of period | $ | 9,106,000 | $ | 53,488,000 | $ | 62,594,000 | |||||||
Finance income as a percentage of collections | 84.4 | % | 22.8 | % | 63.6 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 22,599,000 | $ | 3,225,000 | $ | 25,824,000 | |||||||
Non-fully amortized portfolios | 932,000 | — | 932,000 | ||||||||||
Finance income recognized | $ | 23,531,000 | $ | 3,225,000 | $ | 26,756,000 | |||||||
For the Three Months Ended June 30, 2014 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 6,970,000 | $ | 45,101,000 | $ | 52,071,000 | |||||||
Acquisition of receivable portfolio | — | 2,733,000 | 2,733,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (6,348,000 | ) | (3,691,000 | ) | (10,039,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (2,000 | ) | — | (2,000 | ) | ||||||||
Impairment | (1,056,000 | ) | (18,845,000 | ) | (19,901,000 | ) | |||||||
Transfer to cost recovery | (5,461,000 | ) | 5,461,000 | — | |||||||||
Finance income recognized (1) | 5,897,000 | 755,000 | 6,652,000 | ||||||||||
Balance, end of period | $ | 0 | $ | 31,514,000 | $ | 31,514,000 | |||||||
Finance income as a percentage of collections | 92.9 | % | 20.5 | % | 66.2 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 5,777,000 | $ | 755,000 | $ | 6,532,000 | |||||||
Non-fully amortized portfolios | 120,000 | — | 120,000 | ||||||||||
Finance income recognized | $ | 5,897,000 | $ | 755,000 | $ | 6,652,000 | |||||||
For the Three Months Ended June 30, 2013 | |||||||||||||
Interest | Cost | Total | |||||||||||
Method | Recovery | ||||||||||||
Method | |||||||||||||
Balance, beginning of period | $ | 6,813,000 | $ | 68,011,000 | $ | 74,824,000 | |||||||
Acquisition of receivable portfolio | 3,340,000 | — | 3,340,000 | ||||||||||
Net cash collections from collection of consumer receivables acquired for liquidation | (8,611,000 | ) | (4,807,000 | ) | (13,418,000 | ) | |||||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (970,000 | ) | (1,037,000 | ) | (2,007,000 | ) | |||||||
Impairment | — | (10,148,000 | ) | (10,148,000 | ) | ||||||||
Finance income recognized (1) | 8,534,000 | 1,469,000 | 10,003,000 | ||||||||||
Balance, end of period | $ | 9,106,000 | $ | 53,488,000 | $ | 62,594,000 | |||||||
Finance income as a percentage of collections | 89.1 | % | 25.1 | % | 64.8 | % | |||||||
(1) The following table summarizes finance income from fully amortized and non-fully amortized portfolios: | |||||||||||||
Fully amortized portfolios | $ | 8,280,000 | $ | 1,469,000 | $ | 9,749,000 | |||||||
Non-fully amortized portfolios | 254,000 | — | 254,000 | ||||||||||
Finance income recognized | $ | 8,534,000 | $ | 1,469,000 | $ | 10,003,000 | |||||||
Changes in Accretable Yield | ' | ||||||||||||
Changes in accretable yield for the nine month and three month periods ended June 30, 2014 and 2013 are as follows: | |||||||||||||
Nine Months | Nine Months | ||||||||||||
Ended | Ended | ||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||
Balance at beginning of period | $ | 1,116,000 | $ | 2,086,000 | |||||||||
Finance income recognized on finance receivables, net | (18,407,000 | ) | (23,531,000 | ) | |||||||||
Additions representing expected revenue from purchases | — | 983,000 | |||||||||||
Transfer to cost recovery | (500,000 | ) | — | ||||||||||
Reclassifications from nonaccretable difference (1) | 17,791,000 | 21,874,000 | |||||||||||
Balance at end of period | $ | 0 | $ | 1,412,000 | |||||||||
Three Months | Three Months | ||||||||||||
Ended | Ended | ||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||
Balance at beginning of period | $ | 861,000 | $ | 942,000 | |||||||||
Finance income recognized on finance receivables, net | (5,897,000 | ) | (8,534,000 | ) | |||||||||
Additions representing expected revenue from purchases | — | 983,000 | |||||||||||
Transfer to cost recovery | (500,000 | ) | — | ||||||||||
Reclassifications from nonaccretable difference (1) | 5,536,000 | 8,021,000 | |||||||||||
Balance at end of period | $ | 0 | $ | 1,412,000 | |||||||||
-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 nine and three month periods ended June 30, 2014 and 2013, respectively. | |||||||||||||
For the Nine Months Ended June 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross collections (1) | $ | 51,884,000 | $ | 66,371,000 | |||||||||
Commissions and fees (2) | 21,141,000 | 24,333,000 | |||||||||||
Net collections | $ | 30,743,000 | $ | 42,038,000 | |||||||||
For the Three Months Ended June 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross collections (1) | $ | 18,192,000 | $ | 23,432,000 | |||||||||
Commissions and fees (2) | 8,151,000 | 8,007,000 | |||||||||||
Net collections | $ | 10,041,000 | $ | 15,425,000 | |||||||||
-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 one portfolio. 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) | 9 Months Ended | ||||
Jun. 30, 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) | 9 Months Ended | ||||
Jun. 30, 2014 | |||||
Components of Structured Settlements | ' | ||||
Structured settlements consist of the following as of June 30, 2014: | |||||
Maturity value | $ | 52,551,000 | |||
Unearned income | (16,659,000 | ) | |||
Net carrying value | $ | 35,892,000 | |||
Structured Settlements | ' | ||||
Encumbrances on structured settlements as of June 30, 2014 are: | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 (1) | $ | 2,599,000 | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 (1) | 5,498,000 | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 (1) | 4,894,000 | ||||
$15,000,000 revolving line of credit (1) | 14,443,000 | ||||
Encumbered structured settlements | 27,434,000 | ||||
Structured settlements not encumbered | 8,458,000 | ||||
Total structured settlements | $ | 35,892,000 | |||
-1 | See Note 11 — Other Debt — CBC | ||||
Expected Cash Flows of Structured Settlements Based on Maturity Value | ' | ||||
At June 30, 2014, the expected cash flows of structured settlements based on maturity value are as follows: | |||||
September 30, 2014 (three months remaining) | $ | 1,101,000 | |||
September 30, 2015 | 4,309,000 | ||||
September 30, 2016 | 4,469,000 | ||||
September 30, 2017 | 3,977,000 | ||||
September 30, 2018 | 3,187,000 | ||||
Thereafter | 35,508,000 | ||||
Total | $ | 52,551,000 | |||
Other_Investments_Tables
Other Investments (Tables) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Reserves for Bad Debts | ' | ||||||||
Pegasus records reserves for bad debts, which, at June 30, 2014, amounted to $2.1 million as follows: | |||||||||
Nine Months | Three Months | ||||||||
Ended | Ended | ||||||||
June 30, 2014 | June 30, 2014 | ||||||||
Balance at beginning of period | $ | 2,248,000 | $ | 1,916,000 | |||||
Provisions for losses | 955,000 | 756,000 | |||||||
Write offs | (1,153,000 | ) | (622,000 | ) | |||||
Balance at end of period | $ | 2,050,000 | $ | 2,050,000 | |||||
Furniture_Equipment_Tables
Furniture & Equipment (Tables) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Furniture and Equipment | ' | ||||||||
Furniture and equipment consist of the following as of the dates indicated: | |||||||||
June 30, | 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 | 4,586,000 | 4,136,000 | |||||||
Balance, end of period | $ | 656,000 | $ | 1,106,000 | |||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||
Jun. 30, 2014 | |||||
Goodwill | ' | ||||
The goodwill balances at September 30, 2013 and June 30, 2014 are as follows: | |||||
Balance, September 30, 2013 | $ | 1,410,000 | |||
Goodwill from acquisition (see Note 5: Acquisition of CBC) | 1,360,000 | ||||
Balance, June 30, 2014 | $ | 2,770,000 | |||
Other_Debt_CBC_Tables
Other Debt - CBC (Tables) (CBC) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
CBC | ' | ||||||||
Components of Other Debt from Acquisition | ' | ||||||||
The following table details the other debt at June 30, 2014: | |||||||||
Interest Rate | June 30, | ||||||||
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 | % | $ | 2,599,000 | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | 7.25 | % | 5,498,000 | ||||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | 7.125 | % | 4,894,000 | ||||||
Subtotal notes payable | 12,991,000 | ||||||||
$15,000,000 revolving line of credit expiring on February 28, 2015 | 4.75 | % | 14,443,000 | ||||||
Total debt – CBC | $ | 27,434,000 | |||||||
Net_Income_Loss_per_Share_Tabl
Net Income (Loss) per Share (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Computation of Basic and Diluted per Share | ' | ||||||||||||||||||||||||
The following table presents the computation of basic and diluted per share data for the nine months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||
Nine Months Ended June 30, 2014 | Nine Months Ended June 30, 2013 | ||||||||||||||||||||||||
Net | Weighted | Per | Net | Weighted | Per | ||||||||||||||||||||
Income | Average | Share | Income | Average | Share | ||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic | $ | 9,295,000 | 12,979,472 | $ | 0.72 | $ | 733,000 | 12,946,521 | $ | 0.06 | |||||||||||||||
Effect of Dilutive Stock | 228,543 | (0.02 | ) | 271,135 | — | ||||||||||||||||||||
Diluted | $ | 9,295,000 | 13,208,015 | $ | 0.7 | $ | 733,000 | 13,217,656 | $ | 0.06 | |||||||||||||||
The following table presents the computation of basic and diluted per share data for the three months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
Net | Weighted | Per | Net | Weighted | Per | ||||||||||||||||||||
Income | Average | Share | Income | Average | Share | ||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic | $ | 5,464,000 | 12,984,882 | $ | 0.42 | $ | (2,737,000 | ) | 12,954,455 | $ | (0.21 | ) | |||||||||||||
Effect of Dilutive Stock | 229,821 | (0.01 | ) | — | — | ||||||||||||||||||||
Diluted | $ | 5,464,000 | 13,214,703 | $ | 0.41 | $ | (2,737,000 | ) | 12,954,455 | $ | (0.21 | ) | |||||||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 9 Months Ended | ||||
Jun. 30, 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) | 9 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Stock Option Transactions | ' | ||||||||||||||||||||
The following table summarizes stock option transactions under the 2012 Plan, the 2002 Plan, and the Equity Compensation Plan: | |||||||||||||||||||||
Nine Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Price | Price | ||||||||||||||||||||
Outstanding options at the beginning of period | 1,622,771 | $ | 11.31 | 1,499,471 | $ | 11.27 | |||||||||||||||
Options granted | 161,700 | 8.48 | 210,000 | 9.36 | |||||||||||||||||
Options exercised | (11,500 | ) | 3.46 | (29,500 | ) | 3.51 | |||||||||||||||
Options forfeited/canceled | (210,767 | ) | 14.87 | (50,000 | ) | 7.77 | |||||||||||||||
Outstanding options at the end of period | 1,562,204 | $ | 10.66 | 1,629,971 | $ | 11.27 | |||||||||||||||
Exercisable options at the end of period | 987,198 | $ | 11.97 | 1,112,037 | $ | 12.57 | |||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Price | Price | ||||||||||||||||||||
Outstanding options at the beginning of period | 1,563,704 | $ | 10.65 | 1,655,871 | $ | 11.12 | |||||||||||||||
Options granted | — | — | 50,000 | 8.69 | |||||||||||||||||
Options exercised | (1,500 | ) | 6.89 | (25,900 | ) | 3.06 | |||||||||||||||
Options forfeited/canceled | — | — | (50,000 | ) | 7.77 | ||||||||||||||||
Outstanding options at the end of period | 1,562,204 | $ | 10.66 | 1,629,971 | $ | 11.27 | |||||||||||||||
Exercisable options at the end of period | 987,198 | $ | 11.97 | 1,112,037 | $ | 12.57 | |||||||||||||||
Summary of Outstanding Options | ' | ||||||||||||||||||||
The following table summarizes information about the 2012 Plan, 2002 Plan, and the Equity Compensation Plan outstanding options as of June 30, 2014: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Price | Weighted | Weighted | Weighted | Number | Weighted | ||||||||||||||||
Number | Remaining | Average | Exercisable | Average | |||||||||||||||||
Outstanding | Contractual | Exercise | Exercise | ||||||||||||||||||
Life (in Years) | Price | Price | |||||||||||||||||||
$ 2.8751 – $ 5.7500 | 7,500 | 4.8 | $ | 2.95 | 7,500 | $ | 2.95 | ||||||||||||||
$ 5.7501 – $ 8.6250 | 938,100 | 7.1 | 7.92 | 503,100 | 7.78 | ||||||||||||||||
$ 8.6251 – $14.3750 | 260,000 | 8.3 | 9.77 | 119,994 | 10.25 | ||||||||||||||||
$14.3751 – $17.2500 | 1,944 | 0 | 15.99 | 1,944 | 15.99 | ||||||||||||||||
$17.2501 – $20.1250 | 339,660 | 0.3 | 18.23 | 339,660 | 18.23 | ||||||||||||||||
$25.8751 – $28.7500 | 15,000 | 2.5 | 28.75 | 15,000 | 28.75 | ||||||||||||||||
1,562,204 | 5.8 | $ | 10.66 | 987,198 | $ | 11.97 | |||||||||||||||
Summary of Restricted Stock Transactions | ' | ||||||||||||||||||||
The following table summarizes information about restricted stock transactions: | |||||||||||||||||||||
Nine Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||
Value | 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 June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||
Value | 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) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Estimated Fair Value of Company's Financial Instruments | ' | ||||||||||||||||
The estimated fair value of the Company’s financial instruments is summarized as follows: | |||||||||||||||||
30-Jun-14 | 30-Sep-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets | |||||||||||||||||
Available-for-sale investments (Level 1) | $ | 70,205,000 | $ | 70,205,000 | $ | 58,035,000 | $ | 58,035,000 | |||||||||
Consumer receivables acquired for liquidation (Level 3) | 31,514,000 | 60,490,000 | 57,900,000 | 70,875,000 | |||||||||||||
Structured settlements (Level 3) | 35,892,000 | 35,892,000 | — | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Non-recourse debt – BMO (Level 3) | — | — | 35,760,000 | 27,000,000 | |||||||||||||
Other debt – CBC, revolving line of credit (Level 3) | 14,443,000 | 14,443,000 | — | — | |||||||||||||
Other debt – CBC, non-recourse notes payable with varying installments (Level 3) | 12,991,000 | 12,991,000 | — | — | |||||||||||||
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 June 30, 2014: | |||||||||||||||||
Fair Value | Valuation | Unobservable | Rate | ||||||||||||||
Technique | Input | ||||||||||||||||
Structured settlements at fair value | $ | 35,892,000 | 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 nine months ended June 30, 2014 were as follows: | |||||||||||||||||
Balance at September 30, 2013 | $ | 0 | |||||||||||||||
Acquisition of CBC (see Note 5) | 30,436,000 | ||||||||||||||||
Total gains included in earnings | 1,440,000 | ||||||||||||||||
Purchases | 4,696,000 | ||||||||||||||||
Sales | — | ||||||||||||||||
Interest accreted | 1,475,000 | ||||||||||||||||
Payments received | (2,155,000 | ) | |||||||||||||||
Total | $ | 35,892,000 | |||||||||||||||
The amount of total gains for the nine month period included in earnings attributable to the change in unrealized gains (losses) relating to assets held at June 30, 2014 | $ | 1,440,000 | |||||||||||||||
The changes in structured settlements at fair value using significant observable inputs (Level 3) during the three months ended June 30, 2014 were as follows: | |||||||||||||||||
Balance at March 31, 2014 | $ | 33,330,000 | |||||||||||||||
Total gains included in earnings | 620,000 | ||||||||||||||||
Purchases | 2,337,000 | ||||||||||||||||
Sales | — | ||||||||||||||||
Interest accreted | 767,000 | ||||||||||||||||
Payments received | (1,162,000 | ) | |||||||||||||||
Total | $ | 35,892,000 | |||||||||||||||
The amount of total gains for the three month period included in earnings attributable to the change in unrealized gains (losses) relating to assets held at June 30, 2014 | $ | 620,000 | |||||||||||||||
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 nine months ended June 30, 2014 are reported in the following revenue categories: | |||||||||||||||||
Total gains (losses) included in earnings in fiscal year 2014 | $ | 1,440,000 | |||||||||||||||
Change in unrealized gains (losses) relating to assets still held at June 30, 2014 | $ | 1,440,000 | |||||||||||||||
Realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of income for the three months ended June 30, 2014 are reported in the following revenue categories: | |||||||||||||||||
Total gains included in earnings in the three months ended June 30, 2014 | $ | 620,000 | |||||||||||||||
Change in unrealized gains (losses) relating to assets still held at June 30, 2014 | $ | 620,000 |
Business_and_Basis_of_Presenta2
Business and Basis of Presentation - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Palisades XVI | Great Seneca | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' |
Portfolio holdings amount | 21.6 |
Blue Bell Entities | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' |
Structured settlement holding amount | 14.4 |
Non-recourse notes payable | 13 |
Pegasus | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' |
Ownership interest | 80.00% |
CBC | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' |
Ownership interest | 80.00% |
Available_for_Sale_Detail
Available for Sale (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $70,171,000 | $59,151,000 |
Unrealized Gains | 292,000 | 27,000 |
Unrealized Losses | -258,000 | -1,143,000 |
Fair Value | $70,205,000 | $58,035,000 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Investment | Investment | Investment | Investment | |
Investments [Line Items] | ' | ' | ' | ' |
Number of investments sold | 1 | 1 | 2 | 3 |
Realized gain (loss) of investment | ($116,000) | $17,000 | ($141,000) | $192,000 |
Number of investments | 7 | ' | 7 | ' |
Number of unrealized loss position existed for 12 months or more | 5 | ' | 5 | ' |
Consumer_Receivables_Acquired_2
Consumer Receivables Acquired for Liquidation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' |
Consumer receivables acquired for liquidation using interest method | $5.50 | ' | $5.50 | ' |
Consumer receivables acquired for liquidation using cost recovery method | 31.5 | ' | 31.5 | ' |
Consumer receivables acquired for liquidation concentrated in one portfolio | 21.6 | ' | 21.6 | ' |
Face value of charged-off consumer receivables | 35.9 | 53.5 | 53 | 53.5 |
Purchased cost of charged-off consumer receivables | $2.70 | $3.30 | $3.70 | $3.30 |
Changes_in_Balance_Sheet_Accou
Changes in Balance Sheet Account of Consumer Receivables Acquired for Liquidation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Balance, beginning of period | $52,071,000 | $74,824,000 | $57,900,000 | $86,887,000 | ||||
Acquisition of receivable portfolios | 2,733,000 | 3,340,000 | 3,702,000 | 3,340,000 | ||||
Net cash collections from collection of consumer receivables acquired for liquidation | -10,039,000 | -13,418,000 | -30,739,000 | -40,014,000 | ||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | -2,000 | -2,007,000 | -4,000 | -2,024,000 | ||||
Impairment | -19,901,000 | -10,148,000 | -19,901,000 | -12,351,000 | ||||
Transfer to cost recovery | 500,000 | ' | 500,000 | ' | ||||
Finance income recognized | 6,652,000 | [1] | 10,003,000 | [2] | 20,556,000 | [3] | 26,756,000 | [4] |
Balance, end of period | 31,514,000 | 62,594,000 | 31,514,000 | 62,594,000 | ||||
Finance income as a percentage of collections | 66.20% | 64.80% | 66.90% | 63.60% | ||||
Interest Method | ' | ' | ' | ' | ||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Balance, beginning of period | 6,970,000 | 6,813,000 | 8,071,000 | 12,326,000 | ||||
Acquisition of receivable portfolios | ' | 3,340,000 | ' | 3,340,000 | ||||
Net cash collections from collection of consumer receivables acquired for liquidation | -6,348,000 | -8,611,000 | -19,957,000 | -26,901,000 | ||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | -2,000 | -970,000 | -4,000 | -987,000 | ||||
Impairment | -1,056,000 | ' | -1,056,000 | -2,203,000 | ||||
Transfer to cost recovery | -5,461,000 | ' | -5,461,000 | ' | ||||
Finance income recognized | 5,897,000 | [1] | 8,534,000 | [2] | 18,407,000 | [3] | 23,531,000 | [4] |
Balance, end of period | 0 | 9,106,000 | 0 | 9,106,000 | ||||
Finance income as a percentage of collections | 92.90% | 89.10% | 92.20% | 84.40% | ||||
Cost Recovery Method | ' | ' | ' | ' | ||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Balance, beginning of period | 45,101,000 | 68,011,000 | 49,829,000 | 74,561,000 | ||||
Acquisition of receivable portfolios | 2,733,000 | ' | 3,702,000 | ' | ||||
Net cash collections from collection of consumer receivables acquired for liquidation | -3,691,000 | -4,807,000 | -10,782,000 | -13,113,000 | ||||
Net cash collections represented by account sales of consumer receivables acquired for liquidation | ' | -1,037,000 | ' | -1,037,000 | ||||
Impairment | -18,845,000 | -10,148,000 | -18,845,000 | -10,148,000 | ||||
Transfer to cost recovery | 5,461,000 | ' | 5,461,000 | ' | ||||
Finance income recognized | 755,000 | [1] | 1,469,000 | [2] | 2,149,000 | [3] | 3,225,000 | [4] |
Balance, end of period | $31,514,000 | $53,488,000 | $31,514,000 | $53,488,000 | ||||
Finance income as a percentage of collections | 20.50% | 25.10% | 19.90% | 22.80% | ||||
[1] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 5,777,000 $ 755,000 $ 6,532,000 Non-fully amortized portfolios 120,000 - 120,000 Finance income recognized $ 5,897,000 $ 755,000 $ 6,652,000 | |||||||
[2] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 8,280,000 $ 1,469,000 $ 9,749,000 Non-fully amortized portfolios 254,000 - 254,000 Finance income recognized $ 8,534,000 $ 1,469,000 $ 10,003,000 | |||||||
[3] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 18,046,000 $ 2,149,000 $ 20,195,000 Non-fully amortized portfolios 361,000 - 361,000 Finance income recognized $ 18,407,000 $ 2,149,000 $ 20,556,000 | |||||||
[4] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 22,599,000 $ 3,225,000 $ 25,824,000 Non-fully amortized portfolios 932,000 - 932,000 Finance income recognized $ 23,531,000 $ 3,225,000 $ 26,756,000 |
Changes_in_Balance_Sheet_Accou1
Changes in Balance Sheet Account of Consumer Receivables Acquired for Liquidation (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Fully amortized portfolios | $6,532,000 | $9,749,000 | $20,195,000 | $25,824,000 | ||||
Non-fully amortized portfolios | 120,000 | 254,000 | 361,000 | 932,000 | ||||
Finance income recognized | 6,652,000 | [1] | 10,003,000 | [2] | 20,556,000 | [3] | 26,756,000 | [4] |
Interest Method | ' | ' | ' | ' | ||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Fully amortized portfolios | 5,777,000 | 8,280,000 | 18,046,000 | 22,599,000 | ||||
Non-fully amortized portfolios | 120,000 | 254,000 | 361,000 | 932,000 | ||||
Finance income recognized | 5,897,000 | [1] | 8,534,000 | [2] | 18,407,000 | [3] | 23,531,000 | [4] |
Cost Recovery Method | ' | ' | ' | ' | ||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Fully amortized portfolios | 755,000 | 1,469,000 | 2,149,000 | 3,225,000 | ||||
Finance income recognized | $755,000 | [1] | $1,469,000 | [2] | $2,149,000 | [3] | $3,225,000 | [4] |
[1] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 5,777,000 $ 755,000 $ 6,532,000 Non-fully amortized portfolios 120,000 - 120,000 Finance income recognized $ 5,897,000 $ 755,000 $ 6,652,000 | |||||||
[2] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 8,280,000 $ 1,469,000 $ 9,749,000 Non-fully amortized portfolios 254,000 - 254,000 Finance income recognized $ 8,534,000 $ 1,469,000 $ 10,003,000 | |||||||
[3] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 18,046,000 $ 2,149,000 $ 20,195,000 Non-fully amortized portfolios 361,000 - 361,000 Finance income recognized $ 18,407,000 $ 2,149,000 $ 20,556,000 | |||||||
[4] | The following table summarizes finance income from fully amortized and non-fully amortized portfolios: Fully amortized portfolios $ 22,599,000 $ 3,225,000 $ 25,824,000 Non-fully amortized portfolios 932,000 - 932,000 Finance income recognized $ 23,531,000 $ 3,225,000 $ 26,756,000 |
Changes_in_Accretable_Yield_De
Changes in Accretable Yield (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Balance at beginning of period | $861,000 | $942,000 | $1,116,000 | $2,086,000 | ||||
Finance income recognized on finance receivables, net | -5,897,000 | -8,534,000 | -18,407,000 | -23,531,000 | ||||
Additions representing expected revenue from purchases | ' | 983,000 | ' | 983,000 | ||||
Transfer to cost recovery | -500,000 | ' | -500,000 | ' | ||||
Reclassifications from nonaccretable difference | 5,536,000 | [1] | 8,021,000 | [1] | 17,791,000 | [1] | 21,874,000 | [1] |
Balance at end of period | $0 | $1,412,000 | $0 | $1,412,000 | ||||
[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 | 9 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Consumer Receivables Acquired For Liquidation [Line Items] | ' | ' | ' | ' | ||||
Gross collections | $18,192,000 | [1] | $23,432,000 | [1] | $51,884,000 | [1] | $66,371,000 | [1] |
Commissions and fees | 8,151,000 | [2] | 8,007,000 | [2] | 21,141,000 | [2] | 24,333,000 | [2] |
Net collections | $10,041,000 | $15,425,000 | $30,743,000 | $42,038,000 | ||||
[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 one portfolio. 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) | 9 Months Ended |
Jun. 30, 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 | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 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 | 9,837,000 | 12,290,000 | 29,221,000 | 31,677,000 | ' | ' | ' | ' |
Pro forma basis, total revenues | ' | ' | 30,856,000 | 35,417,000 | ' | ' | ' | ' |
Net income attributable to Asta Funding, Inc. | 5,464,000 | -2,737,000 | 9,295,000 | 733,000 | ' | ' | ' | ' |
Pro forma basis, net income attributable to Asta Funding, Inc | ' | ' | 9,337,000 | 712,000 | ' | ' | ' | ' |
Settlement income earned | 1,400,000 | ' | 2,900,000 | ' | ' | ' | ' | ' |
Net invested balance in structured settlements | 35,892,000 | ' | 35,892,000 | ' | 30,436,000 | ' | ' | ' |
Net income (loss) attributable to non-controlling interest | $20,000 | $53,000 | $483,000 | $176,000 | ' | ($34,000) | ' | ($13,000) |
Fair_Value_of_Assets_Acquired_
Fair Value of Assets Acquired and Liabilities Assumed (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2013 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ' | ' |
Cash | $351,000 | ' |
Structured settlements | 30,436,000 | 35,892,000 |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | ' |
Non-recourse notes payable | $13 | $13.80 |
Components_of_Structured_Settl
Components of Structured Settlements (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Maturity value | $52,551,000 | ' |
Unearned income | -16,659,000 | ' |
Net carrying value | $35,892,000 | $30,436,000 |
Structured_Settlements_Detail
Structured Settlements (Detail) (Structured Settlement, USD $) | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ' | |
$15,000,000 revolving line of credit | $14,443,000 | [1] |
Total structured settlements | 35,892,000 | |
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 | 2,599,000 | [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 | 5,498,000 | [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 | 4,894,000 | [1] |
Structured Settlements Encumbered | ' | |
Debt Instrument [Line Items] | ' | |
Total structured settlements | 27,434,000 | |
Structured Settlements Not Encumbered | ' | |
Debt Instrument [Line Items] | ' | |
Total structured settlements | $8,458,000 | |
[1] | See Note 11 - Other Debt - CBC |
Structured_Settlements_Parenth
Structured Settlements (Parenthetical) (Detail) (USD $) | 2-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||
Structured Settlement | Structured Settlement | Structured Settlement | Structured Settlement | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | 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 | ' | ' | '2025-06 | [1] | '2026-08 | [1] | '2032-04 | [1] |
Line of credit, Current borrowing capacity | $20,000,000 | $15,000,000 | ' | ' | ' | |||
[1] | See Note 11 - Other Debt - CBC |
Expected_Cash_Flows_of_Structu
Expected Cash Flows of Structured Settlements Based on Maturity Value (Detail) (USD $) | Jun. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
September 30, 2014 (three months remaining) | $1,101,000 |
30-Sep-15 | 4,309,000 |
30-Sep-16 | 4,469,000 |
30-Sep-17 | 3,977,000 |
30-Sep-18 | 3,187,000 |
Thereafter | 35,508,000 |
Total | $52,551,000 |
Other_Investments_Additional_I
Other Investments - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
18-May-12 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | 18-May-12 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Pegasus Legal Funding LLC | Pegasus Legal Funding LLC | 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 | ' | ' | ' | ' | ' | ' | ' | $1,700,000 | $2,300,000 | $5,700,000 | $4,900,000 | ' | ' | ' |
Company's investment in personal injury | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,700,000 | ' | 35,800,000 | ' | ' |
Net income (loss) attributable to non-controlling interest | ' | 20,000 | 53,000 | 483,000 | 176,000 | ' | ' | 53,000 | 53,000 | 496,000 | 176,000 | ' | ' | ' |
Reserves for bad debts | ' | ' | ' | ' | ' | ' | ' | 2,050,000 | ' | 2,050,000 | ' | 2,248,000 | 2,050,000 | 1,916,000 |
Revolving line of credit | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' |
Bearing interest at prime rate, with initial term | 'Twenty-four months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract term extension period | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's investment in cases through BPCM | ' | 2,300,000 | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | 9 Months Ended |
Mar. 31, 2014 | Jun. 30, 2014 | |
Pegasus Legal Funding LLC | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Balance at beginning of period | $1,916,000 | $2,248,000 |
Provisions for losses | 756,000 | 955,000 |
Write offs | -622,000 | -1,153,000 |
Balance at end of period | $2,050,000 | $2,050,000 |
Furniture_and_Equipment_Detail
Furniture and Equipment (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $5,242,000 | $5,242,000 |
Less accumulated depreciation | 4,586,000 | 4,136,000 |
Furniture and equipment, net | 656,000 | 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 | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill [Line Items] | ' | ' | ' | ' |
Impairment loss | $0 | $0 | $0 | $0 |
Goodwill_Detail
Goodwill (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2013 | Jun. 30, 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 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 03, 2014 | 2-May-14 | Aug. 07, 2013 | Mar. 31, 2007 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 03, 2014 | 2-May-14 | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables financing agreement, consecutive months | ' | ' | ' | '3 years | ' | ' | ' | ' |
Portfolio purchase | ' | ' | ' | $300,000,000 | ' | ' | ' | ' |
Percentage of ownership in Palisades XVI | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Prepayment fund | ' | ' | 15,000,000 | ' | ' | ' | ' | ' |
BMO right to receive from future net collections | ' | ' | 30.00% | ' | ' | ' | ' | ' |
Final principal payment | ' | ' | ' | ' | ' | ' | 2,901,199 | ' |
Voluntary prepayment | ' | ' | ' | ' | ' | ' | 1,866,036 | ' |
Future collections from the Portfolio Purchase | 16,900,000 | ' | ' | ' | ' | ' | ' | ' |
Forgiveness of non-recourse debt | ' | ' | ' | ' | 26,101,000 | 26,101,000 | ' | ' |
Line of credit facility | ' | ' | ' | ' | ' | ' | ' | 20,000,000 |
Maximum line of credit facility | ' | ' | ' | ' | ' | ' | ' | 30,000,000 |
Line of credit facility, term | ' | '3 years | ' | ' | ' | ' | ' | ' |
Line of credit facility, interest description | ' | 'LIBOR plus 275 basis points or prime | ' | ' | ' | ' | ' | ' |
Line of credit facility, basis spread on LIBOR rate | ' | 2.75% | ' | ' | ' | ' | ' | ' |
Line of credit facility, covenant amount | ' | 150,000,000 | ' | ' | ' | ' | ' | ' |
Minimum | BMO | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Potential long-term liability | ' | ' | 0 | ' | ' | ' | ' | ' |
Maximum | BMO | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Potential long-term liability | ' | ' | 1,400,000 | ' | ' | ' | ' | ' |
Receivables Financing Agreement | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables Financing Agreement | ' | ' | ' | $227,000,000 | ' | ' | ' | ' |
Other_DebtCBC_Additional_Infor
Other Debt-CBC - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||
Jun. 30, 2014 | 2-May-14 | Dec. 31, 2013 | Mar. 27, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jul. 15, 2014 | Jul. 15, 2014 | Jun. 30, 2014 | |
CBC | CBC | CBC | CBC | CBC | CBC | ||||
Subsequent Event | Subsequent Event | SPE | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed debt related to acquisition | ' | ' | $25,863,000 | ' | $25,900,000 | ' | ' | ' | ' |
Debt amount of settlement | 2,560,000 | ' | ' | ' | 2,500,000 | ' | ' | ' | ' |
Line of credit, Current borrowing capacity | ' | 20,000,000 | ' | 15,000,000 | 12,500,000 | 15,000,000 | ' | 20,000,000 | ' |
Revolving line of credit, interest rate | ' | ' | ' | 4.75% | 5.50% | 4.75% | ' | ' | ' |
Revolving line of credit, expiring date | ' | ' | ' | 28-Feb-15 | ' | 28-Feb-15 | 31-Dec-14 | ' | ' |
Debt outstanding amount | 23,363,000 | ' | ' | ' | ' | 27,434,000 | ' | ' | ' |
Amount from line of credit facility | ' | ' | ' | ' | ' | 14,443,000 | ' | ' | ' |
Line of credit, available balance | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' |
Issuance of debt notes by Special Purpose Entities | $13,000,000 | ' | $13,800,000 | ' | ' | $12,991,000 | ' | ' | ' |
Ownership interest acquired, percent | ' | ' | ' | ' | 80.00% | ' | ' | ' | 100.00% |
Component_of_Other_Debt_from_A
Component of Other Debt from Acquisition (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Mar. 27, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | ' | 13,800,000 | $13,000,000 |
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 | ' | ' | 12,991,000 |
$15,000,000 revolving line of credit expiring on February 28, 2015 | ' | ' | 14,443,000 |
Total debt - CBC | ' | ' | 27,434,000 |
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 | ' | ' | 2,599,000 |
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 | ' | ' | 5,498,000 |
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 | ' | ' | $4,894,000 |
Component_of_Other_Debt_from_A1
Component of Other Debt from Acquisition (Parenthetical) (Detail) (USD $) | 2-May-14 | Mar. 27, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
CBC | CBC | CBC | CBC | CBC | CBC | ||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | 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 | ' | ' | ' | ' | '2025-06 | '2026-08 | '2032-04 |
Line of credit, Current borrowing capacity | $20,000,000 | $15,000,000 | $15,000,000 | $12,500,000 | ' | ' | ' |
Revolving line of credit, expiring date | ' | 28-Feb-15 | 28-Feb-15 | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 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 | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Recognition And Impairments [Line Items] | ' | ' | ' | ' |
Consumer receivables acquired for liquidation using interest method | $5,500,000 | ' | $5,500,000 | ' |
Consumer receivables acquired for liquidation using cost recovery method | 31,500,000 | ' | 31,500,000 | ' |
Consumer receivables acquired for liquidation concentrated in one portfolio | 21,600,000 | ' | 21,600,000 | ' |
Impairment charges | $19,901,000 | $10,148,000 | $19,901,000 | $12,351,000 |
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 | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax [Line Items] | ' | ' | ' | ' |
Provision for income tax expense (benefit) | 38.70% | -40.90% | 36.70% | 35.40% |
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 | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ' | ' | ' | ' |
Basic, Net Income | $5,464,000 | ($2,737,000) | $9,295,000 | $733,000 |
Effect of Dilutive Stock | ' | ' | ' | ' |
Diluted, Net Income | $5,464,000 | ($2,737,000) | $9,295,000 | $733,000 |
Basic, Weighted Average Shares | 12,984,882 | 12,954,455 | 12,979,472 | 12,946,521 |
Effect of Dilutive Stock, Weighted Average Shares | 229,821 | ' | 228,543 | 271,135 |
Diluted, Weighted Average Shares | 13,214,703 | 12,954,455 | 13,208,015 | 13,217,656 |
Basic, Per share amount | $0.42 | ($0.21) | $0.72 | $0.06 |
Effect of Dilutive Stock, Per share amount | ($0.01) | ' | ($0.02) | ' |
Diluted, Per share amount | $0.41 | ($0.21) | $0.70 | $0.06 |
Net_Income_Loss_Per_Share_Addi
Net Income (Loss) Per Share - Additional Information (Detail) (USD $) | 9 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Computation Of Earnings Per Share Line Items | ' | ' |
Shares excluded from diluted earnings per share calculation | 1,088,304 | 575,669 |
Weighted average exercise price | $11.88 | $8.07 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | |
Person | Installment | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares utilized | 5,000 | 156,700 | 160,000 | 50,000 | 161,700 | 210,000 | ' | ' | ' | ' |
Stock option awarded | ' | ' | ' | 1,629,971 | 1,562,204 | 1,629,971 | 1,563,704 | 1,622,771 | 1,655,871 | 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 | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | |
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 | Stock Options And Restricted Stock | Stock Options And Restricted Stock | Stock Options And Restricted Stock | Stock Options And Restricted Stock | Options | Options | Equity Compensation Plan | Two Thousand And Two Plan | Two Thousand And Two Plan | Two Thousand And Twelve Plan | Two Thousand And Twelve Plan | Two Thousand And Twelve Plan | ||||||||
Common Stock | Common Stock | Employee | Common Stock | Options to purchase | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | 1,000,000 | ' | 2,000,000 | ' |
Number of shares utilized | 5,000 | 156,700 | 160,000 | ' | 50,000 | 161,700 | 210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,321 | ' | 371,700 |
Eligible employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49 | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | $367,000 | $532,000 | $1,046,000 | $1,307,000 | $82,000 | $81,000 | ' | $244,000 | $191,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | 1,796,000 | ' | 1,796,000 | ' | 479,000 | ' | ' | 479,000 | ' | 2,275,000 | ' | 2,275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, weighted average remaining period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 5 months 12 days | ' | ' | ' | ' | '1 year 5 months 19 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of the stock options outstanding | ' | ' | ' | 391,000 | ' | 391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of the stock options exercisable | ' | ' | ' | ' | ' | 281,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life of exercisable options | ' | ' | ' | ' | ' | '4 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of the stock options exercised | ' | ' | ' | 2,000 | 162,000 | 57,000 | 172,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options exercised | ' | ' | ' | 12,000 | 241,000 | 95,000 | 276,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of stock options | ' | ' | ' | ' | ' | 40,000 | 103,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | 40,000 | ' | ' | ' | ' | ' | ' |
Tax effect, options exercised | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the stock options, vested | ' | ' | ' | 137,000 | 144,000 | 743,000 | 1,259,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the stock options, granted | ' | ' | ' | 0 | 341,000 | 1,372,000 | 1,702,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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-based employee compensation | ' | ' | ' | ' | ' | $1,290,000 | $1,498,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $449,000 | $613,000 | $1,290,000 | $1,498,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Option_Plans_Detail
Stock Option Plans (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Outstanding options at the beginning of period, Shares | ' | ' | ' | 1,563,704 | 1,655,871 | 1,622,771 | 1,499,471 |
Options granted, Shares | 5,000 | 156,700 | 160,000 | ' | 50,000 | 161,700 | 210,000 |
Options exercised, Shares | ' | ' | ' | -1,500 | -25,900 | -11,500 | -29,500 |
Options forfeited/ canceled, Shares | ' | ' | ' | ' | -50,000 | -210,767 | -50,000 |
Outstanding options at the end of period, Shares | ' | ' | ' | 1,562,204 | 1,629,971 | 1,562,204 | 1,629,971 |
Exercisable options at the end of period, Shares | ' | ' | ' | 987,198 | 1,112,037 | 987,198 | 1,112,037 |
Outstanding options at the beginning of period, Weighted Average Exercise Price | ' | ' | ' | $10.65 | $11.12 | $11.31 | $11.27 |
Options granted, Weighted Average Exercise Price | ' | ' | ' | ' | $8.69 | $8.48 | $9.36 |
Options exercised, Weighted Average Exercise Price | ' | ' | ' | $6.89 | $3.06 | $3.46 | $3.51 |
Options forfeited/ canceled, Weighted Average Exercise Price | ' | ' | ' | ' | $7.77 | $14.87 | $7.77 |
Outstanding options at the end of period, Weighted Average Exercise Price | ' | ' | ' | $10.66 | $11.27 | $10.66 | $11.27 |
Exercisable options at the end of period, Weighted Average Exercise Price | ' | ' | ' | $11.97 | $12.57 | $11.97 | $12.57 |
Summary_of_Outstanding_Options
Summary of Outstanding Options (Detail) (USD $) | 9 Months Ended | |||||
Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Number Outstanding | 1,562,204 | 1,563,704 | 1,622,771 | 1,629,971 | 1,655,871 | 1,499,471 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '5 years 9 months 18 days | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $10.66 | $10.65 | $11.31 | $11.27 | $11.12 | $11.27 |
Options Exercisable, Number Exercisable | 987,198 | ' | ' | 1,112,037 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $11.97 | ' | ' | $12.57 | ' | ' |
$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) | '4 years 9 months 18 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 | 938,100 | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '7 years 1 month 6 days | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $7.92 | ' | ' | ' | ' | ' |
Options Exercisable, Number Exercisable | 503,100 | ' | ' | ' | ' | ' |
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 3 months 18 days | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $9.77 | ' | ' | ' | ' | ' |
Options Exercisable, Number Exercisable | 119,994 | ' | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $10.25 | ' | ' | ' | ' | ' |
$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) | '0 years | ' | ' | ' | ' | ' |
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) | '3 months 18 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 6 months | ' | ' | ' | ' | ' |
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 | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 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 $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 13, 2012 | Mar. 09, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 13, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | |
Additional Stock | Additional Stock | |||||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share | ' | ' | $0.02 | ' | ' | $0.08 | ' | ' |
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 | ' | ' | ' | ' | ' | ' |
Treasury stock, shares | ' | ' | ' | ' | ' | ' | 0 | 172,000 |
Aggregate cost | ' | ' | ' | ' | $1,579,000 | ' | $0 | $1,574,000 |
Fair_Value_of_Financial_Measur2
Fair Value of Financial Measurements (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Financial assets | ' | ' | ' |
Available-for-sale investments | $70,205,000 | ' | $58,035,000 |
Structured settlements | 35,892,000 | 30,436,000 | ' |
Financial liabilities | ' | ' | ' |
Non-recourse debt - BMO (Level 3) | ' | ' | 35,760,000 |
Other debt - CBC, non-recourse notes payable with varying installments | 13,000,000 | 13,800,000 | ' |
Carrying Amount | Level 1 | ' | ' | ' |
Financial assets | ' | ' | ' |
Available-for-sale investments | 70,205,000 | ' | 58,035,000 |
Carrying Amount | Level 3 | ' | ' | ' |
Financial assets | ' | ' | ' |
Consumer receivables acquired for liquidation | 31,514,000 | ' | 57,900,000 |
Structured settlements | 35,892,000 | ' | ' |
Financial liabilities | ' | ' | ' |
Non-recourse debt - BMO (Level 3) | ' | ' | 35,760,000 |
Other debt - CBC, revolving line of credit | 14,443,000 | ' | ' |
Other debt - CBC, non-recourse notes payable with varying installments | 12,991,000 | ' | ' |
Fair Value | Level 1 | ' | ' | ' |
Financial assets | ' | ' | ' |
Available-for-sale investments | 70,205,000 | ' | 58,035,000 |
Fair Value | Level 3 | ' | ' | ' |
Financial assets | ' | ' | ' |
Consumer receivables acquired for liquidation | 60,490,000 | ' | 70,875,000 |
Structured settlements | 35,892,000 | ' | ' |
Financial liabilities | ' | ' | ' |
Non-recourse debt - BMO (Level 3) | ' | ' | 27,000,000 |
Other debt - CBC, revolving line of credit | 14,443,000 | ' | ' |
Other debt - CBC, non-recourse notes payable with varying installments | $12,991,000 | ' | ' |
Quantitative_Information_about
Quantitative Information about Level 3 Fair Value Measurements (Detail) (USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair Value | $35,892,000 |
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 $) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Balance at beginning | $33,330,000 | $0 |
Acquisition of CBC | ' | 30,436,000 |
Total gains included in earnings | 620,000 | 1,440,000 |
Purchases | 2,337,000 | 4,696,000 |
Sales | ' | ' |
Interest accreted | 767,000 | 1,475,000 |
Payments received | -1,162,000 | -2,155,000 |
Total | 35,892,000 | 35,892,000 |
The amount of total gains for the nine month period included in earnings attributable to the change in unrealized gains (losses) relating to assets held at June 30, 2014 | $620,000 | $1,440,000 |
Schedule_of_Realized_and_Unrea
Schedule of Realized and Unrealized Gains and Losses Included in Earnings in Accompanying Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Total gains (losses) included in earnings in fiscal year 2014 | $620,000 | $1,440,000 |
Change in unrealized gains (losses) relating to assets still held at June 30, 2014 | $620,000 | $1,440,000 |