Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2015 | Feb. 05, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ASFI | |
Entity Registrant Name | ASTA FUNDING INC | |
Entity Central Index Key | 1,001,258 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,097,077 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | |
ASSETS | |||
Cash and cash equivalents | $ 22,504,000 | $ 24,315,000 | |
Available for sale investments | 55,045,000 | 59,727,000 | |
Consumer receivables acquired for liquidation (at net realizable value) | 17,843,000 | 15,608,000 | |
Structured settlements | 69,982,000 | 64,635,000 | |
Investment in personal injury claims | 34,632,000 | 36,668,000 | |
Other investments | 4,183,000 | 4,239,000 | |
Due from third party collection agencies and attorneys | 929,000 | 1,422,000 | |
Prepaid and income taxes receivable | 5,838,000 | 6,744,000 | |
Furniture and equipment, net | 386,000 | 480,000 | |
Deferred income taxes | 12,955,000 | 12,279,000 | |
Goodwill | 2,770,000 | 2,770,000 | |
Other assets | 8,908,000 | 8,485,000 | |
Total assets | [1] | 235,975,000 | 237,372,000 |
LIABILITIES | |||
Other debt - CBC (including non-recourse notes payable amounting to $46.0 million at December 31, 2015 and $47.0 million at September 30, 2015) | 55,917,000 | 51,611,000 | |
Other liabilities | 3,980,000 | 4,441,000 | |
Total liabilities | $ 59,897,000 | $ 56,052,000 | |
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 13,189,977 at December 31, 2015 and 13,061,673 at September 30, 2015; and outstanding 12,154,177 at December 31, 2015 and 12,859,873 at September 30, 2015 | $ 132,000 | $ 131,000 | |
Additional paid-in capital | 65,420,000 | 65,011,000 | |
Retained earnings | 122,417,000 | 120,611,000 | |
Accumulated other comprehensive income | (1,127,000) | (1,685,000) | |
Treasury stock (at cost) 1,035,800 shares at December 31, 2015 and, 201,800 shares at September 30, 2015 | (8,931,000) | (1,751,000) | |
Non-controlling interest | (1,833,000) | (997,000) | |
Total stockholders' equity | 176,078,000 | 181,320,000 | |
Total liabilities and stockholders' equity | $ 235,975,000 | $ 237,372,000 | |
[1] | Includes other amounts in other line items on the consolidated balance sheet. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Other debt, non-recourse notes payable | $ 46 | $ 47 |
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 | 13,189,977 | 13,061,673 |
Common stock, shares outstanding | 12,154,177 | 12,859,873 |
Treasury stock, Shares | 1,035,800 | 201,800 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | ||
Finance income, net | $ 5,142,000 | $ 5,037,000 |
Personal injury claims income | 3,085,000 | 2,488,000 |
Unrealized gains on structured settlements | 1,527,000 | 1,202,000 |
Interest income on structured settlements | 1,407,000 | 941,000 |
Disability fee income | 659,000 | 159,000 |
Total revenues | 11,820,000 | 9,827,000 |
Other income (includes ($31,000) and $39,000 during the three month periods ended December 31, 2015 and 2014, respectively, of accumulated other comprehensive income reclassification for unrealized net (losses)/income on available for sale securities) | 515,000 | 635,000 |
Revenues, Total | 12,335,000 | 10,462,000 |
Expenses | ||
General and administrative | 8,239,000 | 9,554,000 |
Interest expense | 728,000 | 489,000 |
Total expenses | 8,967,000 | 10,043,000 |
Income before income taxes | 3,368,000 | 419,000 |
Income tax expense (includes tax benefit/(expense) of $11,000 and ($9,000) during the three month periods ended December 31, 2015 and 2014, respectively, of accumulated other comprehensive income reclassifications for unrealized net losses on available for sale securities) | 1,033,000 | 98,000 |
Net income | 2,335,000 | 321,000 |
Less: net income (loss) attributable to non-controlling interest | 529,000 | (49,000) |
Net income attributable to Asta Funding, Inc. | $ 1,806,000 | $ 370,000 |
Net income per share attributable to Asta Funding, Inc.: | ||
Basic | $ 0.15 | $ 0.03 |
Diluted | $ 0.15 | $ 0.03 |
Weighted average number of shares outstanding: | ||
Basic | 12,155,421 | 13,013,719 |
Diluted | 12,431,886 | 13,308,573 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification for unrealized net (losses)/income on available for sale securities | $ (31,000) | $ 39,000 |
Income tax expense benefit/(expense) | $ 11,000 | $ (9,000) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 2,335,000 | $ 321,000 |
Net unrealized securities gain (loss), net of tax expense of $190,000 and $0 during the 3 month periods ended December 31, 2015 and 2014, respectively. | 336,000 | (300,000) |
Reclassification adjustments for securities sold during the period, net of tax benefit / (expense) of $11,000 and ($9,000) during the 3 month periods ended December 31, 2015 and 2014, respectively. | (20,000) | 30,000 |
Foreign currency translation, net of tax benefit of $409,000 and $0 during the 3 month periods ended December 31, 2015 and 2014, respectively. | 242,000 | |
Other comprehensive income (loss) | 558,000 | (270,000) |
Total comprehensive income | $ 2,893,000 | $ 51,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net unrealized securities gain (loss), tax expense | $ 190,000 | $ 0 |
Reclassification adjustments for securities sold, tax benefit / (expense) | 11,000 | (9,000) |
Foreign currency translation, tax benefit | $ 409,000 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | [1] | Non- Controlling Interests |
Balance, (in shares) at Sep. 30, 2014 | 12,985,839 | |||||||
Balance, at Sep. 30, 2014 | $ 181,256,000 | $ 130,000 | $ 63,102,000 | $ 118,595,000 | $ 142,000 | $ (713,000) | ||
Stock based compensation expense | 431,000 | 431,000 | ||||||
Restricted stock (in shares) | 15,000 | |||||||
Restricted stock | 0 | $ 0 | 0 | 0 | 0 | 0 | ||
Net income | 321,000 | 370,000 | (49,000) | |||||
Unrealized gain (loss) on marketable securities, net | (270,000) | (270,000) | ||||||
Distributions to non-controlling interest | (229,000) | (229,000) | ||||||
Balance, (in shares) at Dec. 31, 2014 | 13,060,839 | |||||||
Balance, at Dec. 31, 2014 | $ 181,978,000 | $ 130,000 | 64,002,000 | 118,965,000 | (128,000) | (991,000) | ||
Exercise of options (in shares) | 60,000 | 60,000 | ||||||
Exercise of options | $ 469,000 | 469,000 | ||||||
Balance, (in shares) at Sep. 30, 2015 | 13,061,673 | |||||||
Balance, at Sep. 30, 2015 | 181,320,000 | $ 131,000 | 65,011,000 | 120,611,000 | (1,685,000) | $ (1,751,000) | (997,000) | |
Stock based compensation expense | 283,000 | 283,000 | ||||||
Restricted stock (in shares) | 5,000 | |||||||
Restricted stock | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | |
Net income | 2,335,000 | 1,806,000 | 529,000 | |||||
Unrealized gain (loss) on marketable securities, net | 316,000 | 316,000 | ||||||
Purchase of treasury stock | (7,180,000) | (7,180,000) | ||||||
Foreign currency translation, net | 242,000 | 242,000 | ||||||
Purchase of subsidiary shares from non-controlling interest | (1,800,000) | (873,000) | (927,000) | |||||
Issuance of restricted stock to purchase subsidiary shares of non-controlling interest (in shares) | 123,304 | |||||||
Issuance of restricted stock to purchase subsidiary shares from non-controlling interest | 1,000,000 | $ 1,000 | 999,000 | |||||
Distributions to non-controlling interest | (438,000) | (438,000) | ||||||
Balance, (in shares) at Dec. 31, 2015 | 13,189,977 | |||||||
Balance, at Dec. 31, 2015 | $ 176,078,000 | $ 132,000 | $ 65,420,000 | $ 122,417,000 | $ (1,127,000) | $ (8,931,000) | $ (1,833,000) | |
[1] | Treasury shares are as follows: September 30, 2015, 201,800; December 31, 2015, 1,035,800. |
Condensed Consolidated Stateme9
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - shares | Dec. 31, 2015 | Sep. 30, 2015 |
Treasury stock, Shares | 1,035,800 | 201,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | ||
Net income | $ 2,335,000 | $ 321,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 120,000 | 150,000 |
Deferred income taxes | (876,000) | (121,000) |
Stock based compensation | 283,000 | 432,000 |
Loss (gain) on sale of available-for-sale securities | 31,000 | (39,000) |
Structured settlements - accrued interest | (1,302,000) | (1,202,000) |
Structured settlements - gains | (1,527,000) | (907,000) |
Unrealized gain on other investments | (62,000) | |
Unrealized foreign exchange loss on other investments | 118,000 | |
Changes in: | ||
Prepaid and income taxes receivable | 906,000 | 219,000 |
Due from third party collection agencies and attorneys | 493,000 | 93,000 |
Other assets | (423,000) | (686,000) |
Other liabilities | (219,000) | (735,000) |
Net cash used in operating activities | (123,000) | (2,475,000) |
Cash flows from investing activities | ||
Purchase of consumer receivables acquired for liquidation | (4,419,000) | |
Principal collected on receivables acquired for liquidation | 2,184,000 | 3,713,000 |
Principal collected on receivables accounts represented by account sales | 3,000 | |
Purchase of available-for-sale securities | (7,136,000) | (5,443,000) |
Proceeds from sale of available-for-sale securities | 12,303,000 | 5,020,000 |
Purchase of other investments | (5,000,000) | |
Purchase of non-controlling interest | (800,000) | |
Investments in personal injury claims - advances | (7,013,000) | (6,337,000) |
Investments in personal injury claims - receipts | 9,049,000 | 5,311,000 |
Capital expenditures | (26,000) | |
Investments in structured settlements - advances | (4,179,000) | (3,108,000) |
Investments in structured settlements - receipts | 1,661,000 | 1,265,000 |
Net cash provided by (used in) investing activities | 1,624,000 | (4,576,000) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 468,000 | |
Purchase of treasury stock | (7,180,000) | |
Distribution to non-controlling interest | (438,000) | (229,000) |
Borrowings of other debt - CBC | 5,532,000 | 24,574,000 |
Repayment of other debt - CBC | (1,226,000) | (18,397,000) |
Net cash (used in) provided by financing activities | (3,312,000) | 6,416,000 |
Net decrease in cash and cash equivalents | (1,811,000) | (635,000) |
Cash and cash equivalents at beginning of period | 24,315,000 | 28,710,000 |
Cash and cash equivalents at end of period | 22,504,000 | 28,075,000 |
Cash paid for: | ||
Interest | 763,000 | $ 543,000 |
Supplemental disclosure of non-cash flow investing activities : | ||
Issuance of restricted stock to purchase subsidiary shares from non-controlling interest | $ 1,000,000 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2015 | |
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 Disability Advocates, LLC (“GAR Disability Advocates”), CBC Settlement Funding, LLC (“CBC”) and other subsidiaries, not all wholly owned (the “Company”, “we” or “us”), is engaged in several business segments in the financial services industry including structured settlements through our wholly owned subsidiary CBC, funding of personal injury claims, through our 80% owned subsidiary Pegasus Funding, LLC, social security and disability advocates through our wholly owned subsidiary GAR Disability Advocates , LLC and the business of purchasing, managing for its own account and servicing distressed consumer receivables, including charged off receivables, and semi-performing receivables. Consumer receivables The Company started out in the consumer receivable business in 1994. Recently, our effort has been in the international areas, as we have curtailed our active purchasing of consumer receivables in the United States. We define consumer receivables as primary charged-off, semi-performing and distressed depending on their collectability. We acquire these consumer receivables at substantial discounts to their face values, based on the characteristics of the underlying accounts of each portfolio. Personal injury claims Pegasus conducts its business solely in the United States. Pegasus obtains its business from external brokers and internal sales professionals soliciting individuals with personal injury claims. Business is also obtained from the Pegasus web site and through attorneys. Structured settlements CBC purchases structured settlement and annuity policies through privately negotiated direct consumer purchases and brokered transactions across the United States. CBC funds the purchases primarily from cash, and its securitized debt, issued through its BBR subsidiaries. Social security benefit advocacy GAR Disability Advocates provides its disability advocacy services throughout the United States. It relies upon search engine optimization to bring awareness to its intended market. Basis of Presentation The condensed consolidated balance sheets as of December 31, 2015 and September 30, 2015, the condensed consolidated statements of income for the three month periods ended December 31, 2015 and 2014, the condensed consolidated statements of comprehensive income for the three month periods ended December 31, 2015 and 2014, the condensed consolidated statement of stockholders’ equity as of and for the three months ended December 31, 2015 and 2014, the condensed consolidated statements of cash flows for the three month periods ended December 31, 2015 and 2014, are unaudited. The September 30, 2015 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, 2015. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly our financial position at December 31, 2015 and September 30, 2015, the results of operations for the three month periods ended December 31, 2015 and 2014 and cash flows for the three month periods ended December 31, 2015 and 2014 have been made. The results of operations for the three month periods ended December 31, 2015 and 2014 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, a $300 million portfolio purchased in March 2007 (the “Portfolio Purchase”), which, as of December 31, 2015, had a value of $8.8 million. Blue Bell Receivables I, LLC (“BBR I”), Blue Bells Receivables II, LLC (“BBR II”), Blue Bell Receivables III, LLC (“BBR III”) , Blue Bell Receivables IV, LLC (“BBR IV”) and Blue Bell Receivables V, LLC (BBR V”), collectively 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 $70.0 million and the non-recourse notes payable of $46.0 million as of December 31, 2015. 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, 2015 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates including management’s estimates of future cash flows and the resulting rates of return. Concentration of Credit Risk – Cash The Company considers all highly liquid investments with a maturity date of three months or less at the date of purchase to be cash equivalents. Cash balances are maintained at various depository institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company had cash balances with 10 banks at December 31, 2015 that exceeded the balance insured by the FDIC by approximately $16.8 million. The Company does not believe it is exposed to any significant credit risk for cash. Reclassifications Disability fee income had previously been included in other income in the prior period’s financial statements and has been reclassified to revenue in the current period’s statement of income. Recent Accounting Pronouncements In May 2014, 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, 2017 including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently evaluating the impact this update will have on our consolidated financial statements as well as the expected adoption method. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which amends the consolidation requirements in ASC 810. This update is effective for public business entities for the first interim or annual period beginning after December 15, 2015. We are currently reviewing this ASU to determine if it will have an impact on our consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)”. The amendments apply to reporting entities that elect to measure the fair value of an investment using the net asset value (“NAV”) per share (or its equivalent) practical equivalent. The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, with early adoption permitted. The Company reviewed this ASU and elected to early adopt these amendments and has removed certain investments that are measured using the NAV practical expedient from the fair value hierarchy in all periods presented in the Company’s consolidated financial statements. |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Dec. 31, 2015 | |
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. |
Available-for-Sale Investments
Available-for-Sale Investments | 3 Months Ended |
Dec. 31, 2015 | |
Available-for-Sale Investments | Note 3—Available-for-Sale Investments Investments classified as available-for-sale at December 31, 2015 and September 30, 2015, consist of the following: Amortized Unrealized Unrealized Fair Value December 31, 2015 $ 54,872,000 $ 320,000 $ (147,000 ) $ 55,045,000 September 30, 2015 $ 60,069,000 $ 98,000 $ (440,000 ) $ 59,727,000 The available-for-sale investments do not have any contractual maturities. The Company sold two investments during the first quarter of fiscal year 2016, with a realized loss of $ 31,000. The Company received $47,000 in capital gains distributions during the first quarter of fiscal year 2016. In the first quarter of fiscal year 2015, the Company sold two investments with a realized gain of $39,000 and also received $234,000 in capital gains distributions during that quarter. The Company recorded an aggregate realized gain of $16,000 and $273,000 related to its available-for-sale securities during the first quarter of fiscal years 2016 and 2015, respectively. At December 31, 2015, there were six investments, two of which were in an unrealized loss position, both of which had current unrealized losses that had existed for 12 months or more. All of these securities are considered to be acceptable credit risks. Based on the evaluation of the available evidence, including recent changes in market rates and credit rating information, management believes the aggregate decline in fair value for these instruments is temporary. In addition, management has the ability to hold these investment securities for a period of time sufficient to allow for an anticipated recovery or maturity. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period in which the other-than-temporary impairment is identified. Unrealized holding gains and losses on available-for-sale securities are included in other comprehensive income within stockholders’ equity. Realized gains (losses) on available-for-sale securities are included in other income and, when applicable, are reported as a reclassification adjustment in other comprehensive income. |
Consumer Receivables Acquired f
Consumer Receivables Acquired for Liquidation | 3 Months Ended |
Dec. 31, 2015 | |
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 may account for its investments in consumer receivable portfolios, using either: • the interest method; or • the cost recovery method. The Company accounts for certain of its investments in finance receivables using the interest method in accordance with the guidance of ASC 310-30. Under the guidance of ASC 310-30, 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. Due to the substantial reduction of portfolios reported under the interest method, and the ability to reasonably estimate cash collections required to account for those portfolios under the interest method, the Company concluded the cost recovery method is the appropriate accounting method in the circumstances. Under the guidance of ASC 310-30, the Company must analyze a portfolio upon acquisition to ensure which method is appropriate, and once a static pool is established for a quarter, individual receivable accounts are not added to the pool (unless replaced by the seller) or removed from the pool (unless sold or returned to the seller). 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 has extensive liquidating experience in the field of distressed credit card receivables, telecommunication receivables, consumer loan receivables, retail installment contracts, consumer receivables, and auto deficiency receivables. The Company aggregates portfolios of receivables acquired sharing specific common characteristics which were acquired within a given quarter. In addition, the Company uses a variety of qualitative and quantitative factors to estimate collections and the timing thereof. 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 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 Three Months Ended December 31, 2015 2014 Balance, beginning of period $ 15,608,000 $ 29,444,000 Acquisitions of receivable portfolio 4,419,000 — Net cash collections from collection of consumer receivables acquired for liquidation (7,293,000 ) (8,750,000 ) Net cash collections represented by account sales of consumer receivables acquired for liquidation — (3,000 ) Effect of foreign currency translation (33,000 ) — Finance income recognized 5,142,000 5,037,000 Balance, end of period $ 17,843,000 $ 25,728,000 Finance income as a percentage of collections 70.5 % 57.5 % During the three months ended December 31, 2015, the Company purchased $97.7 million of face value portfolios at a cost of $4.4 million. During the three months ended December 31, 2014, the Company did not purchase any consumer receivable portfolios. The following table summarizes collections received by the Company’s third-party collection agencies and attorneys, less commissions and direct costs for the three month periods ended December 31, 2015 and 2014, respectively. For the Three Months Ended December 31, 2015 2014 Gross collections (1) $ 11,411,000 $ 15,192,000 Commissions and fees (2) 4,118,000 6,439,000 Net collections $ 7,293,000 $ 8,753,000 (1) Gross collections include: collections from third-party collection agencies and attorneys, collections from in-house efforts, and collections represented by account sales. (2) Commissions and fees are the contractual commission earned by third party collection agencies and attorneys, and direct costs associated with the collection effort, generally court costs. Includes a 3% fee charged by a servicer on gross collections received by the Company in connection with the Portfolio Purchase. Such arrangement was consummated in December 2007. The fee is charged for asset location, skip tracing and ultimately suing debtors in connection with this portfolio purchase. |
Acquisition of CBC
Acquisition of CBC | 3 Months Ended |
Dec. 31, 2015 | |
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, amended to $7.5 million in March 2015. The 20% non-controlling interests are held by certain former owners. 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. On December 31, 2015, the Company acquired the remaining 20% ownership of CBC for $1,800,000, through the issuance of restricted stock valued at $1,000,000 and $800,000 in cash. Each of the two original principals received 61,652 shares of restricted stock at an agreed upon market price of $8.11 and $400,000 in cash. An aggregate of 123,304 shares of restricted stock was issued. Net income attributable to Asta Funding, Inc., as reported, for the three month period ended December 31, 2015 was $1,806,000. Had the Company owned 100% of CBC for the entire reporting period, net income attributable to Asta Funding, Inc. would have been $1,962,000. Net income attributable to Asta Funding Inc., as reported, for the three month period ended December 31, 2014 was $370,000. Had the Company owned 100% of CBC for the entire period, net income attributable to Asta Funding, Inc, would have been $393,000. |
Structured Settlements (At Fair
Structured Settlements (At Fair Value) | 3 Months Ended |
Dec. 31, 2015 | |
Structured Settlements (At Fair Value) | Note 6—Structured Settlements (At Fair Value) 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 income. Unrealized gains on structured settlements is comprised of both unrealized gains resulting from fair market valuation at the date of acquisition of the structured settlements and the subsequent fair value adjustments resulting from the change in the discount rate. Of the $1.5 million of unrealized gains recognized in the three month period ended December 31, 2015, approximately $2.2 million is due to day one gains on new structured settlements financed during the period, offset by a decrease of $0.7 million in realized gains recognized as realized interest income on structured settlements during the period. There were no other changes in assumptions during the period. We elected the fair value treatment under ASC 825-10-50-28 through 50-32 to be transparent to the user regarding the underlying fair value of the structured settlement which collateralizes the debt of CBC. The Company believes any change in fair value is driven by market risk as opposed to credit risk associated with the underlying structured settlement annuity issuer. The purchased personal injury structured settlements result in payments over time through an annuity policy. Most of the annuities acquired involve guaranteed payments with specific defined ending dates. CBC also purchases a small number of life contingent annuity payments with specific ending dates but the actual payments to be received could be less due to the mortality risk associated with the measuring life. CBC records a provision for loss each period. The life contingent annuities are not a material portion of assets at December 31, 2015 and revenue for the three month period ended December 31, 2015. Structured settlements consist of the following as of December 31, 2015 and September 30, 2015: December 31 September 30 Maturity (1) (2) $ 107,724,000 $ 99,135,000 Unearned income (37,742,000 ) (34,500,000 ) Net collections $ 69,982,000 $ 64,635,000 (1) The maturity value represents the aggregate unpaid principal balance at December 31, 2015 and September 30, 2015. (2) There are no amounts of structured settlements that are past due, or in nonaccrual status at December 31, 2015 and September 30, 2015. Encumbrances on structured settlements as of December 31 and September 30, 2015 are as follows: December 31 September 30 Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 (3) $ 2,173,000 $ 2,270,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 (3) 4,592,000 4,713,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 (3) 4,219,000 4,497,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 (3) 19,646,000 20,147,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until March 30, 2034 (3) 15,328,000 15,361,000 $25,000,000 revolving line of credit (3) 9,959,000 4,623,000 Encumbered structured settlements 55,917,000 51,611,000 Structured settlements not encumbered 14,065,000 13,024,000 Total structured settlements $ 69,982,000 $ 64,635,000 (3) See Note 10 – Other Debt – CBC At December 31, 2015, the expected cash flows of structured settlements based on maturity value are as follows: September 30, 2016 (9 months) $ 5,736,000 September 30, 2017 7,928,000 September 30, 2018 6,468,000 September 30, 2019 6,930,000 September 30, 2020 6,128,000 Thereafter 74,534,000 Total $ 107,724,000 |
Litigation Funding
Litigation Funding | 3 Months Ended |
Dec. 31, 2015 | |
Litigation Funding | Note 7—Litigation Funding Personal Injury Claims On December 28, 2011, the Company entered into a joint venture with Pegasus Legal Funding, LLC (“PLF”) in the operating subsidiary of Pegasus. Pegasus purchases interests in 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 $3.1 million and $2.5 million in interest and fees during the first quarter of fiscal years 2016 and 2015, respectively. The Company had a net invested balance of $34.6 million and $36.7 million on December 31, 2015 and September 30, 2015, respectively. Pegasus records reserves for bad debts, which, at December 31, 2015 and 2014, amounted to $5.5 million and $3.8 million, as follows: For the Three Months Ended December 31, 2015 2014 Balance at beginning of period $ 5,459,000 $ 2,474,000 Provisions for losses 412,000 1,561,000 Write offs (375,000 ) (278,000 ) Balance at end of period $ 5,496,000 $ 3,757,000 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”). A BPCM agreement provides non-recourse funding to a spouse in a matrimonial action. Through a revised agreement, the Company provides a $1.5 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. In September 2014, the agreement was revised to extend the term of the loan to August 2016, increase the line from $1.0 million to $1.5 million and include a personal guarantee of the principal of BP Divorce Funding. The loan balance at December 31, 2015, was approximately $1.5 million. The revolving line of credit is collateralized by BP Divorce Funding’s profit share in BPCM and other assets. As of December 31, 2015, the Company’s investment in cases through BPCM was approximately $3.1 million. There was no income recognized in the three month periods ended December 31, 2015 and 2014. |
Furniture & Equipment
Furniture & Equipment | 3 Months Ended |
Dec. 31, 2015 | |
Furniture & Equipment | Note 8—Furniture & Equipment Furniture and equipment consist of the following as of the dates indicated: December 31, September 30, 2015 2015 Furniture $ 440,000 $ 414,000 Equipment 3,622,000 3,622,000 Software 1,210,000 1,210,000 Leasehold improvements 99,000 99,000 5,371,000 5,345,000 Less accumulated depreciation 4,985,000 4,865,000 Balance, end of period $ 386,000 $ 480,000 |
Non Recourse Debt
Non Recourse Debt | 3 Months Ended |
Dec. 31, 2015 | |
Non Recourse Debt | Note 9—Non Recourse Debt Non-Recourse Debt –Bank of Montreal (“BMO”) In March 2007, Palisades XVI borrowed approximately $227 million under the Receivables Financing Agreement, as amended in July 2007, December 2007, May 2008, February 2009, October 2010 and August 2013 (the “RFA”) from Bank of Montreal (“BMO”), in order to finance the Portfolio Purchase which had a purchase price of $300 million. The original term of the agreement was three years. This term was extended by each of the Second, Third, Fourth 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, pre-tax in the third quarter of fiscal year 2014. As of December 31, 2015 approximately $3.2 million remained to be received by the Company against the $16.9 million. 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 (“the 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 among the parties to the Loan Agreement, with property of the Borrowers serving as collateral. Through the period ended December 31, 2015, the Company did not use this facility. |
Other Debt-CBC
Other Debt-CBC | 3 Months Ended |
Dec. 31, 2015 | |
Other Debt-CBC | Note 10—Other Debt—CBC The Company assumed $25.9 million of debt related to the CBC acquisition (see Note 5) on December 31, 2013, including a $12.5 million line of credit with an interest rate floor of 5.5%. Between March 27, 2014 and September 29, 2014, CBC entered into three amendments (sixth Amendment through eighth Amendment), resulting in the line of credit increasing to $22.0 million and the interest rate floor reduced to 4.75%. On March 11, 2015, CBC entered into the Ninth Amendment. This amendment, effective March 1, 2015, extended the maturity date on its credit line from February 28, 2015 to March 1, 2017. Additionally, the credit line was increased from $22.0 million to $25.0 million and the interest rate floor was decreased from 4.75% to 4.1%. Other terms and conditions were materially unchanged. On November 26, 2014, CBC completed its fourth private placement, backed by structured settlement and fixed annuity payments. CBC issued, through its subsidiary, BBR IV, LLC, approximately $21.8 million of fixed rate asset-backed notes with a yield of 5.4%. On September 25, 2015, CBC completed its fifth private placement, backed by structured settlement and fixed annuity payments. CBC issued, through its subsidiary, BBR V, LLC, approximately $16.6 million of fixed rate asset-backed notes with a yield of 5.1%. As of December 31, 2015, the remaining debt amounted to $55.9 million, which consisted of $9.9 million drawdown from a line of credit from an institutional source and $46.0 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 December 31, 2015 and September 30, 2015: Interest Rate December 31, 2015 September 30, 2015 Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 8.75 % $ 2,173,000 $ 2,270,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 7.25 % 4,592,000 4,713,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 7.125 % 4,219,000 4,497,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 5.39 % 19,646,000 20,147,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 5.07 % 15,328,000 15,361,000 Subtotal notes payable 45,958,000 46,988,000 $25,000,000 revolving line of credit expiring on March 1, 2017 4.1 % 9,959,000 4,623,000 Total debt – CBC $ 55,917,000 $ 51,611,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | Note 11—Commitments and Contingencies Leases The Company leases its facilities in Englewood Cliffs, New Jersey, Houston, Texas, New York, New York and Conshohocken, Pennsylvania. 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. |
Income Recognition, Impairments
Income Recognition, Impairments, and Commissions and Fees | 3 Months Ended |
Dec. 31, 2015 | |
Income Recognition, Impairments, and Commissions and Fees | Note 12—Income Recognition, Impairments, and Commissions and Fees Income Recognition The Company accounts for certain of its investments in finance receivables using 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. Due to the substantial reduction of portfolios reported under the interest method, and the ability to reasonably estimate cash collections required to account for those portfolios under the interest method the Company concluded the cost recovery method is the appropriate accounting method under the circumstances. Under the guidance of ASC 310-30, the Company must analyze a portfolio upon acquisition to ensure which method is appropriate, and once a static pool is established for a quarter, individual receivable accounts are not added to the pool (unless replaced by the seller) or removed from the pool (unless sold or returned to the seller). 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 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 will consist 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, revenue 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 matrimonial actions is on a non-recourse basis. Revenue from matrimonial actions is recognized under the cost recovery method. CBC purchases periodic payments under structured settlements and annuity policies from individuals in exchange for a lump sum payment. The Company elected to carry 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 settlement. Changes in fair value are recorded in unrealized gain (loss) in structured settlements in our statements of income. The Company recognizes revenue for GAR Disability Advocates when cases close and fees are collected. 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. The recognition of income under ASC 310 is dependent on the Company having the ability to develop reasonable expectations of both the timing and amount of cash flows to be collected. In the event the Company cannot develop a reasonable expectation as to both the timing and amount of cash flows expected to be collected, ASC 310 permits the change to the cost recovery method. The Company will recognize income only after it has recovered its carrying value. If collection projections indicate the carrying value will not be recovered, an impairment is required. The impairment will be equal to the difference between the carrying value at the time of the forecast and the corresponding estimated remaining future collections. 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 | 3 Months Ended |
Dec. 31, 2015 | |
Income Taxes | Note 13—Income Taxes The Company files consolidated Federal and state income tax returns. Substantially all of the Company’s subsidiaries are single member limited liability companies and, therefore, do not file separate tax returns. Majority and minority owned subsidiaries file separate partnership tax returns. 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 New Jersey NOL carryforward balance as of December 31, 2015 was approximately $84.7 million. The provision for income tax expense for the three month periods ended December 31, 2015 and 2014 reflects income tax expense at an effective rate of 30.7% and 23.4%, respectively. The lower effective tax rate for the first quarter of fiscal year 2015 is primarily due to the high level of tax exempt income. The corporate federal income tax returns of the Company for 2014 and 2015 are subject to examination by the Internal Revenue Service (“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. Interest and penalties arising from uncertain tax positions are presented as a component of income taxes. $624,000 of interest was recognized in the Company’s consolidated financial statements for 2015. On July 16, 2015, the Company made a payment to the IRS of approximately $13 million in anticipation of the conclusion of an examination by the IRS and in accordance with the notice of proposed adjustment, for the fiscal years September 30, 2009 through September 30, 2013. The adjustment is the result of a change in the accounting method for income tax purposes. Apart from the change in accounting method for income tax purposes, there were no other material disallowances or adjustments to other items of income, deductions, and credits to the tax returns under examination. The payment does not include approximately $624,000 of interest related to the tax year of the IRS adjustment, September 30, 2013, which has been accrued as of July 15, 2015, and classified in the income tax line of the statements of income. The Company will be amending its federal tax return for the fiscal year ended September 30, 2014, to reflect the new accounting method for tax purposes. There is no state and local tax liability as a result of the federal tax examination; however the New Jersey state NOL was adjusted to reflect the current year and revised previous year’s results. On December 1, 2015 the Company received notification that the Congressional Joint Committee on Taxation completed its consideration on the income tax returns and took no exception to the conclusions reached by the IRS. The Company does not have any uncertain tax positions. As a result of the IRS examination, the Company will amend its state tax returns for the same periods. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Dec. 31, 2015 | |
Net Income per Share | Note 14—Net Income per Share Basic per share data is calculated by dividing net income by the weighted average shares outstanding during the period. Diluted earnings per share is calculated similarly, except that it includes the dilutive effect of the assumed exercise of securities, including the effect of shares issuable under the Company’s stock based compensation plans. With respect to the assumed proceeds from the exercise of dilutive options, the treasury stock method is calculated using the average market price for the period. The following table presents the computation of basic and diluted per share data for the three months ended December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Net Income Weighted Per Net Weighted Per Basic $ 1,806,000 12,155,421 $ 0.15 $ 370,000 13,013,719 $ 0.03 Effect of Dilutive Stock 276,465 294,854 Diluted $ 1,806,000 12,431,886 $ 0.15 $ 370,000 13,308,573 $ 0.03 At December 31, 2015, 454,205 options at a weighted average exercise price of $9.47 were not included in the diluted earnings per share calculation as they were antidilutive. At December 31, 2014, 381,000 options at a weighted average exercise price of $9.69 were not included in the diluted earnings per share calculation as they were antidilutive. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Dec. 31, 2015 | |
Stock Based Compensation | Note 15—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. On December 16, 2015, the Compensation Committee of the Board of Directors of the Company (“Compensation Committee”) granted 67,100 stock options to non-officer employees of the Company, of which 9,100 options vested immediately and the remaining 58,000 stock options vest in three equal annual installments and accounted for as one graded vesting award. The exercise price of these options was at the market price on that date. The weighted average assumptions used in the option pricing model were as follows: Risk-free interest rate 0.24 % Expected term (years) 6.25 Expected volatility 23.4 % Dividend yield 0.00 % On December 16, 2015, the Compensation Committee granted 5,000 restricted shares to a non-officer employee of the Company. These shares vest in three equal installments, starting on the first anniversary of the grant. On December 31, 2015, the Company issued an aggregate of 123,304 shares to the two former CBC principals (see Note 5 – Acquisition of CBC). These shares vest in their entirety on December 31, 2016. |
Stock Option Plans
Stock Option Plans | 3 Months Ended |
Dec. 31, 2015 | |
Stock Option Plans | Note 16—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 484,200 shares, an award of 245,625 shares of restricted stock, and has cancelled 45,600 options, leaving 1,315,775 shares available as of December 31, 2015. As of December 31, 2015, approximately 109 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: Three Months Ended December 31, 2015 2014 Number Of Shares Weighted Number of Shares Weighted Average Price Outstanding options at the beginning of period 1,043,566 $ 8.47 1,403,259 $ 10.78 Options granted 67,100 7.93 — — Options exercised — 0.00 (60,000 ) 7.83 Options forfeited/cancelled — 0.00 (344,259 ) 17.99 Outstanding options at the end of period 1,110,666 $ 8.43 999,000 $ 8.47 Exercisable options at the end of period 965,325 $ 8.46 832,319 $ 8.40 The following table summarizes information about the 2012 Plan, 2002 Plans, and the Equity Compensation Plan outstanding options as of December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Price Number of Shares Weighted Weighted Number of Shares Weighted $2.8751 – $5.7500 7,100 3.3 $ 2.95 7,100 $ 2.95 $5.7501 – $8.6250 914,566 6.2 7.96 780,561 7.92 $8.6251 – $11.5000 174,000 7.1 9.40 162,664 9.45 $11.5000 – $28.7500 15,000 1.0 28.75 15,000 28.75 1,110,666 6.2 $ 8.43 965,325 $ 8.46 The Company recognized $196,000 and $338,000 of compensation expense related to the stock option grants during the three month periods ended December 31, 2015 and 2014, respectively. As of December 31, 2015, there was $525,000 of unrecognized compensation cost related to stock option awards. The weighted average period over which such costs are expected to be recognized is 1.3 years. The intrinsic value of the outstanding and exercisable options as of December 31, 2015 was approximately $165,000 and $164,000, respectively. The weighted average remaining contractual life of exercisable options is 5.8 years. There were no options exercised during the three month period ended December 31, 2015. The intrinsic and fair value of the stock options exercised during the three month period ended December 31, 2014 was approximately $76,000 and $525,000, respectively. The fair value of the stock options that vested during the three month periods ended December 31, 2015 and 2014 was approximately $830,000 and $2,998,000, respectively. The fair value of the options granted during the three month period ended December 31, 2015 was approximately $532,000. There were no options granted during the three month period ended December 31, 2014. The following table summarizes information about restricted stock transactions: Three Months Ended December 31, 2015 2014 Number of Weighted Number of Weighted Grant Date Unvested at the beginning of period 44,107 $ 9.28 68,214 $ 9.57 Awards granted 5,000 7.89 15,000 8.30 Vested (34,107 ) 9.57 (34,107 ) 9.57 Forfeited — — — — Unvested at the end of period 15,000 $ 7.92 49,107 $ 9.18 The Company recognized $87,000 and $94,000 of compensation expense related to the restricted stock awards during the three month periods ended December 31, 2015 and 2014, respectively. As of December 31, 2015, there was $108,000 of unrecognized compensation cost related to restricted stock awards. The weighted average remaining period over which such costs are recognized is 2.1 years. An aggregate of 5,000 shares of restricted stock was granted during the first quarter of fiscal year 2016, all of which were granted to a non-officer employee. There were 15,000 restricted stock awards granted to a non-officer employee during the first quarter of fiscal year 2015. The fair value of the awards vested during the first quarter of fiscal years 2016 and 2015 was $40,000 and $326,000, respectively. The Company recognized an aggregate total of $283,000 and $432,000 in compensation expense for the three month periods ended December 31, 2015 and 2014, respectively, for the stock options and restricted stock grants. As of December 31, 2015, there was a total of $633,000 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 | 3 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity | Note 17—Stockholders’ Equity Dividends are declared at the discretion of the board of directors and depend upon the Company’s financial condition, operating results, capital requirements and other factors that the board of directors deems relevant. In addition, agreements with the Company’s lenders may, from time to time, restrict the ability to pay dividends. As of December 31, 2015, there were no such restrictions. No dividends were declared for the three month periods ended December 31, 2015 and 2014. On August 11, 2015, the Board of Directors of the Company (“Board of Directors”) approved the repurchase of up to $15,000,000 of the Company’s common stock and authorized management of the Company to enter into the Shares Repurchase Plan under Sections 10b-18 and 10b5-1 of the Securities and Exchange Act (“the Plan”). The Plan was effective to December 31, 2015. On December 17, 2015, having repurchased approximately $6.4 million of the Company’s common stock, the Board of Directors approved the extension of the Plan to March 31, 2016 and reset the maximum to an additional $15 million in repurchases. Through December 31, 2015, the Company purchased approximately 1,036,000 shares at an aggregate cost of approximately $8.9 million. No shares were repurchased during the first quarter of fiscal year 2015. |
Fair Value of Financial Measure
Fair Value of Financial Measurements and Disclosures | 3 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Measurements and Disclosures | Note 18—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: December 31, 2015 September 30, 2015 Carrying Fair Carrying Fair Financial assets Cash and cash equivalents (Level 2) $ 22,504,000 22,504,000 $ 24,315,000 $ 24,315,000 Available-for-sale investments (Level 1) 55,045,000 55,045,000 59,727,000 59,727,000 Consumer receivables acquired for liquidation (Level 3) 17,843,000 43,456,000 15,608,000 31,339,000 Structured settlements (Level 3) 69,982,000 69,982,000 64,635,000 64,635,000 Other investments (1) 4,183,000 4,183,000 4,239,000 4,239,000 Financial liabilities Other debt – CBC, revolving line of credit (Level 3) 9,959,000 9,959,000 4,623,000 4,623,000 Other debt – CBC, non-recourse notes payable with varying installments (Level 3) 45,958,000 45,958,000 46,988,000 46,988,000 (1) The Company has elected to early adopt ASU 2015-07 and in accordance with ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. 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: Cash and cash equivalents – The carrying amount of cash and cash equivalents approximates fair value. 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. Unrealized gains on structured settlements is comprised of both unrealized gains resulting from fair market valuation at the date of acquisition of the structured settlements and the subsequent fair value adjustments resulting from the change in the discount rate. Of the $1.5 million of unrealized gains recognized in the three month period ended December 31, 2015, approximately $2.2 million is due to day one gains on new structured settlements financed during the period, offset by a decrease of $0.7 million in realized gains recognized as realized interest income on structured settlements during the period. There were no other changes in assumptions during the period. Other investments – The Company estimated the fair value using the net asset value per share of the investment. There are no unfunded commitments and the investment cannot be redeemed for 5 years from the date of the initial investment (October 2014). 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 December 31, 2015 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 December 31, 2015, 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. A significant unobservable input used in the fair value measurement of structured settlements is the discount rate. Significant increases and decreases in the discount rate used to estimate the fair value of structured settlements could decrease or increase the fair value measurement of the structured settlements. The discount rate could be affected by factors, which include, but are not limited to, creditworthiness of insurance companies, market conditions, specifically competitive factors, credit quality of receivables purchased, the diversity of the payors of the receivables purchased, the weighted average life of receivables, current benchmark rates (i.e. 10 year treasury or swap rate) and the historical portfolio performance of the originator and/or servicer. 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 three month period ended December 31, 2015. The Company had no Level 2 or Level 3 available-for-sale investments during the first quarter of fiscal year 2015. The following table sets forth the Company’s quantitative information about its Level 3 fair value measurements as of December 31, 2015: Fair Value Valuation Unobservable Rate Structured settlements at fair value $ 69,982,000 Discounted Discount 5.07 % The changes in structured settlements at fair value using significant unobservable inputs (Level 3) during the three months ended December 31, 2015 were as follows: Balance at September 30, 2015 $ 64,635,000 Total gains included in earnings 1,527,000 Purchases 4,179,000 Sales — Interest accreted 1,302,000 Payments received (1,661,000 ) Total $ 69,982,000 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 December 31, 2015 $ 1,527,000 Realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of income for the three months ended December 31, 2015 are reported in the following revenue categories: Total gains (losses) included in the three months ended December 31, 2015 $ 1,527,000 Change in unrealized gains (losses) relating to assets still held at December 31, 2015 $ 1,527,000 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 31, 2015 | |
Segment Reporting | Note 19—Segment Reporting The Company operates through strategic business units that are aggregated into four reportable segments: Consumer receivables, Personal injury claims, structured settlements, and GAR disability advocates. The four reportable segments consist of the following: • Consumer receivables - ® ® • Personal injury claims • Structured settlements. CBC purchases periodic structured settlements and annuity policies from individuals in exchange for a lump sum payment. • GAR Disability Advocates Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, available-for-sale securities, property and equipment, goodwill, deferred taxes and other assets. The following table shows results by reporting segment for the three month period ended December 31, 2015 and 2014 and total assets as of December 31 and September 30, 2015: Personal GAR (Dollars in millions) Fiscal Consumer Injury Structured Disability Corporate Total Revenues 2016 $ 5.1 $ 3.1 $ 2.9 $ 0.7 $ — $ 11.8 2015 5.0 2.5 2.2 0.1 — 9.8 Other income 2016 — — — — 0.5 0.5 2015 — — — — 0.6 0.6 Income (loss) before income taxes 2016 3.9 1.9 0.8 (1.8 ) (1.4 ) 3.4 2015 3.4 (0.2 ) 0.1 (1.2 ) (1.7 ) 0.4 Total assets(1) 2016 17.9 35.2 73.9 2.4 106.6 236.0 2015 17.0 39.6 63.1 2.6 115.1 237.4 Capital expenditures 2016 — — — — — — 2015 — — — — — — Depreciation 2016 — — — — 0.1 0.1 2015 — — — — 0.2 0.2 The Company does not have any intersegment revenue transactions. (1) Includes other amounts in other line items on the consolidated balance sheet. |
Business and Basis of Present30
Business and Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2015 | |
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 Disability Advocates, LLC (“GAR Disability Advocates”), CBC Settlement Funding, LLC (“CBC”) and other subsidiaries, not all wholly owned (the “Company”, “we” or “us”), is engaged in several business segments in the financial services industry including structured settlements through our wholly owned subsidiary CBC, funding of personal injury claims, through our 80% owned subsidiary Pegasus Funding, LLC, social security and disability advocates through our wholly owned subsidiary GAR Disability Advocates , LLC and the business of purchasing, managing for its own account and servicing distressed consumer receivables, including charged off receivables, and semi-performing receivables. Consumer receivables The Company started out in the consumer receivable business in 1994. Recently, our effort has been in the international areas, as we have curtailed our active purchasing of consumer receivables in the United States. We define consumer receivables as primary charged-off, semi-performing and distressed depending on their collectability. We acquire these consumer receivables at substantial discounts to their face values, based on the characteristics of the underlying accounts of each portfolio. Personal injury claims Pegasus conducts its business solely in the United States. Pegasus obtains its business from external brokers and internal sales professionals soliciting individuals with personal injury claims. Business is also obtained from the Pegasus web site and through attorneys. Structured settlements CBC purchases structured settlement and annuity policies through privately negotiated direct consumer purchases and brokered transactions across the United States. CBC funds the purchases primarily from cash, and its securitized debt, issued through its BBR subsidiaries. Social security benefit advocacy GAR Disability Advocates provides its disability advocacy services throughout the United States. It relies upon search engine optimization to bring awareness to its intended market. |
Basis of Presentation | Basis of Presentation The condensed consolidated balance sheets as of December 31, 2015 and September 30, 2015, the condensed consolidated statements of income for the three month periods ended December 31, 2015 and 2014, the condensed consolidated statements of comprehensive income for the three month periods ended December 31, 2015 and 2014, the condensed consolidated statement of stockholders’ equity as of and for the three months ended December 31, 2015 and 2014, the condensed consolidated statements of cash flows for the three month periods ended December 31, 2015 and 2014, are unaudited. The September 30, 2015 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, 2015. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly our financial position at December 31, 2015 and September 30, 2015, the results of operations for the three month periods ended December 31, 2015 and 2014 and cash flows for the three month periods ended December 31, 2015 and 2014 have been made. The results of operations for the three month periods ended December 31, 2015 and 2014 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, a $300 million portfolio purchased in March 2007 (the “Portfolio Purchase”), which, as of December 31, 2015, had a value of $8.8 million. Blue Bell Receivables I, LLC (“BBR I”), Blue Bells Receivables II, LLC (“BBR II”), Blue Bell Receivables III, LLC (“BBR III”) , Blue Bell Receivables IV, LLC (“BBR IV”) and Blue Bell Receivables V, LLC (BBR V”), collectively 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 $70.0 million and the non-recourse notes payable of $46.0 million as of December 31, 2015. 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, 2015 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates including management’s estimates of future cash flows and the resulting rates of return. |
Concentration of Credit Risk - Cash | Concentration of Credit Risk – Cash The Company considers all highly liquid investments with a maturity date of three months or less at the date of purchase to be cash equivalents. Cash balances are maintained at various depository institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company had cash balances with 10 banks at December 31, 2015 that exceeded the balance insured by the FDIC by approximately $16.8 million. The Company does not believe it is exposed to any significant credit risk for cash. |
Reclassifications | Reclassifications Disability fee income had previously been included in other income in the prior period’s financial statements and has been reclassified to revenue in the current period’s statement of income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, 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, 2017 including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently evaluating the impact this update will have on our consolidated financial statements as well as the expected adoption method. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which amends the consolidation requirements in ASC 810. This update is effective for public business entities for the first interim or annual period beginning after December 15, 2015. We are currently reviewing this ASU to determine if it will have an impact on our consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)”. The amendments apply to reporting entities that elect to measure the fair value of an investment using the net asset value (“NAV”) per share (or its equivalent) practical equivalent. The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, with early adoption permitted. The Company reviewed this ASU and elected to early adopt these amendments and has removed certain investments that are measured using the NAV practical expedient from the fair value hierarchy in all periods presented in the Company’s consolidated financial statements. |
Available-for-Sale Investments
Available-for-Sale Investments (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Available-for-Sale | Investments classified as available-for-sale at December 31, 2015 and September 30, 2015, consist of the following: Amortized Unrealized Unrealized Fair Value December 31, 2015 $ 54,872,000 $ 320,000 $ (147,000 ) $ 55,045,000 September 30, 2015 $ 60,069,000 $ 98,000 $ (440,000 ) $ 59,727,000 |
Consumer Receivables Acquired32
Consumer Receivables Acquired for Liquidation (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
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 Three Months Ended December 31, 2015 2014 Balance, beginning of period $ 15,608,000 $ 29,444,000 Acquisitions of receivable portfolio 4,419,000 — Net cash collections from collection of consumer receivables acquired for liquidation (7,293,000 ) (8,750,000 ) Net cash collections represented by account sales of consumer receivables acquired for liquidation — (3,000 ) Effect of foreign currency translation (33,000 ) — Finance income recognized 5,142,000 5,037,000 Balance, end of period $ 17,843,000 $ 25,728,000 Finance income as a percentage of collections 70.5 % 57.5 % |
Collections Received Less Commissions and Direct Costs | The following table summarizes collections received by the Company’s third-party collection agencies and attorneys, less commissions and direct costs for the three month periods ended December 31, 2015 and 2014, respectively. For the Three Months Ended December 31, 2015 2014 Gross collections (1) $ 11,411,000 $ 15,192,000 Commissions and fees (2) 4,118,000 6,439,000 Net collections $ 7,293,000 $ 8,753,000 (1) Gross collections include: collections from third-party collection agencies and attorneys, collections from in-house efforts, and collections represented by account sales. (2) Commissions and fees are the contractual commission earned by third party collection agencies and attorneys, and direct costs associated with the collection effort, generally court costs. Includes a 3% fee charged by a servicer on gross collections received by the Company in connection with the Portfolio Purchase. Such arrangement was consummated in December 2007. The fee is charged for asset location, skip tracing and ultimately suing debtors in connection with this portfolio purchase. |
Structured Settlements (At Fa33
Structured Settlements (At Fair Value) (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Components of Structured Settlements | Structured settlements consist of the following as of December 31, 2015 and September 30, 2015: December 31 September 30 Maturity (1) (2) $ 107,724,000 $ 99,135,000 Unearned income (37,742,000 ) (34,500,000 ) Net collections $ 69,982,000 $ 64,635,000 (1) The maturity value represents the aggregate unpaid principal balance at December 31, 2015 and September 30, 2015. (2) There are no amounts of structured settlements that are past due, or in nonaccrual status at December 31, 2015 and September 30, 2015. |
Structured Settlements | Encumbrances on structured settlements as of December 31 and September 30, 2015 are as follows: December 31 September 30 Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 (3) $ 2,173,000 $ 2,270,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 (3) 4,592,000 4,713,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 (3) 4,219,000 4,497,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 (3) 19,646,000 20,147,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until March 30, 2034 (3) 15,328,000 15,361,000 $25,000,000 revolving line of credit (3) 9,959,000 4,623,000 Encumbered structured settlements 55,917,000 51,611,000 Structured settlements not encumbered 14,065,000 13,024,000 Total structured settlements $ 69,982,000 $ 64,635,000 (3) See Note 10 – Other Debt – CBC |
Expected Cash Flows of Structured Settlements Based on Maturity Value | At December 31, 2015, the expected cash flows of structured settlements based on maturity value are as follows: September 30, 2016 (9 months) $ 5,736,000 September 30, 2017 7,928,000 September 30, 2018 6,468,000 September 30, 2019 6,930,000 September 30, 2020 6,128,000 Thereafter 74,534,000 Total $ 107,724,000 |
Litigation Funding (Tables)
Litigation Funding (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Reserves for Bad Debts | Pegasus records reserves for bad debts, which, at December 31, 2015 and 2014, amounted to $5.5 million and $3.8 million, as follows: For the Three Months Ended December 31, 2015 2014 Balance at beginning of period $ 5,459,000 $ 2,474,000 Provisions for losses 412,000 1,561,000 Write offs (375,000 ) (278,000 ) Balance at end of period $ 5,496,000 $ 3,757,000 |
Furniture & Equipment (Tables)
Furniture & Equipment (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Furniture and Equipment | Furniture and equipment consist of the following as of the dates indicated: December 31, September 30, 2015 2015 Furniture $ 440,000 $ 414,000 Equipment 3,622,000 3,622,000 Software 1,210,000 1,210,000 Leasehold improvements 99,000 99,000 5,371,000 5,345,000 Less accumulated depreciation 4,985,000 4,865,000 Balance, end of period $ 386,000 $ 480,000 |
Other Debt-CBC (Tables)
Other Debt-CBC (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
CBC | |
Components of Other Debt from Acquisition | The following table details the other debt at December 31, 2015 and September 30, 2015: Interest Rate December 31, 2015 September 30, 2015 Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 8.75 % $ 2,173,000 $ 2,270,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 7.25 % 4,592,000 4,713,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 7.125 % 4,219,000 4,497,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 5.39 % 19,646,000 20,147,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 5.07 % 15,328,000 15,361,000 Subtotal notes payable 45,958,000 46,988,000 $25,000,000 revolving line of credit expiring on March 1, 2017 4.1 % 9,959,000 4,623,000 Total debt – CBC $ 55,917,000 $ 51,611,000 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Computation of Basic and Diluted per Share | The following table presents the computation of basic and diluted per share data for the three months ended December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Net Income Weighted Per Net Weighted Per Basic $ 1,806,000 12,155,421 $ 0.15 $ 370,000 13,013,719 $ 0.03 Effect of Dilutive Stock 276,465 294,854 Diluted $ 1,806,000 12,431,886 $ 0.15 $ 370,000 13,308,573 $ 0.03 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
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 0.24 % Expected term (years) 6.25 Expected volatility 23.4 % Dividend yield 0.00 % |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Stock Option Transactions | The following table summarizes stock option transactions under the 2012 Plan, the 2002 Plan, and the Equity Compensation Plan: Three Months Ended December 31, 2015 2014 Number Of Shares Weighted Number of Shares Weighted Average Price Outstanding options at the beginning of period 1,043,566 $ 8.47 1,403,259 $ 10.78 Options granted 67,100 7.93 — — Options exercised — 0.00 (60,000 ) 7.83 Options forfeited/cancelled — 0.00 (344,259 ) 17.99 Outstanding options at the end of period 1,110,666 $ 8.43 999,000 $ 8.47 Exercisable options at the end of period 965,325 $ 8.46 832,319 $ 8.40 |
Summary of Outstanding Options | The following table summarizes information about the 2012 Plan, 2002 Plans, and the Equity Compensation Plan outstanding options as of December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Price Number of Shares Weighted Weighted Number of Shares Weighted $2.8751 – $5.7500 7,100 3.3 $ 2.95 7,100 $ 2.95 $5.7501 – $8.6250 914,566 6.2 7.96 780,561 7.92 $8.6251 – $11.5000 174,000 7.1 9.40 162,664 9.45 $11.5000 – $28.7500 15,000 1.0 28.75 15,000 28.75 1,110,666 6.2 $ 8.43 965,325 $ 8.46 |
Summary of Restricted Stock Transactions | The following table summarizes information about restricted stock transactions: Three Months Ended December 31, 2015 2014 Number of Weighted Number of Weighted Grant Date Unvested at the beginning of period 44,107 $ 9.28 68,214 $ 9.57 Awards granted 5,000 7.89 15,000 8.30 Vested (34,107 ) 9.57 (34,107 ) 9.57 Forfeited — — — — Unvested at the end of period 15,000 $ 7.92 49,107 $ 9.18 |
Fair Value of Financial Measu40
Fair Value of Financial Measurements and Disclosures (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Estimated Fair Value of Company's Financial Instruments | The estimated fair value of the Company’s financial instruments is summarized as follows: December 31, 2015 September 30, 2015 Carrying Fair Carrying Fair Financial assets Cash and cash equivalents (Level 2) $ 22,504,000 22,504,000 $ 24,315,000 $ 24,315,000 Available-for-sale investments (Level 1) 55,045,000 55,045,000 59,727,000 59,727,000 Consumer receivables acquired for liquidation (Level 3) 17,843,000 43,456,000 15,608,000 31,339,000 Structured settlements (Level 3) 69,982,000 69,982,000 64,635,000 64,635,000 Other investments (1) 4,183,000 4,183,000 4,239,000 4,239,000 Financial liabilities Other debt – CBC, revolving line of credit (Level 3) 9,959,000 9,959,000 4,623,000 4,623,000 Other debt – CBC, non-recourse notes payable with varying installments (Level 3) 45,958,000 45,958,000 46,988,000 46,988,000 (1) The Company has elected to early adopt ASU 2015-07 and in accordance with ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
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 December 31, 2015: Fair Value Valuation Unobservable Rate Structured settlements at fair value $ 69,982,000 Discounted Discount 5.07 % |
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 three months ended December 31, 2015 were as follows: Balance at September 30, 2015 $ 64,635,000 Total gains included in earnings 1,527,000 Purchases 4,179,000 Sales — Interest accreted 1,302,000 Payments received (1,661,000 ) Total $ 69,982,000 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 December 31, 2015 $ 1,527,000 |
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 three months ended December 31, 2015 are reported in the following revenue categories: Total gains (losses) included in the three months ended December 31, 2015 $ 1,527,000 Change in unrealized gains (losses) relating to assets still held at December 31, 2015 $ 1,527,000 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Segment Reporting | The following table shows results by reporting segment for the three month period ended December 31, 2015 and 2014 and total assets as of December 31 and September 30, 2015: Personal GAR (Dollars in millions) Fiscal Consumer Injury Structured Disability Corporate Total Revenues 2016 $ 5.1 $ 3.1 $ 2.9 $ 0.7 $ — $ 11.8 2015 5.0 2.5 2.2 0.1 — 9.8 Other income 2016 — — — — 0.5 0.5 2015 — — — — 0.6 0.6 Income (loss) before income taxes 2016 3.9 1.9 0.8 (1.8 ) (1.4 ) 3.4 2015 3.4 (0.2 ) 0.1 (1.2 ) (1.7 ) 0.4 Total assets(1) 2016 17.9 35.2 73.9 2.4 106.6 236.0 2015 17.0 39.6 63.1 2.6 115.1 237.4 Capital expenditures 2016 — — — — — — 2015 — — — — — — Depreciation 2016 — — — — 0.1 0.1 2015 — — — — 0.2 0.2 The Company does not have any intersegment revenue transactions. |
Business and Basis of Present42
Business and Basis of Presentation - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Dec. 31, 2015USD ($)Bank | Mar. 31, 2007USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of banks that exceed the balance insured by the FDIC | Bank | 10 | |
Cash uninsured by the FDIC | $ 16.8 | |
Palisades XVI | Great Seneca | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Portfolio holdings amount | 8.8 | $ 300 |
Blue Bell Entities | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Structured settlement holding amount | 70 | |
Non-recourse notes payable | $ 46 | |
Pegasus | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Ownership interest | 80.00% |
Available for Sale (Detail)
Available for Sale (Detail) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 54,872,000 | $ 60,069,000 |
Unrealized Gains | 320,000 | 98,000 |
Unrealized Losses | (147,000) | (440,000) |
Fair Value | $ 55,045,000 | $ 59,727,000 |
Available-for-Sale Investment44
Available-for-Sale Investments - Additional Information (Detail) | 3 Months Ended | |
Dec. 31, 2015USD ($)Investment | Dec. 31, 2014USD ($)Investment | |
Investments [Line Items] | ||
Number of investments sold | Investment | 2 | 2 |
Loss (gain) on sale of available-for-sale securities | $ | $ (31,000) | $ 39,000 |
Capital gains received | $ | 47,000 | 234,000 |
Aggregate realized gain related to available-for sale investments | $ | $ 16,000 | $ 273,000 |
Number of investments | Investment | 6 | |
Number of unrealized loss position in investment | Investment | 2 |
Changes in Balance Sheet Accoun
Changes in Balance Sheet Account of Consumer Receivables Acquired for Liquidation (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consumer Receivables Acquired For Liquidation [Line Items] | ||
Balance, beginning of period | $ 15,608,000 | $ 29,444,000 |
Acquisitions of receivable portfolio | 4,419,000 | |
Net cash collections from collection of consumer receivables acquired for liquidation | (7,293,000) | (8,750,000) |
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (3,000) | |
Effect of foreign currency translation | (33,000) | |
Finance income recognized | 5,142,000 | 5,037,000 |
Balance, end of period | $ 17,843,000 | $ 25,728,000 |
Finance income as a percentage of collections | 70.50% | 57.50% |
Consumer Receivables Acquired46
Consumer Receivables Acquired for Liquidation - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consumer Receivables Acquired For Liquidation [Line Items] | ||
Face value of charged-off consumer receivables | $ 97,700,000 | $ 0 |
Purchased cost of charged-off consumer receivables | $ 4,400,000 |
Collections Received Less Commi
Collections Received Less Commissions and Direct Costs (Detail) - USD ($) | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Consumer Receivables Acquired For Liquidation [Line Items] | |||
Gross collections | [1] | $ 11,411,000 | $ 15,192,000 |
Commissions and fees | [2] | 4,118,000 | 6,439,000 |
Net collections | $ 7,293,000 | $ 8,753,000 | |
[1] | Gross collections include: collections from third-party collection agencies and attorneys, collections from in-house efforts, and collections represented by account sales. | ||
[2] | Commissions and fees are the contractual commission earned by third party collection agencies and attorneys, and direct costs associated with the collection effort, generally court costs. Includes a 3% fee charged by a servicer on gross collections received by the Company in connection with the Portfolio Purchase. Such arrangement was consummated in December 2007. The fee is charged for asset location, skip tracing and ultimately suing debtors in connection with this portfolio purchase. |
Collections Received Less Com48
Collections Received Less Commissions and Direct Costs (Parenthetical) (Detail) | 3 Months Ended |
Dec. 31, 2015 | |
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 ($) | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 |
Business Acquisition [Line Items] | |||||
Net income attributable to Asta Funding, Inc. | $ 1,806,000 | $ 370,000 | |||
CBC | |||||
Business Acquisition [Line Items] | |||||
Ownership interest acquired, percent | 80.00% | ||||
Purchase price | $ 1,800,000 | $ 5,900,000 | |||
Financing to CBC | 5,000,000 | $ 7,500,000 | |||
Minimum distribution to be received by parent before distribution to noncontrolling Interests | $ 2,337,190 | ||||
Percentage of remaining ownership interest acquired | 20.00% | 20.00% | |||
Cash | $ 800,000 | ||||
Ownership interest owned | 100.00% | 100.00% | |||
Proforma Net income attributable to Asta Funding, Inc | $ 1,962,000 | $ 393,000 | |||
CBC | Principal one | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 400,000 | ||||
CBC | Principal two | |||||
Business Acquisition [Line Items] | |||||
Cash | 400,000 | ||||
CBC | Restricted stock | |||||
Business Acquisition [Line Items] | |||||
Value of issuance of stock | $ 1,000,000 | ||||
Issuance of stock, shares | 123,304 | ||||
CBC | Restricted stock | Principal one | |||||
Business Acquisition [Line Items] | |||||
Issuance of stock, shares | 61,652 | ||||
Market price of issued shares | $ 8.11 | $ 8.11 | |||
CBC | Restricted stock | Principal two | |||||
Business Acquisition [Line Items] | |||||
Issuance of stock, shares | 61,652 | ||||
Market price of issued shares | $ 8.11 | $ 8.11 | |||
CBC | Affiliated Entity | |||||
Business Acquisition [Line Items] | |||||
Non-controlling ownership interest, percent | 20.00% |
Structured Settlements (At Fa50
Structured Settlements (At Fair Value) - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unrealized gains on structured settlements | $ 1,527,000 | $ 1,202,000 |
Due to day one gains on new structured settlements financed during the period | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unrealized gains on structured settlements | 2,200,000 | |
Due to decrease in realized gains recognized as realized interest income on structured settlements during the period | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unrealized gains on structured settlements | $ (700,000) |
Components of Structured Settle
Components of Structured Settlements (Detail) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity | [1],[2] | $ 107,724,000 | $ 99,135,000 |
Unearned income | (37,742,000) | (34,500,000) | |
Net collections | $ 69,982,000 | $ 64,635,000 | |
[1] | The maturity value represents the aggregate unpaid principal balance at December 31, 2015 and September 30, 2015. | ||
[2] | There are no amounts of structured settlements that are past due, or in nonaccrual status at December 31, 2015 and September 30, 2015. |
Components of Structured Sett52
Components of Structured Settlements (Parenthetical) (Detail) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Structured settlements, past due | $ 0 | $ 0 |
Structured settlements, nonaccrual status | $ 0 | $ 0 |
Structured Settlements (Detail)
Structured Settlements (Detail) - Structured Settlement - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | |||
$25,000,000 revolving line of credit | [1] | $ 9,959,000 | $ 4,623,000 |
Total structured settlements | 69,982,000 | 64,635,000 | |
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 | [1] | 2,173,000 | 2,270,000 |
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 | [1] | 4,592,000 | 4,713,000 |
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 | [1] | 4,219,000 | 4,497,000 |
Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 | |||
Debt Instrument [Line Items] | |||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, Fair value | [1] | 19,646,000 | 20,147,000 |
Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 | |||
Debt Instrument [Line Items] | |||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, Fair value | [1] | 15,328,000 | 15,361,000 |
Structured Settlements Encumbered | |||
Debt Instrument [Line Items] | |||
Total structured settlements | 55,917,000 | 51,611,000 | |
Structured Settlements Not Encumbered | |||
Debt Instrument [Line Items] | |||
Total structured settlements | $ 14,065,000 | $ 13,024,000 | |
[1] | See Note 10 - Other Debt - CBC |
Structured Settlements (Parenth
Structured Settlements (Parenthetical) (Detail) - USD ($) | 3 Months Ended | ||
Dec. 31, 2015 | May. 02, 2014 | ||
Debt Instrument [Line Items] | |||
Line of credit, Current borrowing capacity | $ 20,000,000 | ||
Structured Settlement | |||
Debt Instrument [Line Items] | |||
Line of credit, Current borrowing capacity | [1] | $ 25,000,000 | |
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | Structured Settlement | |||
Debt Instrument [Line Items] | |||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | [1] | 2025-06 | |
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | Structured Settlement | |||
Debt Instrument [Line Items] | |||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | [1] | 2026-08 | |
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | Structured Settlement | |||
Debt Instrument [Line Items] | |||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | [1] | 2032-04 | |
Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 | Structured Settlement | |||
Debt Instrument [Line Items] | |||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | [1] | 2037-02 | |
Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 | Structured Settlement | |||
Debt Instrument [Line Items] | |||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | [1] | Mar. 30, 2034 | |
[1] | See Note 10 - Other Debt - CBC |
Expected Cash Flows of Structur
Expected Cash Flows of Structured Settlements Based on Maturity Value (Detail) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
September 30, 2016 (9 months) | $ 5,736,000 | ||
September 30, 2017 | 7,928,000 | ||
September 30, 2018 | 6,468,000 | ||
September 30, 2019 | 6,930,000 | ||
September 30, 2020 | 6,128,000 | ||
Thereafter | 74,534,000 | ||
Total | [1],[2] | $ 107,724,000 | $ 99,135,000 |
[1] | The maturity value represents the aggregate unpaid principal balance at December 31, 2015 and September 30, 2015. | ||
[2] | There are no amounts of structured settlements that are past due, or in nonaccrual status at December 31, 2015 and September 30, 2015. |
Litigation Funding - Additional
Litigation Funding - Additional Information (Detail) - USD ($) | May. 18, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Other Investments [Line Items] | |||||
Revolving line of credit | $ 1,500,000 | ||||
Bearing interest at prime rate, with initial term | 24 months | ||||
Outstanding loan balance | $ 1,500,000 | ||||
Company's investment in cases through BPCM, reserve established amount | 3,100,000 | ||||
Recognized revenue through BPCM | 0 | $ 0 | |||
Before Amendment | |||||
Other Investments [Line Items] | |||||
Revolving line of credit | 1,000,000 | ||||
After Amendment | |||||
Other Investments [Line Items] | |||||
Revolving line of credit | 1,500,000 | ||||
Pegasus Legal Funding LLC | |||||
Other Investments [Line Items] | |||||
Earnings in interest and fees | 3,100,000 | 2,500,000 | |||
Company's investment in personal injury | 34,600,000 | $ 36,700,000 | |||
Reserves for bad debts | $ 5,496,000 | $ 3,757,000 | $ 5,459,000 | $ 2,474,000 |
Reserves for Bad Debts (Detail)
Reserves for Bad Debts (Detail) - Pegasus Legal Funding LLC - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of period | $ 5,459,000 | $ 2,474,000 |
Provisions for losses | 412,000 | 1,561,000 |
Write offs | (375,000) | (278,000) |
Balance at end of period | $ 5,496,000 | $ 3,757,000 |
Furniture and Equipment (Detail
Furniture and Equipment (Detail) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 5,371,000 | $ 5,345,000 |
Less accumulated depreciation | 4,985,000 | 4,865,000 |
Furniture and equipment, net | 386,000 | 480,000 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total | 440,000 | 414,000 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,622,000 | 3,622,000 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,210,000 | 1,210,000 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 99,000 | $ 99,000 |
Non-Recourse Debt - Additional
Non-Recourse Debt - Additional Information (Detail) - USD ($) | Jun. 03, 2014 | May. 02, 2014 | Aug. 07, 2013 | Mar. 31, 2007 | Dec. 31, 2015 | Jun. 30, 2014 |
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 | $ 3,200,000 | ||||
Forgiveness of non-recourse debt | $ 26,100,000 | |||||
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 Debt - CBC - Additional I
Other Debt - CBC - Additional Information (Detail) - USD ($) | Mar. 11, 2015 | Dec. 31, 2013 | Sep. 29, 2014 | Sep. 30, 2015 | Dec. 31, 2015 | Nov. 26, 2014 | May. 02, 2014 | May. 18, 2012 |
Debt Instrument [Line Items] | ||||||||
Line of credit, Current borrowing capacity | $ 20,000,000 | |||||||
Other debt outstanding amount | $ 51,611,000 | $ 55,917,000 | ||||||
Issuance of debt notes by Special Purpose Entities | 47,000,000 | 46,000,000 | ||||||
Debt instrument, issued | $ 1,500,000 | |||||||
CBC | ||||||||
Debt Instrument [Line Items] | ||||||||
Assumed debt related to acquisition | $ 25,900,000 | |||||||
Line of credit, Current borrowing capacity | $ 25,000,000 | $ 12,500,000 | $ 22,000,000 | $ 25,000,000 | ||||
Revolving line of credit, interest rate | 4.10% | 5.50% | 4.75% | |||||
Revolving line of credit, expiring date | Mar. 1, 2017 | Feb. 28, 2015 | Mar. 1, 2017 | |||||
Other debt outstanding amount | $ 51,611,000 | 55,917,000 | ||||||
Amount from line of credit facility | 4,623,000 | 9,959,000 | ||||||
Issuance of debt notes by Special Purpose Entities | $ 46,988,000 | $ 45,958,000 | ||||||
Ownership interest acquired, percent | 80.00% | |||||||
CBC | SPE | ||||||||
Debt Instrument [Line Items] | ||||||||
Ownership interest acquired, percent | 100.00% | |||||||
CBC | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount from line of credit facility | $ 9,900,000 | |||||||
Issuance of debt notes by Special Purpose Entities | 46,000,000 | |||||||
Debt instrument, issued | $ 16,600,000 | $ 21,800,000 | ||||||
Debt instrument, fixed interest rate | 5.10% | 5.40% |
Component of Other Debt from Ac
Component of Other Debt from Acquisition (Detail) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Debt Instrument [Line Items] | ||
Notes payable secured by settlement receivables with all principal and interest outstanding payable | $ 46,000,000 | $ 47,000,000 |
Total debt - CBC | 55,917,000 | 51,611,000 |
CBC | ||
Debt Instrument [Line Items] | ||
Notes payable secured by settlement receivables with all principal and interest outstanding payable | 45,958,000 | 46,988,000 |
$25,000,000 revolving line of credit expiring on March 1, 2017 | 9,959,000 | 4,623,000 |
Total debt - CBC | $ 55,917,000 | 51,611,000 |
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 | $ 2,173,000 | 2,270,000 |
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 | $ 4,592,000 | 4,713,000 |
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 | 7.125% | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | $ 4,219,000 | 4,497,000 |
CBC | Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 | ||
Debt Instrument [Line Items] | ||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, interest rate | 5.39% | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | $ 19,646,000 | 20,147,000 |
CBC | Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 | ||
Debt Instrument [Line Items] | ||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, interest rate | 5.07% | |
Notes payable secured by settlement receivables with all principal and interest outstanding payable | $ 15,328,000 | $ 15,361,000 |
CBC | 25,000,000 revolving line of credit expiring on March 1, 2017 | ||
Debt Instrument [Line Items] | ||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, interest rate | 4.10% |
Component of Other Debt from 62
Component of Other Debt from Acquisition (Parenthetical) (Detail) - USD ($) | Mar. 11, 2015 | Dec. 31, 2015 | Sep. 29, 2014 | Sep. 30, 2015 | May. 02, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||||
Line of credit, Current borrowing capacity | $ 20,000,000 | |||||
CBC | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, Current borrowing capacity | $ 25,000,000 | $ 22,000,000 | $ 25,000,000 | $ 12,500,000 | ||
Revolving line of credit, expiring date | Mar. 1, 2017 | Feb. 28, 2015 | Mar. 1, 2017 | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 | CBC | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | 2025-06 | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 | CBC | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | 2026-08 | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 | CBC | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | 2032-04 | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 | CBC | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | 2037-02 | |||||
Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 | CBC | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable secured by settlement receivables with all principal and interest outstanding payable, maturity date | 2034-03 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jul. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 |
Income Tax [Line Items] | ||||
Effective income tax rate | 30.70% | 23.40% | ||
State and local net operating loss carry forwards expiration dates | 2029-09 | |||
Valuation allowance | $ 0 | |||
Interest recognized from uncertain tax positions | $ 624,000 | |||
Payment to the IRS in anticipation of the conclusion of the examination | $ 13,000,000 | |||
Accrued interest related to tax of IRS adjustment | 624,000 | |||
Uncertain tax positions | $ 0 | |||
State and Local Jurisdiction | ||||
Income Tax [Line Items] | ||||
Income tax returns subject to examination in years | 4 years | |||
New Jersey Division of Taxation | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforward balance | $ 84,700,000 | |||
IRS | ||||
Income Tax [Line Items] | ||||
Income tax returns subject to examination in years | 3 years | |||
IRS | Earliest Tax Year | ||||
Income Tax [Line Items] | ||||
Tax year subject to examination | 2,014 | |||
IRS | Latest Tax Year | ||||
Income Tax [Line Items] | ||||
Tax year subject to examination | 2,015 |
Computation of Basic and Dilute
Computation of Basic and Diluted Per Share Data (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Basic, Net Income | $ 1,806,000 | $ 370,000 |
Diluted, Net Income | $ 1,806,000 | $ 370,000 |
Basic, Weighted Average Shares | 12,155,421 | 13,013,719 |
Effect of Dilutive Stock, Weighted Average Shares | 276,465 | 294,854 |
Diluted, Weighted Average Shares | 12,431,886 | 13,308,573 |
Basic, Per share amount | $ 0.15 | $ 0.03 |
Diluted, Per share amount | $ 0.15 | $ 0.03 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Computation of Earnings Per Share [Line Items] | ||
Shares excluded from diluted earnings per share calculation | 454,205 | 381,000 |
Weighted average exercise price | $ 9.47 | $ 9.69 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) | Dec. 31, 2015Ownershares | Dec. 16, 2015shares | Dec. 31, 2015shares | Dec. 31, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, Shares | 67,100 | 67,100 | ||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Number of shares granted | 123,304 | 5,000 | 5,000 | 15,000 |
Number of principal owners | Owner | 2 | |||
Vesting date | Dec. 31, 2016 | |||
Vest Immediately | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, Shares | 9,100 | |||
One Graded Vesting Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, Shares | 58,000 | |||
Vesting period | 3 years |
Weighted Average Assumptions Us
Weighted Average Assumptions Used in Option Pricing Model (Detail) | 3 Months Ended |
Dec. 31, 2015 | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |
Risk-free interest rate | 0.24% |
Expected term (years) | 6 years 3 months |
Expected volatility | 23.40% |
Dividend yield | 0.00% |
Stock Option Plans - Additional
Stock Option Plans - Additional Information (Detail) | Dec. 31, 2015USD ($)shares | Dec. 16, 2015shares | Dec. 31, 2015USD ($)Employeeshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2012shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares utilized | shares | 67,100 | 67,100 | |||
Unrecognized compensation cost | $ 633,000 | $ 633,000 | |||
Intrinsic value of the stock options outstanding | 165,000 | 165,000 | |||
Intrinsic value of the stock options exercisable | $ 164,000 | $ 164,000 | |||
Intrinsic value of the stock options exercised | $ 76,000 | ||||
Fair value of options exercised | 525,000 | ||||
Weighted average remaining contractual life of exercisable options | 5 years 9 months 18 days | ||||
Fair value of the stock options, vested | $ 830,000 | 2,998,000 | |||
Fair value of the stock options, granted | 532,000 | 0 | |||
Stock based compensation | $ 283,000 | 432,000 | |||
Two Thousand And Twelve Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares utilized | shares | 45,600 | ||||
Eligible employees | Employee | 245,625 | ||||
Number of shares cancelled | shares | 1,315,775 | ||||
Number of shares available | shares | 109 | 109 | |||
Two Thousand And Twelve Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock authorized | shares | 2,000,000 | ||||
Two Thousand And Twelve Plan | Options to purchase | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares utilized | shares | 484,200 | ||||
Two Thousand And Two Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock authorized | shares | 1,000,000 | 1,000,000 | |||
Stock option awarded stock issued | shares | 0 | ||||
Stock Plan expiration date | Mar. 5, 2012 | ||||
Equity Compensation Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock authorized | shares | 1,000,000 | 1,000,000 | |||
Stock option awarded stock issued | shares | 0 | ||||
Stock Plan expiration date | Mar. 21, 2012 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based employee compensation | $ 196,000 | 338,000 | |||
Unrecognized compensation cost | $ 525,000 | $ 525,000 | |||
Unrecognized compensation cost, weighted average remaining period for recognition | 1 year 3 months 18 days | ||||
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Plan expiration date | Dec. 31, 2016 | ||||
Stock-based employee compensation | $ 87,000 | 94,000 | |||
Unrecognized compensation cost | $ 108,000 | $ 108,000 | |||
Unrecognized compensation cost, weighted average remaining period for recognition | 2 years 1 month 6 days | ||||
Fair value of awards, vested | $ 40,000 | $ 326,000 | |||
Number of shares granted | shares | 123,304 | 5,000 | 5,000 | 15,000 |
Stock Option Plans (Detail)
Stock Option Plans (Detail) - $ / shares | Dec. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options at the beginning of period, Shares | 1,043,566 | 1,403,259 | |
Options granted, Shares | 67,100 | 67,100 | |
Options exercised, Shares | (60,000) | ||
Options forfeited/cancelled, Shares | (344,259) | ||
Outstanding options at the end of period, Shares | 1,110,666 | 999,000 | |
Exercisable options at the end of period, Shares | 965,325 | 832,319 | |
Outstanding options at the beginning of period, Weighted Average Exercise Price | $ 8.47 | $ 10.78 | |
Options granted, Weighted Average Exercise Price | 7.93 | ||
Options exercised, Weighted Average Exercise Price | 0 | 7.83 | |
Options forfeited/cancelled, Weighted Average Exercise Price | 0 | 17.99 | |
Outstanding options at the end of period, Weighted Average Exercise Price | 8.43 | 8.47 | |
Exercisable options at the end of period, Weighted Average Exercise Price | $ 8.46 | $ 8.40 |
Summary of Outstanding Options
Summary of Outstanding Options (Detail) - $ / shares | 3 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number of Shares Outstanding | 1,110,666 | 1,043,566 | 999,000 | 1,403,259 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 6 years 2 months 12 days | |||
Options Outstanding, Weighted Average Exercise Price | $ 8.43 | $ 8.47 | $ 8.47 | $ 10.78 |
Options Exercisable, Number of Shares Exercisable | 965,325 | 832,319 | ||
Options Exercisable, Weighted Average Exercise Price | $ 8.46 | $ 8.40 | ||
$2.8751 - $ 5.7500 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, Lower Range | 2.8751 | |||
Range of Exercise Price, Upper Range | $ 5.7500 | |||
Options Outstanding, Number of Shares Outstanding | 7,100 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 3 years 3 months 18 days | |||
Options Outstanding, Weighted Average Exercise Price | $ 2.95 | |||
Options Exercisable, Number of Shares Exercisable | 7,100 | |||
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 | 5.7501 | |||
Range of Exercise Price, Upper Range | $ 8.6250 | |||
Options Outstanding, Number of Shares Outstanding | 914,566 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 6 years 2 months 12 days | |||
Options Outstanding, Weighted Average Exercise Price | $ 7.96 | |||
Options Exercisable, Number of Shares Exercisable | 780,561 | |||
Options Exercisable, Weighted Average Exercise Price | $ 7.92 | |||
$8.6251 - $11.5000 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, Lower Range | 8.6251 | |||
Range of Exercise Price, Upper Range | $ 11.5000 | |||
Options Outstanding, Number of Shares Outstanding | 174,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 7 years 1 month 6 days | |||
Options Outstanding, Weighted Average Exercise Price | $ 9.40 | |||
Options Exercisable, Number of Shares Exercisable | 162,664 | |||
Options Exercisable, Weighted Average Exercise Price | $ 9.45 | |||
$11.5000 - $28.7500 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, Lower Range | 11.5000 | |||
Range of Exercise Price, Upper Range | $ 28.7500 | |||
Options Outstanding, Number of Shares Outstanding | 15,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 1 year | |||
Options Outstanding, Weighted Average Exercise Price | $ 28.75 | |||
Options Exercisable, Number of Shares Exercisable | 15,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 28.75 |
Summary of Restricted Stock Tra
Summary of Restricted Stock Transactions (Detail) - Restricted stock - $ / shares | Dec. 31, 2015 | Dec. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested at the beginning of period, Shares | 44,107 | 68,214 | ||
Awards granted, Shares | 123,304 | 5,000 | 5,000 | 15,000 |
Vested, Shares | (34,107) | (34,107) | ||
Forfeited, Shares | 0 | 0 | ||
Unvested at the end of period, Shares | 15,000 | 15,000 | 49,107 | |
Unvested at the beginning of period, Weighted Average Grant Date Fair Value | $ 9.28 | $ 9.57 | ||
Awards granted, Weighted Average Grant Date Fair Value | 7.89 | 8.30 | ||
Vested, Weighted Average Grant Date Fair Value | 9.57 | 9.57 | ||
Forfeited, Weighted Average Grant Date Fair Value | 0 | 0 | ||
Unvested at the end of period, Weighted Average Grant Date Fair Value | $ 7.92 | $ 7.92 | $ 9.18 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) | Dec. 17, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Aug. 11, 2015 |
Stockholders Equity Note [Line Items] | |||||
Dividends declared | $ 0 | $ 0 | |||
Share repurchase program authorized amount | $ 15,000,000 | ||||
Purchase of treasury stock | $ 6,400,000 | $ 7,180,000 | |||
Share repurchase program additional authorized repurchased amount | $ 15,000,000 | ||||
Treasury stock, Shares | 1,035,800 | 201,800 | |||
Treasury stock (at cost) | $ 8,931,000 | $ 1,751,000 | |||
Purchase of treasury stock, shares | 0 |
Fair Value of Financial Measu73
Fair Value of Financial Measurements (Detail) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | |
Financial assets | |||
Cash and cash equivalents (Level 2) | $ 22,504,000 | $ 24,315,000 | |
Available-for-sale investments | 55,045,000 | 59,727,000 | |
Structured settlements | 69,982,000 | 64,635,000 | |
Other investments | [1] | 4,183,000 | 4,239,000 |
Financial liabilities | |||
Other debt - CBC, non-recourse notes payable with varying installments | 46,000,000 | 47,000,000 | |
Carrying Amount | Level 1 | |||
Financial assets | |||
Available-for-sale investments | 55,045,000 | 59,727,000 | |
Carrying Amount | Level 3 | |||
Financial assets | |||
Consumer receivables acquired for liquidation | 17,843,000 | 15,608,000 | |
Structured settlements | 69,982,000 | 64,635,000 | |
Financial liabilities | |||
Other debt - CBC, revolving line of credit | 9,959,000 | 4,623,000 | |
Other debt - CBC, non-recourse notes payable with varying installments | 45,958,000 | 46,988,000 | |
Fair Value | Level 1 | |||
Financial assets | |||
Available-for-sale investments | 55,045,000 | 59,727,000 | |
Fair Value | Level 3 | |||
Financial assets | |||
Consumer receivables acquired for liquidation | 43,456,000 | 31,339,000 | |
Structured settlements | 69,982,000 | 64,635,000 | |
Financial liabilities | |||
Other debt - CBC, revolving line of credit | 9,959,000 | 4,623,000 | |
Other debt - CBC, non-recourse notes payable with varying installments | $ 45,958,000 | $ 46,988,000 | |
[1] | The Company has elected to early adopt ASU 2015-07 and in accordance with ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
Fair Value of Financial Measu74
Fair Value of Financial Measurements and Disclosures - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unrealized gains on structured settlements | $ 1,527,000 | $ 1,202,000 |
Other investments redemption period | 5 years | |
Due to day one gains on new structured settlements financed during the period | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unrealized gains on structured settlements | $ 2,200,000 | |
Due to decrease in realized gains recognized as realized interest income on structured settlements during the period | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unrealized gains on structured settlements | $ (700,000) |
Quantitative Information about
Quantitative Information about Level 3 Fair Value Measurements (Detail) | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | $ 69,982,000 |
Valuation Technique | Discounted cash flow |
Unobservable Input | Discount rate |
Rate | 5.07% |
Changes in Structured Settlemen
Changes in Structured Settlements at Fair Value using Significant Unobservable Inputs (Level 3) (Detail) | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | |
Balance at beginning | $ 64,635,000 |
Total gains included in earnings | 1,527,000 |
Purchases | 4,179,000 |
Sales | 0 |
Interest accreted | 1,302,000 |
Payments received | (1,661,000) |
Total | 69,982,000 |
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 December 31, 2015 | $ 1,527,000 |
Schedule of Realized and Unreal
Schedule of Realized and Unrealized Gains and Losses Included in Earnings in Accompanying Consolidated Statements of Income (Detail) | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Total gains (losses) included in the three months ended December 31, 2015 | $ 1,527,000 |
Change in unrealized gains (losses) relating to assets still held at December 31, 2015 | $ 1,527,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended | |
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 4 | |
Revenue | $ 11,820,000 | $ 9,827,000 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | |
Pegasus | ||
Segment Reporting Information [Line Items] | ||
Ownership interest | 80.00% |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) | 3 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 11,820,000 | $ 9,827,000 | ||
Other income | 500,000 | 600,000 | ||
Income (loss) before income taxes | 3,368,000 | 419,000 | ||
Total assets | [1] | 235,975,000 | $ 237,372,000 | |
Capital expenditures | 26,000 | |||
Depreciation | 120,000 | 150,000 | ||
Operating Segments | Consumer Receivables | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,100,000 | 5,000,000 | ||
Income (loss) before income taxes | 3,900,000 | 3,400,000 | ||
Total assets | [1] | 17,900,000 | 17,000,000 | |
Operating Segments | Personal Injury Claims | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,100,000 | 2,500,000 | ||
Income (loss) before income taxes | 1,900,000 | (200,000) | ||
Total assets | [1] | 35,200,000 | 39,600,000 | |
Operating Segments | Structured Settlements | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,900,000 | 2,200,000 | ||
Income (loss) before income taxes | 800,000 | 100,000 | ||
Total assets | [1] | 73,900,000 | 63,100,000 | |
Operating Segments | GAR Disability Advocates | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 700,000 | 100,000 | ||
Income (loss) before income taxes | (1,800,000) | (1,200,000) | ||
Total assets | [1] | 2,400,000 | 2,600,000 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Other income | 500,000 | 600,000 | ||
Income (loss) before income taxes | (1,400,000) | (1,700,000) | ||
Total assets | [1] | 106,600,000 | $ 115,100,000 | |
Depreciation | $ 100,000 | $ 200,000 | ||
[1] | Includes other amounts in other line items on the consolidated balance sheet. |