[ASTA FUNDING INC. LOGO] Exhibit 99.1
NASDAQ: ASFI
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA
Mitchell Cohen, CFO Alisa D. Steinberg (Media)
ASTA FUNDING, INC. WOLFE AXELROD WEINBERGER ASSOC. LLC
(201) 567-5648 (212) 370-4500; (212) 370-4505 (Fax)
steve@wolfeaxelrod.com
alisa@wolfeaxelrod.com
ASTA FUNDING REPORTS SECOND QUARTER AND
SIX MONTHS FISCAL 2007 RESULTS
- CONFERENCE CALL TO BE HELD ON MAY 17, 2007 -
ENGLEWOOD CLIFFS, NJ, MAY 15, 2007 -- ASTA FUNDING, INC., (NASDAQ: ASFI), a
leading consumer receivable asset management and liquidation company, today
reported results for the three and six months ended March 31, 2007.
Revenues for the three months ended March 31, 2007, were $33,083,000, an
increase of 33.2% compared to revenues of $24,829,000 a year ago. Net income for
the three months ended March 31, 2007 increased 13.1% to $12,552,000, or $0.85
per diluted share, compared to $11,103,000, or $0.76 per diluted share, in the
same prior year period.
Revenues for the six months ended March 31, 2007 were $58,728,000, an increase
of 30.2% compared to revenues for the six months ended March 31, 2006 of
$45,089,000. Our $300 million portfolio purchase, which closed on March 5, 2007,
increased our revenue for the quarter and the six months ended by approximately
$2.6 million. Net income for the six months ended March 31, 2007 increased 17%
to $23,878,000 or $1.63 per diluted share, from $20,415,000, or $1.40 per
diluted share, for the same period a year earlier.
Net cash collections from collection of consumer receivables acquired for
liquidation was $76.1 million for the second quarter, up 37.0% from $55.6
million in the prior year's quarter. Net cash collections from collection of
consumer receivables acquired for liquidation was $135.1 million for the six
months ended March 31, 2007, up 32.7% from $101.8 million in the prior year's
period. Net cash collections represented by account sales of consumer
receivables acquired for liquidation was $13.9 million or 18.3% of net
cash collections in the quarter, down from 22.2% in the second quarter of fiscal
2006 and down from 30% in the first quarter of fiscal 2006.
Gary Stern, President and Chief Executive Officer, said, "The second quarter was
a rewarding one for Asta. We showed solid results on the top and bottom lines,
which can be attributed to our book of business and strong cash collections
during the quarter. Our business structure remains solid. The company's balance
sheet continued to strengthen as stockholders' equity grew to $15.08 per share
at the end of the second quarter, up 24.6% from a book value of $12.10 per share
the same time last year."
- MORE -
210 Sylvan Avenue, Englewood Cliffs, NJ 07632
(201) 567-5648, (201) 567-2203 fax
Asta Funding will conduct a teleconference on May 17, 2007 at 1:00 p.m. Eastern
time. To participate please dial USA (888) 693-0944, International (706)
679-0662 about 5 -10 minutes prior to 1:00 p.m. Eastern time. Please refer to
the Asta Funding earnings teleconference ID 9330355. A recording of the
conference call will be available from 3:00 p.m. Eastern time May 17th through
May 24th, by dialing USA/ Canada (800) 642-1687, International (706) 645-9291,
conference ID 9330355.
---------------------
Based in Englewood Cliffs, NJ, ASTA FUNDING, INC., is a leading consumer
receivable asset management company that specializes in the purchase, management
and liquidation of performing and non-performing consumer receivables. For
additional information, please visit our website at http://www.astafunding.com.
Except for historical information contained herein, the matters set forth in
this news release are "forward-looking" statements (as defined in the Private
Securities Litigation Reform Act of 1995.) Although Asta Funding, Inc. believes
the expectations reflected in such forward-looking statements are based upon
reasonable assumptions, there can be no assurance that its expectations will be
realized. Forward-looking statements involve certain risks and uncertainties
that could cause actual results to differ materially from Asta Funding, Inc.'s
expectations. Factors that could contribute to such differences include those
identified in Asta Funding, Inc.'s Form 10-K for the fiscal year ended September
30, 2006, Form 10-Q for the quarter ended December 31, 2006 and those described
from time to time in Asta Funding, Inc.'s other filings with the Securities and
Exchange Commission, news releases and other communications, including that the
portfolio purchase described in this press release may not be consistent with
Asta's initial valuation analysis, that the terms of the new financing obtained,
or the anticipated benefits of the portfolio purchase may not meet Asta's
expectations, that Asta may experience operational difficulties in acquiring a
portfolio of this size, that Asta received only limited representations and
warranties with respect to the quality, quantity and characteristics of the
portfolio and that there are other risks associated with the portfolio. Asta
Funding, Inc.'s reports with the Securities and Exchange Commission are
available free of charge through its website at http://www.astafunding.com.
- FINANCIAL TABLES FOLLOW -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(UNAUDITED)
<Table>
<Caption>
Three
Months Three Months Six Months Six Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2007 2006 2007 2006
------------ -------------- ------------ ------------
Revenue:
Finance income,
net $32,353,000 $24,829,000 $57,294,000 $45,089,000
Other income 255,000 - 459,000 -
Equity in earnings of
venture 475,000 - 975,000 -
------------ -------------- ------------ ------------
33,083,000 24,829,000 58,728,000 45,089,000
Expenses:
General and administrative 5,790,000 4,848,000 10,878,000 8,800,000
Interest 3,779,000 1,302,000 5,298,000 1,965,000
Impairments 2,412,000 - 2,412,000 -
------------ -------------- ------------ ------------
11,981,000 6,150,000 18,588,000 10,765,000
Income before income tax
expense 21,102,000 18,679,000 40,140,000 34,324,000
Income tax
expense 8,550,000 7,576,000 16,262,000 13,909,000
------------ -------------- ------------ ------------
Net Income $12,552,000 $11,103,000 $23,878,000 $20,415,000
============ ============== ============ ============
Net income per share:
Basic $0.91 $0.82 $1.73 $1.50
Diluted $0.85 $0.76 $1.63 $1.40
Weighted average number of common shares outstanding:
Basic 13,848,194 13,608,994 13,772,538 13,603,485
Diluted 14,744,499 14,604,636 14,647,556 14,583,252
</Table>
- MORE -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS DATA
MARCH 31, SEPTEMBER 30,
2007 2006
------------ ------------
(UNAUDITED)
ASSETS
Cash $ 6,769,000 $ 7,826,000
Consumer receivables acquired for liquidation 563,734,000 257,275,000
Due from third party collection agencies
and attorneys 3,567,000 3,062,000
Investment in venture 4,015,000 5,965,000
Furniture and equipment, net 1,080,000 1,101,000
Deferred income taxes 12,616,000 7,577,000
Other assets 10,237,000 5,034,000
------------ ------------
Total assets $602,018,000 $287,840,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt $377,162,000 $82,811,000
Other liabilities 4,268,000 4,338,000
Dividends payable 556,000 6,052,000
Income taxes payable 10,344,000 10,377,000
------------ ------------
Total liabilities 392,330,000 103,578,000
------------ ------------
Stockholders' Equity
Preferred stock, $.01 par value; authorized
5,000,000; issued and outstanding -- none
Common stock, $.01 par value; authorized
30,000,000 shares; issued and
outstanding -- 13,903,158 at March 31,
2007 and 13,755,157 at September 30, 2006 138,000 138,000
Additional paid-in capital 64,458,000 61,803,000
Retained earnings 145,092,000 122,321,000
------------ ------------
Total stockholders' equity 209,688,000 184,262,000
------------ ------------
Total liabilities and stockholders' equity $602,018,000 $287,840,000
============ ============
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