Exhibit 99.1
FOR IMMEDIATE RELEASE
---------------------
CONTACT:
Stephen D. Axelrod, CFA
Mitchell Herman, CFO Andria Pilo (Media)
Asta Funding, Inc. Wolfe Axelrod Weinberger Assoc. LLC
(201) 567-5648 (212) 370-4500; (212) 370-4505 (Fax)
email: steve@wolfeaxelrod.com
ASTA FUNDING REPORTS SECOND QUARTER AND SIX MONTHS FISCAL 2003 RESULTS
ENGLEWOOD CLIFFS, NJ, May 13, 2003 -- Asta Funding, Inc., (NASDAQ: ASFI), a
leading consumer receivables asset management and liquidation company, today
reported results for the three months and six months ended March 31, 2003.
Net income for the three months ended March 31, 2003, declined 8% to $2,429,000,
or $0.55 per diluted share, compared to $2,634,000, or $0.59 per diluted share,
in the same prior year period. Revenues for the three months ended March 31,
2003, were $7,720,000, a decline of 26% compared to revenues of $10,382,000 a
year ago.
Net income for the six months ended March 31, 2003 declined 4% to $4,741,000 or
$1.08 per diluted share, from $4,930,000, or $1.12 per diluted share, for the
same period a year earlier. Revenues for the six months ended March 31, 2003
were $14,471,000, a decline of 23% compared to revenues for the six months ended
March 31, 2002 of $18,784,000.
Based on an increase in actual cash flows for the three months and six months
ended March 31, 2003, and projected cash flows through September 30, 2005, on
one of our portfolios as compared to what we estimated at September 30, 2002, we
revised our estimate of future collections. Such change in accounting estimate
has resulted in approximately a $1.4 million increase in finance income
recognized for the three and six months ended March 31, 2003 for this portfolio.
Chief executive officer Gary Stern said the lower second quarter and six months
revenues and net earnings reflect the lower number of portfolios acquired for
liquidation during the six months ended March 31, 2003. Mr. Stern commented, "We
continue to carefully review potential distressed portfolio acquisitions. Our
philosophy has always been that of a cautious buyer willing to forego business
if it did not meet our business model. This approach has proven to be successful
over the long term and we will continue to be disciplined and conservative
purchasers of debt."
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Mr. Stern added, "At the end of the second quarter, we announced an agreement to
purchase $150 million of charged-off consumer receivables from a major financial
institution at the rate of $30 million a month for 5 months."
"Our available cash increased to $14.9 million at March 31, 2003, compared to
$10.0 million at the end of the first quarter. In addition, our line of credit,
which was largely unused at March 31, 2003, is available for future receivable
purchases. This financial strength could allow us to purchase larger portfolios
as they become available," Mr. Stern concluded.
Asta Funding will conduct a teleconference today at 11:00 a.m. Eastern time. To
participate please dial USA (877) 511-5818, International (706) 634-1462 about 5
- -10 minutes prior to 11:00 am EST. Please refer to the Asta Funding earnings
teleconference ID 551662. A recording of the conference call will be available
from 12:00 noon EST May 13th through May 20th, by dialing USA/ Canada (800)
642-1687, International (706) 645-9291, conference ID 551662.
Asta Funding, Inc.
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer
receivables asset management company that specializes in the purchase,
liquidation and management of performing and non-performing consumer
receivables. Asta generates revenues and earnings primarily through purchase and
collection of performing and non-performing consumer receivables. For additional
information, please visit our website at WWW.ASTAFUNDING.COM.
Except for historical information containing 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 10-KSB for the fiscal year
ended September 30, 2002, and those described from time to time in Asta
Funding, Inc.'s other fillings with the Securities and Exchange
Commission, news releases and other communications, including that Asta
may not be able to purchase consumer receivable portfolios at favorable
prices or on sufficiently favorable terms or at all. Asta Funding,
Inc.'s reports with the Securities and Exchange Commission are
available free of charge through its website at www.astafunding.com.
- Financial Table Follows -
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Asta Funding, Inc. and Subsidiaries
Consolidated Statements of Operations
Unaudited
Three Months Ended Three Months Ended Six Months Ended Six Months Ended
March 31, March 31, March 31, March 31,
------------------ ------------------- ---------------- -----------------
2003 2002 2003 2002
---- ---- ---- ----
Revenues:
Interest $ 7,720,000 $10,287,000 $14,471,000 $18,688,000
Other -- 95,000 -- 96,000
----------- ----------- ----------- -----------
7,720,000 10,382,000 14,471,000 18,784,000
----------- ----------- ----------- -----------
Expenses:
General and administrative 2,009,000 1,887,000 3,362,000 3,330,000
Third-party servicing 1,645,000 2,371,000 3,176,000 4,722,000
Provision for losses -- 325,000 -- 400,000
Interest 11,000 1,387,000 13,000 2,095,000
----------- ----------- ----------- -----------
3,665,000 5,970,000 6,551,000 10,547,000
----------- ----------- ----------- -----------
Income before income taxes 4,055,000 4,412,000 7,920,000 8,237,000
Income tax expense 1,626,000 1,778,000 3,179,000 3,307,000
----------- ----------- ----------- -----------
Net income $ 2,429,000 $ 2,634,000 $ 4,741,000 $ 4,930,000
=========== =========== =========== ===========
Net income per share - Basic $ 0.59 $ 0.65 $ 1.16 $ 1.23
----------- ----------- ----------- -----------
- Diluted $ 0.55 $ 0.59 $ 1.08 $ 1.12
----------- ----------- ----------- -----------
Weighted average number of shares
outstanding - Basic 4,083,000 4,036,000 4,080,000 4,021,000
----------- ----------- ----------- -----------
- Diluted 4,447,000 4,427,000 4,401,000 4,392,000