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)
steve@wolfeaxelrod.com
ASTA FUNDING REPORTS RESULTS
FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003
Fiscal Year Highlights:
o Record 4th quarter earnings
o Fiscal 2003 net income increased 12 percent to $11.6 million
o Fiscal 2003 EPS of $2.25 per diluted share
ENGLEWOOD CLIFFS, NJ, November 18, 2003 -- Asta Funding, Inc., (NASDAQ: ASFI), a
leading consumer receivables asset management and liquidation company, today
reported results for the fiscal year ending September 30, 2003.
Net income for the fourth quarter ended September 30, 2003, rose 57% to a record
$4,293,000 or $0.61 per diluted share, from $2,737,000 or $0.63 per diluted
share, in the same prior year period. Fully diluted earnings per share decreased
to $0.61 from $0.63 during the fourth quarter ended September 30, 2003, as
compared to the same prior year period; a result of 2,475,000 additional shares
outstanding from the sale of shares in a secondary offering at the end of June
2003. Revenues for the fourth quarter ended September 30, 2003, were
$11,183,000, a 33% increase compared to revenues of $8,428,000 for the fourth
quarter ended September 30, 2002.
Net income for the year ended September 30, 2003, rose 12% to $11,574,000 or
$2.25 per diluted share, from $10,383,000 or $2.38 per diluted share, in the
same prior year period. Revenues for the year ended September 30, 2003, were
$34,862,000, a decline of 3% compared to revenues of $36,012,000 for the year
ended September 30, 2002.
In discussing the fiscal 2003 performance, Gary Stern, Chief Executive Officer,
stated, "Revenues declined marginally in fiscal 2003 as Asta Funding maintained
its disciplined conservative approach in purchasing distressed consumer
receivables. For the first seven months we only spent $4.4 million for
approximately $88 million of receivables. From May 2003, through the end of the
fiscal year, we purchased $3.5 billion of receivables for $111.1 million. The
subsequent record fourth quarter results, demonstrated the wisdom of adhering to
our business philosophy."
- More -
Mr. Stern continued, "In fiscal 2003 the Company raised $47 million in new
capital; positioning Asta to become an even more significant purchaser of
distressed consumer receivables. During the fiscal year ended September 30, 2003
we spent over $115 million for the acquisition of over $3.5 billion in
distressed consumer receivables at a substantial discount to their face value
using the capital we raised in the secondary offering and our lines of credit.
Notwithstanding these purchases, total debt outstanding at the fiscal year end
was only $16.4 million."
Mr. Stern concluded, "The book value was $14.02 per share, up 70% from last
year's book value of $8.24 per share. We are heartened by our continued success
and our ability to continue to add to shareholder value. We expect fiscal 2004
to be another successful year but we will continue to operate with the awareness
that caution is a virtue and we will remain committed to our disciplined
approach to purchasing distressed consumer receivables."
As previously reported, 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 minutes prior to start. Please refer to the
Asta Funding earnings teleconference ID 4065188.
____________________________________
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 Web site 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 Form 10-KSB for the fiscal year ended
September 30, 2002, its prospectus dated June 27, 2003, 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 Asta
may not be able to purchase consumer receivable portfolios at favorable prices
or on sufficiently favorable terms or at all, and may not be able to continue
our new quarterly dividend program. 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 -
Asta Funding, Inc. and Subsidiaries
Consolidated Statements of Operations
Three Months Ended Three Months Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
-------------------- -------------------- ----------------- ----------------
2003 2002 2003 2002
(unaudited) (unaudited)
Revenues:
Interest $ 11,183,000 $ 8,305,000 $ 34,862,000 $ 35,793,000
Other - 123,000 - 219,000
-------------------- -------------------- ----------------- ----------------
11,183,000 8,428,000 34,862,000 36,012,000
-------------------- -------------------- ----------------- ----------------
Expenses:
General and administrative 2,408,000 1,994,000 7,837,000 6,698,000
Third-party servicing 1,068,000 1,172,000 5,564,000 7,433,000
Provision for losses - 200,000 - 950,000
Interest 433,000 549,000 1,855,000 3,643,000
-------------------- -------------------- ----------------- ----------------
3,909,000 3,915,000 15,256,000 18,724,000
-------------------- -------------------- ----------------- ----------------
Income before income taxes 7,274,000 4,513,000 19,606,000 17,288,000
Income tax expense 2,981,000 1,776,000 8,032,000 6,905,000
-------------------- -------------------- ----------------- ----------------
Net income $ 4,293,000 $ 2,737,000 $ 11,574,000 $ 10,383,000
==================== ==================== ================= ================
Net income per share - Basic $ 0.65 $ 0.68 $ 2.45 $ 2.57
-------------------- -------------------- ----------------- ----------------
- Diluted $ 0.61 $ 0.63 $ 2.25 $ 2.38
-------------------- -------------------- ----------------- ----------------
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