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
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ASTA FUNDING REPORTS RECORD FIRST QUARTER FISCAL 2004 RESULTS
- QUARTERLY DIVIDEND RAISED TO $0.06 PER SHARE -
ENGLEWOOD CLIFFS, NJ, February 11, 2004 -- Asta Funding, Inc., (NASDAQ: ASFI), a
leading consumer receivables asset management and liquidation company, today
reported record results for its fiscal first quarter, the three months ended
December 31, 2003.
Net income for the three months ended December 31, 2003, was $4,688,000, or
$0.66 per diluted share, compared to $2,312,000, or $0.53 per diluted share, in
the first quarter of the prior year. Revenues for the three months ended
December 31, 2003 were $11,455,000, a 70% increase over revenues of $6,751,000
in the prior year's quarter. Per share results reflect the secondary common
stock offering of nearly 2.5 million shares issued at the end of June 2003.
Gary Stern, CEO of Asta Funding, said the first quarter revenue increase
reflects the Company's significant portfolio acquisition activity since May
2003, and the successful implementation of its liquidation strategies.
Mr. Stern stated, "Our first quarter performance demonstrates that our
disciplined asset acquisition approach, combined with flexible, active
collections management, is a successful formula for profitable growth. We will
continue to purchase portfolios with pricing and characteristics that satisfy
our strict criteria."
In discussing the increase in the quarterly dividend, Mr. Stern noted, "The
increased dividend reflects management's and the board's confidence in the
company's financial strength, and is a way of rewarding our shareholders for
their loyal support."
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 5448172. A recording of the conference call will be available
from 12:00 noon EST February 11th through February 18th, by dialing USA/ Canada
(800) 642-1687, International (706) 645-9291, conference ID 5448172.
- More -
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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 the 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 Form 10-K for the fiscal year ended September
30, 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
Unaudited
Three Months Ended
December 31,
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2003 2002
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Revenues:
Finance income $11,455,000 $ 6,751,000
Expenses:
General and administrative 2,543,000 1,353,000
Third-party servicing 862,000 1,531,000
Interest 171,000 2,000
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3,576,000 2,886,000
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Income before income taxes 7,879,000 3,865,000
Income tax expense 3,191,000 1,553,000
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Net income $ 4,688,000 $ 2,312,000
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Net income per share
- Basic $ 0.71 $ 0.57
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- Diluted $ 0.66 $ 0.53
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Weighted average number of shares outstanding
- Basic 6,603,000 4,076,000
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- Diluted 7,079,000 4,351,000
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