Exhibit 99.1
[Asta FUNDING, INC. Logo]
NASDAQ: ASFI
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA
Mitchell Herman, CFO Andria Arena (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 RECORD THIRD QUARTER AND NINE MONTHS NET INCOME
- NET INCOME GROWS OVER 120% IN QUARTER -
ENGLEWOOD CLIFFS, NJ, AUGUST 4, 2004 -- ASTA FUNDING, INC., (NASDAQ: ASFI), A
LEADING CONSUMER RECEIVABLE ASSET MANAGEMENT AND LIQUIDATION COMPANY, today
reported results for the three months and nine months ended June 30, 2004.
Net income for the three months ended June 30, 2004, rose 121% to a record
$5,607,000, or $0.39 per diluted share, compared to $2,540,000, or $0.27 per
diluted share, in the same prior year period. Revenues for the three months
ended June 30, 2004, were $12,050,000, an increase of 31% compared to revenues
of $9,208,000 a year ago.
Net income for the nine months ended June 30, 2004 grew 116% to a record
$15,728,000 or $1.10 per diluted share, from $7,281,000, or $0.81 per diluted
share, for the same period a year earlier. Revenues for the nine months ended
June 30, 2004 were a record $36,369,000, an increase of 54% compared to revenues
for the nine months ended June 30, 2003 of $23,679,000.
Per share results for both the three and nine month periods have been adjusted
for a 2-for-1 stock split, effected through a 100% stock dividend, which became
effective March 23, 2004, and give effect to the additional shares which were
issued through our June 2003 common stock secondary offering.
Commenting on the Company's performance, Asta chief executive officer Gary Stern
said, "Asta continues to produce record financial results. The third quarter and
nine month comparative results reflect significantly increased cash collections
resulting from the value we have built in our existing book of business and the
early returns on our more recently-added portfolios, as well as the continued
efficiencies driven by our expense controls."
Mr. Stern added, "Our outstanding results are a testament to our long-term
disciplined strategy, which is not dependent on receivable purchases in any one
quarter. With our financial and operational resources, our stringent pricing
standards and our proven business model, I am confident that Asta will continue
to maximize long-term value for our shareholders."
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Asta Funding will conduct a teleconference today at 11:00 a.m. EDT. To
participate please dial USA (877) 511-5818, International (706) 634-1462 about
5-10 minutes prior to 11:00 a.m. EDT. Please refer to the Asta Funding earnings
teleconference ID 9002003. A recording of the conference call will be available
from 1:00 p.m. EDT August 4th through August 11th, by dialing USA/ Canada (800)
642-1687, International (706) 645-9291, conference ID 9002003.
________________________________________
Asta Funding, Inc.
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 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, 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. Asta Funding, Inc.'s reports with the Securities and Exchange Commission
are available free of charge through its website at www.astafunding.com.
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ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
Three Months Ended Nine Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
Revenues:
Finance income $12,050,000 $9,208,000 $36,369,000 $23,679,000
Expenses:
General and administrative 2,474,000 2,067,000 7,998,000 5,429,000
Third-party servicing -- 1,320,000 1,316,000 4,496,000
Interest 167,000 1,409,000 623,000 1,422,000
2,641,000 4,796,000 9,937,000 11,347,000
Income before income taxes 9,409,000 4,412,000 26,432,000 12,332,000
Income tax expense 3,802,000 1,872,000 10,704,000 5,051,000
Net income $5,607,000 $2,540,000 $15,728,000 $7,281,000
Net income per share - Basic $0.42 $0.30 $1.18 $0.88
- Diluted $0.39 $0.27 $1.10 $0.81
Weighted average number of shares
outstanding - Basic 13,403,000 8,376,000 13,318,000 8,232,000
- Diluted 14,286,000 9,272,000 14,248,000 8,976,000
OTHER FINANCIAL HIGHLIGHTS:
o Asta purchased consumer receivables with an aggregate face value of $1.5
billion for an aggregate cost of $55.6 million during the nine months ended
June 30, 2004. In the first nine months of fiscal 2003, Asta purchased
consumer receivables with an aggregate face value of $2.0 billion for an
aggregate cost of $61.5 million.
o Cash collections for the quarter and nine months ended June 30, 2004 were
$26.0 million and $85.3 million, respectively, compared to $18.0 million and
$46.2 million for the same periods a year earlier.
o On June 30, 2004, the Company was added to the Russell 2000 and 3000
Indexes. The Russell Indexes are widely used by investment managers for
index funds and as benchmarks for both passive and active strategies. About
$220 billion is invested in index funds based on Russell's indexes and an
additional $850 billion is benchmarked to them.
o Regular quarterly dividend of $0.03 per share was paid on August 1, 2004.
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