Exhibit 99.1
[ASTA FUNDING, INC. LOGO]
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA
Mitchell Cohen, 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 RECORD RESULTS FOR THE FISCAL YEAR ENDING
SEPTEMBER 30, 2004
FISCAL YEAR HIGHLIGHTS:
o Record 4th quarter and fiscal year earnings
o Fiscal 2004 net income increased 92 percent to $22.2 million
o Fiscal 2004 EPS of $1.57 per diluted share
ENGLEWOOD CLIFFS, NJ, NOVEMBER 23, 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, 2004.
Net income for the fourth quarter ended September 30, 2004, rose 52% to a record
$6,509,000 or $0.46 per diluted share, from $4,293,000 or $0.31 per diluted
share, in the same prior year period. Diluted earnings per share reflect
4,950,000 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, 2004, were $14,806,000, a 32% increase compared to revenues of
$11,183,000 for the fourth quarter ended September 30, 2003.
Net income for the year ended September 30, 2004, rose 92% to $22,237,000 or
$1.57 per diluted share, from $11,574,000 or $1.13 per diluted share, in the
same prior year period. Revenues for the year ended September 30, 2004, were
$51,175,000, an increase of 47% compared to revenues of $34,862,000 for the year
ended September 30, 2003. All share and per share amounts have been
retroactively restated to give effect for a 2:1 stock split in March, 2004.
Gary Stern, Chief Executive Officer, noted, "In a very competitive market, Asta
has shown that adherence to its business model can yield exceptional financial
performance. We have maintained our strict consumer receivable portfolio
purchase standards and have been able to report growth in both purchases and
collections. Last week, we announced that since the beginning of fiscal 2005 we
have purchased approximately $509 million in distressed consumer receivables, an
excellent start to fiscal 2005."
- MORE -
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210 Sylvan Avenue, Englewood Cliffs, NJ 07632
(201) 567-5648, (201) 567-2203 fax
Mr. Stern continued, "The Company put the $47 million that it received at the
end of the third quarter of fiscal 2003 from the secondary offering of shares to
good use, spending $60 million in the fourth quarter of fiscal 2003 and a total
of $103.7 million in fiscal 2004 to purchase distressed consumer receivables at
a substantial discount to face value. So far this fiscal year we have spent
approximately $18.5 million. Notwithstanding these purchases, our success in
collecting has resulted in total debt outstanding of only $39.4 million at the
fiscal year end. At the same time, the book value at the fiscal year end is up
22% to $8.52 per share from last year's book value of $7.01 per share."
Mr. Stern concluded, "Asta is a leader in the consumer receivable asset
management business; an industry that is growing rapidly as consumer debt
continues to increase. We will continue to apply the methods that have proven to
be successful in increasing shareholder value, namely a disciplined approach to
the purchase of distressed consumer receivables, coupled with a successful
strategy of servicing and collection. Our success in applying these principles
has resulted in Asta delivering significant increases in shareholder value in
past years and we hope to continue to do so in the future."
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 2332330. INTERNATIONAL (706) 634-1462
ABOUT 5 -10 MINUTES PRIOR TO 11:00 AM EST. A RECORDING OF THE CONFERENCE CALL
WILL BE AVAILABLE TODAY AT 12:00 NOON EST THROUGH NOVEMBER 30TH AT MIDNIGHT, BY
DIALING USA/ CANADA (800) 642-1687, INTERNATIONAL (706) 645-9291, CONFERENCE ID
2332330.
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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 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 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.
- FINANCIAL TABLE FOLLOWS -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED OPERATIONS DATA
Three Months Ended Three Months Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
--------------------- ------------------- ------------------- ----------------------
2004 2003 2004 2003
---- ---- ---- ----
(unaudited) (unaudited)
REVENUES:
Finance income $14,806,000 $11,183,000 $51,175,000 $34,862,000
----------- ----------- ----------- -----------
EXPENSES:
General and administrative 3,260,000 2,408,000 11,258,000 7,837,000
Third-party servicing 1,068,000 1,316,000 5,564,000
Provision for losses 300,000 -- 300,000 --
Interest 222,000 433,000 845,000 1,855,000
----------- ----------- ----------- -----------
3,782,000 3,909,000 13,719,000 15,256,000
----------- ----------- ----------- -----------
Income before income taxes 11,024,000 7,274,000 37,456,000 19,606,000
Income tax expense 4,515,000 2,981,000 15,219,000 8,032,000
----------- ----------- ----------- -----------
Net income $ 6,509,000 $ 4,293,000 $22,237,000 $11,574,000
=========== =========== =========== ===========
Net income per share - Basic $ 0.48 $ 0.33 $ 1.67 $ 1.23
----------- ----------- ----------- -----------
- Diluted $ 0.46 $ 0.31 $ 1.57 $ 1.13
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- MORE -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
September 30,
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2004 2003
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ASSETS
Cash and cash equivalents $ 3,344,000 $ 6,846,000
Restricted cash and cash equivalents 0 54,000
Consumer receivables acquired for liquidation 146,165,000 105,592,000
Deposit on receivable purchase 7,288,000
Auto loans receivable -- 5,000
Furniture and equipment (net of accumulated depreciation of $1,013,000
in 2004 and $775,000 in 2003) 596,000 710,000
Other assets 1,248,000 169,000
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$158,641,000 $113,376,000
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LIABILITIES
Debt $ 39,355,000 $ 16,381,000
Other liabilities 3,351,000 3,741,000
Income taxes payable 1,425,000 802,000
Deferred income taxes 44,000 85,000
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Total liabilities 44,175,000 21,009,000
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Commitments
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value; authorized 5,000,000;
issued - none
Common stock, $.01 par value, authorized 30,000,000 shares, issued
and outstanding 13,432,000 shares in 2004 and 13,180,000 in 2003 134,000 66,000
Additional paid-in capital 59,184,000 57,784,000
Retained earnings 55,148,000 34,517,000
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Total stockholders' equity 114,466,000 92,367,000
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$158,641,000 $113,376,000
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