Exhibit 99.1
[ASTA FUNDING, INC. LOGO]
NASDAQ: ASFI
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA
Mitchell Cohen, 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 ANNOUNCES RECORD FIRST QUARTER FINANCIAL RESULTS
- NET INCOME INCREASES 31.7% ON REVENUE GAIN OF 20.7% -
ENGLEWOOD CLIFFS, NJ, FEBRUARY 9, 2005 -- ASTA FUNDING, INC., (NASDAQ: ASFI), a
leading consumer receivable asset management and liquidation company, today
reported record results for its fiscal first quarter, the three months ended
December 31, 2004.
Net income for the three months ended December 31, 2004, rose 31.7% to
$6,175,000, or $0.43 per diluted share, compared to $4,688,000, or $0.33 per
diluted share, in the first quarter of the prior year. Revenues for the three
months ended December 31, 2004 were $13,830,000, a 20.7% increase over revenues
of $11,455,000 in the prior year's quarter. Per share results reflect the
2-for-1 stock split in the form of a 100% stock dividend effective March 23,
2004.
Gary Stern, President and Chief Executive Officer of Asta Funding, noted, "The
record first quarter reflects the benefits of the Company's strategy of
disciplined portfolio acquisitions. In the most recent quarter our selective
approach to portfolio additions still resulted in purchases exceeding $1 billion
at a cost of approximately $36.5 million."
"Furthermore," Mr. Stern declared, "our primarily outsourced collections
management business strategy has allowed us to maintain excellent control of our
overhead costs. This flexibility enables Asta to continue to collect
aggressively on its current book of business, even while the number of
portfolios that meet our disciplined purchasing guidelines may wane. In the
interim, this approach will open more capital for Asta, which will be put to
good use when opportunities arise."
Mr. Stern concluded, "Our experience and success developed over 30 years show
that profitable growth is the result of maintaining one's disciplined approach
even when others are, in our opinion, being over-aggressive in their purchasing
policies. We will continue to adhere to the time-tested business strategies and
disciplines that have proven to be successful."
Asta Funding will conduct a teleconference today at 11:00 am EST. To participate
please dial USA/Canada (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 3925512. A recording of the conference call will be available
from 12:00 noon EST February 9th through February 16th, by dialing USA/ Canada
(800) 642-1687, International (706) 645-9291, conference ID 5448172.
- MORE -
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210 Sylvan Avenue, Englewood Cliffs, NJ 07632
(201) 567-5648, (201) 567-2203 fax
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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, 2004, 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 STATEMENTS OF OPERATIONS DATA
UNAUDITED
Three Months Ended
December 31,
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2004 2003
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Revenues:
Finance income $13,830,000 $11,455,000
Expenses:
General and administrative 3,044,000 2,543,000
Interest 407,000 171,000
Third-party servicing -- 862,000
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3,451,000 3,576,000
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Income before income taxes 10,379,000 7,879,000
Income tax expense 4,204,000 3,191,000
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Net income $6,175,000 $4,688,000
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Net income per share
- Basic $0.46 $0.35
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- Diluted $0.43 $0.33
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Weighted average number of shares outstanding
- Basic 13,471,000 13,206,000
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- Diluted 14,303,000 14,158,000
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