[Asta Funding, Inc. Logo]
NASDAQ: ASFI Exhibit 99.1
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 REPORTS RECORD SECOND QUARTER AND
SIX MONTHS FISCAL 2005 RESULTS
-Record Second Quarter Net Income and Fully Diluted EPS Increase 34% on Revenue
Increase of 30% -
ENGLEWOOD CLIFFS, NJ, MAY 9, 2005 -- ASTA FUNDING, INC., (NASDAQ: ASFI), a
leading consumer receivable asset management and liquidation company, today
reported results for the three and six months ended March 31, 2005.
Net income for the three months ended March 31, 2005 increased 34% to
$7,281,000, or $0.51 per diluted share (based on 14.4 million shares), compared
to $5,433,000, or $0.38 per diluted share (based on 14.3 million shares), in the
same prior year period. Revenues for the three months ended March 31, 2005, were
$16,662,000, an increase of 30% compared to revenues of $12,864,000 a year ago.
Net income for the six months ended March 31, 2005 increased 33% to $13,456,000,
or $0.94 per diluted share (based on 14.4 million shares), from $10,121,000, or
$0.71 per diluted share (based on 14.2 million shares), for the same period a
year earlier. Revenues for the six months ended March 31, 2005 were $30,492,000,
an increase of 25% compared to revenues for the six months ended March 31, 2004
of $24,319,000.
Gary Stern, President and Chief Executive Officer, said, "The second quarter was
very rewarding. We showed stellar growth on the top and bottom lines, made
significant portfolio purchases with a face value of $800 million at a cost of
approximately $36.8 million, and expanded our credit facility from $60 million
to $80 million for future growth opportunities that may arise. We continue to
adhere to the time-tested business strategies and disciplines that have proven
to be successful in growing shareholder value."
- 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 will conduct a teleconference today at 10:30 a.m. Eastern time. To
participate please dial USA (877) 511-5818, International (706) 634-1462 about 5
- -10 minutes prior to 10:30 am EDT. Please refer to the Asta Funding earnings
teleconference ID 6059128. A recording of the conference call will be available
from 12:00 noon EDT May 9th through May 16th, by dialing USA/ Canada (800)
642-1687, International (706) 645-9291, conference ID 6059128.
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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, 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 Six Months Ended
3/31/05 3/31/04 3/31/05 3/31/04
------- ------- ------- -------
Revenues:
Finance income $16,662,000 $12,864,000 $30,492,000 $24,319,000
----------- ----------- ----------- -----------
Expenses:
General and administrative 3,925,000 2,981,000 6,969,000 5,524,000
Interest 496,000 285,000 903,000 456,000
Third party servicing 0 454,000 0 1,316,000
----------- ----------- ----------- -----------
4,421,000 3,720,000 7,872,000 7,296,000
----------- ----------- ----------- -----------
Income before income taxes 12,241,000 9,144,000 22,620,000 17,023,000
Income tax expense 4,960,000 3,711,000 9,164,000 6,902,000
----------- ----------- ----------- -----------
Net income $7,281,000 $5,433,000 $13,456,000 $10,121,000
----------- ----------- ----------- -----------
Net income per share:
Basic $0.54 $0.41 $1.00 $0.76
----------- ----------- ----------- -----------
Diluted $0.51 $0.38 $0.94 $0.71
----------- ----------- ----------- -----------
Weighted average number of shares outstanding:
Basic 13,553,000 13,347,000 13,512,000 13,276,000
----------- ----------- ----------- -----------
Diluted 14,405,000 14,304,000 14,352,000 14,229,000
----------- ----------- ----------- -----------
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