[ASTA FUNDING LOGO] Exhibit 99.1
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 REPORTS RECORD THIRD QUARTER AND
NINE MONTHS REVENUES AND NET INCOME
- 3RD QUARTER REVENUES RISE 58%, NET INCOME INCREASES 52% -
ENGLEWOOD CLIFFS, NJ, AUGUST 9, 2005 -- 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, 2005.
Net income for the three months ended June 30, 2005, rose 52% to a record
$8,536,000, or $0.59 per diluted share, compared to $5,607,000, or $0.39 per
diluted share, in the same prior year period. Revenues for the three months
ended June 30, 2005, were $19,028,000, an increase of 58% compared to revenues
of $12,050,000 a year ago.
Net income for the nine months ended June 30, 2005 grew 40% to a record
$21,992,000 or $1.53 per diluted share, from $15,728,000, or $1.10 per diluted
share, for the same period a year earlier. Revenues for the nine months ended
June 30, 2005 were a record $49,520,000, an increase of 36% compared to revenues
for the nine months ended June 30, 2004 of $36,369,000.
Mr. Gary Stern, Asta's Chief Executive Officer, stated, "We are extremely
pleased to report another record quarter and nine months. Our performance
continues to demonstrate that our business model is sound. We continue to buy
attractively priced distressed consumer receivable portfolios for liquidation
and for the June quarter we purchased portfolios with a face amount exceeding
$481 million, bringing our aggregate purchases for the nine months to $2.3
billion, at prices that will allow us to attain our desired financial returns.
Additionally, we are in the final negotiations for the purchase of portfolios
with an aggregate face amount in excess of $500 million, which we anticipate
announcing within the next two weeks."
"Our financial metrics," Mr. Stern added, "are strong with cash collections in
the quarter of $43.5 million, up significantly from the $26.0 million collected
in the same quarter a year earlier. We remain highly disciplined in our
portfolio purchases and have the funds and credit resources to acquire
portfolios when the appropriate opportunities arise. At June 30, 2005
stockholder's equity was $136.4 million and our book value was $10.05, an
increase of roughly 25% from June 30, 2004."
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210 Sylvan Avenue, Englewood Cliffs, NJ 07632
(201) 567-5648, (201) 567-2203 fax
Mr. Stern concluded, "Asta has been steadfast in its business focus. We are
disciplined buyers of distressed consumer receivable portfolios and recognize
our superior performance is the result of maintaining that discipline. We will
continue to build shareholder value by applying the same principles in the
future. We are confident that this is the path to long term success."
Asta Funding will conduct a teleconference today at 10:30 a.m. EDT. To
participate please dial USA/Canada (877) 511-5818, International (706) 634-1462
about 5 -10 minutes prior to 10:30 a.m. EDT. Please refer to the Asta Funding
earnings teleconference ID 8395599. A recording of the conference call will be
available from 12:00 noon EDT August 9th through August 16th, by dialing USA/
Canada (800) 642-1687, International (706) 645-9291, conference ID 8395599.
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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.
- TABLE TO FOLLOW -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30, June 30,
-------- --------
2005 2004 2005 2004
---- ---- ---- ----
Revenues:
Finance income $19,028,000 $12,050,000 $49,520,000 $36,369,000
----------- ----------- ----------- -----------
Expenses:
General and administrative 4,153,000 2,474,000 11,122,000 7,998,000
Interest 512,000 167,000 1,415,000 623,000
Third-party servicing - - - 1,316,000
----------- ----------- ----------- -----------
4,665,000 2,641,000 12,537,000 9,937,000
----------- ----------- ----------- ----------
Income before income taxes 14,363,000 9,409,000 36,983,000 26,432,000
Income tax expense 5,827,000 3,802,000 14,991,000 10,704,000
----------- ----------- ----------- -----------
Net income $8,536,000 $5,607,000 $21,992,000 $15,728,000
----------- ----------- ----------- -----------
Net income per share:
Basic $0.63 $0.42 $1.63 $1.18
----- ----- ----- -----
Diluted $0.59 $0.39 $1.53 $1.10
---- ----- ----- -----
Weighted average number of shares outstanding:
Basic 13,569,000 13,403,000 13,529,000 13,318,000
---------- ---------- ---------- ----------
Diluted 14,424,000 14,286,000 14,377,000 14,248,000
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- MORE -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS DATA
JUNE 30, SEPTEMBER 30,
2005 2004
----------- -------------
(UNAUDITED)
ASSETS
Cash $ 1,920,000 $ 3,344,000
Consumer receivables acquired for liquidation 166,728,000 146,165,000
Deposit on receivable purchase - 7,288,000
Furniture and equipment, net 678,000 596,000
Due from servicers 740,000 -
Prepaid income taxes 713,000 -
Other assets 961,000 1,248,000
------------ ------------
Total assets $171,740,000 $158,641,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt $30,700,000 $39,355,000
Other liabilities 3,850,000 3,351,000
Income taxes payable 711,000 1,425,000
Deferred income taxes 44,000 44,000
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Total liabilities 35,305,000 44,175,000
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Stockholders' Equity
Preferred stock, $.01 par value; authorized 5,000,000; issued
and outstanding -- none
Common stock, $.01 par value; authorized 30,000,000 shares;
issued and outstanding -- 13,577,000 at June 30, 2005
and 13,432,000 at September 30, 2004 136,000 134,000
Additional paid-in capital 60,584,000 59,184,000
Retained earnings 75,715,000 55,148,000
------------ ------------
Total stockholders' equity 136,435,000 114,466,000
------------ ------------
Total liabilities and stockholders' equity $171,740,000 $158,641,000
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