[Asta Funding, Inc. LOGO]
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT:
Mitchell Cohen, CFO Stephen D. Axelrod, CFA
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 FOURTH QUARTER AND FISCAL YEAR 2005
-FISCAL YEAR REVENUES INCREASE 36% AND EARNINGS PER SHARE RISES 37% TO $2.15
ENGLEWOOD CLIFFS, NJ, DECEMBER 13, 2005 -- ASTA FUNDING, INC., (NASDAQ: ASFI), a
leading consumer receivables asset management and liquidation company, today
reported record results for the fourth quarter and fiscal year ending September
30, 2005.
Net income for the fourth quarter ended September 30, 2005, rose 38% to a record
$9,004,000 or $0.62 per diluted share, from $6,509,000 or $0.46 per diluted
share, in the same prior year period. Finance income for the fourth quarter
ended September 30, 2005, was $19,959,000, a 35% increase compared to finance
income of $14,806,000 for the fourth quarter ended September 30, 2004.
Net income for the year ended September 30, 2005, rose 39% to $30,996,000 or
$2.15 per diluted share, from $22,237,000 or $1.57 per diluted share, in the
same prior year period. Finance income for the year ended September 30, 2005,
was $69,479,000, an increase of 36% compared to finance income of $51,175,000
for the year ended September 30, 2004.
Gary Stern, Chief Executive Officer, said, "I am pleased to report another
quarter and fiscal year of record results. These excellent results continue to
validate our business model, whereby we outsource the vast majority of our
collections, and yield exceptional financial performance. We continue to remain
pressure-free with regard to our consumer receivable portfolio purchases, and
despite a competitive market, our purchases for the year amounted to $3.5
billion of face value receivables with a purchase price of $126 million. Finance
income and earnings per share for fiscal 2005 grew 36% and 37% respectively,
while expenses only increased 25%, due to our tight expense control, as our
expense structure is relatively fixed. Cash collections increased by 48% during
fiscal 2005 to $168.9 million."
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210 Sylvan Avenue, Englewood Cliffs, NJ 07632
(201) 567-5648, (201) 567-2203 fax
Mr. Stern continued, "Asta's capital structure continues to remain very strong.
During fiscal 2005 the company invested over $126 million for portfolios, which
was primarily funded by internally generated cash flow. Notwithstanding these
purchases, our success in collecting has resulted in total debt outstanding of
only $29.3 million at the fiscal year end. As of December 12, 2005 total debt
outstanding was approximately $51 million, leaving Asta with approximately $29
million available for future purchases. At the same time, stockholders' equity
continues to grow, with the book value at the fiscal year end rising 25.3% to
$10.68 per share from last year's book value of $8.52 per share."
FISCAL YEAR HIGHLIGHTS:
o Record fourth quarter and fiscal year revenues and earnings
o Fiscal 2005 net income increased 39 percent to $31.0 million
o Fiscal 2005 EPS of $2.15 per diluted share
o Record net cash collections of $168.9 million for fiscal year 2005
o Portfolio purchases with an aggregate face value of $3.5 billion and a
purchase price of $126 million
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, managing, and collecting. 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. EST. INTERESTED PARTIES MAY PARTICIPATE IN THE CONFERENCE CALL BY
DIALING USA/CANADA (877) 511-5818, INTERNATIONAL (706) 634-1462 ABOUT 5 -10
MINUTES PRIOR TO 11:00 A.M. EST. PLEASE REFER TO THE ASTA FUNDING EARNINGS
TELECONFERENCE ID# 3070206. A RECORDING OF THE CONFERENCE CALL WILL BE AVAILABLE
FROM 12:00 NOON EST DECEMBER 13 THROUGH DECEMBER 20 AT MIDNIGHT, BY DIALING USA/
CANADA (800) 642-1687, INTERNATIONAL (706) 645-9291, CONFERENCE ID# 3070206.
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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 http://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 http://www.astafunding.com.
ASTA FUNDING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
Three Months Ended Year Ended
September 30, September 30,
2005 2004 2005 2004
---- ---- ---- ----
Interest revenue $19,959,000 $14,806,000 $ 69,479,000 $51,175,000
----------- ----------- ------------ -----------
General and administrative expenses 4,218,000 3,260,000 15,340,000 11,258,000
Interest expense 438,000 222,000 1,853,000 845,000
Provisions for credit and other losses - 300,000 - 300,000
Third-party servicing expenses - - - 1,316,000
----------- ----------- ------------ -----------
Total expenses 4,656,000 3,782,000 17,193,000 13,719,000
----------- ----------- ------------ -----------
Income before provision for income taxes 15,303,000 11,024,000 52,286,000 37,456,000
----------- ----------- ------------ -----------
Provision for income taxes 6,299,000 4,515,000 21,290,000 15,219,000
----------- ----------- ------------ -----------
NET INCOME $9,004,000 $6,509,000 $30,996,000 $22,237,000
=========== ============ =========== ===========
BASIC NET INCOME PER SHARE $0.66 $0.48 $2.29 $1.67
===== ===== ===== =====
DILUTED NET INCOME PER SHARE $0.62 $0.46 $2.15 $1.57
===== ===== ===== =====
WEIGHTED AVERAGE SHARES:
BASIC 13,581,000 13,429,000 13,544,000 13,346,000
DILUTED 14,488,000 14,173,000 14,410,000 14,154,000
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
SEPTEMBER 30,
2005 2004
---- ----
ASSETS
Cash and cash equivalents $ 4,059,000 $ 3,344,000
Consumer receivables acquired for liquidation 172,727,000 146,165,000
Due from third party collection agencies and attorneys 1,425,000 837,000
Deposit on receivable purchase - 7,288,000
Furniture and equipment (net of accumulated depreciation of $1,426,000
in 2005 and $1,036,000 in 2004) 989,000 596,000
Other assets 838,000 411,000
---------------- ----------------
$ 180,038,000 $ 158,641,000
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LIABILITIES
Advances under line of credit $ 29,285,000 $ 39,355,000
Other liabilities 4,180 ,000 3,351,000
Income taxes payable 1,243,000 1,425,000
Deferred income taxes 153,000 44,000
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Total liabilities 34,861,000 44,175,000
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Commitments
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value; authorized 5,000,000;
Issued - none
Common stock, $.01 par value, authorized 30,000,000 shares, issued
and outstanding 13,595,000 shares in 2005 and 13,432,000 in 2004 136,000 134,000
Additional paid-in capital 60,798,000 59,184,000
Retained earnings 84,243,000 55,148,000
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Total stockholders' equity 145,177,000 114,466,000
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$ 180,038,000 $ 158,641,000
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