[ASTA
FUNDING, INC. LOGO]
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA
Mitchell Cohen, CFO Alisa D. Steinberg (Media)
ASTA FUNDING, INC. WOLFE AXELROD WEINBERGER ASSOC. LLC
(201) 567-5648 (212) 370-4500; (212) 370-4505(Fax)
steve@wolfeaxelrod.com
alisa@wolfeaxelrod.com
ASTA FUNDING ANNOUNCES RECORD FIRST QUARTER FINANCIAL RESULTS
- REVENUES INCREASE 46.5% AND EARNINGS PER SHARE RISES 48.8% TO $0.64 -
ENGLEWOOD CLIFFS, NJ, FEBRUARY 9, 2006 -- 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, 2005.
Net income for the three months ended December 31, 2005, rose 50.8% to
$9,312,000, or $0.64 per diluted share, compared to $6,175,000, or $0.43 per
diluted share, in the first quarter of the prior year. Revenues for the three
months ended December 31, 2005 were $20,260,000, a 46.5% increase over revenues
of $13,830,000 in the prior year's quarter.
Gary Stern, Chief Executive Officer, said, "I am very pleased to report record
first quarter results. These excellent results continue to validate our business
model, whereby we purchase portfolios at attractive prices, outsource the vast
majority of our collections, use an aggressive suit strategy and yield excellent
financial performance. These superb results come during a seasonally slower
quarter as it encompasses the holiday season. Net collections from consumer
receivables acquired for liquidation was $46.2 million for the first quarter, up
25.5% from $36.8 million in the prior year's quarter." Cash collections
represented by account sales were 30% of net cash collections in the quarter,
down from 41% in the first quarter of fiscal 2004 and down from 39.9% in the
fourth quarter of fiscal 2005.
-MORE-
Mr. Stern continued, "I am also pleased with the Company's purchases for our
first fiscal quarter, which were completed at attractive prices. Asta's
purchases for the quarter amounted to $2.1 billion of face value receivables for
a purchase price of $102.4 million, consisting primarily of credit card
portfolios with approximately 13% of the purchases during the quarter coming
from telecom portfolios. Asta will continue to pursue telecom paper as long as
pricing meets our strict criteria, as these portfolios have historically
performed as well as our credit card portfolios."
Mr. Stern concluded, "Our business structure remains solid. We believe the
recent addition of VATIV Recovery Solutions LLC will only enhance our servicing
and purchasing capabilities, especially in the bankruptcy arena, which is a key
factor in light of the Bankruptcy Reform Act of 2005. Asta still has a lot of
capacity for future growth and its expenses continue to be relatively fixed. At
the same time, stockholders' equity continues to expand, with the book value
rising 26.5% to $11.33 per share at the end of the first quarter, up from a book
value of $8.96 per share the same time last year."
Asta Funding will conduct a teleconference today at 12:00 noon EST. To
participate please dial USA/Canada (877) 511-5818, International (706) 634-1462
about 5 -10 minutes prior to 12:00 noon EST. Please refer to the Asta Funding
earnings teleconference ID 5173155. A recording of the conference call will be
available from 3:00 pm EST February 9th through February 16th, by dialing USA/
Canada (800) 642-1687, International (706) 645-9291, conference ID 5173155.
-------------------------------
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, 2005, 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.
- FINANCIAL TABLES TO FOLLOW -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(UNAUDITED)
THREE MONTHS ENDED
DECEMBER 31,
2005 2004
---- ----
Revenues
Finance income, net $20,260,000 $13,830,000
----------- -----------
Expenses
General and administrative 3,952,000 3,044,000
Interest 663,000 407,000
----------- -----------
4,615,000 3,451,000
----------- -----------
Income before income taxes 15,645,000 10,379,000
Income tax expense 6,333,000 4,204,000
----------- -----------
Net income $9,312,000 $6,175,000
========== ==========
Net income per share -- Basic $ 0.68 $ 0.46
======= =======
Diluted $ 0.64 $ 0.43
======= =======
Weighted average number of shares outstanding:
Basic 13,598,000 13,471,000
========== ==========
Diluted 14,474,000 14,303,000
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- MORE -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
DECEMBER 31, SEPTEMBER 30,
2005 2005
---- ----
(UNAUDITED)
ASSETS
Cash $ 3,347,000 $ 4,059,000
Consumer receivables acquired for liquidation 249,183,000 172,727,000
Due from third party collection agencies and attorneys 1,780,000 1,425,000
Furniture and equipment, net 983,000 989,000
Other assets 785,000 838,000
------- -------
Total assets $256,078,000 $180,038,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt $91,720,000 $29,285,000
Other liabilities 2,900,000 4,180,000
Income taxes payable 7,221,000 1,243,000
Deferred income taxes 153,000 153,000
------- -------
Total liabilities 101,994,000 34,861,000
----------- ----------
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 -- 13,603,000 at December 31, 2005 and 13,595,000
at September 30, 2005 136,000 136,000
Additional paid-in capital 60,938,000 60,798,000
Retained earnings 93,010,000 84,243,000
---------- ----------
Total stockholders' equity 154,084,000 145,177,000
----------- -----------
Total liabilities and stockholders' equity $256,078,000 $180,038,000
============ ============
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