Exhibit 99.1
[ASTA FUNDING LOGO]
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 REPORTS RECORD SECOND QUARTER AND SIX MONTHS FISCAL 2006 RESULTS
- REVENUES INCREASE 48% AND EARNINGS PER SHARE INCREASE BY 49% -
ENGLEWOOD CLIFFS, NJ, MAY 09, 2006 -- 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, 2006.
Net income for the three months ended March 31, 2006 increased 52% to
$11,103,000, or $0.76 per diluted share, compared to $7,281,000, or $0.51 per
diluted share, in the same prior year period. Revenues for the three months
ended March 31, 2006, were $24,829,000, an increase of 49% compared to revenues
of $16,662,000 a year ago.
Net income for the six months ended March 31, 2006 increased 52% to $20,415,000
or $1.40 per diluted share, from $13,456,000, or $0.94 per diluted share, for
the same period a year earlier. Revenues for the six months ended March 31, 2006
were $45,089,000, an increase of 48% compared to revenues for the six months
ended March 31, 2005 of $30,492,000.
Net collections from consumer receivables acquired for liquidation was $55.6
million for the second quarter, up 32% from $42.2 million in the prior year's
quarter. Net collections from consumer receivables acquired for liquidation was
$101.8 million for the six months ended March 31, 2006, up 29% from $79.0
million in the prior year's period. Cash collections represented by account
sales were 22% of net cash collections in the quarter, down from 23% in the
second quarter of fiscal 2005 and down from 30% in the first quarter of fiscal
2006.
Gary Stern, President and Chief Executive Officer, said, "The second quarter was
a very rewarding one for Asta. We showed record results on the top and bottom
lines, which can be attributed to our very strong book of business and strong
cash collections during the quarter."
Mr. Stern added, "I am also pleased with the Company's portfolio purchases for
the fiscal year to date, which, including purchases for the first few weeks of
our third fiscal quarter totaling $3.6 billion of face value receivables for a
purchase price of $145.5 million. Asta's purchases for the quarter amounted to
$351.2 million of face value receivables for a purchase price of $18.8 million.
We are off to a great start with our fiscal third quarter purchases, which total
$1.1 billion of face value receivables for a purchase price of $24.3 million. We
are particularly proud that our purchases during the second quarter and for the
first few weeks of our third fiscal quarter include portfolio purchases from new
relationships."
Mr. Stern concluded, "Our business structure remains solid. We believe Asta
still has a lot of capacity for future growth and operating efficiencies as its
expenses continue to be relatively fixed. The company's balance sheet continued
to strengthen as stockholders' equity grew 27.9% to $12.10 per share at the end
of the second quarter, up from a book value of $9.46 per share the same time
last year."
Asta Funding will conduct a teleconference today at 11:30 a.m. Eastern time. To
participate please dial USA (877) 511-5818, International (706) 634-1462 about 5
- -10 minutes prior to 11:30 a.m. Eastern time. Please refer to the Asta Funding
earnings teleconference ID 8601762. A recording of the conference call will be
available from 2:00 p.m. Eastern time May 9th through May 16th, by dialing USA/
Canada (800) 642-1687, International (706) 645-9291, conference ID 8601762.
-------------------------------
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, including our expectations for future
growth and improved operating efficiencies, 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 or that cash collections may not continue to be strong. 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 FOLLOW -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(UNAUDITED)
Three Months Ended Six Months Ended
3/31/06 3/31/05 3/31/06 3/31/05
------- ------- ------- -------
Revenues:
Finance income $24,829,000 $16,662,000 $45,089,000 $30,492,000
----------- ----------- ----------- -----------
Expenses:
General and administrative 4,848,000 3,925,000 8,800,000 6,969,000
Interest 1,302,000 496,000 1,965,000 903,000
----------- ----------- ----------- -----------
6,150,000 4,421,000 10,765,000 7,872,000
----------- ----------- ----------- -----------
Income before income taxes 18,679,000 12,241,000 34,324,000 22,620,000
Income tax expense 7,576,000 4,960,000 13,909,000 9,164,000
----------- ----------- ----------- -----------
Net income $11,103,000 $ 7,281,000 $20,415,000 $13,456,000
----------- ----------- ----------- -----------
Net income per share:
Basic $ 0.82 $ 0.54 $ 1.50 $ 1.00
----------- ----------- ----------- -----------
Diluted $ 0.76 $ 0.51 $ 1.40 $ 0.94
----------- ----------- ----------- -----------
Weighted average number of shares outstanding:
Basic 13,608,994 13,553,765 13,603,485 13,511,678
----------- ----------- ----------- -----------
Diluted 14,604,636 14,405,176 14,583,252 14,352,244
----------- ----------- ----------- -----------
- MORE -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS DATA
MARCH 31, SEPTEMBER 30,
2006 2005
---- ----
ASSETS (UNAUDITED)
Cash $ 3,971,000 $ 4,059,000
Consumer receivables acquired for liquidation 237,206,000 172,727,000
Due from third party collection agencies and attorneys 2,830,000 1,425,000
Furniture and equipment, net 1,061,000 989,000
Other assets 2,236,000 838,000
------------ ------------
Total assets $247,304,000 $180,038,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt $ 72,000,000 $ 29,285,000
Other liabilities 2,436,000 4,180,000
Income taxes payable 7,921,000 1,243,000
Deferred income taxes 153,000 153,000
------------ ------------
Total liabilities 82,510,000 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 -- 13,621,157 at March 31, 2006 and 13,595,324
at September 30, 2005 136,000 136,000
Additional paid-in capital 61,089,000 60,798,000
Retained earnings 103,569,000 84,243,000
------------ ------------
Total stockholders' equity 164,794,000 145,177,000
------------ ------------
Total liabilities and stockholders' equity $247,304,000 $180,038,000
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