[ASTA FUNDING, INC. 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
-Company Purchased $1.3 Billion of Face Value
Charged-Off Consumer Receivables in the Quarter-
ENGLEWOOD CLIFFS, NJ, AUGUST 9, 2006 -- ASTA FUNDING, INC., (NASDAQ: ASFI), A
LEADING CONSUMER RECEIVABLE ASSET MANAGEMENT AND LIQUIDATION COMPANY, today
reported record results for the three months and nine months ended June 30,
2006.
Net income for the three months ended June 30, 2006, rose 38% to a record
$11,780,000, or $0.80 per diluted share, compared to $8,536,000, or $0.59 per
diluted share, in the same prior year period. Total revenues for the three
months ended June 30, 2006, were $26,426,000, an increase of 39% compared to
revenues of $19,028,000 a year ago.
Net income for the nine months ended June 30, 2006 grew 46% to a record
$32,195,000 or $2.20 per diluted share, from $21,992,000, or $1.53 per diluted
share, for the same period a year earlier. Total revenues for the nine months
ended June 30, 2006 were a record $71,515,000, an increase of 44% compared to
revenues for the nine months ended June 30, 2005 of $49,520,000.
Mr. Gary Stern, President and Chief Executive Officer of Asta Funding, stated,
"We are extremely pleased to report another record quarter. Our performance
continues to prove the success of our business model. We continue to purchase
attractively priced distressed consumer receivable portfolios for liquidation,
despite a competitive pricing environment. While pricing is always paramount, we
continue to believe that our business relationships and sound pricing has
enabled us to find portfolios that meet our strict investing criteria. During
the third quarter we purchased portfolios with a face amount of $1.3 billion at
a cost of $34.2 million, bringing our aggregate purchases for the nine months to
$3.7 billion, at prices that we believe will allow us to attain our desired
financial returns."
Mr. Stern continued, "Our financial metrics remain strong with record cash
collections in the quarter of $60.8 million, up significantly from the $43.5
million collected in the same quarter a year earlier. Stockholder's equity also
continues to build and at June 30, 2006 was $176.4 million with the tangible
book value at $12.82 per share, an increase of approximately 28% from June 30,
2005."
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210 Sylvan Avenue, Englewood Cliffs, NJ 07632
(201) 567-5648, (201) 567-2203 fax
Mr. Stern concluded, "We remain highly disciplined in our portfolio purchases
and have the funds and credit resources to acquire portfolios as appropriate
opportunities arise, especially given the Company's new $175 million credit
facility. While we invested $155.4 million during the nine months, due to strong
cash collections, our outstanding debt was only $65 million at the quarter's
end. We continue to remain highly comfortable with our portfolio purchases and
will continue to manage the business using the same successful formula that's
worked in the past."
Asta Funding will conduct a teleconference today at 11:00 a.m. EDT. To
participate please dial USA/Canada (888) 693-0944, International (706) 679-0662
about 5 -10 minutes prior to 11:00 am EDT. Please refer to the Asta Funding
earnings teleconference ID 3841501. A recording of the conference call will be
available from 2:00 pm EDT August 9th through August 16th, by dialing USA/Canada
(800) 642-1687, International (706) 645-9291, conference ID 3841501.
-------------------------------
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/A 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.
- TABLE TO FOLLOW -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(UNAUDITED)
Three Months Ended Nine Months Ended
6/30/06 6/30/05 6/30/06 6/30/05
----------- ----------- ----------- -----------
Revenues:
Finance income $26,090,000 $19,028,000 $71,179,000 $49,520,000
Other income 336,000 -- 336,000 --
----------- ----------- ----------- -----------
26,426,000 19,028,000 71,515,000 49,520,000
Expenses:
General and administrative 4,692,000 4,153,000 13,492,000 11,122,000
Interest 1,249,000 512,000 3,214,000 1,415,000
Impairment 675,000 -- 675,000 --
----------- ----------- ----------- -----------
6,616,000 4,665,000 17,381,000 12,537,000
Income before income taxes 19,810,000 14,363,000 54,134,000 36,983,000
Income tax expense 8,030,000 5,827,000 21,939,000 14,991,000
----------- ----------- ----------- -----------
Net income $11,780,000 $ 8,536,000 $32,195,000 $21,992,000
=========== =========== =========== ===========
Net income per share:
Basic $ 0.86 $ 0.63 $ 2.37 $ 1.63
----------- ----------- ----------- -----------
Diluted $ 0.80 $ 0.59 $ 2.20 $ 1.53
----------- ----------- ----------- -----------
Weighted average number of
shares outstanding:
Basic 13,628,776 13,569,128 13,611,915 13,528,513
----------- ----------- ----------- -----------
Diluted 14,639,432 14,424,266 14,604,678 14,377,402
----------- ----------- ----------- -----------
ASTA FUNDING, INC. AND SUBSIDIARIES
CCONDENSED CONSOLIDATED BALANCE SHEETS DATA
6/30/06 9/30/05
------------ ------------
(UNAUDITED)
ASSETS
Cash $ 4,710,000 $ 4,059,000
Consumer receivables acquired for liquidation 236,039,000 172,727,000
Due from third party collection agencies and attorneys 1,738,000 1,425,000
Furniture and equipment, net 1,123,000 989,000
Other assets 2,198,000 838,000
------------ ------------
Total assets $245,808,000 $180,038,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt $ 65,287,000 $ 29,285,000
Other liabilities 3,167,000 4,180,000
Income taxes payable 769,000 1,243,000
Deferred income taxes 153,000 153,000
------------ ------------
Total liabilities 69,376,000 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 -- 13,634,490 at June 30, 2006 and 13,595,324
at September 30, 2005 136,000 136,000
Additional paid-in capital 61,493,000 60,798,000
Retained earnings 114,803,000 84,243,000
------------ ------------
Total stockholders' equity 176,432,000 145,177,000
------------ ------------
Total liabilities and stockholders' equity $245,808,000 $180,038,000
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