[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 FOURTH QUARTER AND FISCAL YEAR FINANCIAL RESULTS
ENGLEWOOD CLIFFS, NJ, DECEMBER 14, 2006 -- ASTA FUNDING, INC., (NASDAQ: ASFI), A
LEADING CONSUMER RECEIVABLE ASSET MANAGEMENT AND LIQUIDATION COMPANY, today
reported record results for the fourth quarter and fiscal year ending September
30, 2006.
Net income for the fourth quarter ended September 30, 2006, rose 50.7% to a
record $13.6 million or $0.93 per diluted share, from $9.0 million or $0.62 per
diluted share, in the same prior year period. Finance income for the fourth
quarter ended September 30, 2006 was $29.8 million, a 49.5% increase compared to
finance income of $20.0 million for the fourth quarter ended September 30, 2005.
Net income for the year ended September 30, 2006, rose 47.7% to $45.8 million or
$3.13 per diluted share, from $31.0 million, or $2.15 per diluted share, in the
same prior year period. Finance income for the year ended September 30, 2006,
was $101.0 million, an increase of 45.4% compared to finance income of $69.5
million for the year ended September 30, 2005.
Mr. Gary Stern, President and Chief Executive Officer of Asta Funding, stated,
"We are extremely pleased to report record quarter and fiscal year results. Our
performance reflects the success of our business model, although this quarter
and year were aided by certain factors, principally collections and sales
significantly in excess of amounts previously estimated. Fiscal 2006 included
$159.4 million in net cash collections from collection of consumer receivables
acquired for liquidation, up 53.0% from $104.2 million in the year ago period.
Net cash collections represented by account sales of consumer receivables
acquired for liquidation were $55.0 million, down from $64.7 million for the
year ended September 30, 2005. Collections represented by account sales as a
percentage of total collections were 25.7% for fiscal 2006, down from 38.3% in
the prior year. Stockholders' equity continues to improve, with the book value
rising 25.5% to $13.40 per share at the end of the fiscal year, up from a book
value of $10.68 per share the same time last year. Return on average
stockholders' equity for fiscal 2006 was 27.8%."
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210 Sylvan Avenue, Englewood Cliffs, NJ 07632
(201) 567-5648, (201) 567-2203 fax
Mr. Stern added, "The Company also acquired approximately $5.2 billion in face
value receivables, the highest level in the Company's history, at a purchase
price of $200.2.million. This is a major accomplishment given the continued
pricing pressures that still face our industry. Although pricing remains at
traditionally higher levels, Asta has been successful in finding suitable
purchases for our investors through various methods, including the utilization
of our network of long-term relationships. The challenge of finding suitable
purchases will be more intense in 2007, as our growth is reliant on purchasing
ever increasing dollar amounts of accounts in a difficult market."
Mr. Stern concluded, "We are very satisfied with the portfolio performance for
fiscal 2006 and believe our purchases during the year will continue to return
excellent results to shareholders. That being said, given the fact that we are
reliant for growth on purchasing portfolios in a very competitive environment,
and given that collections were better than our historical levels in 2006, we
anticipate that the first quarter results of fiscal 2007 may not be as good as
the fourth quarter of 2006, although we believe they should be similar or better
than those reported in the first quarter of fiscal 2006."
ASTA FUNDING WILL CONDUCT A TELECONFERENCE TODAY AT 11:00 A.M. EST. TO
PARTICIPATE IN THE CONFERENCE CALL PLEASE DIAL USA/CANADA (888) 693-0944,
INTERNATIONAL (706) 679-0662 ABOUT 5 -10 MINUTES PRIOR TO 11:00 AM EST. PLEASE
REFER TO THE ASTA FUNDING EARNINGS TELECONFERENCE ID # 3820323. A RECORDING OF
THE CONFERENCE CALL WILL BE AVAILABLE FROM 2:00 PM EST DECEMBER 14TH THROUGH
DECEMBER 21ST, BY DIALING USA/CANADA (800) 642-1687, INTERNATIONAL (706)
645-9291, CONFERENCE ID # 3820323.
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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, including any statement about the first quarter of fiscal
2007, 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.
- FINANCIAL TABLES TO FOLLOW -
ASTA FUNDING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
Three Months Ended Year Ended
September 30, September 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenues:
Finance Income $ 29,845,000 $ 19,959,000 $101,024,000 $ 69,479,000
Other Income 69,000 -- 405,000 --
Equity in earnings of venture 550,000 -- 550,000 --
------------ ------------ ------------ ------------
30,464,000 19,959,000 101,979,000 69,479,000
General and administrative expenses 4,776,000 4,218,000 18,268,000 15,340,000
Interest expense 1,427,000 438,000 4,641,000 1,853,000
Impairments 1,570,000 -- 2,245,000 --
------------ ------------ ------------ ------------
7,773,000 4,656,000 25,154,000 17,193,000
------------ ------------ ------------ ------------
Income before provision for income taxes 22,691,000 15,303,000 76,825,000 52,286,000
Provision for income taxes 9,121,000 6,299,000 31,060,000 21,290,000
------------ ------------ ------------ ------------
NET INCOME $ 13,570,000 $ 9,004,000 $ 45,765,000 $ 30,996,000
============ ============ ============ ============
Basic net income per share $ 0.99 $ 0.66 $ 3.36 $ 2.29
============ ============ ============ ============
DILUTED NET INCOME PER SHARE $ 0.93 $ 0.62 $ 3.13 $ 2.15
============ ============ ============ ============
WEIGHTED AVERAGE SHARES:
BASIC 13,713,048 13,581,086 13,637,406 13,543,580
DILUTED 14,642,704 14,487,527 14,615,148 14,410,275
- MORE -
ASTA FUNDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
SEPTEMBER 30,
2006 2005
------------ ------------
ASSETS
Cash and cash equivalents $ 7,826,000 $ 4,059,000
Consumer receivables acquired for liquidation (at net realizable value) 257,275,000 172,727,000
Due from third party collection agencies and attorneys 3,062,000 1,425,000
Investment in venture 5,965,000 --
Furniture and equipment (net of accumulated depreciation of $1,769,000
in 2006 and $1,426,000 in 2005) 1,101,000 989,000
Deferred income taxes 7,577,000 --
Other assets 5,034,000 838,000
------------ ------------
$287,840,000 $180,038,000
============ ============
LIABILITIES
Advances under line of credit $ 82,811,000 $ 29,285,000
Other liabilities 4,338,000 3,704,000
Dividends payable 6,052,000 476,000
Income taxes payable 10,377,000 1,243,000
Deferred income taxes -- 153,000
------------ ------------
Total liabilities 103,578,000 34,861,000
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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 13,755,157 shares in 2006 and 13,595,324 in 2005 138,000 136,000
Additional paid-in capital 61,803,000 60,798,000
Retained earnings 122,321,000 84,243,000
------------ ------------
Total stockholders' equity 184,262,000 145,177,000
------------ ------------
$287,840,000 $180,038,000
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