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8-K - FORM 8-K - ASTA FUNDING INC | c00665e8vk.htm |
EX-99.2 - EXHIBIT 99.2 - ASTA FUNDING INC | c00665exv99w2.htm |
Exhibit 99.1
Nasdaq: ASFI
FOR IMMEDIATE RELEASE
CONTACT:
Robert J. Michel, CFO
Asta Funding, Inc.
(201) 567-5648
Asta Funding, Inc.
(201) 567-5648
Asta Funding, Inc. Announces Financial Results for Second Quarter and Six Months of Fiscal 2010
| Net Income of $2.9 Million, or $0.20 Per Diluted Share for Second Quarter | ||
| No Senior Debt, No Impairments, Positive Cash Flow Trend Continues |
ENGLEWOOD CLIFFS, N.J., May 6, 2010 Asta Funding, Inc. (NASDAQ: ASFI) (the Company), a
consumer receivable asset management and liquidation company, today announced results for the
second quarter and six months of its 2010 fiscal year, the period ended March 31, 2010.
The Company reported net income of $2,875,000 for the three month period ended March 31, 2010, or
$0.20 per diluted share as compared to a net loss for the three months ended March 31, 2009 of
$5,168,000, or $0.36 per share. Revenues for the three month period ended March 31, 2010 were
$11,204,000 as compared to $18,126,000 for the three month period ended March 31, 2009.
Net income for the six months ended March 31, 2010 was $5,350,000, or $0.37 per diluted share as
compared to a net loss of $13,005,000, or $0.91 per share for the six months ended March 31, 2009.
Revenues for the six months ended March 31, 2010 were $22,211,000 as compared to $36,574,000 for
the same period in the prior year.
Net cash collections from collection of consumer receivables acquired for liquidation, including
net cash collections represented by account sales were $25.7 million for the second quarter of
fiscal year 2010, as compared to $36.9 million in the second quarter of fiscal year 2009, a 30.4%
decrease from the prior year. Net cash collections from collection of consumer receivables acquired
for liquidation, including net cash collections represented by account sales were $55.1 million for
the six months ended March 31, 2010, compared to $79.0 million in the six month period ended March
31, 2009, a 30.3% decrease from the prior year. Net cash collections represented by account sales
were $2.7 million or 4.9% of net cash collections in the six month period ended March 31, 2010,
compared to $6.6 million, or 8.4% in the same comparative period of the prior year.
Income from fully amortized portfolios (zero basis revenue) was $8.3 million for the three month
period ended March 31, 2010, compared to $10.5 million for the three month period ended March 31,
2009. Income from fully amortized portfolios was $16.4 million for the six month period ended March
31, 2010, compared to $20.6 million for the six month period ended March 31, 2009. There were no
impairments recorded during the three and six month periods ended March 31, 2010, as compared to
$18.4 million and $39.8 million, respectively, recorded during the three and six month periods
ended March 31, 2009.
The Company has reduced amounts outstanding on its $6 million senior line of credit at Bank Leumi
to zero at March 31, 2010. Aggregate debt level, excluding the subordinated debt related party,
at March 31, 2010 was $96.5 million, down approximately $26.1 million from September 30, 2009 and
approximately $63.6 million from a year ago. The subordinated debt related party balance was
$4.4 million at March 31, 2010, down almost $4 million from September 30, 2009. Cash and cash
equivalents at March 31, 2010 were $12.6 million.
We continued our progress in strengthening our balance sheet and increasing our cash position
through the six month period ended March 31, 2010 both to weather the current economic
environment and to be selective buyers of attractive portfolios, commented Gary Stern, Chairman
and CEO of the Company. Exclusive of the non-recourse debt, we are currently funding our business
through our cash flow from operations without the need for borrowing on our senior facility.
Although our portfolio purchase volume increased slightly during the first six months of fiscal
year 2010 as compared to the same period in the prior year, from $2.7 million in the first six
months of fiscal year 2009 to $3.3 million in the first six months of 2010, this is substantially
below our historical levels of purchases over the past several years. Our reduced collections and
finance income are a reflection of the reduced level of portfolio purchases. However, our strong
balance sheet puts us in a good position to fund portfolio purchases that fit our strict investment
criteria and other investment opportunities that will deliver returns we feel fit our investment
model.
A conference call to discuss the results of the second quarter and first six months of fiscal year
2010 will be held on Thursday, May 6, 2010 at 10:30AM, EDT
Toll-free dial in number (US and Canada):
(877) 407-8037
(877) 407-8037
International dial-in number:
(201) 689-8037
(201) 689-8037
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 and
Form 10-K/A for the fiscal year ended September 30, 2009, Form 10-Q for the quarter ended December
31, 2009 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. 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
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, | September 30, | |||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 12,646,000 | $ | 2,385,000 | ||||
Restricted cash |
1,262,000 | 2,130,000 | ||||||
Consumer receivables acquired for liquidation (at net
realizable value) |
178,614,000 | 208,261,000 | ||||||
Due from third party collection agencies and attorneys |
2,757,000 | 2,573,000 | ||||||
Prepaid and income taxes receivable |
52,893,000 | 47,727,000 | ||||||
Investment in venture |
80,000 | 168,000 | ||||||
Furniture and equipment, net |
433,000 | 538,000 | ||||||
Deferred income taxes |
18,302,000 | 24,072,000 | ||||||
Other assets |
3,064,000 | 2,902,000 | ||||||
Total assets |
$ | 270,051,000 | $ | 290,756,000 | ||||
LIABILITIES |
||||||||
Debt |
$ | 96,513,000 | $ | 122,622,000 | ||||
Subordinated debt related party |
4,386,000 | 8,246,000 | ||||||
Other liabilities |
1,566,000 | 2,166,000 | ||||||
Dividends payable |
292,000 | 286,000 | ||||||
Income taxes payable |
3,466,000 | | ||||||
Total liabilities |
106,223,000 | 133,320,000 | ||||||
Commitments and contingencies |
||||||||
STOCKHOLDERS EQUITY |
||||||||
Preferred stock, $.01 par value; authorized 5,000,000
shares; issued and outstanding none |
||||||||
Common stock, $.01 par value; authorized 30,000,000
shares; issued and outstanding 14,598,124 at March
31, 2010 and 14,272,357 at September 30, 2009 |
146,000 | 143,000 | ||||||
Additional paid-in capital |
71,863,000 | 70,189,000 | ||||||
Retained earnings |
91,831,000 | 87,058,000 | ||||||
Accumulated other comprehensive (loss) income, net of tax |
(12,000 | ) | 46,000 | |||||
Total stockholders equity |
163,828,000 | 157,436,000 | ||||||
Total liabilities and stockholders equity |
$ | 270,051,000 | $ | 290,756,000 | ||||
ASTA FUNDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months | Three Months | Six Months | Six Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | |||||||||||||
Revenues: |
||||||||||||||||
Finance income, net |
$ | 11,181,000 | $ | 18,104,000 | $ | 22,155,000 | $ | 36,520,000 | ||||||||
Other income |
23,000 | 22,000 | 56,000 | 54,000 | ||||||||||||
11,204,000 | 18,126,000 | 22,211,000 | 36,574,000 | |||||||||||||
Expenses: |
||||||||||||||||
General and administrative |
5,274,000 | 6,345,000 | 10,903,000 | 13,372,000 | ||||||||||||
Interest (Related party
Period ended March 31, 2010
Three months, $168,000;
Six months, $298,000;
Period ended March 31, 2009
Three months, $128,000;
Six months, $256,000) |
1,087,000 | 1,954,000 | 2,346,000 | 5,124,000 | ||||||||||||
Impairments of consumer
receivables acquired for
liquidation |
| 18,429,000 | | 39,844,000 | ||||||||||||
6,361,000 | 26,728,000 | 13,249,000 | 58,340,000 | |||||||||||||
Income (loss) before equity
in (loss) earnings of
venture and income tax |
4,843,000 | (8,602,000 | ) | 8,962,000 | (21,766,000 | ) | ||||||||||
Equity in (loss) earnings
of venture |
(4,000 | ) | (72,000 | ) | 42,000 | (55,000 | ) | |||||||||
Income (loss) before income
tax |
4,839,000 | (8,674,000 | ) | 9,004,000 | (21,821,000 | ) | ||||||||||
Income tax expense
(benefit) |
1,964,000 | (3,506,000 | ) | 3,654,000 | (8,816,000 | ) | ||||||||||
Net income (loss) |
$ | 2,875,000 | $ | (5,168,000 | ) | $ | 5,350,000 | $ | (13,005,000 | ) | ||||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.20 | $ | (0.36 | ) | $ | 0.37 | $ | (0.91 | ) | ||||||
Diluted |
$ | 0.20 | $ | (0.36 | ) | $ | 0.37 | $ | (0.91 | ) | ||||||
Weighted average number of
common shares outstanding: |
||||||||||||||||
Basic |
14,498,161 | 14,271,824 | 14,384,050 | 14,271,824 | ||||||||||||
Diluted |
14,504,398 | 14,271,824 | 14,570,901 | 14,271,824 | ||||||||||||