Attached files
| file | filename |
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| 8-K - FORM 8-K - ASTA FUNDING INC | c04583e8vk.htm |
| EX-99.2 - EXHIBIT 99.2 - ASTA FUNDING INC | c04583exv99w2.htm |
Exhibit 99.1
Nasdaq: ASFI
FOR IMMEDIATE RELEASE
CONTACT:
CONTACT:
Robert J. Michel, CFO
Asta Funding, Inc.
(201) 567-5648
Asta Funding, Inc.
(201) 567-5648
Asta Funding, Inc. Announces Financial Results for Third Quarter and Nine Months of Fiscal 2010
• Net Income of $3.1 Million, or $0.21 Per Diluted Share for Third Quarter
• No Impairments, Strong Cash Flow Trend Continues
ENGLEWOOD CLIFFS, N.J., August 4, 2010 — Asta Funding, Inc. (NASDAQ: ASFI) (the “Company”), a
consumer receivable asset management and liquidation company, today announced results for the third
quarter and nine months of its 2010 fiscal year, the period ended June 30, 2010.
The Company reported net income of $3,121,000 for the three month period ended June 30, 2010, or
$0.21 per diluted share as compared to net income for the three months ended June 30, 2009 of
$1,478,000, or $0.10 per diluted share. Revenues for the three month period ended June 30, 2010
were $12,083,000 as compared to $17,238,000 for the three month period ended June 30, 2009.
Net income for the nine months ended June 30, 2010 was $8,471,000, or $0.58 per diluted share as
compared to a net loss of $11,527,000, or $0.81 per share for the nine months ended June 30, 2009.
Revenues for the nine months ended June 30, 2010 were $34,294,000 as compared to $53,812,000 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 $25.8 million for the third quarter of
fiscal year 2010, as compared to $37.6 million in the third quarter of fiscal year 2009, a 31.4%
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 $80.9 million for
the nine months ended June 30, 2010, compared to $116.6 million in the nine month period ended June
30, 2009, a 30.6% decrease from the prior year. Net cash collections represented by account sales
were $3.2 million or 4.0% of net cash collections in the nine month period ended June 30, 2010,
compared to $7.8 million, or 6.7% in the same comparative period of the prior year.
Income from fully amortized portfolios (zero basis revenue) was $9.2 million for the three month
period ended June 30, 2010, compared to $10.5 million for the three month period ended June 30,
2009. Income from fully amortized portfolios was $25.6 million for the nine month period ended June
30, 2010, compared to $31.1 million for the nine month period ended June 30, 2009. There were no
impairments recorded during the three and nine month periods ended June 30, 2010, as compared to
$6.4 million and $46.2 million, respectively, recorded during the three and nine month periods
ended June 30, 2009. Portfolio purchases of distressed consumer receivables were $3.4 million
during the nine month period ended June 30, 2010 as compared to $16.5 million during the nine month
period ended June 30, 2009.
The debt level, excluding the subordinated debt — related party, at June 30, 2010 was $93.5
million, down approximately $29.1 million from September 30, 2009 and down approximately $51.4
million from a year ago. The subordinated debt — related party balance was $4.4 million at June 30,
2010, down almost $4 million from September 30, 2009. Cash and cash equivalents at June 30, 2010
were $78.0 million compared to $4.0 million at September 30, 2009.
Gary Stern, Chairman and CEO of the Company commented, “It was a solid quarter of continued
profitability for the Company through the third quarter of fiscal year 2010. We continued our
progress in strengthening our balance sheet and increasing our cash position. As of August 3, 2010
our cash position is $82.0 million. Our strong cash balance puts us in an excellent position for
funding our investment opportunities without the immediate need for external financing. We continue
to review all of our investment options in the distressed receivables market and other related
markets.”
A conference call to discuss the results of the third quarter and nine months of fiscal year 2010
will be held on Wednesday, August 4, 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
| June 30, | September 30, | |||||||
| 2010 | 2009 | |||||||
| (Unaudited) | ||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 77,996,000 | $ | 2,385,000 | ||||
Restricted cash |
1,646,000 | 2,130,000 | ||||||
Consumer receivables acquired for liquidation (at net realizable value) |
164,953,000 | 208,261,000 | ||||||
Due from third party collection agencies and attorneys |
3,095,000 | 2,573,000 | ||||||
Prepaid and income taxes receivable |
— | 47,727,000 | ||||||
Investment in venture |
94,000 | 168,000 | ||||||
Furniture and equipment, net |
363,000 | 538,000 | ||||||
Deferred income taxes |
17,891,000 | 24,072,000 | ||||||
Other assets |
3,378,000 | 2,902,000 | ||||||
Total assets |
$ | 269,416,000 | $ | 290,756,000 | ||||
LIABILITIES |
||||||||
Debt |
$ | 93,506,000 | $ | 122,622,000 | ||||
Subordinated debt — related party |
4,386,000 | 8,246,000 | ||||||
Other liabilities |
1,478,000 | 2,166,000 | ||||||
Dividends payable |
292,000 | 286,000 | ||||||
Income taxes payable |
2,895,000 | — | ||||||
Total liabilities |
102,557,000 | 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 — 14,600,323 at June 30, 2010 and 14,272,357 at
September 30, 2009 |
146,000 | 143,000 | ||||||
Additional paid-in capital |
72,076,000 | 70,189,000 | ||||||
Retained earnings |
94,660,000 | 87,058,000 | ||||||
Accumulated other comprehensive (loss) income, net of tax |
(23,000 | ) | 46,000 | |||||
Total stockholders’ equity |
166,859,000 | 157,436,000 | ||||||
Total liabilities and stockholders’ equity |
$ | 269,416,000 | $ | 290,756,000 | ||||
ASTA FUNDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| June 30, 2010 | June 30, 2009 | June 30, 2010 | June 30, 2009 | |||||||||||||
Revenues: |
||||||||||||||||
Finance income, net |
$ | 12,042,000 | $ | 17,202,000 | $ | 34,197,000 | $ | 53,722,000 | ||||||||
Other income |
41,000 | 36,000 | 97,000 | 90,000 | ||||||||||||
| 12,083,000 | 17,238,000 | 34,294,000 | 53,812,000 | |||||||||||||
Expenses: |
||||||||||||||||
General and administrative |
5,836,000 | 6,634,000 | 16,739,000 | 20,006,000 | ||||||||||||
Interest (Related party —
Period ended June 30, 2010 —
Three months, $109,000; Nine
months, $407,000; Period
ended June 30, 2009 — Three
months, $128,000; Nine months,
$385,000) |
1,019,000 | 1,783,000 | 3,365,000 | 6,907,000 | ||||||||||||
Impairments of consumer
receivables acquired for
liquidation |
— | 6,364,000 | — | 46,208,000 | ||||||||||||
| 6,855,000 | 14,781,000 | 20,104,000 | 73,121,000 | |||||||||||||
Income (loss) before equity in
earnings (loss) of venture and
income tax |
5,228,000 | 2,457,000 | 14,190,000 | (19,309,000 | ) | |||||||||||
Equity in earnings (loss) of
venture |
14,000 | 34,000 | 56,000 | (21,000 | ) | |||||||||||
Income (loss) before income tax |
5,242,000 | 2,491,000 | 14,246,000 | (19,330,000 | ) | |||||||||||
Income tax expense (benefit) |
2,121,000 | 1,013,000 | 5,775,000 | (7,803,000 | ) | |||||||||||
Net income (loss) |
$ | 3,121,000 | $ | 1,478,000 | $ | 8,471,000 | $ | (11,527,000 | ) | |||||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.21 | $ | 0.10 | $ | 0.59 | $ | (0.81 | ) | |||||||
Diluted |
$ | 0.21 | $ | 0.10 | $ | 0.58 | $ | (0.81 | ) | |||||||
Weighted average number of
common shares outstanding: |
||||||||||||||||
Basic |
14,599,162 | 14,271,946 | 14,455,754 | 14,271,931 | ||||||||||||
Diluted |
14,806,756 | 14,445,572 | 14,544,757 | 14,271,931 | ||||||||||||