Asta Funding, Inc. Announces Financial Results for Third Quarter and Nine Months of Fiscal 2010

ENGLEWOOD CLIFFS, N.J., Aug. 4 /PRNewswire-FirstCall/ -- 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.

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.

SOURCE Asta Funding, Inc.