Asta Funding Reports Record Results for Fourth Quarter and Fiscal Year 2005
biz.yahoo.com
Tuesday December 13, 8:30 am ET
- Fiscal Year Revenues Increase 36% and Earnings Per Share Rises 37% to $2.15
ENGLEWOOD CLIFFS, N.J., Dec. 13 /PRNewswire-FirstCall/ -- Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivables asset management and liquidation company, today reported record results for the fourth quarter and fiscal year ending September 30, 2005.
Net income for the fourth quarter ended September 30, 2005, rose 38% to a record $9,004,000 or $0.62 per diluted share, from $6,509,000 or $0.46 per diluted share, in the same prior year period. Finance income for the fourth quarter ended September 30, 2005, was $19,959,000, a 35% increase compared to finance income of $14,806,000 for the fourth quarter ended September 30, 2004.
Net income for the year ended September 30, 2005, rose 39% to $30,996,000 or $2.15 per diluted share, from $22,237,000 or $1.57 per diluted share, in the same prior year period. Finance income for the year ended September 30, 2005, was $69,479,000, an increase of 36% compared to finance income of $51,175,000 for the year ended September 30, 2004.
Gary Stern, Chief Executive Officer, said, "I am pleased to report another quarter and fiscal year of record results. These excellent results continue to validate our business model, whereby we outsource the vast majority of our collections, and yield exceptional financial performance. We continue to remain pressure-free with regard to our consumer receivable portfolio purchases, and despite a competitive market, our purchases for the year amounted to $3.5 billion of face value receivables with a purchase price of $126 million. Finance income and earnings per share for fiscal 2005 grew 36% and 37% respectively, while expenses only increased 25%, due to our tight expense control, as our expense structure is relatively fixed. Cash collections increased by 48% during fiscal 2005 to $168.9 million."
Mr. Stern continued, "Asta's capital structure continues to remain very strong. During fiscal 2005 the company invested over $126 million for portfolios, which was primarily funded by internally generated cash flow. Notwithstanding these purchases, our success in collecting has resulted in total debt outstanding of only $29.3 million at the fiscal year end. As of December 12, 2005 total debt outstanding was approximately $51 million, leaving Asta with approximately $29 million available for future purchases. At the same time, stockholders' equity continues to grow, with the book value at the fiscal year end rising 25.3% to $10.68 per share from last year's book value of $8.52 per share."
Fiscal Year Highlights:
-- Record fourth quarter and fiscal year revenues and earnings
-- Fiscal 2005 net income increased 39 percent to $31.0 million
-- Fiscal 2005 EPS of $2.15 per diluted share
-- Record net cash collections of $168.9 million for fiscal year 2005
-- Portfolio purchases with an aggregate face value of $3.5 billion and a
purchase price of $126 million
Mr. Stern concluded, "Asta is a leader in the consumer receivable asset management business; an industry that is growing rapidly as consumer debt continues to increase. We will continue to apply the methods that have proven to be successful in increasing shareholder value, namely a disciplined approach to the purchase of distressed consumer receivables, coupled with a successful strategy of servicing, managing, and collecting. Our success in applying these principles has resulted in Asta delivering significant increases in shareholder value in past years and we hope to continue to do so in the future." |
