Asta Funding Announces Record First Quarter Financial Results
biz.yahoo.com
Thursday February 9, 8:30 am ET
- Revenues Increase 46.5% and Earnings Per Share Rises 48.8% to $0.64
ENGLEWOOD CLIFFS, N.J., Feb. 9 /PRNewswire-FirstCall/ -- Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company, today reported record results for its fiscal first quarter, the three months ended December 31, 2005.
Net income for the three months ended December 31, 2005, rose 50.8% to $9,312,000, or $0.64 per diluted share, compared to $6,175,000, or $0.43 per diluted share, in the first quarter of the prior year. Revenues for the three months ended December 31, 2005 were $20,260,000, a 46.5% increase over revenues of $13,830,000 in the prior year's quarter.
Gary Stern, Chief Executive Officer, said, "I am very pleased to report record first quarter results. These excellent results continue to validate our business model, whereby we purchase portfolios at attractive prices, outsource the vast majority of our collections, use an aggressive suit strategy and yield excellent financial performance. These superb results come during a seasonally slower quarter as it encompasses the holiday season. Net collections from consumer receivables acquired for liquidation was $46.2 million for the first quarter, up 25.5% from $36.8 million in the prior year's quarter." Cash collections represented by account sales were 30% of net cash collections in the quarter, down from 41% in the first quarter of fiscal 2004 and down from 39.9% in the fourth quarter of fiscal 2005.
Mr. Stern continued, "I am also pleased with the Company's purchases for our first fiscal quarter, which were completed at attractive prices. Asta's purchases for the quarter amounted to $2.1 billion of face value receivables for a purchase price of $102.4 million, consisting primarily of credit card portfolios with approximately 13% of the purchases during the quarter coming from telecom portfolios. Asta will continue to pursue telecom paper as long as pricing meets our strict criteria, as these portfolios have historically performed as well as our credit card portfolios."
Mr. Stern concluded, "Our business structure remains solid. We believe the recent addition of VATIV Recovery Solutions LLC will only enhance our servicing and purchasing capabilities, especially in the bankruptcy arena, which is a key factor in light of the Bankruptcy Reform Act of 2005. Asta still has a lot of capacity for future growth and its expenses continue to be relatively fixed. At the same time, stockholders' equity continues to expand, with the book value rising 26.5% to $11.33 per share at the end of the first quarter, up from a book value of $8.96 per share the same time last year."
Asta Funding will conduct a teleconference today at 12:00 noon EST. To participate please dial USA/Canada (877) 511-5818, International (706) 634-1462 about 5-10 minutes prior to 12:00 noon EST. Please refer to the Asta Funding earnings teleconference ID 5173155. A recording of the conference call will be available from 3:00 pm EST February 9th through February 16th, by dialing USA/ Canada (800) 642-1687, International (706) 645-9291, conference ID 5173155. |
