Asta Funding Reports Record Third Quarter and Nine Months Revenues and Net Income
biz.yahoo.com
Wednesday August 9, 8:30 am ET
- Company Purchased $1.3 Billion of Face Value Charged-Off Consumer Receivables in the Quarter -
ENGLEWOOD CLIFFS, N.J., Aug. 9 /PRNewswire-FirstCall/ -- Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company, today reported record results for the three months and nine months ended June 30, 2006.
Net income for the three months ended June 30, 2006, rose 38% to a record $11,780,000, or $0.80 per diluted share, compared to $8,536,000, or $0.59 per diluted share, in the same prior year period. Total revenues for the three months ended June 30, 2006, were $26,426,000, an increase of 39% compared to revenues of $19,028,000 a year ago.
Net income for the nine months ended June 30, 2006 grew 46% to a record $32,195,000 or $2.20 per diluted share, from $21,992,000, or $1.53 per diluted share, for the same period a year earlier. Total revenues for the nine months ended June 30, 2006 were a record $71,515,000, an increase of 44% compared to revenues for the nine months ended June 30, 2005 of $49,520,000.
Mr. Gary Stern, President and Chief Executive Officer of Asta Funding, stated, "We are extremely pleased to report another record quarter. Our performance continues to prove the success of our business model. We continue to purchase attractively priced distressed consumer receivable portfolios for liquidation, despite a competitive pricing environment. While pricing is always paramount, we continue to believe that our business relationships and sound pricing has enabled us to find portfolios that meet our strict investing criteria. During the third quarter we purchased portfolios with a face amount of $1.3 billion at a cost of $34.2 million, bringing our aggregate purchases for the nine months to $3.7 billion, at prices that we believe will allow us to attain our desired financial returns."
Mr. Stern continued, "Our financial metrics remain strong with record cash collections in the quarter of $60.8 million, up significantly from the $43.5 million collected in the same quarter a year earlier. Stockholder's equity also continues to build and at June 30, 2006 was $176.4 million with the tangible book value at $12.82 per share, an increase of approximately 28% from June 30, 2005."
Mr. Stern concluded, "We remain highly disciplined in our portfolio purchases and have the funds and credit resources to acquire portfolios as appropriate opportunities arise, especially given the Company's new $175 million credit facility. While we invested $155.4 million during the nine months, due to strong cash collections, our outstanding debt was only $65 million at the quarter's end. We continue to remain highly comfortable with our portfolio purchases and will continue to manage the business using the same successful formula that's worked in the past." |
