Asta Funding Reports Record Third Quarter and Nine Months Fiscal 2007 Results
biz.yahoo.com
Thursday August 9, 3:15 pm ET
ENGLEWOOD CLIFFS, N.J., Aug. 9 /PRNewswire-FirstCall/ -- Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company, today reported results for the three and nine months ended June 30, 2007.
Revenues for the three months ended June 30, 2007, were $38.9 million, an increase of 47.3% compared to revenues of $26.4 million a year ago. Net income for the three months ended June 30, 2007 increased 29.7% to $15.3 million, or $1.03 per diluted share, compared to $11.8 million, or $0.80 per diluted share, in the same prior year period.
Revenues for the nine months ended June 30, 2007 were $97.7 million, an increase of 36.6% compared to revenues for the nine months ended June 30, 2006 of $71.5 million. Net income for the nine months ended June 30, 2007 increased 21.7% to $39.2 million or $2.67 per diluted share, up from $32.2 million, or $2.20 per diluted share, for the same period a year earlier.
Net cash collections from consumer receivables acquired for liquidation and net cash collections represented by account sales, exclusive of accounts returned to a seller of $5.5 million, totaled $73.0 million for the quarter ended June 30, 2007, an increase of $12.3 million or 20.2%, from the same period a year ago. Net cash collections from consumer receivables acquired for liquidation and net cash collections represented by account sales, exclusive of accounts returned to a seller of $5.5 million, totaled $208.1 million for the nine months ended June 30, 2007, an increase of $45.6 million or 28.0%, from the same period a year ago. Net cash collections represented by account sales of consumer receivables acquired for liquidation was $9.8 million or 12.4% of net cash collections in the quarter, down from $17.0 million, or 27.9% of net cash collections in the third quarter of fiscal 2006. Net cash collections represented by account sales of consumer receivables acquired for liquidation was $40.8 million or 19.1% of net cash collections during the nine months ended June 30, 2007, down from $43.3 million, or 26.6% of net cash collections during the nine months ended June 30, 2006. Finance income earned on collections represented by account sales was $18.2 million for the nine months ended June 30, 2007, down $6.3 million or 25.6% from the same prior year period. Finance income earned on collections represented by account sales was $3.7 million for the three months ended June 30, 2007, down $6.5 million or 63.7% from the same prior year period.
Gary Stern, President and Chief Executive Officer, said, "I am pleased with the record results posted for the third quarter. Highlighting these results was finance income from multiple sources within Asta's book of business, including $8.8 million from the large portfolio purchase in March 2007 and $5.6 million of income recognized from fully amortized portfolios. These results were achieved with less account sales in a time where we have more accounts available. We have said in the past, that sales are an integral part of our business and we look to sell accounts in the future.
Mr. Stern added, "Our business structure remains solid, which is a key to Asta's success in the long-term outlook. Although the company remains focused on collections, especially with regard to its large portfolio purchased earlier this year, Asta continues to make additional portfolio purchases that meet our strict criteria. During the quarter Asta purchased $496.8 million of face value charged-off consumer receivables at a cost of $15.6 million."
Mr. Stern concluded, "Asta continues to try to maximize shareholder value through purchasing portfolios that meet our internal rate of returns and by outsourcing a majority of our collections. The company's balance sheet continued to strengthen as stockholders' equity grew to $16.15 per share at the end of the third quarter, up 26.0% from a book value of $12.82 per share the same time last year." |
