Asta Funding, Inc. Announces Financial Results for Second Quarter and First Six Months of Fiscal 2013

Asta Funding, Inc. Announces Financial Results for Second Quarter and First
Six Months of Fiscal 2013

  *Net Income of $3.5 million, or $0.26 Per Diluted Share for Six Months
  *Net Income of $882 thousand, or $0.07 Per Diluted Share for 2^nd Quarter
  *Strong Balance Sheet, Strong Liquidity Position Continues
  *$107.1 Million Cash & Securities as of March 31, 2013
  *$28.2 Million Investment in Personal Injury Claims

ENGLEWOOD CLIFFS, N.J., May 9, 2013 (GLOBE NEWSWIRE) -- Asta Funding, Inc.
(Nasdaq:ASFI) (the "Company"), a consumer receivable asset management and
liquidation company, today announced results for the second quarter and first
six months of its 2013 fiscal year.

The Company reported net income attributable to Asta Funding, Inc. of $882,000
for the three month period ended March 31, 2013, or $0.07 per diluted share,
as compared to net income attributable to Asta Funding, Inc. of $2,460,000 for
the three month period ended March 31, 2012, or $0.17 per diluted share. Net
income attributable to Asta Funding, Inc. for the six months ended March 31,
2013 was $3,470,000, or $0.26 per diluted share, as compared to net income
attributable to Asta Funding, Inc. of $5,437,000, or $0.37 per diluted share
for the six months ended March 31, 2012. The primary reason for the reduction
in net income was a second quarter impairment charge of $2,203,000 on three
consumer debt portfolios. Total revenues for the three months ended March 31,
2013 were $10,085,000 as compared to $11,470,000 for the same period in the
prior year. Total revenues in the three month period included approximately
$1,392,000 from Pegasus Funding, LLC, the joint venture in the personal injury
finance industry, as compared to $492,000 from the same period of the prior
year. Total revenues for the six month period ended March 31, 2013 were
$20,637,000 as compared to $21,909,000 for the six month period ended March
31, 2012. Total revenues in the six month period ended March 31, 2013 included
approximately $2,634,000 from Pegasus Funding, LLC, as compared to $492,000 in
the same period of the prior year, as the joint venture was consummated
December 28, 2011.

Net cash collections of consumer receivables acquired for liquidation,
including net cash collections represented by account sales, were $13,004,000
for the second quarter of fiscal year 2013, as compared to $18,713,000 in the
second quarter of fiscal year 2012. Net cash collections of consumer
receivables acquired for liquidation, including net cash collections
represented by account sales, were $26,613,000 for the six months ended March
31, 2013, compared to $35,683,000 in the six months ended March 31, 2012.

Income from fully amortized portfolios (zero basis revenue) was $7,926,000 for
the three month period ended March 31, 2013, compared to $9,247,000 for the
three month period ended March 31, 2012. Income from fully amortized
portfolios was $16,072,000 for the six month period ended March 31, 2013,
compared to $17,830,000 for the six month period ended March 31, 2012. Net
cash collections on the Great Seneca portfolio were $2,988,000 in the second
quarter of fiscal year 2013, as compared to $3,394,000 in the second quarter
of fiscal year 2012. Net collections on the Great Seneca portfolio were
$5,641,000 during the six months ended March 31, 2013 as compared to
$6,114,000 for the six months ended March 31, 2012. The carrying value of the
Great Seneca portfolio at March 31, 2013 was $59,792,000, as compared to
$72,196,000 at March 31, 2012.

The Company invested approximately $8,357,000 and $15,954,000, respectively,
in personal injury cases through the joint venture Pegasus Funding, LLC during
the three and six month periods ended March 31, 2013. As of March 31, 2012,
the Company had invested $7,721,000 in personal injury cases.

General and administrative expenses were $5,788,000 for the three month period
ended March 31, 2013 as compared to $6,032,000 for the three month period
ended March 31, 2012. The decrease was attributable to reduced collection
expense related to salaries and benefits, and lower postage expenses as we
reduced in house collection activities during the second quarter of fiscal
year 2013 to rely on our established outsourced services. The savings was
somewhat offset by the increased activity of the Pegasus Funding, LLC personal
injury unit. General and administrative expenses were $11,381,000 during the
six month period ended March 31, 2013 as compared to $10,798,000 for the six
month period ended March 31, 2012. The increase was primarily attributable to
the Pegasus Funding, LLC unit. Interest expense was $534,000 for the three
month period ended March 31, 2013 as compared to $646,000 for the three month
period ended March 31, 2012. Impairments of $2,203,000 were recorded in both
the three and six month periods ended March 31, 2013, as compared to
impairments of $611,000 recorded in both the three and six month periods ended
March 31, 2012.

The Company had no senior debt as of March 31, 2013 and September 30, 2012.
The balance of the non recourse debt to the Bank of Montreal was $56,823,000
at March 31, 2013 down from $61,463,000 at September 30, 2012. Also, during
the six month period ended March 31, 2013, the Company re-purchased
approximately 172,000 shares of its common stock at a cost of $1,579,000.

"We are pleased with the results of the second quarter and six month period
ended March 31, 2013 as we continue to generate strong cash flow and improve
our liquidity position," commented Gary Stern, Chairman and CEO of the
Company. Mr. Stern continued, "We continue to invest in personal injury cases
through the Pegasus Funding, LLC joint venture in which we invested
approximately $16.0 million in personal injury claims in the first six months
of fiscal year 2013. Pegasus has contributed approximately $500,000 to our
pre-tax results in the first six months of fiscal year 2013. As we continue
our work in the debt collection business, we believe the quality of the legacy
portfolio continues. Although there was a decrease in zero basis revenue from
the prior year, such revenue remained at historically consistent levels
reporting in at $8.0 million and $16.1 million in the three and six month
period ended March 31, 2013, respectively. In addition, we continue to seek
additional investments in, or acquisitions of, companies in the financial
services industry."

A conference call to discuss the results of the second quarter and first six
months of fiscal year 2013 will be held on Thursday, May 9, 2013 at 4:00PM,
EDT.

Toll-free dial-in number (U.S. and Canada):
(800) 668-4132

International dial-in number:
(224) 357-2196

Replay:
U.S. and Canada: (855) 859-2056
International: (404) 537-3406
Conference ID:64976582

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.

This document contains "forward-looking statements" – that is, statements
related to future, not past, events. In this context, forward-looking
statements often address our expected future business and financial
performance and financial condition, and often contain words such as "expect,"
"anticipate," "intend," "plan," "believe," "seek," "see," or "will." These
forward-looking statements are not guarantees and are subject to known and
unknown risks, uncertainties and assumptions about us that may cause our
actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance
or achievements expressed or implied by such forward-looking statements. For
us, particular uncertainties that could cause our actual results to be
materially different than those expressed in our forward-looking statements
include: our ability to purchase defaulted consumer receivables at appropriate
prices, changes in government regulations that affect our ability to collect
sufficient amounts on our defaulted consumer receivables, our ability to
employ and retain qualified employees, changes in the credit or capital
markets, changes in interest rates, deterioration in economic conditions,
negative press regarding the debt collection industry which may have a
negative impact on a debtor's willingness to pay the debt we acquire,
potential regulation or limitation of interest rates and other fees advanced
by Pegasus under federal and/or state regulation, a change in statutory or
case law which limits or restricts the ability of Pegasus to charge or collect
fees and interest at anticipated levels, plaintiff 's being unsuccessful in
whole or in part in the litigation upon which our funds are provided, the
continued services of the senior management of Pegasus to source and analyze
cases in accordance with the underwriting guidelines of Pegasus, and such
other factors that may be identified from time to time in our Securities and
Exchange Commission ("SEC") filings and other public announcements including
those set forth under the caption "Risk Factors" in Part 1, Item 1A of our
Annual Report on Form 10-K for the year ended September30, 2012. All
subsequent written and oral forward-looking statements attributable to us, or
persons acting on our behalf, are expressly qualified in their entirety by the
foregoing. Readers are cautioned not to place undue reliance on our
forward-looking statements, as they speak only as of the date made. Except as
required by law, we assume no duty to update or revise our forward-looking
statements.

                                                     - Financial Tables Follow

ASTA FUNDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

                  Three Months   Three Months   Six Months     Six Months
                  Ended          Ended          Ended          Ended
                  March 31, 2013 March 31, 2012 March 31, 2013 March 31, 2012
Revenues:                                                    
Finance income,    $8,263,000   $10,470,000  $16,753,000  $20,260,000
net
Other income       1,822,000     1,000,000     3,884,000     1,649,000
                                                            
                                                            
                  10,085,000    11,470,000    20,637,000    21,909,000
                                                            
Expenses:                                                    
General and        5,788,000     6,032,000     11,381,000    10,798,000
administrative
Interest           534,000       646,000       1,103,000     1,320,000
Impairments of
consumer
receivables        2,203,000     611,000       2,203,000     611,000
acquired for
liquidation
                                                            
                                                            
                  8,525,000     7,289,000     14,687,000    12,729,000
                                                            
                                                            
Income before      1,560,000     4,181,000     5,950,000     9,180,000
income tax
                                                            
Income tax expense 600,000       1,672,000     2,357,000     3,694,000
                                                            
Net income        960,000       2,509,000     3,593,000     5,486,000
                                                            
Less: net income
attributable to    78,000        49,000        123,000       49,000
non-controlling
interest
                                                            
Net income
attributable to    $882,000     $2,460,000   $3,470,000   $5,437,000
Asta Funding, Inc.
                                                            
                                                            
Net income per
share attributable                                           
to Asta Funding,
Inc.:
                                                            
Basic              $0.07        $0.17        $0.27        $0.37
Diluted            $0.07        $0.17        $0.26        $0.37
                                                            
Weighted average
number of common                                             
shares
outstanding:
Basic              12,943,896    14,642,174    12,942,554    14,640,800
                                                            
Diluted            13,226,351    14,879,480    13,203,929    14,880,213
                                                            

ASTA FUNDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

                                                March 31,      September 30,
                                                2013           2012
                                                (Unaudited)    
ASSETS                                                         
Cash and cash equivalents                        $28,039,000  $4,953,000
Investments:                                                   
Available-for-sale                               59,125,000    58,712,000
Certificates of deposit                          19,956,000    42,682,000
Restricted cash                                  925,000       1,088,000
Consumer receivables acquired for liquidation    74,824,000    86,887,000
(at net realizable value)
Other investments, net                           28,187,000    18,596,000
Due from third party collection agencies and     1,197,000     2,042,000
attorneys
Prepaid and income taxes receivable              248,000       2,057,000
Furniture and equipment, net                     1,246,000     821,000
Deferred income taxes, net                       10,091,000    10,410,000
Other assets                                     5,384,000     4,916,000
                                                              
                                                              
Total assets                                     $229,222,000 $233,164,000
                                                              
                                                              
LIABILITIES                                                    
Non recourse debt                                $56,823,000  $61,463,000
Other liabilities                                2,280,000     2,920,000
Dividends payable                                —            260,000
                                                              
                                                              
Total liabilities                                59,103,000    64,643,000
                                                              
                                                              
Commitments and contingencies                                  
STOCKHOLDERS' EQUITY                                           
Preferred stock, $.01 par value; authorized      —            —
5,000,000 shares; issued and outstanding — none
Common stock, $.01 par value; authorized
30,000,000 shares; issued and outstanding —      149,000       148,000
12,941,139 at March31, 2013 and 13,006,918 at
September30, 2012
Additional paid-in capital                       77,932,000    77,024,000
Retained earnings                                109,743,000   107,303,000
Accumulated other comprehensive (loss) income,   (54,000)      241,000
net of tax
Treasury stock (at cost) 1,943,738 shares at
March 31, 2013 and 1,772,038 shares at September (17,805,000)  (16,226,000)
30, 2012.
Non-controlling interest                         154,000       31,000
Totalstockholders' equity                       170,119,000   168,521,000
                                                              
Total liabilities and stockholders' equity       $229,222,000 $233,164,000

CONTACT: Robert J. Michel, CFO
         Asta Funding, Inc.
         (201) 567-5648

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