Asta Funding, Inc. Announces Financial Results for Third Quarter and Nine Months of Fiscal 2013

Asta Funding, Inc. Announces Financial Results for Third Quarter and Nine
Months of Fiscal 2013

  oAnnounces Settlement with Bank of Montreal on Non-Recourse Debt
  oPurchased $53 Million Face Value Portfolio
  oNet Income $733,000 for Nine Months; Loss for the Quarter
  o$105.4 Million Cash & Securities as of June 30, 2013

ENGLEWOOD CLIFFS, N.J., Aug. 9, 2013 (GLOBE NEWSWIRE) -- Asta Funding, Inc.
(Nasdaq:ASFI) (the "Company"), a consumer receivable asset management and
liquidation company, today announced results for the three months and nine
months ended June 30, 2013.

The Company reported a net loss of $2,737,000 for the three month period ended
June 30, 2013, or $0.21 per diluted share, as compared to net income of
$3,048,000 for the three months ended June 30, 2012, or $0.21 per diluted
share. Total revenues for the three month period ended June 30, 2013 were
$12,668,000, an increase of 9.5%, as compared to $11,571,000 for the three
month period ended June 30, 2012. Included in revenues for the third quarter
of fiscal year 2013 is $2,287,000 from personal injury claims as compared to
$507,000 included during the third quarter of fiscal year 2012. Included in
the three month period ended June 30, 2013 is a $10.2 million impairment
recorded on the Great Seneca portfolio.

Net income for the nine months ended June 30, 2013 was $733,000, or $0.06 per
diluted share, as compared to net income of $8,485,000, or $0.58 per diluted
share, for the nine months ended June 30, 2012. Revenues for the nine months
ended June 30, 2013 were $33,305,000, just slightly below the $33,480,000
reported for the nine month period ended June 30, 2012. Revenues from personal
injury claims was $4,921,000 in the nine month period ended June 30, 2013 as
compared to $999,000 for the same period of the prior year.

Net cash collections of consumer receivables acquired for liquidation,
including cash collections represented by account sales, were $15,425,000 for
the third quarter of fiscal year 2013, as compared to $18,475,000 in the third
quarter of the prior year. Included in the third quarter of fiscal year 2013
is $2,007,000 from cash collections represented by account sales. Net cash
collections of consumer receivables acquired for liquidation, including cash
collections represented by account sales, were $42,038,000 for the nine months
ended June 30, 2013, compared to $54,158,000 in the nine month period ended
June 30, 2012.

Income from fully amortized portfolios (zero basis revenue) was $9,750,000 for
the three month period ended June 30, 2013, a slight increase over the
$9,592,000 reported for the three month period ended June 30, 2012. Income
from fully amortized portfolios was $25,822,000 for the nine month period
ended June 30, 2013, as compared to $27,422,000 for the nine month period
ended June 30, 2012. Net cash collections on the Great Seneca portfolio were
$3,348,000 in the third quarter of fiscal year 2013, as compared to $3,721,000
in the third quarter of fiscal year 2012. Net collections on Great Seneca were
$8,989,000 during the nine months ended June 30, 2013 as compared to
$9,835,000 for the nine months ended June 30, 2012. The carrying value of the
Great Seneca portfolio at June 30, 2013 was $46,294,000, as compared to
$68,488,000 at June 30, 2012. Included in the results at June 30, 2013, and
the carrying value of Great Seneca, is a write-down of approximately $10.2
million recorded in the third quarter of fiscal year 2013.

General and administrative expenses were $6,545,000 for the three month period
ended June 30, 2013, as compared to $5,694,000 for the three month period
ended June 30, 2012. The increase is primarily due to the growth of the
personal injury unit, Pegasus Funding, LLC. General and administrative
expenses related to the traditional Asta Funding, Inc. business of consumer
debt decreased over 14% in the three month period ended June 30, 2013 as
compared to the same period in the prior year. Interest expense was $518,000
for the three month period ended June 30, 2012 as compared to $619,000 for the
three month period ended June 30, 2012. General and administrative expenses
were $17,926,000 for the nine month period ended June 30, 2013 as compared to
$16,492,000 for the nine month period ended June 30, 2012. General and
administrative expenses were higher during the current nine month period,
primarily due to the growth of Pegasus Funding, LLC. Current general and
administrative expenses for the consumer debt business were lower by more than
12% from the prior year. Interest expense was $1,621,000 for the nine month
period ended June 30, 2013 as compared to $1,939,000 for the same period of
the prior fiscal year, as the non-recourse debt continues to be paid down.

The Company had no senior debt as of June 30, 2013 and September 30, 2012. The
balance of the non-recourse debt to the Bank of Montreal ("BMO") was
$54,250,000 at June 30, 2013, down from $61,463,000 at September 30, 2012.

On August 7, 2013, in consideration for a $15 million prepayment funded by the
Company, BMO has agreed to reduce minimum monthly collection requirements and
the interest rate significantly. After BMO receives the next $15 million of
net collections from the Great Seneca portfolio, offset by credits of
approximately $3 million for payments made to BMO prior to the consummation of
the agreement, the Company is entitled to recover, out of future net
collections from the Great Seneca portfolio, the $15 million prepayment that
it funded. In exchange for possible future debt forgiveness, BMO has the right
to receive 30% of future net collections, after the Company has recovered its
$15 million prepayment

Gary Stern, President and CEO of the Company, commented "We are pleased with
the activities that have occurred during the third quarter of fiscal year
2013. We purchasedaconsumer debt portfolio with a face value of $53 million
at a cost of $3.3 million during the quarter. Although not sizable in value,
it is very significant, as it is our first consumer debt portfolio purchase in
several years. We are also excited about our agreement with Bank of Montreal
that reduces our commitment and increases our flexibility moving forward, as
minimum payment requirements and interest costs will be greatly reduced.
Although we did report an impairment on the Great Seneca portfolio of
approximately $10.2 million during the third quarter, the significance of the
negative impact of this portfolio on our results moving forward will be
greatly reduced." Mr. Stern continued, "Also, with the additional investment
in consumer debt and as we continue our work in the core business, we believe
the quality of the legacy portfolio continues, in that we reported an increase
in zero basis revenue to $9.7 million in the third quarter of fiscal year 2013
as compared to $9.6 million in the third quarter of fiscal year 2012. 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 third quarter and first nine
months of fiscal year 2013 will be held on Friday, August 9, 2013 at 11:00AM,
EDT.

Toll-free dial in number (US and Canada):
(800) 668-4132

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

Conference ID: 29239923

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 September 30, 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 OPERATIONS
(Unaudited)

                      Three Months  Three Months  Nine Months   Nine Months
                      Ended         Ended         Ended         Ended
                      June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012
Revenues:                                                     
Finance income, net    $ 10,003,000  $ 10,501,000  $ 26,756,000  $ 30,761,000
Other income           2,665,000     1,070,000     6,549,000     2,719,000
                                                             
                      12,668,000    11,571,000    33,305,000    33,480,000
                                                             
Expenses:                                                     
General and            6,545,000     5,694,000     17,926,000    16,492,000
administrative
Interest               518,000       619,000       1,621,000     1,939,000
Impairments of
consumer receivables   10,148,000    122,000       12,351,000    733,000
acquired for
liquidation
                                                             
                      17,211,000    6,435,000     31,898,000    19,164,000
                                                             
                                                             
(Loss) income before   (4,543,000)   5,136,000     1,407,000     14,316,000
income tax
                                                             
Income tax (benefit)   (1,859,000)   2,071,000     498,000       5,765,000
expense
                                                             
Net (loss) income      (2,684,000)   3,065,000     909,000       8,551,000
                                                             
Less: net income
attributable to        53,000        17,000        176,000       66,000
non-controlling
interest
                                                             
Net (loss) income
attributable to Asta   $(2,737,000) $ 3,048,000   $ 733,000     $ 8,485,000
Funding, Inc.
                                                             
                                                             
Net (loss) income per
share attributable to                                         
Asta Funding, Inc.:
                                                             
Basic                  $(0.21)      $ 0.22        $ 0.06        $ 0.59
Diluted                $(0.21)      $ 0.21        $ 0.06        $ 0.58
                                                             
Weighted average
number of common                                              
shares outstanding:
Basic                  12,954,455    14,170,575    12,946,521    14,440,224
Diluted                12,954,455   14,429,043    13,217,903    14,683,641



ASTA FUNDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

                                                  June 30,      September 30,
                                                  2013          2012
                                                  (Unaudited)   
ASSETS                                                          
Cash and cash equivalents                          $ 38,252,000  $ 4,953,000
Investments:                                                    
Available-for-sale                                 58,336,000    58,712,000
Certificates of deposit                            8,764,000     42,682,000
Restricted cash                                    1,067,000     1,088,000
Consumer receivables acquired for liquidation (at  62,594,000    86,887,000
net realizable value)
Other investments, net                             32,297,000    18,596,000
Due from third party collection agencies and       1,240,000     2,042,000
attorneys
Prepaid and income taxes receivable                1,675,000     2,057,000
Furniture and equipment, net                       1,096,000     821,000
Deferred income taxes, net                         10,944,000    10,410,000
Other assets                                       7,285,000     4,916,000
                                                               
Total assets                                       $ 223,550,000 $ 233,164,000
                                                               
                                                               
LIABILITIES                                                     
Non-recourse debt                                  $ 54,250,000  $ 61,463,000
Other liabilities                                  1,816,000     2,920,000
Dividends payable                                  —             260,000
                                                               
Total liabilities                                  56,066,000    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 - 14,910,777 at June 30,
2013 and 14,778,956 at September 30, 2012; and     149,000       148,000
outstanding — 12,967,039 at June 30, 2013 and
13,006,918 at September30, 2012
Additional paid-in capital                         78,624,000    77,024,000
Retained earnings                                  107,006,000   107,303,000
Accumulated other comprehensive (loss) income, net (697,000)     241,000
of tax
Treasury stock (at cost) 1,943,738 shares at June
30, 2013 and 1,772,038 shares at September 30,     (17,805,000)  (16,226,000)
2012
Non-controlling interest                          207,000       31,000
Total stockholders' equity                         167,484,000   168,521,000
                                                               
Total liabilities and stockholders' equity         $ 223,550,000 $ 233,164,000

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

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