Asta Funding, Inc. Announces Financial Results for Year and Fourth Quarter of Fiscal Year 2013

Asta Funding, Inc. Announces Financial Results for Year and Fourth Quarter of
Fiscal Year 2013

    *Net Income attributable to Asta Funding, Inc. $2.0 million in Fourth
      Quarter Fiscal Year 2013 – Increase over Prior Year Fourth Quarter

    *Solid Cash Position and Strong Cash Flow Trend Continues

    *$93.2 Million of Cash and Cash Equivalents and Investments at September
      30, 2013

ENGLEWOOD CLIFFS, N.J., Dec. 12, 2013 (GLOBE NEWSWIRE) -- Asta Funding, Inc.
(Nasdaq:ASFI) (the "Company"), a financial services consumer receivable asset
management and liquidation company, today reported its results for the fiscal
year and fourth quarter ended September 30, 2013. The Company reported net
income attributable to Asta Funding, Inc. of $2,005,000, or $0.15 per diluted
share in the fourth quarter of fiscal year 2013, an increase of 29.2% over the
reported net income available to Asta Funding, Inc. of $1,552,000, or $0.12
per diluted share for the fourth quarter of fiscal year 2012. The Company
reported $93,214,000 in cash and cash equivalents, and investments at
September 30, 2013.

Fourth Quarter Fiscal Year 2013

The Company reported net income attributable to Asta Funding, Inc. of
$2,005,000, or $0.15 per diluted share, for the fourth quarter of fiscal year
2013, as compared to net income of $1,552,000, or $0.12 per diluted share, for
the same period in fiscal year 2012. The Company reported total revenues of
$9,107,000 for the fourth quarter of fiscal year 2013, as compared to
$11,022,000 reported for the fourth quarter of fiscal year 2012. Included in
total revenue in the fourth quarter of fiscal year 2013 is $1,517,000 of
revenue from personal injury claims as compared to $648,000 in the fourth
quarter of fiscal year 2012. Revenue from finance income was $7,607,000 in the
fourth quarter of fiscal year 2013 as compared to $9,838,000 in the fourth
quarter of fiscal year 2012.

Net cash collections of receivables acquired for liquidation, including net
cash collections represented by account sales, were $12,060,000 for the fourth
quarter of fiscal year 2013, as compared to $15,861,000 for the fourth quarter
of fiscal year 2012, down 24.0% from the prior year. Net collections
represented by account sales were $424,000 in the fourth quarter of fiscal
year 2013 as compared to $28,000 in the same period of the prior year. Net
collections on the Great Seneca portfolio were $2,895,000 in the fourth
quarter of fiscal year 2013, as compared to $3,055,000 in the fourth quarter
of fiscal year 2012.

Income from fully amortized portfolios (zero basis revenue) was $7,389,000 in
the fourth quarter ended September 30, 2013, compared to $8,937,000 for the
comparable period in 2012.

General and administrative expenses for the fourth quarter of fiscal year 2013
were $6,286,000 as compared to $7,148,000 in the fourth quarter of fiscal year
2012, a decrease of 12.1%. The reduction in fourth quarter expenses in the
current fiscal year resulted primarily from lower collection expense of the
consumer debt operations, including lower salary and benefit costs,
attributable to a headcount reduction in January 2013.

An impairment charge of $241,000 was recorded in the fourth quarter of fiscal
year 2013 as compared to $650,000 in the fourth quarter of fiscal year 2012.

The Bank of Montreal issued a credit to the Company towards interest on the
non-recourse debt, yielding a credit of $321,000 during the fourth quarter of
fiscal year 2013. This was a result of the new Settlement Agreement signed
with the bank in August 2013. Included in the new agreement are a lower
interest rate and a lower loan balance against which interest is applied. This
credit, in the fourth quarter of fiscal year 2013, compares to interest
expense for the fourth quarter of fiscal year 2012 of $600,000. Based on the
new settlement agreement with the Bank of Montreal, annual interest savings is
expected to be approximately $2 million.

Fiscal Year 2013

The Company reported net income attributable to Asta Funding, Inc. of
$2,738,000 for the fiscal year ended September 30, 2013, or $0.21 per diluted
share, as compared to net income of $10,037,000, or $0.70 per diluted share,
for the fiscal year ended September 30, 2012. The primary reason for the lower
net income is the impairment charges of $12,592,000 recorded in fiscal year
2013 as compared to $1,383,000 in the prior fiscal year. Total revenues for
the fiscal year ended September 30, 2013 were $42,412,000, a decrease of 4.7%
as compared to $44,502,000 for the fiscal year ended September 30, 2012.
Included in total revenues for fiscal year 2013 is $6,438,000 of income from
personal injury claims and compared to $1,647,000 recorded in the prior year.

Net cash collections from collection of receivables acquired for liquidation,
including net cash collections represented by account sales, were $54,098,000
for the fiscal year ended September 30, 2013, as compared to $70,019,000
during fiscal year 2012. Collections on the Great Seneca portfolio were
$11,884,000 during fiscal year 2013 as compared to $12,890,000 during the
prior year. In third quarter of fiscal year 2013, the Company recorded an
impairment on the Great Seneca portfolio of $10.1 million. The carrying value
of the Great Seneca portfolio was $43.4 million at September 30, 2013 as
compared to $65.4 million at September 30, 2012.

Income from fully amortized portfolios (zero basis revenue) was $33,211,000
for the fiscal year ended September 30, 2013, as compared to $36,359,000
million reported for the fiscal year ended September 30, 2012. The Company
invested in portfolios with a face value of $53.5 million at a cost of $3.3
million during the fiscal year ended September 30, 2013, as compared to $6.0
million of face value at a cost of $2.5 million in fiscal year 2012. In
addition, the Company had a net invested balance of $35.8 million in personal
injury claims on September 30, 2013.

General and administrative expenses rose 2.4% to $24,212,000 for the fiscal
year ended September 30, 2013 from the prior year due to the full year effect
of Pegasus Funding, LLC, as compared to only nine months in the prior year.
However, expenses related to the Company's consumer debt operation actually
declined by 16% from the prior year.

Interest expense for the fiscal year ended September 30, 2013 was $1,300,000
as compared to $2,539,000 for fiscal year 2012, a 49% reduction, as the
Company continues to pay down the non-recourse loan due to the Bank of
Montreal coupled with a significantly lower interest rate incorporated into
the new agreement. The related loan balance was $35.8 million at September 30,
2013 as compared to $61.5 million at September 30, 2012.

Impairment charges of $12,592,000, of which $10.1 million was attributable to
the Great Seneca portfolio, were recorded during fiscal year 2013 as compared
to $1,383,000 of impairment charges recorded during fiscal year 2012.

Gary Stern, Chairman, President and CEO of the Company commented, "We are
pleased by the results of the fourth quarter of 2013, with an increase in net
income available to Asta Funding, Inc. of over $450,000 compared to the fourth
quarter of fiscal year 2012 and we continued to have strong liquidity and a
solid balance sheet." Mr. Stern continued, "The new agreement with the Bank of
Montreal, signed during the fourth quarter, will be a significant benefit
going forward, with an annual interest savings of approximately $2 million. We
appreciate the continued support from the Bank of Montreal. I am also pleased
to announce the recent formation of a new wholly owned subsidiary in which we
will provide advocacy services to individuals seeking disability benefits. We
will have more information on this new venture during the first quarter of
fiscal year 2014. We are very excited about the prospects for this unit. At
September 30, 2013, our cash and cash equivalents and investments totaled
$93.2 million as compared to $106.3 million at September 30, 2012. At
September 30, 2013 we have a net invested balance of $35.8 million in personal
injury claims. Our strong balance sheet puts us in an excellent position for
funding our investment opportunities, including this new advocacy group,
without the immediate need for external financing. We are not abandoning our
roots, as we continue to review all of our investment options in the
distressed receivables market; however, in this challenging pricing and
collection environment we are continuing to explore other financing markets
that we can effectively service and possess the potential to provide
attractive returns."

A conference call to discuss the results of the fiscal year and the fourth
quarter of fiscal year 2013 will be held on Thursday, December 12, 2013 at
4:00 PM, EST.

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

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

Conference ID
22968026

Phone Replay:
Toll-Free #: (800) 585-8367
International Toll #: (404) 537-3406
Conference ID # 22968026
Recording will be available from: 12/12/2013 7:00 PM EST to 12/18/2013 11:59
PM EST

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.

Important Information about Forward-Looking Statements: All statements in this
new release other than statements of historical facts, including without
limitation, statements regarding our future financial position, business
strategy, budgets, projected revenues, projected costs, and plans and
objective of management for future operations, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "expects," "intends,"
"plans," "projects," "estimates," "anticipates," or "believes" or the negative
thereof, or any variation thereon, or similar terminology or expressions. We
have based these forward-looking statements on our current expectations and
projections about future events. 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. Important factors which could materially
affect our results and our future performance include, without limitation, 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, and
statements of assumption underlying any of the foregoing, as well as other
factors set forth under "Item 1A. Risk Factors" in our annual report on Form
10-K for the year ended September 30, 2012 and other filings with the SEC. 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. Except as required by law, we assume no duty to update or revise
any forward-looking statements.

                                                     - Financial Tables Follow


Asta Funding, Inc.
Consolidated Statements of Operations
                            Unaudited
                            Year Ended                Three Months Ended
                            September 30,             September 30,
                            2013         2012         2012        2012
Revenues:                                                       
Finance income, net          $ 34,363,000 $ 40,599,000 $ 7,607,000 $ 9,838,000
                                                               
Other income                 8,049,000    3,903,000    1,500,000   1,184,000
                                                               
                                                               
                            42,412,000   44,502,000   9,107,000   11,022,000
                                                               
General and administrative   24,212,000   23,640,000   6,286,000   7,148,000
expenses
                                                               
Interest expense (credit)    1,300,000    2,539,000    (321,000)   600,000
                                                               
Impairments of consumer
receivables acquired for     12,592,000   1,383,000    241,000     650,000
liquidation
                                                               
                                                               
                            38,104,000   27,562,000   6,206,000   8,398,000
                                                               
                                                               
Income before income taxes   4,308,000    16,940,000   2,901,000   2,624,000
                                                               
Income tax expense           1,164,000    6,872,000    666,000     1,107,000
                                                               
                                                    
Net income                   3,144,000    10,068,000   2,235,000   1,517,000
Less: net income (loss)
attributable to              406,000      31,000       230,000     (35,000)
non-controlling interest
Net income attributable to   $ 2,738,000  $ 10,037,000 $ 2,005,000 $ 1,552,000
Asta Funding, Inc.
                                                               
Basic net income per share   $ 0.21       $ 0.71       $ 0.16      $ 0.12
                                                               
                                                               
Diluted net income per share $ 0.21       $ 0.70       $ 0.15      $ 0.12
                                                               
                                                               
Weighted average shares                                         
outstanding:
Basic                        12,952,150   14,136,405   12,968,852  13,007,788
Diluted                      13,216,051   14,380,136   13,210,310  13,251,205


ASTA FUNDING, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

                                                  September30,
                                                  2013          2012
ASSETS                                                          
Cash and cash equivalents                          $ 35,179,000  $ 4,953,000
Investments:                                                    
Available-for-sale                                 58,035,000    58,712,000
Certificates of deposit                            --            42,682,000
Restricted cash                                    968,000       1,088,000
Consumer receivables acquired for liquidation (at  57,900,000    86,887,000
net realizable value)
Other investments, net                             35,758,000    18,596,000
Due from third party collection agencies and       1,169,000     2,042,000
attorneys
Prepaid and income taxes receivable                1,496,000     2,057,000
Furniture and equipment (net of accumulated
depreciation of $4,136,000 in 2013 and $3,696,000  1,106,000     821,000
in 2012)
Deferred income taxes                              10,443,000    10,410,000
Other assets                                       5,793,000     4,916,000
Total assets                                       $ 207,847,000 $ 233,164,000
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Liabilities                                                     
Non-recourse debt                                  $ 35,760,000  $ 61,463,000
Other liabilities                                  2,486,000     2,920,000
Dividends payable                                  --            260,000
Total liabilities                                  38,246,000    64,643,000
Commitments and contingencies                                   
STOCKHOLDERS' EQUITY                                            
Preferred stock, $.01par value; authorized        --            --
5,000,000; Issuedand outstanding — none
Common stock, $.01 par value, authorized
30,000,000 shares; issued – 14,917,977 at
September 30, 2013 and 14,778,956 at September 30, 149,000       148,000
2012; and outstanding – 12,974,239 at September
30, 2013 and 13,006,918 at September 30, 2012
Additional paid-in capital                         79,104,000    77,024,000
Retained earnings                                  109,011,000   107,303,000
Accumulated other comprehensive (loss) income, net (674,000)     241,000
of income taxes
Treasury stock (at cost),1,943,738 shares at
September 30, 2013 and 1,772,038 shares at         (17,805,000)  (16,226,000)
September 30, 2012
Non-controlling interest                           (184,000)     31,000
Total stockholders' equity                         169,601,000   168,521,000
Total liabilities and stockholders' equity         $ 207,847,000 $ 233,164,000

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

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