U.S. Markets open in 5 hrs 21 mins

Asta Funding Announces Results for The Third Quarter Ended June 30, 2019

  ●  $2.3 million in net income for the quarter ended June 30, 2019
  Diluted EPS rose to $0.35 for the quarter ended June 30, 2019 
  ●  $61.2 million in cash & securities as of June 30, 2019

ENGLEWOOD CLIFFS, N.J., Aug. 13, 2019 (GLOBE NEWSWIRE) -- Asta Funding, Inc. (ASFI) (the “Company”), a diversified financial services company, today announced results for the third quarter ended June 30, 2019.

Three Months Ended June 30, 2019 Results

For the three months ended June 30, 2019, net income was $2.3 million, or $0.35 per diluted share, as compared to net income of $2.0 million, or $0.29 per diluted share for the three months ended June 30, 2018.

Total income for the three months ended June 30, 2019 decreased $0.9 million to $6.4 million, compared to $7.3 million for the three months ended June 30, 2018. Total revenue included in the three months ended June 30, 2019 is approximately $3.7 million in total revenue from finance income from the distressed receivable business, as compared to $4.5 million for the three months ended June 30, 2018. Also included in total revenues for the three months ended June 30, 2019 is approximately $0.4 million from personal injury claims income, as compared to $1.6 million for the three months ended June 30, 2018. Disability fee income was $1.2 million for the three months ended June 30, 2019 and 2018.  Other income increased $0.8 million to $0.9 million for the three months ended June 30, 2019, compared to $0.1 million for the three months ended June 30, 2018.  The Company recognized a gain on settlement of $0.3 million for the three months ended June 30, 2019.

General and administrative expenses decreased $1.2 million to $3.0 million for the three months ended June 30, 2019, as compared to $4.2 million for the three months ended June 30, 2018.

Additionally, the Company had a loss from an equity method investment of $(5,000) for the three months ended June 30, 2019.

Nine Months Ended June 30, 2019 Results

For the nine months ended June 30, 2019, net income was $5.4 million, or $0.80 per diluted share, as compared to a net income of $0.3 million, or $0.05 per diluted share for the nine months ended June 30, 2018.

Total income for the nine months ended June 30, 2019 decreased $0.4 million to $18.0 million, compared to $18.4 million for the nine months ended June 30, 2018. Total revenue included in the nine months ended June 30, 2019 is approximately $10.7 million in total revenue from finance income from the distressed receivable business, as compared to $12.8 million for the nine months ended June 30, 2018. Also included in total revenues for the nine months ended June 30, 2019 is approximately $1.6 million from personal injury claims income, as compared to $2.2 million for the nine months ended June 30, 2018. Disability fee income was $3.7 million for the nine months ended June 30, 2019, as compared to $3.2 million for the nine months ended June 30, 2018.  Other income increased $1.2 million to $1.4 million for the nine months ended June 30, 2019, compared to $0.2 million for the nine months ended June 30, 2018.  The Company recognized a gain on settlement of $0.6 million for the nine months ended June 30, 2019.

General and administrative expenses decreased $1.4 million to $10.3 million for the nine months ended June 30, 2019, as compared to $11.7 million for the nine months ended June 30, 2018.  During the nine months ended June 30, 2018, the Company recorded a loss of $(1.4) million on the acquisition of a minority interest.

Additionally, the Company had a loss from an equity method investment of $(91,000) for the nine months ended June 30, 2019, compared to earnings from an equity method investment of $0.8 million for the nine months ended June 30, 2018.

Balance Sheet Review

As of June 30, 2019, the Company had approximately $61.2 million in cash and cash equivalents, and securities, $89.2 million in stockholders' equity, and a net book value per share of $13.50. 

About Asta Funding, Inc.

Asta Funding, Inc. (ASFI), headquartered in Englewood Cliffs, New Jersey, is a diversified financial services company that assists consumers and serves investors through the strategic management of three complementary business segments: Personal Injury Claims, Consumer Debt and Disability Advocacy. Founded in 1994 as a sub-prime auto lender, Asta now manages business units that include or have included funding of personal injury claims; acquiring and managing international distressed consumer receivables; and benefits advocacy. For additional information, please visit our website at  http://www.astafunding.com.

Cautionary Note Regarding Forward-Looking Statements

All statements in this news 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 objectives 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, the identified material weaknesses in our internal control over financial reporting and our ability to remediate those material weaknesses, 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, 2018, 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.

Investor Contact:

Bruce R. Foster, CFO
Asta Funding, Inc.
(201) 567-5648

 


ASTA FUNDING, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets

    June 30,
2019

(Unaudited)
    September 30,
2018
 
ASSETS                
Cash and cash equivalents   $ 2,898,000     $ 6,284,000  
Available for sale debt securities (at fair value)     50,286,000       38,054,000  
Investments in equity securities (at fair value)     8,032,000        
Consumer receivables acquired for liquidation (at cost)     2,184,000       3,749,000  
Investment in personal injury claims, net     5,909,000       10,745,000  
Due from third party collection agencies and attorneys     813,000       755,000  
Accounts receivable, net     235,000        
Prepaid and income taxes receivable, net     4,456,000       5,387,000  
Furniture and equipment, net of accumulated depreciation of $1.9 million at June 30, 2019 and $1.8 million at September 30, 2018     145,000       100,000  
Equity method investment     207,000       236,000  
Note receivable           4,313,000  
Settlement receivable     1,990,000       3,339,000  
Deferred income taxes     10,360,000       10,940,000  
Goodwill     1,410,000       1,410,000  
Other assets     1,443,000       1,003,000  
Total assets   $ 90,368,000     $ 86,315,000  
LIABILITIES                
Accounts payable and accrued expenses   $ 1,208,000     $ 2,281,000  
                 
Commitments and contingencies                
                 
STOCKHOLDERS’ EQUITY                
Preferred stock, $.01 par value; authorized 5,000,000 shares; issued and outstanding — none            
Preferred stock, Series A Junior Participating, $.01 par value; authorized 30,000 shares; issued and outstanding — none            
Common stock, $.01 par value, authorized 30,000,000 shares; issued 13,459,708 at June 30, 2019 and September 30, 2018; and outstanding 6,605,915 at June 30, 2019 and 6,685,415 at September 30, 2018     135,000       135,000  
Additional paid-in capital     68,558,000       68,551,000  
Retained earnings     87,956,000       82,441,000  
Accumulated other comprehensive income, net of taxes     199,000       35,000  
Treasury stock (at cost) 6,853,793 shares at June 30, 2019 and 6,774,293 at September 30, 2018     (67,688,000 )     (67,128,000 )
Total stockholders’ equity     89,160,000       84,034,000  
Total liabilities and stockholders’ equity   $ 90,368,000     $ 86,315,000  

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, 2019     June 30, 2018     June 30, 2019      June 30, 2018    
Revenues:                              
Finance income, net   $ 3,684,000     $ 4,509,000     $ 10,659,000   $ 12,795,000  
Personal injury claims income     439,000       1,557,000       1,608,000     2,167,000  
Disability fee income     1,175,000       1,188,000       3,732,000     3,248,000  
                               
Total revenues     5,298,000       7,254,000       15,999,000     18,210,000  
                               
Gain on settlement     273,000             596,000      
Other income, net     855,000       76,000       1,395,000     179,000  
                               
      6,426,000       7,330,000       17,990,000     18,389,000  
                               
Expenses:                              
General and administrative     2,980,000       4,201,000       10,301,000     11,712,000  
Loss on acquisition of minority interest                     1,420,000  
Interest           17,000           19,000  
Impairment     100,000       100,000       100,000     100,000  
Loss (earnings) from equity method investment     5,000             91,000     (845,000 )
                               
      3,085,000       4,318,000       10,492,000     12,406,000  
                               
Income from continuing operations before income tax     3,341,000       3,012,000       7,498,000     5,983,000  
Income tax expense     1,037,000       1,055,000       2,146,000     5,595,000  
                               
Net income from continuing operations     2,304,000       1,957,000       5,352,000     388,000  
Net loss from discontinued operations, net of income tax                     (80,000 )
                               
Net income   $ 2,304,000     $ 1,957,000     $ 5,352,000   $ 308,000  
                               
Net income (loss) per basic shares:                              
Continuing operations   $ 0.35     $ 0.29     $ 0.80   $ 0.06  
Discontinued operations                     (0.01 )
    $ 0.35     $ 0.29     $ 0.80   $ 0.05  
Net income (loss) per diluted shares:                              
Continuing operations   $ 0.35     $ 0.29     $ 0.80   $ 0.06  
Discontinued operations                     (0.01 )
    $ 0.35     $ 0.29     $ 0.80   $ 0.05  
                               
Weighted average number of common shares outstanding:                              
Basic     6,666,012       6,685,415       6,678,947     6,654,911  
Diluted     6,666,231       6,685,628       6,679,260     6,657,840