Market Overview

My goal is to be on stage with my computer and let you
see my screen and make sure you know what buttons to
press, where you’re getting in & out, how to calculate
risk, your targets — all of those things.
It’s real-life trading. Make sure you sign up!
- Jerremy Newsome
GET TICKETS

Asta Funding Announces Results for The Second Quarter Ended March 31, 2019

Share:
●  $1.8 million in net income for the quarter ended March 31, 2019
Diluted EPS rose to $0.27 for the quarter ended March 31, 2019
●  $50.1 million in cash & securities as of March 31, 2019 

ENGLEWOOD CLIFFS, N.J., May 13, 2019 (GLOBE NEWSWIRE) -- Asta Funding, Inc. (NASDAQ:ASFI) (the "Company"), a diversified financial services company, today announced results for the second quarter ended March 31, 2019.

Three Months Ended March 31, 2019 Results

For the three months ended March 31, 2019, net income was $1.8 million, or $0.27 per diluted share, as compared to net income of $1.0 million, or $0.15 per diluted share for the three months ended March 31, 2018.

Total income for the three months ended March 31, 2019 increased $0.1 million to $5.9 million, compared to $5.8 million for the three months ended March 31, 2018. Total revenue included in the three months ended March 31, 2019 is approximately $3.5 million in total revenue from finance income from the distressed receivable business, as compared to $4.1 million for the three months ended March 31, 2018. Also included in total revenues for the three months ended March 31, 2019 is approximately $0.5 million from personal injury claims income, as compared to $0.5 million for the three months ended March 31, 2018. Disability fee income for the three months ended March 31, 2019, was up by $0.2 million to $1.3 million as compared to $1.1 million for the three months ended March 31, 2018.  

General and administrative expenses remained relatively consistent at $3.4 million for the three months ended March 31, 2019, as compared to $3.3 million for the three months ended March 31, 2018. During the three months ended March 31, 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 $(0.1) million for the three months ended March 31, 2019, compared to earnings from an equity method investment of $0.5 million for the three months ended March 31, 2018.

Six Months Ended March 31, 2019 Results

For the six months ended March 31, 2019, net income was $3.0 million, or $0.46 per diluted share, as compared to a net loss of $(1.6) million, or $(0.25) per diluted share for the six months ended March 31, 2018.

Total income for the six months ended March 31, 2019 increased $0.5 million to $11.6 million, compared to $11.1 million for the six months ended March 31, 2018. Total revenue included in the six months ended March 31, 2019 is approximately $7.0 million in total revenue from finance income from the distressed receivable business, as compared to $8.3 million for the six months ended March 31, 2018. Also included in total revenues for the six months ended March 31, 2019 is approximately $1.2 million from personal injury claims income, as compared to $0.6 million for the six months ended March 31, 2018. Disability fee income for the six months ended March 31, 2019, was up by $0.5 million to $2.6 million as compared to $2.1 million for the six months ended March 31, 2018.  

General and administrative expenses remained relatively consistent at $7.3 million for the six months ended March 31, 2019, as compared to $7.5 million for the six months ended March 31, 2018. During the six months ended March 31, 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 $(0.1) million for the six months ended March 31, 2019, compared to earnings from an equity method investment of $0.8 million for the six months ended March 31, 2018.

Balance Sheet Review

As of March 31, 2019 the Company had approximately $50.1 million in cash and cash equivalents, and securities, $87.5 million in stockholders' equity, and a net book value per share of $13.09.

About Asta Funding, Inc.

Asta Funding, Inc. (NASDAQ: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 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

    March 31,
2019

(Unaudited)
    September 30,
2018
 
ASSETS                
Cash and cash equivalents   $ 3,694,000     $ 6,284,000  
Available for sale debt securities (at fair value)     38,390,000       38,054,000  
Investments in equity securities (at fair value)     7,989,000        
Consumer receivables acquired for liquidation (at cost)     2,626,000       3,749,000  
Investment in personal injury claims, net     6,630,000       10,745,000  
Due from third party collection agencies and attorneys     654,000       755,000  
Accounts receivable, net     382,000        
Prepaid and income taxes receivable, net     8,496,000       5,387,000  
Furniture and equipment, net of accumulated depreciation of $1.9 million at March 31, 2019 and
$1.8 million at September 30, 2018
    168,000       100,000  
Equity method investment     211,000       236,000  
Note receivable     3,831,000       4,313,000  
Settlement receivable     2,637,000       3,339,000  
Deferred income taxes     10,548,000       10,940,000  
Goodwill     1,410,000       1,410,000  
Other assets     1,452,000       1,003,000  
Total assets   $ 89,118,000     $ 86,315,000  
LIABILITIES                
Accounts payable and accrued expenses   $ 1,597,000     $ 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 March 31, 2019
and September 30, 2018; and outstanding 6,685,415 at March 31, 2019 and September 30, 2018
    135,000       135,000  
Additional paid-in capital     68,558,000       68,551,000  
Retained earnings     85,652,000       82,441,000  
Accumulated other comprehensive income, net of taxes     304,000       35,000  
Treasury stock (at cost) 6,774,293 shares at March 31, 2019 and September 30, 2018     (67,128,000 )     (67,128,000 )
Total stockholders' equity     87,521,000       84,034,000  
Total liabilities and stockholders' equity   $ 89,118,000     $ 86,315,000  
                 

ASTA FUNDING, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)

    Three Months     Three Months     Six Months     Six Months  
    Ended     Ended     Ended     Ended  
    March 31, 2019     March 31, 2018     March 31, 2019     March 31, 2018  
Revenues:                                
Finance income, net   $ 3,481,000     $ 4,101,000     $ 6,975,000     $ 8,286,000  
Personal injury claims income     456,000       469,000       1,169,000       610,000  
Disability fee income     1,296,000       1,149,000       2,557,000       2,060,000  
Total revenues     5,233,000       5,719,000       10,701,000       10,956,000  
                                 
Gain on settlement     323,000       —        323,000       —   
Other income, net     306,000       69,000       540,000       103,000  
      5,862,000       5,788,000       11,564,000       11,059,000  
Expenses:                                
General and administrative     3,395,000       3,301,000       7,321,000       7,513,000  
Loss on acquisition of minority interest     —        1,420,000       —        1,420,000  
Loss (earnings) from equity method investment     56,000       (493,000 )     86,000       (845,000 )
      3,451,000       4,228,000       7,407,000       8,088,000  
                                 
Income from continuing operations before income tax     2,411,000       1,560,000       4,157,000       2,971,000  
Income tax expense     638,000       540,000       1,109,000       4,540,000  
Net income (loss) from continuing operations     1,773,000       1,020,000       3,048,000       (1,569,000
Net loss from discontinued operations, net of income tax     —        —        —        (80,000 )
Net income (loss)   $ 1,773,000     $ 1,020,000     $ 3,048,000     $ (1,649,000
Net earnings (loss) per basic share:                                
   Continuing operations   $ 0.27     $ 0.15     $ 0.46     $ (0.24 )
   Discontinued operations     —        —        —        (0.01 )
    $ 0.27     $ 0.15     $ 0.46     $ (0.25 )
                                 
Net income (loss) per diluted shares:   $ 0.27     $ 0.15     $ 0.46     $ (0.24 )
   Continuing operations     —        —        —        (0.01 )
   Discontinued operations   $ 0.27     $ 0.15     $ 0.46     $ (0.25 )
                                 
Weighted average number of common shares outstanding:                                
Basic     6,685,415       6,655,855       6,685,415       6,639,659  
Diluted     6,685,827       6,659,354       6,685,775       6,639,659  
                                 

asta.jpg

View Comments and Join the Discussion!