Asta Funding Reports Increase in Net Income in Most Recent Quarter

Debt buyer Asta Funding, Inc. (Nasdaq: ASFI) early Thursday reported financial results for its fiscal third quarter of 2011 ended June 30, 2011. The company said that net income was up while revenue and cash collections were down.

The Englewood Cliffs, N.J.-based accounts receivable management firm said that net income increased 7.1 percent to $3.3 million, or $0.23 per share.

Revenues, however, fell 7.2 percent compared to the same period a year ago to $11.2 million. Net cash collections fell 15.7 percent to $21.7 million.

Asta also noted that it had no senior debt as of June 30, 2011 and September 30, 2010. The balance of the subordinated debt was $4,386,000 as of September 30, 2010 and was paid in full by December 31, 2010. In addition, the balance of the non-recourse debt to the Bank of Montreal was $74,228,000 at June 30, 2011 down from $90,483,000 at September 30, 2010.

“We are pleased with the results of the third quarter and nine month period ended June 30, 2011 as we continue to generate strong cash flow and improve our liquidity position,” commented Gary Stern, Chairman and CEO of the company. “Also, as previously announced, we authorized a share repurchase program for up to $20,000,000 of our common stock. This share repurchase program reflects the Board of Director’s continued confidence in our business strategy and growth prospects. Based on current market prices, we believe the repurchase program is prudent and in the best interests of our shareholders.”