Asta Profits Rise 14% as Revenues, Expenses Jump

Asta Funding today reported net income for its fiscal year ending Sept. 30 of $52.3 million, up more than 14 percent from the previous fiscal year. Net income for its fiscal fourth quarter was $13.1 million, a decline of nearly 3.7 percent from $13.6 million in the same period a year ago.

Revenue for the year rose 38 percent to $140.8 million, while revenue in the fourth quarter was $43.1 million, up more than 41 percent from $30.5 million.

Investors cheered the news, sending Asta stock up nearly 13 percent to $30.80 in midday trading. The move is a marked contrast from this week as traders sent the stock down more than 19 percent since late last Friday after Asta announced it would delay filing its annual report.

Englewood Cliffs, N.J.-based Asta purchases, manages and liquidates consumer receivables.

Asta more than doubled the face value of the portfolios it acquired during the year, paying $440.9 million for debt with a face value of nearly $10.9 billion, compared with $5.2 billion last year.

In its fourth quarter, Asta paid $38.6 million for portfolios with a face value of $644.8 million.

Expenses increased sharply for the year and quarter. General and administrative expenses in the fiscal year rose more than 39 percent to $25.5 million, and more than 68 percent to $8.1 million in the fourth quarter.

Interest expense came in at $18.2 million for the year, up nearly 400 percent from $4.6 million a year ago.

Impairments skyrocketed. Fourth quarter impairments rose nearly 500 percent to $6.7 million, while impairments for the year came in at $9.1 million, an increase of more than 400 percent from $2.2 million in fiscal 2006.