Great Q for Asta as Profits Rise 30%

Debt purchaser Asta Funding Inc. (NASDAQ ASFI) late yesterday reported fiscal third quarter net income of $15.3 million, or $1.03 per diluted share, an increase of nearly 30 percent from $11.8 million, or $0.80 per diluted share, in the third fiscal quarter of 2006.

Revenues were $38.9 million in this year’s quarter, a rise of  more than 47 percent from $26.4 million a year ago. Asta reported $539.7 million in consumer receivables at the end of the quarter, compared with $257.3 million at the end of its third fiscal quarter last year.

Asta bought $496.8 million of face value charged off consumer receivables for $15.6 million during the quarter.

Net cash collections from consumer receivables acquired for liquidation and net cash collections represented by account sales rose 20.2 percent to $73 million, exclusive of $5.5 million returned to a seller. Net cash collections from account sales of consumer receivables acquired for liquidation totaled $9.8 million, down from $17 million in the same period a year ago. Finance income on account sales was $3.7 million, down nearly 64 percent from the same period in 2006.

Gary Stern, president and CEO, said the company had finance income of $8.8 million from a  “large portfolio purchase in March 2007.” Stern said that account “sales are an integral part of our business and we look to sell accounts in the future.”