Asta Funding, an Englewood Cliffs, N.J.-based debt buyer, reported Wednesday that net income for fiscal year ended Sept. 30, rose 236% to $10.5 million.
For the fourth quarter ended Sept. 30, net income totaled $1.65 million, up from a net loss of $5.3 million in the year-ago period.
Revenues for the full fiscal year dropped 5.8% to $43.2 million, a figure that includes a one-time charge of an estimated $1.3 million resulting from a third-party servicer invoicing Asta for previously unbilled collection costs. For the fourth quarter, Asta reported a 14.8% decrease in revenues to $9.8 million, a figure that includes the one-time charge.
Net cash collections of accounts acquired for liquidation in the fourth quarter totaled $18 million, down 14.4% from the same period a year ago.
Asta said that it invested in debt portfolios with a face value of $1.7 million at a cost of $600,000 during the fourth quarter, compared to purchases of $113.4 million in face value at a cost of $4.7 million during the fourth quarter of 2010. The portfolio investments in the fourth quarter were in medical-related litigation receivables.
