Asta Funding Inc., based in Englewood Cliffs, N.J., reported financial results for the its fiscal first quarter ended December 31, led by an increase in net income and drops in revenue and total cash collections.
Revenue in the quarter fell 3.7% to $10.4 million. Total net cash collections fell by nearly 20% to $17 million. The company earned $3 million in the quarter up 11.6% from the same period a year ago.
The company spent $1.35 million for debt portfolios - litigation-related medical accounts - in the quarter, compared to $2.9 million in the year-ago period.
Net cash collections of consumer receivables acquired for liquidation for the quarter totaled nearly $17 million. This compares to the prior year's total net cash collections of $21.1 million.
Net cash collections on the Great Seneca portfolio were $2.7 million in the first quarter of fiscal year 2012 as compared to $3.6 million in the year-ago period. The carrying value of the Great Seneca portfolio on December 31, 2011 was $75.6 million, as compared to $87.7 million at December 31, 2010.
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"Our previous progress in strengthening our balance sheet, reducing overhead expenses, increasing our cash position and generating strong cash flow has continued well into fiscal year 2012. The current economic climate presents somewhat of a challenge to us in purchasing distressed consumer portfolios at economically viable pricing," says Gary Stern, chairman and CEO. "Nevertheless, we remain steadfast in pursuing the purchase of distressed consumer portfolios, which remains the core of our business."
