Newtek Business Services Corp. provides financial forecasts for the first half of 2022
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BOCA RATON, Fla., June 21, 2022 (GLOBE NEWSWIRE) — Newtek Business Services Corp., (NASDAQ: NEWT), an internally managed business development company (“BDC”), provides forecasts for certain financial metrics for the six months ending June 30, 2022. For the six months ending June 30, 2022, the Company expects a net investment income (loss) (“NII”) within a range of ($0.01) per share at $0.00 per share and adjusted net investment income (“ANII”)1 in the range of $1.40 per share to $1.50 per share.
Barry Sloane, Chairman, President and Chief Executive Officer, said: “As we approach the end of the quarter, we believe we are on track to deliver the previously planned results for the first six months of 2022. We continue to work to deliver our planned financial results and are confident that we will be able to achieve an ANII for the first six months of 2022 that will equal or exceed the dividends that were declared during the first half of 2022. an amount of $1.40 per share. As we mentioned on our first quarter 2022 earnings conference call, we expect some pricing pressure on government-backed loan sales margins in the second quarter of 2022, and that’s what that we have observed. However, offsetting pricing pressure, we are seeing opportunities from high quality borrowers, as well as strong portfolio performance as of May 31, 2022, which have placed the Company in a comfortable rate position. change from his portfolio. Additionally, we believe the combined performance of Newtek Merchant Solutions and other portfolio companies will help us achieve our NII and ANII guidance for the first six months of 2022.”
Mr. Sloane continued: “We were exceptionally pleased that 89% of shareholders voting in the recent special proxy vote gave the board permission to withdraw our election as a company governed by 1940s law, which , subject to regulatory approvals, would allow us to operate as a 1933 Act Company, which we believe may provide us with the opportunity to raise more profitable capital. As a company that has always been able to grow its business, we believe the conversion to a bank holding company, subject to regulatory approvals, could not be more timely despite the need to overcome what we believe to be a shareholder transition. Importantly, as a bank holding company, we believe we will be eligible for inclusion in the Russell 2000 exchange-traded funds, which are managed by institutional fund managers and we believe can help ease the frictions that institutional fund managers have experienced investing in BDCs. due to the double counting of the AFFE. Additionally, as a bank holding company, any dividends our loyal shareholders may receive will be taxed at a more advantageous qualified rate rather than the ordinary income rate.
Mr. Sloane concluded, “We look forward to releasing second quarter 2022 financial results in early August and expect to provide an update on the National Bank of New York City acquisition.
1 Use of Non-GAAP Financial Measures – In evaluating its business, Newtek considers and uses ANII as a measure of its operational performance. ANII includes short-term capital gains from the sale of the secured portions of SBA 7(a) loans and conventional loans, and beginning in 2016, capital gains distributions from holding companies controlled, which are recurring events. The Company defines ANII as net investment income (loss) plus net realized gains recognized on the sale of secured portions of SBA 7(a) loan investments, less realized losses on unaffiliated investments, plus net realized gains on controlled investments, plus or minus change in fair value of contingent consideration liabilities, plus loss on extinguishment of debt, plus or minus an adjustment for gains or losses on derivative transactions. The term ANII is not defined under United States generally accepted accounting principles, or United States GAAP, and is not a measure of operating profit, operating performance, or liquidity. presented in accordance with US GAAP. ANII has limitations as an analytical tool and when evaluating the Company’s operating performance, investors should not consider ANII in isolation, or as a substitute for net investment income, or other consolidated income statement data prepared in accordance with US GAAP. Among other things, the ANII does not reflect the Company’s actual cash expenditures. Other companies may calculate similar measurements differently than Newtek, which limits their usefulness as comparison tools. The Company compensates for these limitations by relying mainly on its GAAP results supplemented by the ANII.
Newtek Business Services Corp., Your Business Solutions Company®, is an internally managed BDC which, together with its controlled holding companies, provides a wide range of business and financial solutions under the Newtek® brand to the small and medium-sized enterprise (“SME”) market. Since 1999, Newtek has provided leading, cost-effective products and services and effective business strategies to SMB relationships in all 50 states to help them increase sales, control expenses and reduce risk.
Products and services of Newtek and its portfolio companies include: business loans, SBA loan solutions, electronic payment processing, technology solutions (cloud computing, data backup, storage and recovery, IT consulting) , eCommerce, Accounts Receivable and Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek® and Your Business Solutions Company® are registered trademarks of Newtek Business Services Corp.
Note Regarding Forward-Looking StatementsThis press release contains certain forward-looking statements. Words such as “believes”, “intends”, “expects”, “plans”, “anticipates”, “plans”, “goal” and “future” or similar expressions are intended to identify forward-looking statements. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected or implied by the forward-looking statements. These risks and uncertainties include, among other things, our ability to complete the pending acquisition of National Bank of New York City (the “Acquisition”), to obtain the regulatory approvals required for the pending Acquisition, as well as projections regarding or contemplating the acquisition in progress Acquisition, our ability to generate new investments, to achieve certain margins and levels of profitability, the availability of additional capital and the ability to maintain certain debt ratios, the intensification of competition, operational issues and their impact on revenues and profit margins, anticipated future business, financial performance and strategies, expected future number of customers, business prospects, legislative developments and other similar matters. Risk factors, cautionary statements and other conditions, which could cause Newtek’s actual results to differ from management’s current expectations, are contained in Newtek’s filings with the Securities and Exchange Commission and available at http ://www.sec.gov/. Newtek cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied by such statements.
SOURCE: Newtek Business Services Corp.
Investor Relations and Public RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179 / [email protected]
Source: Newtek Business Services Corp.