Newtek Business Services Corp. (“Newtek” or the “Company”)
(Nasdaq: NEWT), an internally managed business development company
(“BDC”), announced today its financial and operating results for
the three and nine months ended September 30, 2019.
Third Quarter 2019
Highlights
- Total investment income of $16.0 million for the three months
ended September 30, 2019; an increase of 29.4% over total
investment income of $12.4 million for the three months ended
September 30, 2018.
- Net investment loss of $(0.533) million, or $(0.03) per share,
for the three months ended September 30, 2019; a 62.5% improvement
on a per share basis over net investment loss of $(1.4) million, or
$(0.08) per share, for the three months ended September 30,
2018.
- Adjusted net investment income (“ANII”)1 of $12.2 million, or
$0.63 per share, for the three months ended September 30, 2019; an
increase of 26.0% on a per share basis compared to ANII of $9.3
million, or $0.50 per share, for the three months ended September
30, 2018.
- Net asset value (“NAV”) was $299.8 million, or $15.41 per
share, at September 30, 2019; an increase of 1.5% on a per share
basis, over NAV of $15.19 per share at December 31, 2018.
- Debt-to-equity ratio of 133% at September 30, 2019.
- At September 30, 2019, proforma debt-to-equity ratio was 123.7%
as a result of the sales of government-guaranteed portions of SBA
7(a) loans prior to September 30, 2019, which sales settled
subsequent to the balance sheet date.
- Total investment portfolio increased by 12.9% to $610.9 million
at September 30, 2019, from $541.1 million at December 31,
2018.
- The Company closed its public offering of $63.3 million in
aggregate principal amount of 5.75% Notes Due 2024 (“Notes,” Nasdaq
“NEWTL”), including the exercise of the overallotment of $8.25
million. The Company utilized the net proceeds from this
offering to redeem its outstanding 7.50% 2022 Notes, to fund its
SBA 7(a) lending activity, to make direct investments in portfolio
companies and for general working capital purposes. In
connection with the Notes offering, Egan Jones maintained its
rating of A- on Newtek and rated the Notes A-.
Financial Highlights - Nine Months Ended
September 30, 2019
- Total investment income of $43.9 million for the nine months
ended September 30, 2019; an increase of 26.0% over total
investment income of $34.9 million for the nine months ended
September 30, 2018.
- Net investment loss of $(2.6) million, or $(0.14) per share,
for the nine months ended September 30, 2019, a 58.8% improvement
on a per share basis over net investment loss of $(6.4) million, or
$(0.34) per share, for the nine months ended September 30,
2018.
- ANII of $31.5 million, or $1.65 per share, for the nine months
ended September 30, 2019; an increase of 20.4% on a per share
basis, over ANII of $25.6 million, or $1.37 per share, for the nine
months ended September 30, 2018.
2019 Dividend Payments and 2020 Dividend
Guidance
- The Company paid a third quarter 2019 cash dividend of $0.58
per share on September 30, 2019 to shareholders of record as of
September 20, 2019.
- On October 10, 2019, the Company declared a fourth quarter 2019
cash dividend of $0.71 per share, payable on December 30, 2019 to
shareholders of record December 16, 2019.
- The declaration of the fourth quarter 2019 dividend is in line
with the Company’s 2019 annual dividend guidance of $2.15 per
share, which, when paid, will represent an approximate 19.4%
increase over the 2018 annual cash dividend of $1.80 per
share.
- The Company forecasts paying an annual cash dividend of $2.192
per share in 2020, which would represent a 1.9% increase over the
2019 annual dividend of $2.15 per share.
Lending Highlights
- Newtek Small Business Finance, LLC (“NSBF”) funded $114.3
million of SBA 7(a) loans during the three months ended September
30, 2019; a 6.6% decrease over $122.4 million of SBA 7(a) loans
funded for the three months ended September 30, 2018.
- NSBF forecasts full year 2019 SBA 7(a) loan fundings of $520
million which would represent a 10.8% increase over SBA 7(a) loan
fundings for the year ended December 31, 2018.
- Newtek Business Lending (“NBL”), our wholly owned portfolio
company which originates SBA 504 loans, forecasts full year 2019
SBA 504 loan closings of approximately $60 million.
- Newtek Conventional Lending (“NCL”), the joint venture between
Newtek Commercial Lending, Inc., a wholly owned subsidiary of
Newtek, and Conventional Lending TCP Holding, LLC, a wholly owned
affiliate of BlackRock TCP Capital Corp., began operations in May
2019 and has closed $55.2 million in non-conforming conventional
loans through October 31, 2019.
- The Company recognized $0.43 million of dividend income from
NCL during the three months ended September 30, 2019.
Subsequent Third Quarter 2019 Highlights
- On October 4, 2019, the Company closed its tenth and largest
small business loan securitization, with the sale of $118,920,000
of Unguaranteed SBA 7(a) Loan-Backed Notes, Series 2019-1,
consisting of $93,540,000 of Class A Notes and $25,380,000 Class B
Notes (collectively, the “Notes”), rated “A” and “BBB-”,
respectively, by S&P Global Ratings.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “We are pleased to report our results for the three and nine
months ended September 30, 2019. With the payment of the fourth
quarter 2019 dividend on December 30, 2019, our 2019 annual
dividend of $2.15 per share will represent a 19.4% increase over
our 2018 annual dividend. On the heels of this almost 20%
year-over-year dividend increase, we are issuing our annual 2020
dividend forecast of $2.19 per share, which would represent an
approximate 2% increase over the 2019 annual dividend and leans
towards conservatism. We historically have issued annual
dividend guidance approximately 14 months in advance and have
consistently explained to the investment community that due to
operational aspects of our business, our quarterly dividend
payments typically fluctuate. In addition, as a result of our
continued focus on our portfolio companies, we anticipate the
growth of contributions to our income from the non-SBA 7(a)
portions of the business, which we believe is a tremendous strength
of our business model. Our goal is to meet and exceed our
performance objectives and hurdles. We believe we are one of the
few BDCs that has consistently increased its dividend and NAV over
its almost five-year operating history, which sets us apart in the
BDC sector. In fact, our average dividend increase on an annual
basis over the past 4 years has been approximately 10%, including
newly issued annual 2020 dividend forecast. ”
Mr. Sloane continued, “With the addition of the non-conforming
conventional loan business, we have augmented the Company’s
diversified streams of income while leveraging the Newtek business
lending platform and brand. Since NCL began operations in May
20, 2019, through October 31, 2019, NCL has closed over $55 million
of non-conforming conventional loans, and we are optimistic that we
will continue this closing pace through the remainder of 2019. In
addition, we are seeing improvements in the performance of Newtek’s
other portfolio companies, which are part of our diversified
business model that serves independent business owners in all 50
states.”
Mr. Sloane concluded, “Our net investment income (loss) for the
three and nine months ended September 30, 2019 realized significant
year-over-year improvement as our unguaranteed loan portfolio
continues to grow and our cost of debt continues to shrink. Our
recent $63.3 million 5.75% bond issue (Nasdaq: NEWTL), traded at a
premium to par at a yield of 5.57% as of October 31, 2019. In
addition, we issued our tenth and largest securitization in our
nine-year securitization history - which issuance garnered our
largest advance rate and best pricing of 183 basis points over
LIBOR - since our first securitization in 2010. Our growing
portfolio of floating-rate loans without caps, and a decrease
in our cost of debt financing, are material contributors to the
improvement in our net investment income (loss). Finally, our
servicing income and the distributions from our portfolio companies
also contributed to the 58.8% year-over-year improvement in net
investment income (loss) for the nine months ended September 30,
2019. We have an abundance of information to cover during our
earnings conference call tomorrow morning, and look forward to our
discussion with the investment community.”
Investor Conference Call and
Webcast
A conference call to discuss third quarter 2019
results will be hosted by Barry Sloane, Chairman and Chief
Executive Officer, and Christopher Towers, Chief Accounting
Officer, tomorrow, Thursday, November 7, 2019 at 8:30 a.m.
ET. The live conference call can be accessed by dialing (877)
303-6993 or (760) 666-3611.
In addition, a live audio webcast of the call with the
corresponding presentation will be available in the ‘Events &
Presentations’ section of the Investor Relations portion of
Newtek’s website at
http://investor.newtekbusinessservices.com/events-and-presentations.
A replay of the webcast with the corresponding presentation will be
available on Newtek’s website shortly following the live
presentation and will remain available for 90 days.
1Use of Non-GAAP Financial Measures -
Newtek Business Services Corp. and Subsidiaries
In evaluating its business, Newtek considers and uses ANII as a
measure of its operating performance. ANII includes
short-term capital gains from the sale of the guaranteed portions
of SBA 7(a) loans and conventional loans, and beginning in 2016,
capital gain distributions from controlled portfolio companies,
which are reoccurring events. The Company defines ANII as Net
investment income (loss) plus Net realized gains recognized from
the sale of guaranteed portions of SBA 7(a) loan investments, less
realized losses on non-affiliate investments, plus or minus loss on
lease adjustment, plus the net realized gains on controlled
investments, plus or minus the change in fair value of contingent
consideration liabilities, plus loss on extinguishment of debt.
The term ANII is not defined under U.S. generally accepted
accounting principles, or U.S. GAAP, and is not a measure of
operating income, operating performance or liquidity presented in
accordance with U.S. GAAP. ANII has limitations as an
analytical tool and, when assessing 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 U.S. GAAP.
Among other things, ANII does not reflect the Company’s actual cash
expenditures. Other companies may calculate similar measures
differently than Newtek, limiting their usefulness as comparative
tools. The Company compensates for these limitations by
relying primarily on its GAAP results supplemented by ANII.
2Note Regarding Dividend
Payments
Amount and timing of dividends, if any, remain subject to the
discretion of the Company’s Board of Directors. The Company's
Board of Directors expects to maintain a dividend policy with the
objective of making quarterly distributions in an amount that
approximates 90 - 100% of the Company's annual taxable
income. The determination of the tax attributes of the
Company's distributions is made annually as of the end of the
Company's fiscal year based upon its taxable income for the full
year and distributions paid for the full year.
Newtek Business Services Corp., Your Business Solutions
Company®, is an internally managed BDC, which along with its
controlled portfolio companies, provides a wide range of business
and financial solutions under the Newtek® brand to the small- and
medium-sized business (“SMB”) market. Since 1999, Newtek has
provided state-of-the-art, cost-efficient products and services and
efficient business strategies to SMB relationships across all 50
states to help them grow their sales, control their expenses and
reduce their risk.
Newtek’s and its portfolio companies’ products and services
include: Business Lending, SBA Lending Solutions, Electronic
Payment Processing, Technology Solutions (Cloud Computing,
Data Backup, Storage and Retrieval, IT Consulting), eCommerce,
Accounts Receivable Financing & 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 Statements
This press release contains certain
forward-looking statements. Words such as “believes,” “intends,”
“expects,” “projects,” “anticipates,” “forecasts,” “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 in or suggested by the forward-looking statements. Such
risks and uncertainties include, among others, intensified
competition, operating problems and their impact on revenues and
profit margins, anticipated future business strategies and
financial performance, anticipated future number of customers,
business prospects, legislative developments and 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 through
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 in these statements.
SOURCE: Newtek Business Services Corp.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
ASSETS AND LIABILITIES(In Thousands, except for
Per Share Data) |
|
|
September 30, 2019 |
|
December 31, 2018 |
ASSETS |
(Unaudited) |
|
|
Investments, at fair value |
|
|
|
SBA unguaranteed non-affiliate investments (cost of $397,745 and
$355,589, respectively; includes $235,551 and $323,388,
respectively, related to securitization trusts) |
$ |
389,605 |
|
|
$ |
349,402 |
|
SBA guaranteed non-affiliate investments (cost of $20,489 and
$17,217, respectively) |
21,851 |
|
|
19,100 |
|
Controlled investments (cost of $97,228 and $74,279,
respectively) |
198,408 |
|
|
171,585 |
|
Non-control/affiliate investments (cost of $1,000 and $1,000,
respectively) |
1,000 |
|
|
1,000 |
|
Investments in money market funds (cost of $9 and $9,
respectively) |
9 |
|
|
9 |
|
Total investments at fair
value |
610,873 |
|
|
541,096 |
|
Cash |
3,596 |
|
|
2,316 |
|
Restricted cash |
24,151 |
|
|
29,034 |
|
Broker receivable |
34,486 |
|
|
42,617 |
|
Due from related parties |
3,911 |
|
|
3,232 |
|
Servicing assets, at fair
value |
23,297 |
|
|
21,360 |
|
Right of use assets |
8,253 |
|
|
— |
|
Other assets |
22,192 |
|
|
13,686 |
|
Total assets |
$ |
730,759 |
|
|
$ |
653,341 |
|
|
|
|
|
LIABILITIES AND NET ASSETS |
|
|
|
Liabilities: |
|
|
|
Bank notes payable |
$ |
84,942 |
|
|
$ |
34,700 |
|
Notes due 2022 (par: $0 as of September 30, 2019 and $8,324 as of
December 31, 2018) |
— |
|
|
8,019 |
|
Notes due 2023 (par: $57,500 as of September 30, 2019 and December
31, 2018) |
55,917 |
|
|
55,564 |
|
Notes due 2024 (par: $63,250 as of September 30, 2019 and $0 as of
December 31, 2018) |
61,249 |
|
|
— |
|
Notes payable - Securitization trusts (par: $172,231 and $220,137
as of September 30, 2019 and December 31, 2018) |
169,526 |
|
|
216,507 |
|
Notes payable - related parties |
20,663 |
|
|
16,840 |
|
Due to related parties |
111 |
|
|
4 |
|
Lease liabilities |
10,194 |
|
|
— |
|
Deferred tax liabilities |
10,033 |
|
|
9,241 |
|
Accounts payable, accrued expenses and other liabilities |
18,372 |
|
|
25,021 |
|
Total liabilities |
431,007 |
|
|
365,896 |
|
|
|
|
|
Commitment and contingencies |
|
|
|
Net assets: |
|
|
|
Preferred stock (par value $0.02 per share; authorized 1,000
shares, no shares issued and outstanding) |
— |
|
|
— |
|
Common stock (par value $0.02 per share; authorized 200,000 shares,
19,447 and 18,919 issued and outstanding, respectively) |
389 |
|
|
379 |
|
Additional paid-in capital |
266,076 |
|
|
254,498 |
|
Accumulated undistributed earnings |
33,287 |
|
|
32,568 |
|
Total net assets |
299,752 |
|
|
287,445 |
|
Total liabilities and net assets |
$ |
730,759 |
|
|
$ |
653,341 |
|
Net asset value per common
share |
$ |
15.41 |
|
|
$ |
15.19 |
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)(In Thousands, except for
Per Share Data) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Investment income |
|
|
|
|
|
|
|
From non-affiliate investments: |
|
|
|
|
|
|
|
Interest income |
$ |
7,468 |
|
|
$ |
5,925 |
|
|
$ |
21,519 |
|
|
$ |
16,602 |
|
Servicing income |
2,542 |
|
|
2,177 |
|
|
7,473 |
|
|
6,250 |
|
Other income |
1,233 |
|
|
1,128 |
|
|
3,720 |
|
|
3,291 |
|
Total investment income from
non-affiliate investments |
11,243 |
|
|
9,230 |
|
|
32,712 |
|
|
26,143 |
|
From Non-control/affiliate investments: |
|
|
|
|
|
|
|
Dividend income |
27 |
|
|
26 |
|
|
86 |
|
|
36 |
|
Total investment income from
non-control/affiliate investments |
27 |
|
|
26 |
|
|
86 |
|
|
36 |
|
From controlled investments: |
|
|
|
|
|
|
|
Interest income |
223 |
|
|
204 |
|
|
658 |
|
|
553 |
|
Dividend income |
4,528 |
|
|
2,925 |
|
|
10,478 |
|
|
8,125 |
|
Total investment income from
controlled investments |
4,751 |
|
|
3,129 |
|
|
11,136 |
|
|
8,678 |
|
Total investment income |
16,021 |
|
|
12,385 |
|
|
43,934 |
|
|
34,857 |
|
Expenses: |
|
|
|
|
|
|
|
Salaries and benefits |
3,587 |
|
|
5,469 |
|
|
10,659 |
|
|
15,559 |
|
Interest |
5,476 |
|
|
4,110 |
|
|
14,923 |
|
|
11,414 |
|
Depreciation and amortization |
125 |
|
|
122 |
|
|
378 |
|
|
358 |
|
Professional fees |
1,215 |
|
|
642 |
|
|
2,842 |
|
|
2,169 |
|
Origination and servicing |
2,134 |
|
|
1,983 |
|
|
5,915 |
|
|
5,756 |
|
Origination and servicing - related party |
2,060 |
|
|
— |
|
|
6,719 |
|
|
— |
|
Change in fair value of contingent consideration liabilities |
9 |
|
|
6 |
|
|
64 |
|
|
23 |
|
Loss on extinguishment of debt |
251 |
|
|
— |
|
|
251 |
|
|
1,059 |
|
Other general and administrative costs |
1,697 |
|
|
1,499 |
|
|
4,782 |
|
|
4,872 |
|
Total expenses |
16,554 |
|
|
13,831 |
|
|
46,532 |
|
|
41,210 |
|
Net investment loss |
(533 |
) |
|
(1,446 |
) |
|
(2,598 |
) |
|
(6,353 |
) |
Net realized and unrealized gains
(losses): |
|
|
|
|
|
|
|
Net realized gain on non-affiliate investments - SBA 7(a)
loans |
10,865 |
|
|
10,554 |
|
|
32,260 |
|
|
30,754 |
|
Net realized gain on non-affiliate investments - conventional
loan |
— |
|
|
278 |
|
|
— |
|
|
278 |
|
Net realized gain on controlled investments |
1,600 |
|
|
— |
|
|
1,600 |
|
|
52 |
|
Net unrealized depreciation on SBA guaranteed non-affiliate
investments |
(209 |
) |
|
(1,177 |
) |
|
(521 |
) |
|
(1,352 |
) |
Net unrealized (depreciation) appreciation on SBA unguaranteed
non-affiliate investments |
(14 |
) |
|
4,057 |
|
|
(1,957 |
) |
|
6,751 |
|
Net unrealized appreciation on controlled investments |
957 |
|
|
1,659 |
|
|
3,874 |
|
|
1,579 |
|
Change in deferred taxes |
(27 |
) |
|
(444 |
) |
|
(792 |
) |
|
(417 |
) |
Net unrealized depreciation on servicing assets |
(2,002 |
) |
|
(1,097 |
) |
|
(3,469 |
) |
|
(3,175 |
) |
Net realized and unrealized
gains |
$ |
11,170 |
|
|
$ |
13,830 |
|
|
$ |
30,996 |
|
|
$ |
34,470 |
|
Net increase in net assets
resulting from operations |
$ |
10,637 |
|
|
$ |
12,384 |
|
|
$ |
28,398 |
|
|
$ |
28,117 |
|
Net increase in net assets resulting from operations per share |
$ |
0.55 |
|
|
$ |
0.66 |
|
|
$ |
1.49 |
|
|
$ |
1.51 |
|
Net investment loss per share |
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.34 |
) |
Dividends and distributions declared per common share |
$ |
0.58 |
|
|
$ |
0.48 |
|
|
$ |
1.44 |
|
|
$ |
1.30 |
|
Weighted average number of shares outstanding |
19,228 |
|
|
18,791 |
|
|
19,115 |
|
|
18,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESNON-GAAP FINANCIAL MEASURES-ADJUSTED NET INVESTMENT
INCOME RECONCILIATION:
(in thousands, except per
share amounts) |
Three months ended September 30, 2019 |
|
Per share |
|
Three months ended September 30, 2018 |
|
Per share |
|
|
|
|
|
|
|
|
Net investment loss |
$ |
(533 |
) |
|
$ |
(0.03 |
) |
|
$ |
(1,446 |
) |
|
$ |
(0.08 |
) |
Net realized gain on
non-affiliate investments - SBA 7(a) loans |
|
10,865 |
|
|
|
0.57 |
|
|
|
10,554 |
|
|
|
0.56 |
|
Net realized gain on
non-affiliate investments - conventional loans |
|
- |
|
|
|
- |
|
|
|
278 |
|
|
|
0.01 |
|
Net realized gain on
controlled investments |
|
1,600 |
|
|
|
0.08 |
|
|
|
- |
|
|
|
- |
|
Loss on lease |
|
- |
|
|
|
- |
|
|
|
(76 |
) |
|
|
(0.00 |
) |
Change in fair value of
contingent consideration liabilities |
|
9 |
|
|
|
0.00 |
|
|
|
6 |
|
|
|
0.00 |
|
Loss on debt
extinguishment |
|
251 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
Adjusted Net investment
income |
$ |
12,192 |
|
|
$ |
0.63 |
|
|
$ |
9,316 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
Note: Per share amounts may
not foot due to rounding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per
share amounts) |
Nine months ended September 30, 2019 |
|
Per share |
|
Nine months ended September 30, 2018 |
|
Per share |
|
|
|
|
|
|
|
|
Net investment loss |
$ |
(2,598 |
) |
|
$ |
(0.14 |
) |
|
$ |
(6,353 |
) |
|
$ |
(0.34 |
) |
Net realized gain on
non-affiliate investments - SBA 7(a) loans |
|
32,260 |
|
|
|
1.69 |
|
|
|
30,754 |
|
|
|
1.65 |
|
Net realized gain on
non-affiliate investments - conventional loans |
|
- |
|
|
|
- |
|
|
|
278 |
|
|
|
0.01 |
|
Net realized gain on
controlled investments |
|
1,600 |
|
|
|
0.08 |
|
|
|
52 |
|
|
|
0.00 |
|
Loss on lease |
|
(105 |
) |
|
|
(0.01 |
) |
|
|
(228 |
) |
|
|
(0.01 |
) |
Change in fair value of
contingent consideration liabilities |
|
64 |
|
|
|
0.00 |
|
|
|
23 |
|
|
|
0.00 |
|
Loss on debt
extinguishment |
|
251 |
|
|
|
0.01 |
|
|
|
1,059 |
|
|
|
0.06 |
|
Adjusted Net investment
income |
$ |
31,472 |
|
|
$ |
1.65 |
|
|
$ |
25,585 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
Note: Per share amounts may
not foot due to rounding |
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES |
|
|
DEBT-TO-EQUITY RATIO-ACTUAL AT SEPTEMBER 30, 2019 |
|
|
|
|
|
|
Actual Debt to Equity ratio at September 30,
2019 |
|
|
|
Total senior debt |
$ |
398,586 |
|
|
|
Total equity |
$ |
299,752 |
|
|
|
Debt to equity ratio - actual at September 30, 2019 |
|
133.0 |
% |
|
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES |
|
|
DEBT-TO-EQUITY RATIO-PROFORMA AT SEPTEMBER 30, 2019 |
|
|
(in thousands): |
|
|
|
Broker receivable, including premium income receivable |
$ |
34,486 |
|
|
|
Less: realized gain on sale included in broker
receivable |
|
(3,457 |
) |
|
|
Broker
receivable |
|
31,029 |
|
|
|
|
|
|
|
90%
advance rate on SBA guaranteed non-affiliate portions of loans
sold, not settled |
$ |
27,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proforma debt adjustments: |
|
|
|
Total
Senior Debt as of September 30, 2019 |
$ |
398,586 |
|
|
|
Proforma
adjustment for broker receivable as of September 30, 2019, as
calculated above |
|
(27,926 |
) |
|
|
Total
proforma debt at September 30, 2019 |
$ |
370,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proforma Debt to Equity ratio at September 30,
2019: |
|
|
|
Total
proforma debt |
$ |
370,660 |
|
|
|
Total
equity |
$ |
299,752 |
|
|
|
Debt to equity ratio - proforma at September 30, 2019 |
|
123.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
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