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 is
forecasting net investment income (loss) (“NII”) in a range of
($0.01) per share to $0.00 per share and adjusted net investment
income (“ANII”)1 in a range of $1.40 per share to $1.50 per share.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “As the end of the quarter approaches, we believe that we are
on track to deliver the previously forecasted results for the first
six months of 2022. We are continuing to work to deliver our
forecasted financial results and feel comfortable that we will be
able to achieve ANII for the first six months of 2022 that will be
equal to or exceed dividends that have been declared through the
first half of 2022 in the amount of $1.40 per share. As we
mentioned during our first quarter 2022 earnings conference call,
we anticipated some pricing pressure on government guaranteed loan
sale margins during the second quarter of 2022, and that is what we
have been seeing. However, in counterbalance to pricing pressure,
we are seeing high-quality borrower opportunities, as well as
strong portfolio performance as of May 31, 2022, that has placed
the Company in a comfortable position with respect to its portfolio
currency rate. In addition, we believe the combined performance of
Newtek Merchant Solutions and other portfolio companies will assist
us in achieving our NII and ANII forecasts for the first six months
of 2022.”
Mr. Sloane continued, “We were exceptionally pleased that 89% of
shareholders voting on the recent special proxy vote gave the board
the authorization to withdraw our election as a 1940s Act Company
which, subject to regulatory approvals, would allow us to operate
as a 1933 Act Company, which we believe can provide us with the
opportunity to raise more cost-effective capital. As a company that
has historically been able to grow its business, we believe that
converting to a bank holding company, subject to regulatory
approvals, could not be timelier despite having to overcome what we
believe has been 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 money managers and, we believe can help mitigate the
friction that institutional money managers have experienced with
investing in BDCs due to the double counting of AFFE. Furthermore,
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 reporting second
quarter 2022 financial results in early August, and expect to
provide an update on the acquisition of the National Bank of New
York City.”
1 Use of Non-GAAP Financial Measures - 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 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, plus or minus an adjustment for gains or losses on
derivative transactions. 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.
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 StatementsThis
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, include our ability to close
the pending acquisition of the National Bank of New York City (the
“Acquisition”), obtain required regulatory approvals for the
pending Acquisition, as well as projections concerning or
considering the pending Acquisition, our ability to originate new
investments, achieve certain margins and levels of profitability,
the availability of additional capital and the ability to maintain
certain debt to asset ratios, 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
NewtekOne (NASDAQ:NEWT)
Historical Stock Chart
From Mar 2024 to Apr 2024
NewtekOne (NASDAQ:NEWT)
Historical Stock Chart
From Apr 2023 to Apr 2024