Newtek Business Services Corp.’s CEO, Barry Sloane, Comments on the Declaration of Newtek’s First Quarter 2022 Dividend of $0.65 per Share
December 20 2021 - 1:33PM
Newtek Business Services Corp., (NASDAQ: NEWT), an internally
managed business development company (“BDC”), provides Newtek
CEO’s, Barry Sloane, comments on the declaration of Newtek’s first
quarter 2022 cash dividend of $0.65 per share.1
Barry Sloane, President, Chairman and CEO commented, “We are
pleased that Newtek’s Board of Directors declared a first quarter
2022 dividend of $0.65 per share,1 which is in line with
management’s previous forecast, and represents a 30.0% increase
over the first quarter 2021 dividend and a 47.7% increase over the
first quarter 2020 dividend, both of which were affected by the
pandemic and the Paycheck Protection Program (“PPP”) loans we
financed. We look forward to forecasting our second quarter 2022
dividend in the coming weeks.”2
Mr. Sloane continued, “Newtek will not have the benefit of PPP
income in the calendar year 2022, however we are currently
experiencing strong operational performance and demand for our
lending solutions, and anticipate achieving record loan origination
volumes in 2022 (excluding the 2021 funding of approximately $729
million in PPP loans). Newtek Business Lending (“NBL”), the
Company’s wholly owned portfolio company, forecasts it will close a
record amount of loans between $125 million and $150 million in
2021. In addition, we anticipate that in the fourth quarter of
2021, Newtek Small Business Finance, LLC (“NSBF”) will surpass its
prior quarterly origination record of $183 million in SBA 7(a)
loans funded, and currently estimates funding in excess of $200
million SBA 7(a) loans during the fourth quarter. For the full year
2021, NSBF forecasts funding between $560 million and $600 million
SBA 7(a) loans. For the full year of 2021, Newtek and its portfolio
companies are currently forecasting total fundings and/or closings,
which includes SBA 7(a) loans, SBA 504 loans and PPP loans, in
excess of $1.4 billion. We are hopeful that our staff and clients
remain healthy as we move towards the end of the year, and that we
will not have to roll fourth quarter loan fundings and/or closings
into the first quarter of 2022. We currently anticipate entering
the first quarter of 2022 with a record pipeline of loans for sale
and in various stages of pre closing.”
1Note regarding Dividend Payments: 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.
2Amount and timing of dividends, if any, remain subject to the
discretion of the Company’s Board of Directors.
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
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