First quarter 2022 dividend forecast of $ 0.65 per share
Reaffirms the 2021 annual dividend forecast of $ 3.15 per share
BOCA RATON, Fla., September 29, 2021 (GLOBE NEWSWIRE) – Newtek Business Services Corp. (the âCompanyâ), (Nasdaq: NEWT), an internally managed business development company (âBDCâ), today provided forecasts for its net investment income (âNIIâ) and net income from adjusted placement (âANIIâ) for the whole of 2021, as well as for its dividend for the first quarter of 2022. The Company expects for the year 2021 an NII of $ 0.80 per share and an ANII of 3, 40 $1 per share for 2021. In addition, the Company expects a dividend of $ 0.65 for the first quarter of 2022.2 per share. The Company also reaffirmed its 2021 annual dividend forecast of $ 3.15 per share, which would indicate a dividend forecast of $ 1.05 per share in the fourth quarter of 2021. The Company expects to pay its dividends on the taxable income as it has done in the past.
The following tables provide historical and forecast data for dividends.
|Historical and forecast quarterly dividends|
|(per share)||Q1’19||Q1’20||Q1’21||Forecasts Q1’22|
|Dividends||$ 0.40||$ 0.44||$ 0.50||$ 0.65|
|Historical and forecast annual dividends|
|(per share)||2019||2020||Forecasts 2021|
|Dividends||$ 2.15||$ 2.05||$ 3.15|
Barry Sloane, Chairman of the Board, President and Chief Executive Officer said: âWe are extremely grateful for the progress the company has made, especially in light of such unprecedented times. We are extremely positive about our current pipeline of opportunities and, therefore, our potential strategic growth trajectory, as we have refocused our resources and efforts on our core business solutions in a post-pandemic environment. With that in mind, we believe it is appropriate to provide forward-looking information and are proud to forecast an NII for the year 2021 of $ 0.80 per share and a record ANII of $ 3.40 per share. In addition, we forecast a dividend of $ 0.65 per share in the first quarter of 2022, which would represent an increase of 62.5% over a three-year period compared to the first quarter 2019 dividend of $ 0.40 per share. . It should be noted that the Company paid dividends of $ 0.40 per share, $ 0.44 per share and $ 0.50 per share during the first quarters of 2019, 2020 and 2021, respectively. We believe these planned measures should be reviewed using 2019 as a basis for comparison, as 2019 was pre-pandemic and did not include the pandemic effects of reallocating our resources to focus on creating and generating loan income. PPP. “
Mr. Sloane added, âWe are confident that we can continue to deliver strong financial performance in calendar year 2022, with refocused and renewed efforts in our more traditional lending and business solutions products. We are proud to have been able to develop our portfolio of opportunities, as well as to achieve technological advances in our processes and to foresee attractive market conditions. We believe that our first quarter 2022 dividend and our 2021 double-digit NII and ANII annual growth forecast over comparable 2019 periods demonstrate management’s continued belief that it can grow our core business and return to normal business activity. in a post-pandemic world. We also note that our performance in the second half has historically been stronger than in the first half. We look forward to continuing to focus on our core business objectives and furthermore we will work hard to position the Company in what we believe will be the best long-term financial structure for our investor base. “
1Use of Non-GAAP Financial Measures – Newtek Business Services Corp. and subsidiaries
When evaluating its activity, Newtek considers and uses the ANII as a measure of its operational performance. The ANII includes short-term capital gains from the sale of secured portions of SBA 7 (a) loans and conventional loans, and from 2016 onwards distributions of capital gains 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 or less loss on lease adjustment, more net gain on controlled investments, plus or minus change in fair value of contingent counterparty liabilities, plus loss on extinguishment of debt.
The term ANII is not defined in accordance with generally accepted accounting principles in the United States, or US GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with US GAAP. The ANII has limitations as an analytical tool and, when evaluating the operating performance of the Company, investors should not view the ANII in isolation or as a substitute for net investment income or investment. ” other consolidated income statement prepared in accordance with US GAAP. Among other things, the ANII does not reflect the actual cash expenditures of the Company. Other companies may calculate similar metrics differently from Newtek, which limits their usefulness as benchmarking tools. The Company compensates for these limitations by relying mainly on its GAAP results supplemented by the ANII.
2 Note regarding dividend payments
The amount and timing of dividends, if any, remains at the discretion of the Board of Directors of the Company. The Board of Directors of the Company expects to maintain a dividend policy with the aim of making quarterly distributions in the amount of approximately 90 to 100% of the annual taxable income of the Company. The determination of the tax attributes of the Company’s distributions is made annually from the end of the Company’s financial year on the basis of its taxable income for the full year and the distributions paid for the full year.
About Newtek Business Services Corp.
Newtek Business Services Corp., your business solutions companyÂ®, is an internally managed BDC, which, together with its controlled holding companies, offers a wide range of business and financial solutions under the NewtekÂ® brand in the small and medium-sized enterprise (“SME”) market. Since 1999, Newtek has provided leading-edge, cost-effective products and services and effective business strategies to SME relationships in all 50 states to help them increase sales, control expenses, and reduce risk.
The products and services of Newtek and its portfolio companies include: business loans, SBA lending solutions, electronic payment processing, technology solutions (cloud computing, data backup, storage and retrieval, IT consulting) , Electronic Commerce, Accounts Receivable and Inventory Funding, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
NewtekÂ® and your business solutions companyÂ®, 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”, “plans”, “anticipates”, “foresees”, “objective” 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 suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, intensifying competition, operational issues and their impact on revenues and profit margins, business strategies and anticipated future financial performance, the future number of anticipated customers, business prospects, legislative developments and other similar issues. Risk factors, cautions and other conditions, which could cause Newtek’s actual results to differ from management’s current expectations, are contained in the documents filed by Newtek 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 such statements.
SOURCE: Newtek Business Services Corp.
Investor relations and public relations
Contact: Jayne Cavuoto
Phone: (212) 273-8179 / [email protected]
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF 2021 FORECAST ADJUSTED NET RESULT:
|Year ended||Year ended||Year ended|
|(in thousands, except amounts per share)||December 31, 2021||Per share||December 31, 2020||Per share||December 31, 2019||Per share|
|Net investment income (loss)||$ 18,162||$ 0.80||$ 31,985||$ 1.51||($ 5,619)||($ 0.29)|
|Net gain realized on unaffiliated investments – SBA loans 7 (a)||57,664||2.55||11 368||0.54||47 816||2.47|
|Net gain realized on unaffiliated investments – conventional loans||–||0.00||–||0.00||–||0.00|
|Net gain realized on controlled holdings||–||0.00||–||0.00||2,585||0.13|
|Loss of lease||–||0.00||–||0.00||(105)||0.00|
|Change in fair value of contingent counterparty liabilities||–||0.00||54||0.00||42||0.00|
|Loss on extinction of debt||955||0.00||–||0.00||251||0.01|
|Adjusted net investment income||$ 76,781||$ 3.40||$ 43,407||$ 2.05||$ 44,970||$ 2.33|