Reiterates its 2020 Annual Dividend Forecast of $2.19 per Share
BOCA RATON, Fla., Feb. 05, 2020 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (NASDAQ: NEWT), an internally managed business development company (“BDC”), today announced that its Board of Directors declared its first quarter 2020 cash dividend of $0.44 per share, which represents a 10% increase over the first quarter 2019 cash dividend of $0.40 per share. The first quarter 2020 dividend is payable on March 31, 2020 to shareholders of record as of March 18, 2020. The Company also reiterated its 2020 annual cash dividend forecast of $2.191 per share.
Barry Sloane, Chairman, President and Chief Executive Officer commented, “Our Board is pleased to declare our first quarter 2020 dividend of $0.44 per share, which is a healthy improvement over our first quarter 2019 dividend of $0.40 per share. We are also reconfirming our 2020 annual dividend guidance of $2.19 per share. This declaration and forecast are indicative of the momentum derived from our business model and the diversified stream of income it provides. We are experiencing improved traction in several portfolio companies and therefore expect to receive a more diverse stream of income from multiple sources in 2020 and beyond. Our loan portfolio continues to perform as expected as it becomes more seasoned. Our larger loan portfolio also has been responsible for improved performance in net investment income during the 2019 calendar year and is expected to be most impactful to our net investment income in 2020. We look forward to reporting our full year 2019 financial results in early March, and will release the exact date of the earnings release and call shortly.”
Note 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.
1Amount and timing of dividends, if any, remain subject to the discretion of the Company’s Board of Directors.
About Newtek Business Services Corp.
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 Relations
Contact: Jayne Cavuoto
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Source: Newtek Business Services Corp.