Forecasts Adjusted Net Investment Income in a Range of $1.30 per Share to $1.50 per Share for the Second Quarter of 2020
BOCA RATON, Fla., June 12, 2020 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (NASDAQ: NEWT), an internally managed business development company (“BDC”), today announced that its Board of Directors declared a second quarter 2020 cash dividend of $0.561 per share, which represents a 21.7% increase over the second quarter 2019 cash dividend. The second quarter 2020 dividend is payable on July 31, 2020 to shareholders of record as of July 15, 2020. In addition, the Company is forecasting adjusted net investment income (“ANII”) in a range of $1.30 per share to $1.50 per share for the second quarter of 2020.
Barry Sloane, Chairman, President and Chief Executive Officer said, “We are proud to declare our second quarter 2020 dividend, as well as offer guidance for ANII for the second quarter 2020. With the payment of the second quarter 2020 dividend, total dividends for our first and second quarters of 2020 would equate to $1.00 per share, which would be a record payment for the first half of the year to our shareholders.”
Mr. Sloane continued, “Over the past few months, the Company demonstrated its ability to shift its gears in this fast-moving dynamic world and economy, by participating and excelling in the Paycheck Protection Program (“PPP”). With our seasoned staff and efficient loan processes, we were able to quickly adapt to funding PPP loans. In fact, to-date Newtek Small Business Finance (“NSBF”) has funded over $1.0 billion of PPP loans, helping a multitude of our small business clients across the U.S. retain their employees and their businesses. As we move through the second half of 2020, we expect to return our focus to our core businesses. In particular, we look forward to NSBF returning to its normalized lending operations and restarting our cornerstone SBA 7(a) loan business. In addition, over the past several months, we have added new strategic alliance partnerships to our already robust network of alliance relationships, hired senior employees for key positions in our portfolio companies, and have been preparing for the introduction of new product offerings to further satisfy our clients’ needs.”
“We are extremely positive about our future, and will strive to continue to deliver returns to our shareholders even in this uncertain and volatile environment. We look forward to our second quarter 2020 earnings report in August 2020 when we will announce our new alliance partnerships, our new additions to our portfolio company senior management, and new product offerings for our clients,” concluded Mr. Sloane.
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
Telephone: (212) 273-8179 / email@example.com
Source: Newtek Business Services Corp.