Business
Newtek Business Services Corp. Provides Financial Forecast for the First Half of 2022
BOCA RATON, Fla., June 21, 2022 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (NASDAQ: NEWT), an internally managed business development company
About this update from Newtekone, Inc.
[{"type":"text","content":"BOCA RATON, Fla., June 21, 2022 (GLOBE NEWSWIRE) -- 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 be...