Newtek Business Services Corp. increases its 2021 annual dividend forecast in a range of $ 2.40 to $ 2.90 per share



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BOCA RATON, Fla., March 22, 2021 (GLOBE NEWSWIRE) – Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development (“BDC”) company, today announced that it is increasing its 2021 annual dividend forecast at a range of $ 2.40 to $ 2.901 per share, compared to the previous 2021 annual dividend forecast range of $ 2.00 to $ 2.50 per share. The midpoint of the 2021 annual dividend forecast range would represent an increase of approximately 29% over the 2020 annual dividend.

Barry Sloane, Chairman, President and Chief Executive Officer said: “After an unprecedented and one of the most difficult years in our 23 years of operation, I am pleased to say that we are extremely positive for the year ahead and believe that we are well positioned to seize market opportunities. As such, we are forecasting a record annual dividend for 2021 in the range of $ 2.40 to $ 2.90 per share, to reflect what we expect to be the effects of our growth throughout 2021. The point Median of the 2021 annual dividend forecast range would represent approximately 29% increase over the 2020 annual dividend. Note that we recently declared our first quarter 2021 dividend of $ 0.50 per share payable on March 31, 2020 to shareholders of record on March 22, 2021. ”

Mr. Sloane explained, “We now operate on all cylinders in our business and financial solutions product offerings and those of our portfolio companies. We plan to improve the origination performance of our portfolio company’s SBA 7 (a) and SBA 504 loan products throughout 2021 compared to 2020. In fact, we expect Newtek Small Business Finance (” NSBF ”) will fund approximately $ 600 million in SBA 7. (a) loans in 2021, and Newtek Business Lending, Newtek’s wholly owned holding company that creates and finances SBA 504 loans, to fund between 35 and 40 $ 504 million in SBA 504 loans in the first quarter of 2021, and approximately $ 125 million in SBA 504 loans in year 2021. In addition, the NSBF continues to fund Paycheck Protection Program loans (” PPP ”) as part of the government’s third round of stimulus. The company expects NSBF to fund $ 350 million to $ 400 million in PPP loans by March 31, 2021. If Congress extends the PPP until June 30, 2021, the NSBF believes it can ultimately fund $ 500 million. PPP loans in 2021. In addition, we are in the process of negotiating new joint venture agreements and hope to finalize and launch new joint ventures in the second quarter of 2021, and restart our non-conforming conventional loan program shortly thereafter.

Mr. Sloane continued, “We also expect our payment processing and technology portfolio management companies to outperform 2020 due to the planned reopening of the US economy and our renewed focus on growing these companies. Notably, we recently acquired the talent of three new senior executives, with extensive and deep experience, to join Newtek Merchant Solutions (“NMS”), one of our payment processing portfolio companies, to support Newtek’s growth in the payments sector. Specifically, NMS hired David Simon as COO; Andrew Jadatz as senior vice president of product development; and Mr. Shawn Ecksel as Senior Vice President of Business Development. We expect these new leaders to have a significant positive impact on NMS’s growth trajectory in payments. Additionally, Newtek Technology Solutions (“NTS”), our managed technology holding company, has promoted Jared Mills to President. Jared’s background and depth of experience has made him a natural fit to lead NTS, and we expect his leadership to fuel the growth of this company. We are extremely positive about our growth opportunities in 2021 and beyond, and we look forward to discussing these planned measures in more detail during our 2020 year-end results conference call tomorrow at 8:30 a.m.ET. “

Note regarding dividend payments: The Board of Directors of the Company intends 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.

1 The amount and timing of dividends, if any, remain at the discretion of the Board of Directors of the Company.

Newtek Business Services Corp., your business solutions company®, is an internally managed BDC that, together with its controlled holding companies, provides a wide range of business and financial solutions under the Newtek® brand to 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, IT consulting), e-commerce, financing Accounts Receivable and Inventory Funding, 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”, “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, increased competition, operational issues and their impact on revenues and profit margins, business strategies and anticipated future financial performance, future number of anticipated customers, business prospects, legislative developments and other similar issues. The 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 relationsContact: Jayne Cavuoto Phone: (212) 273-8179 / [email protected]

Source: Newtek Business Services Corp.

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