First Quarter Dividend of $0.35 Per Share
Reconfirms 2016 Dividend Forecast of $1.50 Per Share
Feb. 25, 2016 (GLOBE NEWSWIRE) -- Newtek
Business Services Corp. (NASDAQ:NEWT), an internally managed business
development company ("BDC"), announced today that its board of
directors declared a first quarter cash dividend(1) of approximately
$5.1 million, or $0.35 per share (based on 14.5
million shares currently outstanding), payable on March 31, 2016
to shareholders of record as of March 22, 2016. In
addition, the Company is reconfirming its full year 2016 dividend forecast of $21.8
million, or $1.50 per share.
Sloane, Chairman, President and Chief Executive Officer said, "We
are pleased to announce our first quarter dividend of $0.35 per
share as well as reconfirm our full year 2016 dividend forecast of $1.50
per share. We have historically experienced stronger earnings performance in
the second half of the year and expect to experience a similar trend this year.
Our earnings on average in the second half of the year have comprised 60% of
total full year earnings due to seasonality."
Mr. Sloane continued, "Thus far
in 2016, our business has exhibited strong performance in line with our
forecasts. Our SBA 7(a) loan pipeline to date in 2016 is tracking at or
above our expectations. In addition, the premiums we have received to date in
2016 on the sale of the guaranteed portions of our SBA 7(a) loan investments
have met or exceeded our expectations, as has the portfolio quality of the
loans we originate, which have experienced lower than forecasted credit losses.
We expect to announce our full year 2015 results on or before March
15, 2016, with exact details to be announced shortly."
The Company's board of directors expects to maintain a dividend
policy with the objective of distributing four quarterly distributions in an
amount that approximates at least 90% to 98% of the Company's annual taxable
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
(1) The dividend will be paid in cash
or shares of the Company's Common Stock through participation in the Company's
dividend reinvestment program ("DRIP"), at the election of
About Newtek Business Services Corp.
Business Services Corp., The Small Business Authority®, is an internally managed
BDC, which along with its controlled portfolio companies, provides a wide range
of business services and financial products 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 over 100,000 SMB
accounts across all 50 States to help them grow their sales, control their
expenses and reduce their risk.
Newtek and its portfolio companies products and
services include: Business
Payment Processing, Managed
Technology Solutions (Cloud Computing), eCommerce, Accounts
Receivable Financing, The
Secure Gateway, The
Newtek Advantage™, Insurance
Backup, Storage and Retrieval and Payroll.
The Small Business Authority®
is a registered trade mark of Newtek Business Services Corp., and neither are a
part of or endorsed by the U.S.
Small Business Administration.
Note Regarding Forward Looking Statements
This press release contains certain
forward-looking statements. Words such as "believes,"
"intends," "expects," "projects,"
"anticipates," 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/.
For more information, please visit the following website:
Newtek Business Services Corp.
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / email@example.com
Contact: Simrita Singh
Telephone: (212) 356-9566 / firstname.lastname@example.org
Newtek Business Services Corp.
Chairman and CEO