Third Quarter Dividend of $0.43 Per Share
Funded $20.6 Million in SBA 7(a) Loans in August 2016; Record Loan
Fundings for the Month of August
Sept. 07, 2016 (GLOBE NEWSWIRE) -- Newtek Business Services Corp. ("Newtek" or the "Company"), (NASDAQ:NEWT), an
internally managed business development company ("BDC"), today
announced that its board of directors declared a third quarter cash dividend(1)
of approximately $6.3 million, or $0.43 per
share, payable on September 30, 2016 to shareholders of record
as of September 20, 2016. The Company is reconfirming its
full year 2016 dividend forecast of approximately $22.2 million,
or $1.53(2) per share.
In addition, the Company announced that it funded $20.6
million in SBA 7(a) loans in August 2016, which
represents the largest dollar volume of SBA 7(a) loans funded during the month
of August in the Company's history. The Company maintains its loan funding
forecast of approximately $300 million in SBA 7(a), and
approximately $20 million in SBA 504 loans to be originated by
one of Newtek's controlled portfolio companies, which
in total would represent an approximate 32% increase over total loan fundings in 2015.
Sloane, Chairman, President and Chief Executive Officer stated,
"As we move through the second half of 2016, we are extremely pleased with
the consistent strong performance of our business. We continue to experience an
enormous appetite for our SBA 7(a) loan product and are proud to say that we
have been able to significantly increase our loan funding growth year over year
while maintaining the credit quality of our loan portfolio. In fact,
year-to-date through August 31, 2016, our SBA 7(a) loan fundings have increased by approximately 48.1% to $178.3
million compared to the same period last year. Furthermore, our
portfolio companies have been performing well in line with our
expectations. We have continued to actively target companies for
investment and currently have two companies in our investment pipeline.
We look forward to continuing to report our performance milestones to our
shareholders and remain optimistic regarding our full year 2016 results."
The Company's board of directors expects to maintain a dividend
policy with the objective of distributing approximately 90% to 98% 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 and distributions paid for the year.
(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 shareholders.
(2) Amount and timing of dividends, if any, remain subject to the discretion of
the Company's Board of Directors. The Company's 2016 dividend forecast is based
on the number of shares of Company common stock outstanding at June 30,
About Newtek Business Services Corp.
Business Services Corp., Your Business Solutions CompanyTM, 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'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), eCommerce, Accounts Receivable Financing & Inventory, The Secure Gateway, The Newtek Advantage™,
Insurance Services, Web Services, and Payroll and Benefits.
Newtek® is a
registered trademark of Newtek Business Services Corp.
Note Regarding Forward Looking
This press release contains certain forward-looking
statements. Words such as "believes," "intends,"
"expects," "projects," "anticipates,"
"forecasts," 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/.
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.
Investor Relations & Public Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / email@example.com