Newtek Business Services Corp. Declares Third Quarter 2019 Dividend of $0.58 per Share; a 20.8% Increase over the Third Quart...
21 August 2019 - 10:30PM
Newtek Business Services Corp., (NASDAQ: NEWT), an internally
managed business development company (“BDC”), today announced that
its Board of Directors declared a third quarter 2019 cash dividend
of $0.58 per share, which represents a 20.8% increase over the
third quarter 2018 cash dividend. The third quarter 2019 dividend
is payable on September 30, 2019 to shareholders of record as of
September 20, 2019. The Company also raised its 2019 annual cash
dividend forecast to $2.151 per share, which would represent a
19.4% increase over the Company’s 2018 annual dividend payment of
$1.80 per share.
Barry Sloane, Chairman, President and Chief Executive Officer
commented, “Given the volatility in the markets, we are pleased
that Newtek has been able to maintain its upward momentum in its
business as a result of its unique and diversified business model.
As such, the Board and management feel it’s appropriate to reward
Newtek’s shareholders with a third quarter 2019 dividend
declaration that represents an almost 21% increase over the third
quarter 2018 dividend payment. Additionally, based on expected
third quarter 2019 and fourth quarter 2019 results, the management
team felt it appropriate to increase its full-year 2019 dividend
forecast to $2.15 per share from the recently upwardly revised
forecast of $1.95 per share, which would represent an approximate
19% increase over the 2018 annual dividend payment of $1.80 per
share. The Company endeavors to pay all of its dividends out of
approximately 90% to 100% of its annual taxable income. The
diversity of Newtek’s business model underscores the Company’s
ability to perform well in a variety of market environments, which
has been demonstrated by our consistent strong results over our
history as a BDC. We look forward to celebrating the five-year
anniversary of our conversion to a BDC on November 11, 2019, as
well as holding our third quarter 2019 earnings conference call in
early November 2019”
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
StatementsThis 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
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
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