Newtek Business Services, Inc. Confirms 2006 Earnings and EBITDA Guidance
23 June 2006 - 1:44AM
PR Newswire (US)
NEW YORK, June 22 /PRNewswire-FirstCall/ -- Newtek Business
Services, Inc. (NASDAQ:NKBS)
(http://www.newtekbusinessservices.com/), a provider of business
services and financial products to the small business market,
announced today that it has confirmed its previously announced
guidance. The Company is forecasting consolidated revenues at $89
to $92 million and confirming its previous guidance of an after tax
consolidated loss for 2006 at $1.1 million to $2.6 million or $.03
to $.08 loss per share. Newtek also confirmed its previous forecast
of EBITDA from its three primary business segments at $15.8 million
to $17.0 million. Newtek has posted a Power Point(R) presentation
on its website homepage, http://www.newtekbusinessservices.com/
which details all six segments by their annual and quarterly
performance so that the investment community can track its regular
progress. Barry Sloane, Chairman and CEO of Newtek Business
Services said, "The Company continues to grow and develop its
transforming business model. We are benefiting from excellent
markets for our three primary services as small to medium-sized
business growth and activity has been strong. We are forecasting
EBITDA growth from our three primary business segments of 33% to
$15.8 million for 2006. Our consolidated revenues in 2006 should be
in the range of $89 to $92 million despite a decline of $20 million
in non-cash revenues from the capco business segment, which we are
continuing to deemphasize in favor of our operating businesses. We
expect to see an increase in our client base in 2006 of
approximately 18,000 and of this approximately 12,000 expected new
clients are due to organic growth and 6,000 are expected due to
acquisition. We believe we will conclude our 2006 business year
with over 75,000 Newtek clients served. We expect to eliminate the
conditions that caused us to be late in our regulatory filings and
will shortly announce three additional hires to bolster our
accounting and finance department. We also anticipate timely
regulatory filings by the end of the second quarter." About Newtek
Business Services, Inc. Newtek Business Services, Inc. is a direct
distributor of business services and financial products to the
small to medium-sized business market. According to the SBA, there
are over 23 million small businesses in the United States which in
total represent 99.7% of all employers, generate 60 - 80 percent of
all new jobs annually and generate more than 50% of non-farm GDP.
Since 1999, Newtek has helped these business owners realize their
potential by providing them with the essential tools needed to
manage and grow their businesses. Newtek focuses on providing its
60,000 customers with access to financial, management and
technological resources that enable them to better grow and compete
in today's marketplace. Newtek's products and services include: *
Newtek Small Business Finance: U.S. government-guaranteed small
business lending services; * Newtek Merchant Solutions: electronic
merchant payment processing solutions; * Newtek Insurance Agency:
commercial and personal insurance; * Newtek Web Hosting: domain
registration, hosting, web design and development; * Newtek Data
Storage Services: data backup, archival and retrieval services; *
Newtek Financial Information Systems: outsourced digital
bookkeeping; and * Newtek Tax Services: tax filing, preparation and
advisory services. Statements in this press release including
statements regarding Newtek's beliefs, expectations, intentions or
strategies for the future, may be "forward-looking statements"
under the Private Securities Litigation Reform Act of 1995. 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 throughhttp://www.sec.gov.
Contacts: Newtek Business Services Barry Sloane Chairman of the
Board & CEO 212-356-9500 2006 Segment Guidance First Quarter
(In millions of dollars except E.P.S. guidance) Revenue Pretax Net
Income EBITDA Merchant 9.3-9.7 .4-.5 .6-.7 Processing Web Hosting
3.1-3.3 .8-.9 1.6-1.7 SBA Lending 2.0-2.2 (.1)-.0 .9-1.0 CAPCO 1.6
(3.9)-(3.7) All Other 1.5 (.6)-(.5) OH 1.5 (.9)-(.8) Interco (1.2)
Eliminations Total 17.8-18.6 (4.3)-(3.6) Current E.P.S (.08)-(.06)
Guidance (per share) Prior E.P.S. (.10)-(.09) Guidance (per share)
2006 Segment Guidance Second Quarter (In millions of dollars except
E.P.S. guidance) Revenue Pretax Net Income EBITDA Merchant
10.1-10.5 .7-.8 1.1-1.2 Processing Web Hosting 3.1-3.3 .7-.9
1.5-1.6 SBA Lending 2.3-2.5 .0-.1 1.0-1.1 CAPCO 2.1 (3.4)-(3.3) All
Other 1.0 (.3)-(.2) OH 1.5 (.9)-(.8) Interco (1.2) Eliminations
Total 18.9-19.7 (3.2)-(2.5) Current E.P.S. (.06)-(.04) Guidance
(per share) Prior E.P.S (.07)-(.06) Guidance (per share) 2006
Segment Guidance Third Quarter (In millions of dollars except
E.P.S. guidance) Revenue Pretax Net Income EBITDA Merchant
11.6-12.0 1.0-1.1 1.7-1.8 Processing Web Hosting 3.2-3.4 .7-.8
1.5-1.6 SBA Lending 3.3-3.5 .0-.1 1.1-1.2 CAPCO 3.8 (1.7)-(1.6) All
Other 1.0 (.6)-(.5) OH 1.5 (1.0)-(.9) Interco (1.2) Eliminations
Total 23.2-24.0 (1.6)-(1.0) Current E.P.S (.03)-(.02) Guidance (per
share) Prior E.P.S. (.03)-(.02) Guidance (per share) 2006 Segment
Guidance Fourth Quarter (In millions of dollars except E.P.S.
guidance) Revenue Pretax Net Income EBITDA Merchant 12.9-13.3
1.3-1.4 2.0-2.1 Processing Web Hosting 3.3-3.5 .6-.8 1.5-1.6 SBA
Lending 2.3-2.5 .3-.4 1.3-1.4 CAPCO 9.5 4.0-4.0 All Other 1.0
(.5)-(.4) OH 1.5 (1.0)-(.9) Interco (1.2) Eliminations Total
29.3-30.1 4.7-5.3 Current E.P.S .08-.09 Guidance (per share) Prior
E.P.S. .10-.12 Guidance (per share) 2006 Annual Segment Guidance
(In millions of dollars except for E.P.S. guidance) Revenue Pretax
Net Income EBITDA Merchant 43.9-45.5 3.4-3.8 5.4-5.8 Processing Web
Hosting 12.7-13.5 2.8-3.4 6.1-6.5 SBA Lending 9.9-10.7 0.2-0.6
4.3-4.7 CAPCO 17.0 (5.0)-(4.6) All Other 4.5 (2.0)-(1.6) OH 6.0
(3.8)-(3.4) Interco (4.8) Eliminations Total 89.2-92.4 (4.4)-(1.8)
After Tax Net (2.6)-(1.1) Income Current E.P.S. (.08)-(.03)
Guidance (per share) Prior E.P.S. (.10)-(.05) Guidance (per share)
DATASOURCE: Newtek Business Services, Inc. CONTACT: Barry Sloane,
Chairman of the Board & CEO, Newtek Business Services,
+1-212-356-9500, Web site: http://www.newtekbusinessservices.com/
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