NASDAQ$NEWT

Newtekone Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong results meeting earnings and dividends forecasts, with record SBA 7(a) loan fundings.

Newtek Business Services Corp. reported a decrease in total investment income and net investment income compared to the same period last year, primarily due to the non-recurrence of Paycheck Protection Program (PPP) fee income. However, SBA 7(a) loan fundings increased significantly, and the company is optimistic about future growth, especially with the pending acquisition of the National Bank of New York City.

  • Total investment income decreased by 47.5% to $19.2 million, mainly due to the absence of PPP fee income.
  • Net investment income (loss) was $(2.3) million, or $(0.09) per share, a decrease of 113.0% on a per share basis.
  • Adjusted net investment income (ANII) was $18.1 million, or $0.75 per share, a decrease of 37.5% on a per share basis.
  • SBA 7(a) loan fundings reached a record $200.6 million, a 112.8% increase over the same period last year.

Headline financials

Total Revenue

$19.2M

Previous: $36.6M-47.5%
EPS (adj)

$0.75

Previous: $1.20-37.5%
Capital Expenditures

$11K

No prior period
Free Cash Flow

-$71.7M

No prior period
Net Income

$13.5M

No prior period
Operating Income

-$2.25M

No prior period
Cash & Equivalents

$126M

No prior period
Total Assets

$1.03B

No prior period
Stock-Based Comp

$1.25M

No prior period

Revenue & EPS history

Newtekone · Revenue · Quarterly

$19.2M

Q2 2022-47.5%vs Q2 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Newtek forecasts paying a third quarter 2022 and fourth quarter 2022 total dividend in a range of $1.00 per share to $1.50 per share, which dividends are expected to be paid by December 31, 2022, subject to Board approval, and is currently forecasting a full year 2022 dividend of between $2.40 per share and $2.90 per share. NSBF forecasts funding approximately $750 million of SBA 7(a) loans for the full year 2022, and Newtek Business Lending forecasts closing approximately $150 million SBA 504 loans for the full year 2022.

Tailwinds

  • Company forecasts paying a third quarter 2022 and fourth quarter 2022 total dividend in a range of $1.00 per share to $1.50 per share
  • Dividends are expected to be paid by December 31, 2022, subject to Board approval
  • Company is currently forecasting a full year 2022 dividend of between $2.40 per share and $2.90 per share.
  • NSBF forecasts funding approximately $750 million of SBA 7(a) loans for the full year 2022
  • Newtek Business Lending forecasts closing approximately $150 million SBA 504 loans for the full year 2022

Headwinds

  • The third quarter 2022 and fourth quarter 2022 total dividend is subject to Board approval
  • The forecasts are forward-looking statements which involve risks and uncertainties
  • The forecasts depend on the company's ability to originate new investments and maintain certain debt to asset ratios
  • The forecasts are subject to intensified competition and operating problems
  • The forecasts are not guarantees of future performance and actual results may differ materially

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.8%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+3.6%

Avg return

30 days after

52%

33 / 63 earnings

Positive

+10.7%

Q2 2013

Best reaction

-19.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.9%+3.9%+6.9%
Q4 2025-4.2%+6.3%+18.2%
Q3 2025-3.3%-0.6%+1.2%
Q4 2024+6.5%-15.6%-12.0%
Q3 2024+7.8%+17.1%+6.4%
Q2 2024-3.5%-6.4%-11.6%
Q1 2024+10.5%+14.5%+18.7%
Q4 2023+5.2%+4.4%+9.6%
Q3 2023-10.3%-11.0%-8.0%
Q2 2023+3.7%+7.2%-1.4%
Q1 2023+2.6%-5.4%+30.1%
Q4 2022-19.8%-17.9%-31.5%
Q3 2022+4.6%+2.8%+15.2%
Q2 2022-0.0%+6.1%+0.5%
Q1 2022-0.1%-1.7%-2.9%
Q4 2021-1.8%+3.9%+3.5%
Q3 2021-8.5%-5.7%-4.4%
Q2 2021+1.2%+8.1%+11.8%
Q1 2021+2.5%+9.1%+33.8%
Q4 2020-0.3%+3.6%+4.8%
Q3 2020-0.9%+0.8%+7.9%
Q2 2020-0.3%+2.8%-1.7%
Q1 2020+1.4%+2.5%+22.3%
Q4 2019-4.2%-16.5%-45.7%
Q3 2019+1.7%+0.4%+4.8%
Q2 2019-0.2%+2.0%+11.2%
Q1 2019+5.9%+9.8%+0.8%
Q4 2018-0.6%+0.3%+5.2%
Q3 2018+3.9%-0.2%+0.8%
Q2 2018+0.5%+3.4%+10.2%
Q1 2018+3.7%+4.4%+13.5%
Q4 2017+4.4%+7.9%+4.9%
Q3 2017-2.5%-1.9%+2.7%
Q2 2017+1.2%+1.4%+2.1%
Q1 2017+4.3%+3.1%+5.5%
Q4 2016-1.3%+3.3%-1.5%
Q3 2016-5.2%-1.2%+1.5%
Q2 2016-0.9%-2.8%+3.7%
Q1 2016+4.4%
Q4 2015+10.6%
Q3 2015+1.2%
Q2 2015-1.0%
Q1 2015+3.2%
Q4 2014-5.5%
Q3 2014+4.3%
Q2 2014+0.0%
Q1 2014-3.7%
Q4 2013-0.4%
Q3 2013+1.0%
Q2 2013+10.7%
Q1 2013+3.4%
Q4 2012+4.3%
Q3 2012-1.1%
Q2 2012+0.0%
Q1 2012+5.3%
Q4 2011+2.6%
Q3 2011-2.9%
Q2 2011-4.6%
Q1 2011-3.0%
Q4 2010+1.8%
Q3 2010+0.0%
Q2 2010+5.1%
Q1 2010+5.9%

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