NASDAQ$NEWT

Newtekone Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced third quarter 2021 financial results, demonstrating growth in core lending products and reconfirming full year 2021 earnings guidance.

Newtek Business Services Corp. reported its Q3 2021 financial results, highlighting growth in core lending operations and a robust pipeline of opportunities. The company reconfirmed its full-year 2021 earnings guidance.

  • Total investment income decreased by 16.7% to $12.4 million for the three months ended September 30, 2021, compared to the same period in 2020.
  • Net investment income/(loss) was $(6.7) million, or $(0.30) per share, for the three months ended September 30, 2021, a decrease of $(0.38) per share compared to the prior year.
  • Adjusted net investment income (ANII) increased by 1300.0% on a per share basis to $12.6 million, or $0.56 per share, for the three months ended September 30, 2021.
  • Newtek Small Business Finance, LLC funded $163.9 million of SBA 7(a) loans during the three months ended September 30, 2021, a 1160.8% increase over the same period in 2020.

Headline financials

Total Revenue

$12.4M

Previous: $14.9M-16.9%
EPS (adj)

$0.56

Previous: $0.04+1300.0%
Free Cash Flow

$152M

No prior period
Net Income

-$6.7M

No prior period
Operating Income

$16.6M

No prior period
Cash & Equivalents

$203M

No prior period
Total Assets

$1.04B

No prior period

Revenue & EPS history

Newtekone · Revenue · Quarterly

$12.4M

Q3 2021-16.9%vs Q3 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Newtek reconfirmed its forecasted 2021 full year 2021 NII of $0.80 per share and ANII of $3.40 per share.

Tailwinds

  • The Company believes it is emerging from the pandemic with momentum from its core lending operations.
  • Technological efficiencies in lending are contributing to the positive outlook.
  • A robust pipeline of opportunities is being generated by the NewTracker(R) referral system.
  • The Company anticipates growth and higher-trending results in 2022.
  • The level of SBA 7(a) loan fundings demonstrates strong momentum going forward.

Headwinds

  • Non-conforming conventional loan program has experienced a slow start.
  • Year-over-year comparisons of loan origination volumes of 2021 to 2020 are not as meaningful due to the pandemic effects.
  • The Company will address its options to refinance more expensive debt and lower our cost of capital.
  • The Company's financial results for 2020 and the nine months ended September 30, 2021, includes income generated from NSBF's origination of loans under the Paycheck Protection Program (PPP), which ended during the third quarter of 2021, and should not be viewed as recurring.
  • 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.

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 Q3 2021

Historical avgQ3 2021

+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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