Newtek Business Services Corp. (NASDAQ:NEWT) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET

Company Participants

Jayne Cavuoto - Director of Investor Relations

Barry Sloane - President, Founder, and Chief Executive Officer

Nick Leger - Chief Accounting Officer

Conference Call Participants

Paul Johnson - KBW

Jayne Cavuoto

Sure. Good morning, everybody. My name is Jayne Cavuoto. And I am the Director of Investor Relations here at Newtek Business Services Corp. Today, I would like to thank you all for attending Newtek's First Quarter 2022 Financial Results Conference Call.

I would like now turn the call over to Barry Sloane, CEO, President, and Chairman of Newtek Business Services Corp.

Barry Sloane

Good morning, everyone, and welcome to our first quarter 2022 financial results conference call. Today on the call, thank you, Jayne Cavuoto, Director of Investor Relations. I am also here today with Nick Leger, our Chief Accounting Officer, and we will be making the presentation. We are very, very excited about reporting our first quarter results. We are proud to announce that we beat analyst estimates of $0.62 adjusted NII a share for the Q1 consensus coming in at $0.72 of adjusted NII.

I'd like to move everyone forward -- move everyone to the forward-looking statement slide on number one. Please take your time with that forward-looking statement slide at your convenience. It's important that you absorb that.

Slide number two. Historically, the company has proven shareholder value creation with a great track record of successful growth. We are projecting returns as of March 31, 2022. Obviously, we are all well-aware the financial markets have been pretty difficult in Q1. When you take a look at our 10-year returns, five-year, three-year, and one-year, all stellar, particularly against most market indices, particularly the Russell 2000. Our market capitalization is little over $620 million as of today's date. And we're very excited about delivering our earnings results to you indicative of the successful track record and growth of the business, its plan and its objectives. I would like to report that in the first quarter NEWT total return was down 1.01%, which was better than the decline in the Russell of down 7.5% for the first quarter.

Slide number three. Obviously important position and topical with respect to investors' investment in Newtek as it has announced back in August its intent to acquire National Bank of New York City subject to a proxy vote and regulatory approval. On May 2nd, very recently the company with confidence filed its definitive proxy statement with SEC seeking shareholder approval to allow the company's Board of Directors to withdraw and to authorize its election to be regulated under the 1940 Company Act. Important for all investors to please familiarize yourself with the proxy, it's now out in the market, will be mailed, and is being mailed and sent electronically as we speak. Some of the important aspects of what's in that proxy statement, once again, we encourage everybody to read the statement including all the risk factors. I could be one of the only CEOs that tell the people to read the risk factors both for and against being a bank holding company versus BDC on both sides.