March 24, 2007 – (HOSTSEARCH.COM) – Newtek Business Services, Inc. (http://www.newtekbusinessservices.com), a business services provider whose offerings include web hosting, has published financial results for the fourth quarter of 2006 and annual results, it was announced this week. The company reported revenues of $29.8 million, comprising net income of $3.9 million and earnings of $.11 per share.
"We are pleased with our annual results for 2006. For the first time in our company's history we are cash flow positive from operations,” explained Mr. Barry Sloane, Newtek’s CEO and Chairman. “This marks an important step in our development as a platform for developing and marketing business services and financial products and services aimed at the small-and medium-sized business markets. Although we will continue to manage the CAPCO business and make additional qualified investments, we do not see any CAPCO's that the company will create or programs that it will participate in the foreseeable future. Our EBITDA from our three primary business segments has grown from $12.4 million dollars in 2005 to $15.2 million in 2006(1). This represents a 23% increase over 2005. Our revenues in Electronic Payment Processing and Web Hosting segments grew in excess of 27% per year from 2005 to 2006. We have business customer accounts in excess of 75,000 and are adding approximately 2,200 new clients every month."
"We have $43 million in cash on our balance sheet as of 12/31/06 and have a book value per share of $2.45, added Mr. Sloane. “2007 will be a year to grow our company to scale so that we can become the entity that small to medium sized businesses come to for most of their business and financial service needs. We have forecasted our financial results for 2007 and included them in this release. We will discuss in our conference call today our transition away from the CAPCO model and provide a financial forecast of our operating businesses with a focus on cash flow from operations from our core operating businesses.”
