BOSTON, July 25, 2007 (PRIME NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS) announced today that it will report results for the second quarter of 2007 on Wednesday, August 8, 2007 before the market opens.
The Company issued preliminary results this morning of expected adjusted net income for the second quarter of 2007 between $7.3-7.5 million, or $0.20-0.21 per diluted share, excluding non-cash equity compensation, the impact of the asset sale and income generated in the second quarter by the assets sold. On a GAAP basis, net income is expected to be between $3.3 and $3.5 million, or $0.09-0.10 per fully diluted share. The quarter was marked by strong origination volume of $685 million and solid credit quality.
NewStar will also host a webcast/conference call to discuss the results on Wednesday, August 8, 2007 at 10:00 am Eastern Time. All interested parties are invited to participate via telephone or webcast, which will be hosted through the Investor Relations section of our website at www.newstarfin.com. Please visit the website to register for the webcast and test your connection prior to the call. You can also access the conference call by dialing (866) 316-1368 approximately 5-10 minutes prior to the call. International callers should dial (913) 312-6678. All callers should reference "NewStar Financial."
For convenience, an archived replay of the call will be available through August 15, 2007 by dialing (888) 203-1112. International callers should call (719) 457-0820. For all replays, please use the passcode # 7734185. The audio replay will also be available through the Investor Relations section of our website at www.newstarfin.com.
About NewStar Financial:
NewStar Financial is a specialized commercial finance company focused principally on meeting the complex financing needs of customers in the middle market through our corporate, commercial real estate, and structured products groups. Our senior banking teams call directly on customers to provide advice and finance a range of strategic transactions that may require some combination of senior secured, second lien and mezzanine financing. NewStar typically works with customers with financing needs of up to $150 million and cash flow as low as $5 million. We target 'hold' positions of up to $35 million, but may also underwrite or arrange transactions up to $100 million for syndications to other lenders.
We are headquartered in Boston MA, with regional offices in Darien CT, Chicago IL, San Francisco CA, San Diego CA, and Charleston SC. In December of 2006, NewStar completed an Initial Public Offering. The Company's shares trade on the NASDAQ under the ticker symbol, NEWS. Please visit our website at www.newstarfin.com for more detailed transaction and contact information.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. As such, they are subject to material risks and uncertainties.
More detailed information about these factors is described in NewStar's filing with Securities and Exchange Commission (the "SEC"), including Item 1A ("Risk Factors") of our 2006 Form 10-K. NewStar is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. NewStar plans to file its Form 10-Q with the SEC on or before August 14, 2007 and urges its shareholders to refer to that document for more complete information concerning NewStar's financial results.
Non-GAAP Financial Measures
References to expected "adjusted net income" of $7.3-7.5 million means our expected net income as determined under GAAP of between $3.3 and $3.5 million, excluding: i) compensation expense of approximately $2.7 million for the second quarter of 2007 related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering; ii) earnings generated in the second quarter of 2007 from the assets sold of approximately $1.3 million; and iii) the loss of approximately $2.7 million on the asset sale. "Adjusted earnings per share" is earnings per share as determined under GAAP calculated based on our adjusted net income. GAAP requires that these amounts be included in net income. NewStar management uses "adjusted net income" and "adjusted earnings per share" to make operational and investment decisions, and NewStar believes that they provide useful information to investors in their evaluation of our financial performance and condition. Excluding the financial results of the assets sold in this transaction and the compensation expense related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering, eliminates unique amounts that make it difficult to assess our core performance and compare our period-over-period results.