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FOR IMMEDIATE RELEASE
NEWSTAR REPORTS FOURTH QUARTER 2010 RESULTS
Addition of new specialized lending platforms and continued improvement in
financial results cap a successful year
Financial results continued to improve with adjusted net income of $10.1 million, or $0.19 per diluted share
GAAP net income was $9.4 million, or $0.18 per diluted share
New loan origination volume increased 62% to $235 million in the fourth quarter and $572 million for the year
Recognized $5.6 million pre-tax gain on the acquisition of asset-based lender and assumed a $225 million credit facility to fund related new lending activity
Launched new equipment finance business and added a new $75 million credit facility to fund new leasing activity
Increased book value per share to $10.96
Boston, February 16, 2011 NewStar Financial, Inc. (NASDAQ: NEWS), a specialized commercial finance company, today reported adjusted net income for the fourth quarter of 2010 of $10.1 million, or $0.19 per diluted share. On a GAAP basis, the Company reported net income of $9.4 million, or $0.18 per diluted share, which reflected $0.7 million after-tax non-cash equity compensation expense related to the 2006 IPO.
Adjusted net income (loss) and other non-GAAP financial measures used in this release are defined under Non-GAAP Financial Measures on page 5. Reconciliations between GAAP and adjusted (non-GAAP) measures can be found in the attached financial tables.
I am very pleased with our results in the fourth quarter as our operating performance continued to improve and we executed on important strategic initiatives that broadened our capabilities and strengthened our national origination franchise, said Tim Conway, Chairman and Chief Executive Officer. The launch of our equipment finance business marked another important milestone for the company as we continue to execute our strategy to add specialized lending platforms in attractive market segments that are consistent with our core strengths and enhance our value proposition for customers. The value of our national direct origination platforms was evident in the gains we made in new loan origination throughout the year and our financial results in the quarter capped off what has been a very successful year for NewStar.
Acquisitions and New Business Initiatives
Purchased Core Business Credit, LLC, an asset-based lender, and its wholly owned subsidiaries for a purchase price of $25.3 million. Recognized a gain of $5.6 million in connection with the acquisition.
The following information was filed by Newstar Financial, Inc. (NEWS) on Wednesday, February 16, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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