TAL NET DROPS Wolters Kluwer reported that EBITA for its tax, accounting and legal division dropped to $26 million for the fourth quarter ended Dec. 31, down 10.3 percent from $29 million a year earlier.
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Fourth quarter revenue for TAL, which includes CCH's operations, rose to $231 million, up 17.2 percent from $197 million with $20 million of the revenue gain coming from acquisitions. For the full-year, total revenue rose by 3 percent, while EBITA increased by 16 percent. The company said CCH had double-digit organic growth, but gave no details.
INTUIT EARNINGS DIP
A shift in product shipments cut into Intuit' s bottom line for the second quarter ended Jan. 31 as net income fell to $142.36 million, down 22.3 percent from just under $183 million a year ago.
Meanwhile, revenue hit $763.3 million, a 2.8 percent increase from $742.7 million in last year's corresponding period. Product revenue dipped with QuickBooks revenue slipping to $164.4 million, down 8 percent from $178.9 million, and sales of professional tax products fell to $130.7 million, off 13 percent from $150.5 million a year earlier. In a conference call, CEO Steve Bennett said that the payroll and payments segment had strong growth, despite the company's plans to sell its Outsourced payroll assets.
ADVENT UPS STOCK BUY
Advent Software has been authorized to purchase 2.25 million shares of its common stock, up 1 million shares from the amount authorized by the company's directors in June.
The purchase of 1.5 million shares was substantially completed early in February at a total cash outlay of about $45 million. The company also said that it expected to have finalized a $75 million revolving credit facility by the end of the same month.
INTUIT SELLS PAYROLL OPS
Intuit is selling part of its payroll operation, its Premier product and part of its Complete Payroll line, to payroll processor ADP for up to $125 million.
The final price depends on how many of the 25,000 customers using those products switch to the payroll giant. Intuit got into these businesses through the 1999 purchase of the former Computer Resources Inc. for $200 million, and the 2002 purchase of the former CBS Payroll for $78 million. Intuit will continue to market such products as its Do-It-Yourself Payroll for users who want to control some of their payroll-related tasks.
MORNINGSTAR NET UP 33 PERCENT
Morningstar reported net income of $13.6 million for the fourth quarter ended Dec. 31, up 33 percent from $10.1 million a year earlier, as revenue rose by 43 percent.
The Chicago-based financial planning vendor said that revenue in the most recently ended period was $87 million, compared to $60.7 million in last year's corresponding quarter.
SMARTPROS CHANGES CEO'S CONTRACT
SmartPros, which markets online continuing education courses, has entered a three-year employment agreement with CEO and chairman Allen S. Greene.
On Feb. 1, the contract will automatically extend to three years again unless the company gives Greene a notice of nonrenewal. His base salary was set at $275,000 a year. He also received reimbursement for all automobile expenses, including lease payments, insurance, tolls, fuel, and other operating expenses. Greene joined the company in 2001. He had a base of $254,000 in fiscal 2005.
GILMAN NARROWS LOSS
Financial planning firm Gilman+Coccia reported a loss of $291,112 for its second quarter ended Dec. 31, down from $566,831 a year earlier, as revenue moved up by 4.1 percent.
Revenue reached just over $12 million, an increase from $11.5 million in last year's corresponding period. The company derived just over 96 percent of its revenue from financial planning services with the remainder coming from tax preparation fees. It operated 28 company owned offices and has about 70 independently owned financial planning offices.
WOLTERS KLUWERS 2006 U.S. ACQUISITIONS
Company Annual Revenue Employees
Healthcare Analytics, Phoenix $165 million 380
TaxWise, Rome, Ga. $53 million 300
ATX/Kleinrock, Rockville, Md. $40 million 300
ProVation Medical, Minneapolis $13 million 100
GulfPak, Jackson, Miss. $9 million 37
Sage Practice Solutions, Pensacola, Fla. $7 million 50
In 2006, Wolters Kluwer, the parent of CCH, acquired companies in the United States that had annual revenue of roughly $287 million and employed approximately 2,100 people. Source: Wolters Kluwer.