Liberty Reports Q1 Loss

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The parent company of tax prep chain Liberty Tax Service, JTH Holding Inc., reported a net loss for the fiscal first quarter ended July 31, though it grew its revenues by more than a third.

The loss of $6.2 million, or 51 cents per share, compares to a loss of $5 million, or 44 cents a share, in the prior-year period. At the same time, the company’s revenues grew by 39 percent to $6.8 million.

The company’s operating expenses in the quarter included approximately $525,000 of costs associated with being a public company that were not incurred in the prior year quarter.

 “We are pleased to announce first-quarter financial performance [that is] in line with our expectations,” noted chief financial officer Mark Baumgartner, CFO. “Increased losses in our first and second quarter, when compared to prior periods, are expected as our company prepares for another high-growth tax season.”

Following the close of tax season, Liberty Tax ordinarily spends a large part of the first quarter of its fiscal year planning for the next tax season and kicking off its franchise sales season. It noted that it has held a record number of meetings with franchisees planning for the 2013 season.

The company’s operating expenses in the quarter included approximately $525,000 of costs associated with being a public company that were not incurred in the prior year quarter.

The company also announced that its first meeting of stockholders since becoming a public company will be held on Nov. 16, 2012, at the Virginia Beach Convention Center.

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