New York — Former Cendant subsidiary Jackson Hewitt Tax Service Inc. made its Big Board debut in late June in an initial public offering priced at $17 per share.
The tax prep franchise giant’s IPO of 37,500,000 shares debuted on the New York Stock Exchange under the symbol JTX. The offering price was below estimates of $18 to $20 a share. Shares, which dropped slightly below the offering price shortly after opening, rose slightly the next day.
Cendant said that it will use the proceeds, and a special dividend that Jackson Hewitt paid it, to reduce debt, repurchase common stock and invest in strategic tuck-in acquisitions.
With 4,935 franchised and company-owned offices nationwide, Parsippany, N.J.-based Jackson Hewitt ranks as the second largest paid tax return preparer in the United States, behind H&R Block. In 2004, Jackson Hewitt locations filed 3.1 million tax returns, which it estimated to be less than 5 percent of the total U.S. paid preparer industry. According to its prospectus, rival Block has about 21 percent of the market.
JH reported 2004 net revenues of $205.6 million, 43 percent of which came from revenues from franchisees.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access