Liberty Tax Inc., parent company of Liberty Tax Service, has reported that the total number of customers it served in the U.S. and Canada grew by 2.1%, to 2.2 million, in fiscal 2015. Reported revenue increased 1.6%, to $162.2 million.
Returns prepared in Liberty’s U.S. offices grew 0.9%, while total returns in Canada grew 9.3%, the company added. U.S. system-wide revenue for Liberty grew 4% and Canadian system-wide revenue grew 10.5% (on a local currency basis). The growth in tax prep volume coupled with an increase in average net fee of 3.1% drove higher royalty and advertising revenue.
Reported operating expenses increased 17.5%, to $146.8 million. Adjusted operating expenses increased 4.1%, to $129.3 million. The company also recorded $7.6 million in costs related to potential losses on two class-action lawsuits, net of recovery from a vendor.
Liberty CEO John Hewitt, citing an increased number of taxpayers served quickly, added, “The revenue growth we expected from the Affordable Care Act did not materialize and delays in implementation of immigration reform also impacted our revenue this year.”
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