Liberty Tax Inc., the parent company of Liberty Tax Service, reported a net loss for its fiscal first quarter ended July 31 of $8.5 million, unchanged from the prior year.
The company noted that it is not unusual for it to report a loss in its fiscal Q1, which is the first after tax season.
Revenues for the quarter decreased to $7.5 million from $7.8 million in the prior-year period. Revenue from area developer fees declined $0.2 million because revenue from some prior-year sales has now been fully recognized over the 10-year life of the related agreements, the company said in a statement.
Operating expenses fell to $21.4 million from $21.9 million in the first quarter of fiscal 2015.
Liberty sold 37 new U.S. and Canadian territories during the first quarter of its fiscal 2016, compared with 30 new territories during the prior-year period.
“We have developed several new pilot programs and continue to see progress and expansion with our SiempreTax brand for the Hispanic market,” said CEO John Hewitt in a statement.
Liberty earlier 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.
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