Liberty Tax Inc., parent company of Liberty Tax Service, reported a net loss for the fiscal second quarter ended October 31 of $9.1 million.
Revenue for the three months of the period remained essentially flat, the company said in an announcement, increasing to $7.9 million from $7.7 million in the prior-year period. Operating expenses decreased to $21.9 million, driven by lower commission and area developer expense along with lower depreciation and amortization, among other factors, Liberty said.
On a year-to-date basis through last month, the company sold 141 new U.S. and Canadian territories, compared with 127 new territories during the prior-year period. Eleven franchisees also sold their SiempreTax+ rights to other operators who plan to open new SiempreTax+ locations.
Liberty expects the total office count to increase over last year, and added that it typically reports a loss in the first and second quarters of the fiscal year when revenues are low and costs are ramping up to drive growth in the following tax season.
The company reported a loss of $8.5 million in the first quarter.
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