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
