VIRGINIA BEACH, VA - (Marketwired - Mar 4, 2016) - Liberty Tax, Inc. (NASDAQ: TAX) (the "Company"), the parent company of Liberty Tax Service, today reported its results for the third fiscal quarter ended January 31, 2016.
"Despite a slow start to the tax season industry wide, we are pleased that the Company delivered double digit growth in the quarter in both revenue and earnings per share," said John Hewitt, CEO. "We are now focused on executing in the second half of the season to drive return counts and bottom line performance through cost control and pricing discipline."
View Original for Full Data Table
Revenues for the three months ended January 31, 2016 increased 12.5% to $53.6 million compared to $47.7 million in the prior year period. The increase in revenue was primarily driven by strong performance in our financial products group and from growth in tax preparation fees driven by the launch of our new company store cluster program.
Reported operating expenses increased 2.9% to $44.7 million while adjusted operating expenses increased 13.6%. The increased operating expenses reflect the impact of our new refund advance product and the higher costs associated with operating more company stores.
The Company had a balance of $150.7 million on its revolving credit facility as of January 31, 2016, compared to $110.8 million as of January 31, 2015. A shift in IRS funding from Q3 to Q4 caused $25 million of the increase, along with higher offseason lending to franchisees.
The Company reported an increase in permanent store locations of 196 stores and a decline in seasonal locations of 51. Increases in the number of permanent office locations is an important driver of future return count growth.
During the calendar year, through February 28, 2016 the Company and its franchisees served approximately 4% fewer customers in its offices than for the same period in the 2015 tax season. Liberty Tax Service offices have prepared 1,094,000 U.S. tax returns during the 2016 tax season through February 28.
The Board of Directors has approved our fifth consecutive quarterly dividend.
The quarterly dividend of $0.16 per share will be paid on April 22, 2016 to holders of record of common stock and common stock equivalents on the close of business on April 12, 2016.
At 8:30 a.m. Eastern time on Friday, March 4, 2016, the Company will host a conference call for analysts, institutional investors and stockholders. To access the call, please dial the number below approximately 5 to 10 minutes prior to the scheduled starting time:
U.S. 855-611-0856
International 518-444-5569
Conference ID Code: 57683085
The call will also be webcast in a listen-only format. The link to the webcast can be accessed on the Company's investor relations website atwww.libertytax.com, under the "About" tab.
A telephonic replay of the call will be available beginning shortly after the call and continue until Friday, March 11, 2016, by dialing 855-859-2056 (domestic) or 404-537-3406 (international). The conference ID code is 57683085. A replay of the webcast will also be available at the site listed above beginning shortly after its conclusion.
Founded in 1997 by CEO John T. Hewitt, Liberty Tax, Inc., is the parent company of Liberty Tax Service. Liberty Tax is the fastest-growing tax preparation franchise and has prepared more than 19 million individual income tax returns in more than 4,400 U.S. and Canadian offices and online. Liberty Tax's online services are available through eSmart Tax, Liberty Online and DIY Tax, and are all backed by the tax professionals at Liberty Tax locations and its nationwide network of approximately 35,000 seasonal tax preparers. Liberty Tax also supports local communities with fundraising endeavors and contributes as a national sponsor for many charitable causes. For a more in-depth look, visit Liberty Tax Serviceand interact with Liberty Tax on Twitter and Facebook.
This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying Tables E&F titled "Non-GAAP Financial Information."
In addition to historical information, this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including implied and express statements regarding future growth. These forward-looking statements, as well as Company guidance, are based upon the Company's current expectations and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties and speak only as of the date on which they are made, the Company's actual results could differ materially from these statements. These risks and uncertainties relate to, among other things; uncertainties regarding the Company's ability to attract and retain clients; the ability to continue to pay a quarterly dividend; the effect of health care reform on tax preparation-related revenue; the impact of the launch of a new franchise brand; uncertainties regarding the Company's ability to meet its prepared returns targets; competitive factors; the Company's effective income tax rate; litigation defense expenses and costs of judgments or settlements; and changes in market, economic, political or regulatory conditions. Information concerning these risks and uncertainties is contained in the Company's annual report on Form 10-K and in other filings by the Company with the U.S. Securities and Exchange Commission. The Company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, we believe certain non-GAAP performance measure and ratios used in managing the business may provide additional meaningful comparisons between current year results and prior periods. Reconciliations to GAAP financial measures are provided below. These non-GAAP financial measures should be viewed in addition to, not as an alternative for, our reported GAAP results.
View Original for Full Data Table
>
View Original for Full Data Table
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, we believe certain non-GAAP performance measure and ratios used in managing the business may provide additional meaningful comparisons between current year results and prior periods. Reconciliations to GAAP financial measures are provided below. These non-GAAP financial measures should be viewed in addition to, not as an alternative for, our reported GAAP results.
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
SOURCE Liberty Tax, Inc.
Kathy Donovan
Investor Relations
Liberty Tax, Inc.
Vice President, Chief Financial Officer
(757) 493-8855
investorrelations@libtax.com
Martha O'Gorman
Media Relations
Liberty Tax, Inc.
Chief Marketing Officer
(757) 301-8022
martha@libtax.com