Parent company of Liberty Tax Service reports loss
- August 30, 2012
Virginia Beach-based JTH Holding Inc., the parent company of Liberty Tax Service, reported a net loss of $6.2 million, or 51 cents per share, for the first quarter of its fiscal year.
By comparison, the company had a loss of $5 million, or 44 cents per share, in same period last year.
Mark Baumgartner, Liberty’s CFO, said the first-quarter results were in line with expectations.
“Increased losses in our first and second quarter, when compared to prior periods, are expected as our company prepares for another high-growth tax season,” Baumgartner said in a statement.
Revenues grew 39 percent to $6.8 million during the first quarter, which ended July 31.
The company’s operating expenses in the quarter included about $525,000 related to its becoming a publicly traded company earlier this year.
Liberty said it typically spends a significant portion of the first quarter planning for the upcoming tax season and kicking off franchise sales.
“The involvement of our franchisees in our tax season planning is one of the key attributes that separates Liberty from the other national players,” John Hewitt, the company’s chairman and CEO. “The marketplace insights provided by our franchisees allow us to continually enhance our system of doing business, which is a key to our success.”
The company will hold its first stockholders’ meeting since becoming a public company on Nov.16 at the Virginia Beach Convention Center.