Liberty Tax Service's parent company,
JTH Holding Inc.
) reported third-quarter fiscal 2014 (ending Jan 31) net income
of 28 cents per share, up from 12 cents earned in the year-ago
period. The result also exceeded the Zacks Consensus Estimate of
8 cents per share.
Increased market share and focus on JTH Holding's high
performers mainly led to the improvement.
Behind the Headlines
JTH Holding's total revenue amounted to $40.7 million during
the reported quarter, missing the Zacks Consensus Estimate of $42
million. However, the results improved 8.3% year over year. The
increase in revenues was attributable to higher royalties and
advertising fees, financial products and tax preparation fees.
These were driven by increased returns and average net fees.
On the other hand, JTH Holding's total operating expenses
increased 4.1% year over year to $35.5 million. Higher general
and administrative expenses, depreciation, amortization and
impairment expenses, and area developer costs led to the increase
in operating expenses.
While one-time restatement costs and higher bad-debt expense
from office closures, led to higher general and administrative
expenses, growth in royalties increased the area developer
expenses. On the other hand, acquired customer lists and area
developer rights and JTH Holding's NextGen software assuming
service in fiscal 2014, led to extra amortization expenses that
drove depreciation, amortization and impairment charges.
Total assets of JTH Holding stood at approximately $256
million as of Jan 31, 2014. It increased from $103.1 million at
However, total cash and cash equivalents plunged 80.3% to $3.7
million from $19 million recorded as of Apr 30, 2013.
Total long-term debt amounted to $22 million at the end of
third-quarter fiscal 2014, reflecting an improvement from $24.3
million at fiscal 2013-end.
JTH Holding's cash used in operations totaled $50.9 million in
the first nine months of fiscal 2014, down from $51.8 million
used in the comparable period last year.
Performances by Others
SouFun Holdings Ltd.
) reported fourth-quarter 2013 operating earnings of $1.41 per
share, 34.5% above the Zacks Consensus Estimate.
) delivered fourth-quarter 2013 operating loss of 3 cents per
share narrower than the Zacks Consensus Estimate of a loss of 13
cents and the year-ago loss of 15 cents.
) reported fourth-quarter operating net earnings of 44 cents a
share that beat the Zacks Consensus Estimate by a penny. However,
the result beat the prior-year quarter figure by 19%.
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