The parent company of Liberty Tax Service,
JTH Holding Inc.
) reported its fiscal 2014 second-quarter (ending Oct 31) net
loss of 66 cents per share. The result was wider than the
prior-year quarter loss of 47 cents per share as well as the
Zacks Consensus Estimate of a loss of 57 cents.
The higher net loss for JTH Holding came on the back of top-line
decline as well as increase in total operating expenses during
Behind the Headlines
JTH Holding's total revenue amounted to $7.3 million during the
reported quarter missing the Zacks Consensus Estimate of 9.0
million by 18.7%. The results also declined 21.6% year over year.
The decline is primarily attributable to lower franchise fees,
area developer fees as well as lower interest income.
On the other hand, JTH Holding's total operating expenses
escalated 11.1% year over year to $20.9 million. The company
incurred nearly $0.7 million of pre-tax costs associated with
restatement and also made a one-time payment of $0.6 million
pre-tax severance cost. These incurred costs, along with higher
employee compensation and benefits as well as higher general and
administrative expenses, have increased the operating expenses.
During the first half of fiscal 2014, 106 new franchises have
been added by JTH Holding. Among these, 48 franchises purchased
53 new territories. The company sold 65 of its new territories
during the same period.
Total assets of JTH Holding stood at approximately $174.8 million
as of Oct 31, 2013. It increased 3.1% from fiscal 2013-end level.
However, total cash and cash equivalents plunged 86.3% to $2.6
million from $19 million recorded as of Apr 30, 2013.
Total long term debt amounted to nearly $23 million at the end of
fiscal 2014 second quarter, improving 5.3% from Apr 2013-end
During the first six months of fiscal 2014, JTH Holding's net
cash outflows of $27.8 million remained almost unchanged year
Performances by Others
SouFun Holdings Ltd.
) reported third-quarter 2013 operating net earnings of $1.13 per
share, 31% above the Zacks Consensus Estimate and 66% ahead of
the year-ago earnings.
) reported third-quarter 2013 operating net loss of 14 cents per
share, narrower than the Zacks Consensus Estimate of a loss of 23
cents. However, the results deteriorated from the operating net
loss of 6 cents per share incurred in the year-ago quarter.
Hertz Global Holdings Inc.
) posted third-quarter 2013 adjusted earnings per share of 73
cents surpassing the Zacks Consensus Estimate by a couple of
cents. The number also rose 15.9% year over year.
JTH Holding presently carries a Zacks Rank #4 (Sell).
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
PDI INC (PDII): Free Stock Analysis Report
SOUFUN HLDG-ADR (SFUN): Free Stock Analysis
JTH HOLDING INC (TAX): Free Stock Analysis
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