Wider Fiscal Q2 Loss at JTH Holding - Analyst Blog

By Zacks Equity Research,

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The parent company of Liberty Tax Service, JTH Holding Inc. ( TAX ) 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 the quarter.

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.

Financial Update

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 level.

During the first six months of fiscal 2014, JTH Holding's net cash outflows of $27.8 million remained almost unchanged year over year.

Performances by Others

SouFun Holdings Ltd. ( SFUN ) 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.

PDI Inc. ( PDII ) 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. ( HTZ ) 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.

Zacks Rank

JTH Holding presently carries a Zacks Rank #4 (Sell).

HERTZ GLBL HLDG (HTZ): Free Stock Analysis Report

PDI INC (PDII): Free Stock Analysis Report

SOUFUN HLDG-ADR (SFUN): Free Stock Analysis Report

JTH HOLDING INC (TAX): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: HTZ , PDII , SFUN , TAX

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