Although Wall Street like the fact that expense cutting boosted Jackson Hewitt's bottom line in the fourth quarter ended April 30, the company's top line dropped as revenue declined in every income segment. And the fiscal 2010 total of $213.8 million was 13.9 percent lower than the $248.3 million reported in fiscal 2009.CEO Harry Buckley said actions taken have strengthened the company for 2011. But he said Jackson Hewitt must attract new clients, implement a new franchise agreement and see a conclusion of issues surrounding refund anticipation loans.
For the most recently ended quarter, net income was $48.1 million, up 16.5 percent from $41.3 million in fiscal 2009. Revenue for the last three months of the fiscal year fell to $125.6 million, down 11 percent from $141.2 million last year.
The company was hurt when it was able to get only 50 percent of its RAL volume funded after Santa Barbara Bank and Trust left the business. Financial product fees in the fourth quarter dropped to $46.3 million, down 22.7 percent from $59.9 million a year earlier. Unable to offer loans in many of its offices, the company saw a dropped in the number of returns prepared, coupled with the overall number of returns prepared nationally as the economy took its tool
