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Nicole Ossenfort, Liberty Tax Liberty Tax eked out a small profit and increase in revenue for the year ended April 30 despite management turmoil. The company promises to have its Form 10-K and 10-Qs for two quarters in 2018 and one in the current fiscal year filed with the SEC by October 31. 

The tax services company had net income of $100,000 for the most recently ended year, down from $13 million for 2017. Revenue for fiscal 2018 was $174.9 million an increase of .5 percent  from $174 million the prior year. Liberty’s stock has been delisted from Nasdaq and is trading in the pink sheets. Liberty is appealing the delisting.

The top line was helped by $26.6 million fees from assisted preparation last year, an increase of 23.4 percent from $21.6 million in 2017. There was also $10.8 million in revenue from electronic filing fees.

“We are evaluating and implementing additional cost savings designed to drive further profitability and working with our Board to power new strategic initiatives directed towards bottom line performance,” CEO Nicole Ossenfort said in a prepared statement.

Liberty ousted CEO and founder John Hewitt a year ago and lost or removed several executives before Ossenfort was named. Hewitt sold his controlling shares to Vintage Tributum, an affiliate of Vintage Capital Management. The company then installed a new board of director removing Ossenfort from the board but leaving her in the CEO job.

Hewitt was ousted after an investigation allegedly found employee complaints he was heard having sex in his office and favored several female employees with whom he had relationships. Because he controlled the company through his Class B shares, Hewitt was able to remove directors and install allies.

The situation led to KPMG resigning as auditor in December and the replacement, Carr, Riggs & Ingramserving  April 18 to June 5 without completing work on financial statements. The company has not yet filed reports for the quarters ended Oct. 31, 2017, Jan. 31, 2018 and July 30, and the year ended April 30.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Sunday, 07 October 2018
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