J
TH Tax, which owns the Liberty Tax operations, turned in an 8.7 increase in revenue for the year ended April 30, reversing the prior year's decline. And it was profitable, although its unsuccessful experience in offering an online tax preparation service took a dent out of the bottom line and net income fell by 9 percent from 2009. Still, the nation's third largest tax store franchisor had a far better year than its larger competitors H&R Block and Jackson Hewitt.
JTH reported just over $11 million net income for the most recently ended year, down from $12.1 million the prior year and $16.9 million for fiscal 2008. Revenue for fiscal 2010 was $89.5 million, up from $82.4 million a year earlier. In 2008, the company had $87.6 million in revenue. Althoug
Earnings would have been better but the company took a $5.6 million write off on the discontinuance of the software. Depreciation, amortization and impairment charges were also up, rising to $7.5 million, 36.2 percent higher than the $5.5 million in fiscal 2008. Although it is dropping use of its own software, Liberty will continue to offer online preparation under the name e-Smart but will be using what was described as a "white label third party" product.
Liberty's biggest source of revenue, royalties and advertising fees, came in at $39.8 million, an increase of 11.1 percent from $31.7 million. Revenue from tax preparation fees was $5.4 million for 2010, up 17.5 percent from the prior year.
