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John Hewitt, Liberty Tax ServiceRevenue from financial products turned sharply upward in the early part of tax season, JTH Holding, parent of Liberty Tax Service, said in reporting its financial results for third quarter ended January 31. JTH said net income rose about almost two and a half times while revenue was up 8.3 percent over last year's corresponding period.

Net income hit $2.1 million, compared to $1.4 million a year earlier. Revenue for the most recently ended quarter was $40.7 million, up from $37.6 million. The quarter reflected only one day of operations in which the Internal Revenue Service was accepting returns following the delayed start to the tax season.

JTH CEO John Hewitt said his company had raised fees by 5 percent to 6 percent, which he believed to be in line with hikes by competitors.

Revenue from financial products was $9.9 million, a rise of 22.7 percent from just over $8 million in the year earlier quarter. In an earnings webcast, Hewitt said the category was helped by the fact that IRS accepted a much larger portion of the returns due to fact that all IRS forms were open when they opened for efiling in January. Hewitt noted that last year some forms were not available as late as March.

Hewitt also said on results he had heard from Block and Jackson Hewitt, the mom and pop tax preparers gained share this year. He did not provide specifics, but said he that despite the lag in returns filed by professional preparers, that the percentage of filers seeking assistance during the current tax season will stay in the same range that it has for several years.

Last modified on Wednesday, 19 March 2014
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