Liberty Tax has issued its Form 10-Q for the second half ended October 31, becoming current on its filing obligations for the first time since last year. The company lost $12.9 million in the most recently ended period, compared to a loss of $13.1 million a year ago.
Since the quarter is outside of tax season, it is a three-month period in which tax companies do not make money.
The Newport News, Va.-based company reported $6.8 million for the quarter, down 12.8 percent from $7.8 million in last year’s corresponding period. A big factor in the increased loss was a 35.6-percent drop interest income to $1.5 million from $2.1 million. The company said that was related to a reduction in working capital loans to franchisees.
There was also a roughly $600,000 decrease in other revenues. This is income from acquisition of area developers and franchisee operations for less than their value.
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