Liberty Tax Service Announces Fiscal 2016 First Quarter Results

Actualizado el 28 de agosto, 2015 - 12.30hs.

VIRGINIA BEACH, VA -- (Marketwired) -- 08/28/15 -- Liberty Tax, Inc. (NASDAQ: TAX) (the "Company"), the parent company of Liberty Tax Service, today reported results for the first quarter ended July 31, 2015.

"I am pleased with our sales efforts thus far, the progress we are making to expand our office count, and our ability to engage closely with our franchisees and area developers to improve return counts in existing offices," said John Hewitt, CEO. "We have developed several new pilot programs and continue to see progress and expansion with our SiempreTax brand."

As a seasonal business, the Company typically reports a loss in the first quarter when revenues are low and costs are ramping up to drive growth in the following tax season. The Company reported a net loss for the fiscal first quarter ended July 31, 2015, of $8.5 million, or $0.67 per share, which was unchanged from prior year. The Company reported an adjusted non-GAAP net loss of $0.65 per share, also in line with the prior year.

($ in millions except
 per share data)                   GAAP                   Non - GAAP*
                         ------------------------  ------------------------
                         Q1 2016  Q1 2015  Change  Q1 2016  Q1 2015  Change
                         -------  -------  ------  -------  -------  ------
Revenue                  $   7.5  $   7.8    -4.0% $   7.5  $   7.8    -4.0%
Operating expenses          21.4     21.9    -2.1%    21.0     21.4    -1.8%
Loss before taxes          (14.3)   (14.3)   -0.2%   (13.9)   (13.8)    0.3%
Net Loss                    (8.5)    (8.6)   -1.2%    (8.3)    (8.4)   -0.8%
Basic and Diluted EPS      (0.67)   (0.67)    0.0%   (0.65)   (0.65)    0.0%

*See reconciliation of non-GAAP to GAAP measures in Table D

Income Statement
Revenues for the three months ended July 31, 2015 decreased to $7.5 million from $7.8 million in the prior year period. Revenue from Area Developer ("AD") fees declined $0.2 million because revenue from some prior year sales has now been fully recognized over the ten year life of the related agreements.

Balance Sheet
The Company had a cash balance of $4.4 million at July 31, 2015. The Company has drawn $16.6 million on its revolving credit facility as of July 31, 2015 compared to $13.8 million at the prior year's quarter end. During the first quarter we typically draw on this facility to provide for cash used in operations and for operating loans to franchisees.

Operational Results
During the first quarter of fiscal 2016, the Company sold 37 new U.S. and Canadian territories, compared to 30 new territories during the prior year period. In order to project total office count, other factors, including the opening of previously sold territories and terminations, must be considered as well. The Company expects the total office count to increase over last year.

Dividend
On August 27, 2015, the Board of Directors approved a quarterly dividend to shareholders of $0.16 per share. The dividend will be paid on October 22, 2015 to holders of record of common stock and common stock equivalents on the close of business on October 15, 2015.

Conference Call
At 8:30 a.m. Eastern time on August 28, 2015, the Company will host a conference call for analysts, institutional investors and stockholders. To access the call, please dial the number below approximately 10 minutes prior to the scheduled starting time:

      U.S.                               855-611-0856
      International                      518-444-5569
      Conference ID Code:                4280497

The call will also be webcast in a listen-only format. The link to the webcast can be accessed on the Company's investor relations website at www.libertytax.com, under the "About" tab.

A telephonic replay of the call will be available beginning shortly after the call continuing until Friday, September 4, 2015, by dialing 855-859-2056 (domestic) or 404-537-3406 (international). The conference ID code is 4280497. A replay of the webcast will also be available at the site listed above beginning shortly after its conclusion.

About Liberty Tax, Inc.
Founded in 1997 by CEO John T. Hewitt, Liberty Tax, Inc., is the parent company of Liberty Tax Service. Liberty Tax is the fastest-growing tax preparation franchise and has prepared almost 20 million individual income tax returns in more than 4,300 offices and online. Liberty Tax's online services are available through eSmart Tax, Liberty Online and DIY Tax, and are all backed by the tax professionals at Liberty Tax locations and its nationwide network of approximately 35,000 seasonal tax preparers. Liberty Tax also supports local communities with fundraising endeavors and contributes as a national sponsor for many charitable causes. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on Twitter and Facebook.

About Non-GAAP Financial Information
This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. generally accepted accounting principles, please see the section of the accompanying Table D titled "Non-GAAP Financial Information."

Forward Looking Statements
In addition to historical information, this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including implied and express statements regarding future growth. These forward-looking statements, as well as Company guidance, are based upon the Company's current expectations and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties and speak only as of the date on which they are made, the Company's actual results could differ materially from these statements. These risks and uncertainties relate to, among other things; uncertainties regarding the Company's ability to attract and retain clients; the ability to continue to pay a quarterly dividend; the effect of health care reform and immigration reform on tax preparation-related revenue; the impact of the launch of a new franchise brand; uncertainties regarding the Company's ability to meet its prepared returns targets; competitive factors; the Company's effective income tax rate; litigation defense expenses and costs of judgments or settlements; and changes in market, economic, political or regulatory conditions. Information concerning these risks and uncertainties is contained in the Company's annual report on Form 10-K and in other filings by the Company with the U.S. Securities and Exchange Commission. The Company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

                                   Table A
                              Liberty Tax, Inc.
                    Condensed Consolidated Balance Sheets
                            Amounts in thousands

                                         July 31,    April 30,     July 31,
                                           2015         2015         2014
                                       -----------  -----------  -----------
Current assets:                        (Unaudited)               (Unaudited)
  Cash and cash equivalents            $     4,418  $    21,387  $     8,649
  Current receivables, net                  64,400       65,927       59,308
  Assets held for sale                       6,357        5,160        5,425
  Income taxes receivable                    7,901            -       10,946
  Deferred income tax asset                  6,773        6,921        3,636
  Other current assets                       2,552        6,470        3,058
                                       -----------  -----------  -----------
    Total current assets                    92,401      105,865       91,022

  Property, equipment, and software,
   net                                      37,937       36,232       38,866
  Notes receivable, non-current, net        21,146       20,753       15,575
  Goodwill                                   3,283        3,377        3,009
  Other intangible assets, net              13,339       14,672       12,786
  Other assets                               3,220        3,247        2,207
                                       -----------  -----------  -----------
    Total assets                       $   171,326  $   184,146  $   163,465
                                       ===========  ===========  ===========

Current liabilities:
  Current installments of long-term
   debt                                $     1,958  $     3,934  $     3,042
  Accounts payable and accrued
   expenses                                 16,819       17,321        8,963
  Due to ADs                                 9,403       24,340        9,207
  Income taxes payable                         187        2,147            -
  Deferred revenue - current                 5,585        6,076        6,796
                                       -----------  -----------  -----------
    Total current liabilities               33,952       53,818       28,008

  Long-term debt, excluding current
   installments                             20,858       21,463       21,103
  Revolving credit facility                 16,556            -       13,822
  Deferred revenue - non-current             8,964        7,640        8,097
  Deferred income tax liability              3,673        2,363        4,657
                                       -----------  -----------  -----------
    Total liabilities                       84,003       85,284       75,687
                                       -----------  -----------  -----------

Stockholders' equity:
  Special voting preferred stock,
   $0.01 par value per share                     -            -            -
  Class A common stock, $0.01 par
   value per share                             119          119          118
  Class B common stock, $0.01 par
   value per share                               9            9            9
  Exchangeable shares, $0.01 par value
   per share                                    10           10           10
  Additional paid-in capital                 4,049        4,082        6,590
  Accumulated other comprehensive
   income (loss), net of taxes              (1,455)        (697)         184
  Retained earnings                         84,591       95,339       80,867
                                       -----------  -----------  -----------
    Total stockholders' equity              87,323       98,862       87,778
                                       -----------  -----------  -----------
    Total liabilities and
     stockholders' equity              $   171,326  $   184,146  $   163,465
                                       ===========  ===========  ===========



                                  Table B
                             Liberty Tax, Inc.
               Condensed Consolidated Statement of Operations
      Unaudited, amounts in thousands, except per share and share data

                                        Three months ended July 31,
                               --------------------------------------------
                                   2015         2014     $ change  % change
                               -----------  -----------  --------  --------
Revenues:
  Franchise fees               $       608  $       704  $    (96)    -13.6%
  AD fees                            1,604        1,825      (221)    -12.1%
  Royalties and advertising
   fees                              1,745        1,694        51       3.0%
  Financial products                   308          457      (149)    -32.6%
  Interest income                    2,006        2,194      (188)     -8.6%
  Tax preparation fees, net of
   discounts                           623          515       108      21.0%
  Other revenue                        629          450       179      39.8%
                               -----------  -----------  --------  --------
    Total revenues                   7,523        7,839      (316)     -4.0%
                               -----------  -----------  --------  --------

Operating expenses:
  Employee compensation and
   benefits                          8,633        8,415       218       2.6%
  Selling, general, and
   administrative expenses           7,759        7,525       234       3.1%
  AD expense                           726          741       (15)     -2.0%
  Advertising expense                2,609        2,882      (273)     -9.5%
  Depreciation, amortization,
   and impairment charges            1,670        2,299      (629)    -27.4%
                               -----------  -----------  --------  --------
    Total operating expenses        21,397       21,862      (465)     -2.1%
                               -----------  -----------  --------  --------
    Loss from operations           (13,874)     (14,023)      149      -1.1%

Other expense:
  Foreign currency transaction
   loss                                (25)          (1)      (24)   2400.0%
  Interest expense                    (401)        (301)     (100)     33.2%
                               -----------  -----------  --------  --------
    Loss before income taxes       (14,300)     (14,325)       25      -0.2%
  Income tax benefit                (5,764)      (5,681)      (83)      1.5%
                               -----------  -----------  --------  --------
    Net loss                   $    (8,536) $    (8,644) $    108      -1.2%
                               ===========  ===========  ========  ========

Net loss per share of Class A
 and Class B common stock
  Basic and diluted            $     (0.67) $     (0.67) $      -       0.0%

Weighted-average shares
 outstanding basic and diluted  12,811,621   12,867,273   (55,652)     -0.4%



                                  Table C
                             Liberty Tax, Inc.
              Condensed Consolidated Statements of Cash Flows
                      Unaudited, amounts in thousands
                                                        Three months ended
                                                             July 31,
                                                       --------------------
                                                          2015       2014
                                                       ---------  ---------
Cash flows from operating activities:
  Net loss                                             $  (8,536) $  (8,644)
  Adjustments to reconcile net loss to net cash used
   in operating activities:
    Provision for doubtful accounts                        1,701      1,456
    Depreciation, amortization, and impairment charges     1,670      2,299
    Stock-based compensation expense                         465        687
    Gain on bargain purchases and sales of Company-
     owned offices                                          (117)       (95)
    Deferred tax expense                                   1,458      2,034
    Changes in accrued income taxes                       (9,860)   (20,622)
    Changes in other assets and liabilities               (2,241)       142
                                                       ---------  ---------
      Net cash used in operating activities              (15,460)   (22,743)
                                                       ---------  ---------

Cash flows from investing activities:
  Issuance of operating loans to franchisees             (12,333)    (8,505)
  Payments received on operating loans to franchisees        654      1,325
  Purchases of AD rights and Company-owned offices          (336)      (128)
  Proceeds from sale of Company-owned offices and AD
   rights                                                  2,239        643
  Purchase of property, equipment, and software           (2,686)    (2,814)
                                                       ---------  ---------
      Net cash used in investing activities              (12,462)    (9,479)
                                                       ---------  ---------

Cash flows from financing activities:
  Proceeds from the exercise of stock options                279      4,543
  Repurchase of common stock                              (1,272)   (22,620)
  Dividends paid                                          (2,212)         -
  Repayment of amounts due to former ADs                  (2,318)    (3,840)
  Repayment of other long-term debt                         (282)      (641)
  Borrowings under revolving credit facility              16,556     13,849
  Repayments under revolving credit facility                   -        (27)
  Tax benefit of stock option exercises                      495      3,509
                                                       ---------  ---------
      Net cash provided by (used in) financing
       activities                                         11,246     (5,227)

Effect of exchange rate changes on cash, net                (293)        18
                                                       ---------  ---------
    Net decrease in cash and cash equivalents            (16,969)   (37,431)
Cash and cash equivalents at beginning of period          21,387     46,080
                                                       ---------  ---------
Cash and cash equivalents at end of period             $   4,418  $   8,649
                                                       =========  =========



                                  Table D
                             Liberty Tax, Inc.
                       Non-GAAP Financial Information
           Unaudited, amounts in thousands, except per share data

We report our financial results in accordance with U.S. generally accepted
accounting principles (GAAP). However, we believe certain non-GAAP
performance measure and ratios used in managing the business may provide
additional meaningful comparisons between current year results and prior
periods. Reconciliations to GAAP financial measures are provided below.
These non-GAAP financial measures should be viewed in addition to, not as
an alternative for, our reported GAAP results.

                  For the three months ended July 31, 2015
---------------------------------------------------------------------------
                              Loss from
                              --------
                                                   Pretax   Net Loss
            Revenues Expenses Operations EBITDA     Loss      (1)      EPS
             ------- -------  --------  --------  --------  -------  ------

As Reported  $ 7,523 $21,397  $(13,874) $(12,229) $(14,300) $(8,536) $(0.67)

Adjustments:
Executive
 severance
 including
 stock-based
 compensation      -    (413)      413       413       413      254    0.02
             ------- -------  --------  --------  --------  -------  ------
As Adjusted  $ 7,523 $20,984  $(13,461) $(11,816) $(13,887) $(8,282) $(0.65)
             ======= =======  ========  ========  ========  =======  ======

 Stock-based
  compensation
  expense
  excluding
  severance
  related
  expense    $     - $  (373) $    373  $    373

                  For the three months ended July 31, 2014
---------------------------------------------------------------------------
                              Loss from
                              --------
                                                   Pretax
            Revenues Expenses Operations EBITDA     Loss    Net Loss   EPS
             ------- -------  --------  --------  --------  -------  ------

As Reported  $ 7,839 $21,862  $(14,023) $(11,725) $(14,325) $(8,644) $(0.67)

Adjustments:
Executive
 severance
 including
 stock-based
 compensation      -    (483)      483       483       483      291    0.02
             ------- -------  --------  --------  --------  -------  ------
As Adjusted  $ 7,839 $21,379  $(13,540) $(11,242) $(13,842) $(8,353) $(0.65)
             ======= =======  ========  ========  ========  =======  ======

 Stock-based
  compensation
  expense
  excluding
  severance
  related
  expense    $     - $  (494) $    494  $    494

  Three months ended July 31, 2015 compared to three months ended July 31,
                                    2014
---------------------------------------------------------------------------
 As reported year
  over year:
  $ change           $ (316) $ (465) $  149  $ (504) $   25  $  108  $    -
  % change             -4.0%   -2.1%   -1.1%    4.3%   -0.2%   -1.2%      0%
  As adjusted year
   over year:
  $ change           $ (316) $ (395) $   79  $ (574) $  (45) $   71  $    -
  % change             -4.0%   -1.8%   -0.6%    5.1%    0.3%   -0.8%      0%
(1) The non-GAAP tax rate of 38.5% used above excludes the income tax
 effects of the non-GAAP income before tax adjustments described above and
 is consistent with our average and forecasted rate.

CONTACTS:
Investors:
Kathy Donovan
Liberty Tax, Inc.
Vice President, Chief Financial Officer
(757) 493-8855
[email protected]

Media: Martha O'Gorman
Liberty Tax, Inc.
Chief Marketing Officer
(757) 301-8022
[email protected]

Publicidad

Lo más leído »

Publicidad

Más Secciones »

Hola Invitado