"

Estimated reading time: 0 minutes, 50 seconds

Expenses, Small ACA Impact Hurts Liberty

John Hewitt, Liberty Tax A 17.5-percent increase in operating expenses coupled with a write-off of its online software drove net income down by 62 percent for Liberty Tax's year ended July 30. The tax preparation chain also reserved $7.6-million in costs for potential losses from two class action law suits.

Net income fell to $13.5 million for the most recently ended year, down from $35.6 million. Revenue rose to $162.2 million, up 2 percent from just under $160 million for 2014.

Liberty noted it prepared 2.2 million tax returns in the United States and Canada, an increase in Canada of 2.1 percent. The number of returns prepared by Liberty offices in the United States grew by .9 percent while the Canadian total increased by 9.3 percent over the prior tax season.

System-wide revenue in the United States grew by 4 percent.

In a prepared statement, CEO John Hewitt said the company did not realize the expected revenue growth from the Affordable Care Act and delays in the implementation of immigration reform also held down income. There were
licensed insurance agents were present in more than 1,000 offices

Read 4377 times
Rate this item
(0 votes)

Visit other PMG Sites:

Template Settings

Color

For each color, the params below will give default values
Tomato Green Blue Cyan Dark_Red Dark_Blue

Body

Background Color
Text Color

Header

Background Color

Footer

Select menu
Google Font
Body Font-size
Body Font-family
Direction
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.