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Form 8-K Liberty Tax, Inc. For: Mar 05

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March 5, 2015 6:47 AM EST

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
______________
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):  March 5, 2015

LIBERTY TAX, INC.
(Exact name of registrant as specified in charter)
 
Delaware
(State of Incorporation)
001-35588 
(Commission File Number)
27-3561876 
(I.R.S. Employer
Identification Number)

1716 Corporate Landing Parkway, Virginia Beach, Virginia 23454
(Address of Principal Executive Offices)  (Zip Code)

(757) 493-8855
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
   
 
Item 2.02.     Results of Operations and Financial Condition.
 
On March 5, 2015, Liberty Tax, Inc. (the “Company”) issued a press release regarding its earnings for the third quarter of the fiscal year ending April 30, 2015.  A copy of the release is being furnished as Exhibit 99.1 hereto and incorporated herein by reference.  In addition, on March 5, 2015 at 8:30 a.m. Eastern Time, the Company will hold a teleconference for analysts, institutional investors and stockholders to discuss results for the third quarter of the fiscal year ending April 30, 2015.
 
The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.


Item 8.01. Other Events
On March 5, 2015, the Company also announced that its Board of Directors approved the initiation of a cash dividend to its stockholders. The quarterly dividend of $0.16 per share will be paid on April 22, 2015 to stockholders of record at the close of business on April 15, 2015. A copy of the press release announcing the cash dividend is filed as Exhibit 99.2 to this Report.


Item 9.01.      Financial Statements and Exhibits

(d)
Exhibits

Exhibit Number
Description
99.1
Press Release dated March 5, 2015 reporting third quarter results.
99.2
Press Release dated March 5, 2015 announcing cash dividend.



   
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
LIBERTY TAX, INC.
 
 
Date:  March 5, 2015
By:/s/ James J. Wheaton                                                    
 
      James J. Wheaton
 
      Vice President and General Counsel






 
 

 




EXHIBIT INDEX

Exhibit 99.1    Press Release dated March 5, 2015 reporting third quarter results.
Exhibit 99.2    Press Release dated March 5, 2015 announcing cash dividend.





CONTACTS:
 
 
Investors:  Kathy Donovan
 
Media:  Martha O'Gorman
Liberty Tax, Inc.
 
Liberty Tax, Inc.
Vice President, Chief Financial Officer
 
Chief Marketing Officer
(757) 493-8855
 
(757) 301-8022
 

Liberty Tax Service Reports Fiscal 2015 Third Quarter Results

Virginia Beach, Va. (March 5, 2015) - Liberty Tax, Inc. (NASDAQ: TAX) (the “Company”), the parent company of Liberty Tax Service, today reported its results for the third fiscal quarter ended January 31, 2015.

“This has been a challenging season for us and the industry as a whole,” said John Hewitt, CEO. “Despite the fact that we have continued to outperform the paid preparer category, our office and return count growth failed to meet the standards that we have come to expect. Going forward, we are focused on driving new sales, working with existing franchisees to expand, and capitalizing on the opportunities presented by the Affordable Care Act and immigration reform.”

($ in Ms except per share data)
GAAP
 
Non - GAAP*
 
Q3 2015

 
Q3 2014

 
Change
 
Q3 2015

 
Q3 2014

 
Change
Revenue
$
47.7

 
$
40.7

 
17%
 
$
47.7

 
$
40.7

 
17%
Operating expenses
43.4

 
             35.5

 
22%
 
             39.3

 
             35.4

 
11%
Income before taxes
               3.6

 
               6.8

 
-47%
 
                7.6

 
                4.9

 
57%
Diluted EPS
0.13

 
             0.28

 
-54%
 
             0.29

 
             0.20

 
45%
*See reconciliation of non-GAAP to GAAP measures in Table E
 
 
 
 
 
 
 
 


Income Statement
Revenues for the three months ended January 31, 2015 increased 17% to $47.7 million compared to $40.7 million in the prior year period. The increase in revenue was primarily driven by the earlier start to the tax season, along with our franchisees’ ability to generate higher net fees and higher financial product revenue. We processed a higher portion of our financial product volume through our in-house subsidiary, JTH Financial, which increased our revenue and profitability.

Reported operating expenses increased 22% to $43.4 million. Adjusted operating expenses, as reported on Table E, increased 11% to $39.3 million driven primarily by increased variable costs associated with the higher revenue. During the three months ended January 31, 2015, the Company also incurred $4.1 million in costs, including costs related to a potential loss on one of our class action lawsuits, net of recovery from a vendor involved in one of our cases.

The tax rate for the three months ended January 31, 2015 was 46.3% and is significantly higher than our year-to-date rate of 38.9%.  We anticipate the full year tax rate to be slightly less than last year. 





Balance Sheet
The Company had a balance of $110.8 million on its revolving credit facility as of January 31, 2015, compared to $104.6 million as of January 31, 2014.

Operational Results - Offices
During the calendar year through February 28, 2015, the Company has processed 1,140,000 U.S. returns in its offices, a decrease of 0.7%, when compared to the same period last year. Despite the decline in return count, systemwide revenue has increased 5.7% to $311.9 million.

Dividend
As announced separately, our Board has approved the initiation of a quarterly dividend to shareholders. The first quarterly dividend of $0.16 per share will be paid on April 22, 2015 to holders of record of common stock equivalents on the close of business April 15, 2015.

Third Quarter Conference Call
At 8:30 a.m. Eastern time on Thursday, March 5, 2015, the Company will host a conference call for analysts, institutional investors and stockholders. To access the call, please dial the number below approximately 5 to 10 minutes prior to the scheduled starting time:

U.S. 855-611-0856
International 518-444-5569
Conference ID Code: 91108801

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.

A telephonic replay of the call will be available beginning shortly after the call and continue until Thursday, March 12, 2015, by dialing 855-859-2056 (domestic) or 404-537-3406 (international). The conference ID code is 91108801. 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 18 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 generally accepted accounting principles, please see the section of the accompanying Tables E&F 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 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
Unaudited, amounts in thousands
 
 
 
 
 
 
 
January 31,
 
January 31,
 
April 30,
 
2015
 
2014
 
2014
Current assets:
 
 
 
 
 
    Cash and cash equivalents
$
3,150

 
$
3,742

 
$
46,080

    Current receivables, net
            124,482

 
           133,566

 
              65,656

    Assets held for sale
                5,613

 
—

 
                4,413

    Income taxes receivable
              17,434

 
                8,449

 
—

    Deferred income tax asset
                7,574

 
                4,442

 
                4,058

    Other current assets
              18,371

 
              18,527

 
                5,325

          Total current assets
            176,624

 
           168,726

 
           125,532

 
 
 
 
 
 
Property, equipment, and software, net
              42,615

 
              37,553

 
              38,343

Notes receivable - non-current, net
              28,050

 
              23,645

 
              15,824

Goodwill
                3,185

 
                6,279

 
                2,997

Other intangible assets, net
              17,358

 
              17,645

 
              14,295

Other assets
                3,973

 
                2,124

 
                1,772

          Total assets
$
271,805

 
$
255,972

 
$
198,763

 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
     Current installments of long-term debt
$
4,107

 
$
6,649

 
$
6,797

     Accounts payable and accrued expenses
              27,787

 
              12,804

 
              15,023

     Due to area developers
              14,980

 
              15,390

 
              18,236

     Income taxes payable
—

 
—

 
                9,676

     Deferred revenue - current
                6,094

 
                6,362

 
                6,051

          Total current liabilities
              52,968

 
              41,205

 
              55,783

 
 
 
 
 
 
     Long-term debt, excluding current installments
              21,778

 
              22,337

 
              21,691

     Revolving credit facility
            110,762

 
           104,592

 
—

     Deferred revenue - non-current
                7,777

 
                8,510

 
                8,059

     Deferred income tax liability
                6,705

 
                2,030

 
                3,045

          Total liabilities
            199,990

 
           178,674

 
              88,578

 
 
 
 
 
 
Stockholders' equity:
 
 
 
 
 
     Special voting preferred stock, $0.01 par value per share
—

 
—

 
—

     Class A common stock, $0.01 par value per share
                    118

 
                   122

 
                   124

     Class B common stock, $0.01 par value per share
                        9

 
                        9

 
                        9

     Exchangeable shares, $0.01 par value
                      10

 
                      10

 
                      10

     Additional paid-in capital
                2,049

 
                9,044

 
                9,402

Accumulated other comprehensive income (loss), net of taxes
               (1,171)

 
                  (129)

 
                      66

Retained earnings
              70,800

 
              68,242

 
           100,574

Total stockholders' equity
              71,815

 
              77,298

 
           110,185

Total liabilities and stockholders' equity
$
271,805

 
$
255,972

 
$
198,763






Table B
Liberty Tax, Inc.
Condensed Consolidated Statement of Operations
Unaudited, amounts in thousands, except per share and share data
 
 
 
 
 
 
 
Three months ended
January 31,
 
2015
 
2014
 
% change
Revenues:
 
 
 
 
 
Franchise fees
$
968

 
$
1,247

 
-22.4
 %
Area developer fees
1,592

 
1,311

 
21.4
 %
Royalties and advertising fees
25,457

 
22,081

 
15.3
 %
Financial products
13,370

 
9,864

 
35.5
 %
Interest income
3,222

 
3,001

 
7.4
 %
Tax preparation fees, net of discounts
1,942

 
2,054

 
-5.5
 %
Other revenue
1,129

 
1,182

 
-4.5
 %
Total revenues
47,680

 
40,740

 
17
 %
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Employee compensation and benefits
10,546

 
10,318

 
2.2
 %
Selling, general, and administrative expenses
13,041

 
9,121

 
43
 %
Area developer expense
9,111

 
7,909

 
15.2
 %
Advertising expense
8,161

 
5,860

 
39.3
 %
Depreciation, amortization, and impairment charges
2,527

 
2,267

 
11.5
 %
Total operating expenses
43,386

 
35,475

 
22.3
 %
Income from operations
4,294

 
5,265

 
-18.4
 %
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
Foreign currency transaction loss
(35
)
 
(3
)
 
NM

Gain on sale of available-for-sale securities
—

 
1,995

 
-100
 %
Interest expense
(683
)
 
(464
)
 
-47.2
 %
Income before income taxes
3,576

 
6,793

 
-47.4
 %
Income tax expense
1,657

 
2,737

 
-39.5
 %
Net Income
$
1,919

 
$
4,056

 
-52.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders Class A and Class B
$
1,779

 
$
3,766

 
-52.8
 %
 
 
 
 
 
 
Net income per share of Class A and Class B common stock
 
 
 
 
 
Basic
$
0.14

 
$
0.29

 
-51.7
 %
Diluted
0.13

 
0.28

 
-53.6
 %
 
 
 
 
 
 
Weighted-average basic shares outstanding
12,679,286

 
12,991,857

 
-2.4
 %
Weighted-average diluted shares outstanding
14,227,163

 
14,654,666

 
-2.9
 %







Table C
Liberty Tax, Inc.
Condensed Consolidated Statement of Operations
Unaudited, amounts in thousands, except per share and share data
 
 
 
 
 
 
 
Nine months ended
January 31,
 
2015
 
2014
 
% change
Revenues:
 
 
 
 
 
Franchise fees
$
2,996

 
$
3,172

 
-5.5%
Area developer fees
              5,066

 
              4,994

 
1.4%
Royalties and advertising fees
            28,350

 
            24,710

 
14.7%
Financial products
            14,027

 
            10,482

 
33.8%
Interest income
              7,200

 
              7,435

 
-3.2%
Tax preparation fees, net of discounts
              2,848

 
              2,682

 
6.2%
Other revenue
              2,766

 
              2,647

 
4.5%
Total revenues
            63,253

 
            56,122

 
12.7%
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Employee compensation and benefits
            28,626

 
            24,603

 
16.4%
Selling, general, and administrative expenses
            30,919

 
            23,131

 
33.7%
Area developer expense
            10,776

 
              9,442

 
14.1%
Advertising expense
            14,022

 
            11,051

 
26.9%
Depreciation, amortization, and impairment charges
              6,855

 
              5,590

 
22.6%
Total operating expenses
            91,198

 
            73,817

 
23.5%
Loss from operations
         (27,945)

 
         (17,695)

 
57.9%
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
Foreign currency transaction loss
(45
)
 
(15
)
 
-200.0%
Gain on sale of available-for-sale securities
—

 
              2,183

 
-100.0%
Interest expense
(1,550
)
 
(1,066
)
 
-45.4%
Loss before income taxes
(29,540
)
 
(16,593
)
 
78.0%
Income tax benefit
(11,487
)
 
(6,244
)
 
84.0%
Net loss
$
(18,053
)
 
$
(10,349
)
 
74.4%
 
 
 
 
 
 
Net loss per share of Class A and Class B common stock
 
 
 
 
 
Basic and diluted
$
(1.42
)
 
$
(0.8
)
 
77.5%
 
 
 
 
 
 
Weighted-average shares outstanding
   12,742,288

 
12,937,734

 
-1.5%














Table D
Liberty Tax, Inc.
Condensed Consolidated Statements of Cash Flows
Unaudited, amounts in thousands
 
Nine months ended January 31,
 
2015
 
2014
Cash flows from operating activities:
 
 
 
Net loss
$
(18,053
)
 
$
(10,349
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Provision for doubtful accounts
                4,453

 
                5,886

Depreciation, amortization and impairment charges
                6,855

 
                5,590

Stock-based compensation expense related to equity classified awards
                2,002

 
                1,394

Stock-based compensation income related to liability classified awards
—

 
(872
)
Gain on bargain purchases and sales of Company-owned offices
(310
)
 
(629
)
Deferred tax expense
144

 
955

Gain on sale of available-for-sale securities
—

 
(2,183
)
Changes in other assets and liabilities
           (49,312)

 
           (50,642)

Net cash used in operating activities
(54,221)

 
(50,850)

 
 
 
 
Cash flows from investing activities:
 
 
 
Issuance of operating loans to franchisees
           (74,298)

 
           (62,218)

Payments received on operating loans to franchisees
              16,410

 
                1,532

Purchases of Company-owned offices, area developer rights, and acquired customer lists
(8,218
)
 
(6,585
)
Proceeds from sale of Company-owned offices and area developer rights
                3,690

 
                2,368

Proceeds from sale of available-for-sale securities
—

 
                5,163

Purchases of property, equipment, and software
(9,532
)
 
(7,652
)
Net cash used in investing activities
(71,948
)
 
(67,392
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from the exercise of stock options
              10,053

 
6,122

Repurchase of common stock
           (35,910)

 
(5,174
)
Repayment of amounts due to former area developers
(4,211
)
 
(1,439
)
Repayment of other long-term debt
(949
)
 
(1,458
)
Borrowings under revolving credit facility
           136,565

 
110,694

Repayments under revolving credit facility
           (25,803)

 
(6,102
)
Payment for debt issue costs
(917
)
 
—

Tax benefit of stock option exercises
                4,776

 
554

Net cash provided by financing activities
              83,604

 
           103,197

 
 
 
 
Effect of exchange rate changes on cash, net
(365
)
 
(226
)
Net decrease in cash and cash equivalents
(42,930
)
 
(15,271
)
Cash and cash equivalents at beginning of period
              46,080

 
              19,013

Cash and cash equivalents at end of period
$
3,150

 
$
3,742

 
 
 
 
Supplementary cash flow data:
 
 
 
Cash paid for interest, net of capitalized interest
$
948

 
$
851

Cash paid for taxes, net of refunds
              10,849

 
                6,388








Table E
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 measures 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.
Three Months Ended January 31, 2015
 
Revenues

Expenses

Income from Operations

EBITDA

Income before Taxes

Net Income

Diluted EPS

 
 
 
 
 
 
 
 
As Reported
$
47,680

$
43,386

$
4,294

$
6,786

$
3,576

$
1,919

$
0.13

 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Litigation costs
               (6)

      (4,066)

               4,060

       4,060

         4,060

                2,179

               0.16

Subtotal of adjustments
               (6)

      (4,066)

               4,060

       4,060

         4,060

                2,179

               0.16

 
 
 
 
 
 
 
 
As Adjusted
       47,674

      39,320

               8,354

     10,846

         7,636

                4,098

               0.29

 
 
 
 
 
 
 
 
Stock-based compensation expense
—

         (494)

                   494

           494

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended January 31, 2014
 
Revenues

Expenses

Income from Operations

EBITDA

Income before Taxes

Net Income

Diluted EPS

 
 
 
 
 
 
 
 
As Reported
$
40,740

$
35,475

$
5,265

$
9,524

$
6,793

$
4,056

$
0.28

 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Gain on available-for-sale securities
—

—

—

(1,995
)
(1,995
)
(1,191
)
(0.08
)
Restatement costs
—

            (63)

                     63

             63

               63

                      38

—

Litigation costs
               (3)

—

                     (3)

             (3)

               (3)

                      (2)

—

Subtotal of adjustments
               (3)

            (63)

                     60

     (1,935)

      (1,935)

             (1,155)

            (0.08)

 
 
 
 
 
 
 
 
As Adjusted
       40,737

      35,412

               5,325

       7,589

         4,858

                2,901

               0.20

 
 
 
 
 
 
 
 
Stock-based compensation expense
—

         (653)

                   653

           653

 
 
 




Table F
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 measures 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.
Nine Months Ended January 31, 2015
 
Revenues

Expenses

Loss from Operations

EBITDA

Loss before Taxes

Net Loss

Basic and Diluted EPS

 
 
 
 
 
 
 
 
As Reported
$
63,253

$
91,198

$
(27,945
)
$
(21,135
)
$
(29,540
)
$
(18,053
)
$
(1.42
)
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Executive severance(1)
—

(1,617
)
1,617

1,617

1,617

988

0.08

Litigation costs
(47
)
(6,196
)
6,149

6,149

6,149

3,758

0.30

Subtotal of adjustments
(47
)
(7,813
)
7,766

7,766

7,766

4,746

0.38

 
 
 
 
 
 
 
 
As Adjusted
63,206

83,385

(20,179
)
(13,369
)
(21,774
)
(13,307
)
(1.04
)
 
 
 
 
 
 
 
 
Stock-based compensation expense(3)
—

(1,408
)
1,408

1,408

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended January 31, 2014
 
Revenues

Expenses

Loss from Operations

EBITDA

Loss before Taxes

Net Loss

Basic and Diluted EPS

 
 
 
 
 
 
 
 
As Reported
$
56,122

$
73,817

$
(17,695
)
$
(9,937
)
$
(16,593
)
$
(10,349
)
$
(0.8
)
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Gain on available-for-sale securities
—

—

—

       (2,183)

(2,183
)
(1,362
)
(0.11
)
Executive severance(1)
—

         (614)

614

614

614

383

0.03

Reclassification of stock-based compensation expense(2)
—

            872

                 (872)

          (872)

             (872)

           (544)

                 (0.04)

Restatement costs
—

         (855)

855

855

855

533

0.04

Litigation costs
(49
)
            (60)

11

11

11

7

—

Subtotal of adjustments
(49
)
         (657)

608

       (1,575)

(1,575
)
(983
)
(0.08
)
 
 
 
 
 
 
 
 
As Adjusted
       56,073

      73,160

(17,087
)
    (11,512)

(18,168
)
     (11,332)

(0.88
)
 
 
 
 
 
 
 
 
Stock-based compensation expense(3)
—

      (1,294)

               1,294

         1,294

 
 
 
 
 
 
 
 
 
 
 
(1) Includes stock-based compensation expense
 
 
 
 
 
 
 
(2) Related to conversion from equity to liability instruments
 
 
 
 
 
 
(3) Excludes costs related to executive severance
 
 
 
 
 
 
 





Table G
Liberty Tax, Inc.
Operational Data
Unaudited
 
 
 
 
 
Tax returns processed1
 
CYTD 1/31/15
 
CYTD 1/31/14
 
Percent Change
U.S. offices
 
456,000
 
410,000
 
11.2%
Online
 
29,000
 
27,000
 
7.4%
Total tax returns processed
 
485,000
 
437,000
 
11.0%
 
 
 
 
 
 
 
Tax returns processed1
 
CYTD 2/28/15
 
CYTD 2/28/14
 
Percent Change
U.S. offices
 
1,140,000
 
1,148,000
 
-0.7%
Online
 
86,000
 
102,000
 
-15.7%
Total tax returns processed
 
1,226,000
 
1,250,000
 
-1.9%
 
 
 
 
 
 
 
1Return counts are rounded to the thousands and percentages are calculated on rounded amounts

The Company will provide an update of operational results through season end shortly after the tax season ends.





CONTACTS:
 
 
Investors:  Kathy Donovan
 
Media:  Martha O'Gorman
Liberty Tax, Inc.
 
Liberty Tax, Inc.
Vice President, Chief Financial Officer
 
Chief Marketing Officer
(757) 493-8855
 
(757) 301-8022
 


Liberty Tax Service Announces Initiation of Cash Dividend

Virginia Beach, VA (March 5, 2015) - Liberty Tax, Inc. (NASDAQ: TAX) (the “Company”), the parent company of Liberty Tax Service, announced today that its Board of Directors has approved the initiation of a cash dividend to its shareholders. The first quarterly dividend of $0.16 per share will be paid on April 22, 2015 to holders of record of common stock and common stock equivalents on the close of business on April 15, 2015. While future dividends will be subject to Board approval, the Company is initially targeting an annual dividend payout of $0.64 per common share.

“We believe the initiation of a quarterly dividend demonstrates our commitment to enhancing shareholder value,” said John Hewitt. “This decision reflects our confidence in the future of our business and the continuing strength of our cash flow.”

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 18 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.

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 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 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.




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