Jackson Hewitt 2Q loss narrows, reduces expenses

PARSIPPANY, N.J. - Tax preparer Jackson Hewitt Tax Service Inc. said its fiscal second quarter loss narrowed slightly as it was able to cut some expenses.

Jackson Hewitt reported Thursday that it lost $22.2 million, or 78 cents per share, during the quarter ended Oct. 31, compared with a loss of $23.7 million, or 78 cents per share, a year earlier. The loss per share did not change because there were fewer shares outstanding during the most recent quarter.

Adjusted losses, which exclude special gains and charges such as those tied to litigation and severance, increased to $20.4 million, or 72 cents per share during the third quarter, from $18 million, or 60 cents per share, during the year-ago period.

Revenue fell to $5.1 million from $5.6 million during the year-ago quarter.

Analysts polled by Thomson Reuters, on average, forecast a loss of 73 cents per share for the quarter on revenue of $4.7 million. Analysts typically exclude one-time items in their estimates.

The fiscal second quarter is historically a slow quarter for Jackson Hewitt due to the seasonality of tax preparation business. Jackson Hewitt usually posts a quarterly loss during the August-October period, and revenue in the three-month period usually accounts for only about 2 percent of total annual revenue.

The tax preparer's second quarter loss narrowed as it was able to reduce expenses by 8 percent during the quarter. Total expenses fell to $33 million from $35.8 million during the same quarter a year earlier. A sharp decline in selling, general and administrative expenses accounted for most of the decline. That line of expenses fell to $13.5 million during the quarter, from $18 million during the year-ago period.

Its shares rose 34 cents, or 2.6 percent, to $13.51 in morning trading Thursday.

(This version CORRECTS to Thursday sted late Wednesday)

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