Liberty Tax Inc. reports results for the third quarter ended Jan. 31
By CPA Trendlines Research
Liberty Tax, the chain of almost 4,000 tax prep offices, is suffering from a variety of problems, both internal and external, according to Founder and CEO John Hewitt.
“The 2017 tax season marks another period of change for the industry as filing patterns continue to shift later into the season,” says Hewitt in a statement. “The whole industry has been slow, but we are clearly not satisfied with how we have performed in comparison to the market. There is still a lot of season in front of us and we are focused on delivering a strong second half and on implementing the appropriate changes to be successful in an evolving landscape.”
Through Feb. 28, the company said it had prepared 915,000 U.S. tax returns, as compared to 1,094,000 U.S. tax returns prepared in the comparable prior year period, representing a decline of 16.4%. The company operated 3,823 offices in the U.S. in fiscal 2017, down from 4,225 offices in 2016. The decrease represents a decline of 250 permanent office locations, as well as a reduction of 152 seasonal and processing center locations, some stemming from compliance problems.
Hewitt surprised listeners on the company’s quarterly earnings conference call by saying he’s looking to turn over the reins. “It’s time I have a backup in the company,” he said.
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