JTH Holding, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended January 31, 2013. For the quarter, the company reported total revenues of $30,538,000 compared to $35,650,000 a year ago. The decline in revenue was primarily due to the unprecedented delay in the start of tax season, which for the period caused decreases in royalties, advertising fees, financial products income and tax preparation fees.   These revenue reductions were somewhat offset by an increase in interest income as the Company increased the amount of operating loans to franchisees to help fund their January operating costs, in light of reduced January revenue attributable to the late season start.  Additionally, due to differences in the structure of the current year’s contract for the Instant Cash Advance (ICA) program, the net revenue from that program was recorded as financial product revenue instead of presenting revenue and expenses separately in the financial statements, as was the case in prior years.  This change further decreased financial product revenue versus last year. Income from operations was $2,981,000 compared to $8,676,000 a year ago. Income before income taxes was $2,161,000 compared to $8,002,000 a year ago. Net income was $1,112,000 or $0.08 per basic and diluted share compared to $4,677,000 or $0.33 per basic and diluted share a year ago. Net income attributable to common stockholders was $1,033,000 against $3,772,000 a year ago. For nine months, the company reported total revenues of $44,613,000 compared to $49,311,000 a year ago. Loss from operations was $17,529,000 compared to $5,867,000 a year ago, decline in franchise fees due to an increased number of new franchisees purchasing territories from existing franchisees. Loss before income taxes was $19,149,000 compared to $7,377,000 a year ago. Net loss was $11,738,000 or $0.92 per basic and diluted share compared to $4,628,000 or $0.41 per basic and diluted share a year ago. Net cash used in operating activities was $51,815,000 against $44,191,000 a year ago. Purchases of property, plant and equipment was $9,177,000 against $7,554,000 a year ago. The company is reiterating its net income and effective tax rate guidance of $20.0 million - $21.5 million and 38.6%, respectively.  Revenue guidance is being updated to a range of $120 million - $125 million primarily due to accounting for the 2013 ICA program as net and the operation of fewer Company stores than previously projected.   On March 8, 2013, the company entered into a Waiver to Revolving Credit and Term Loan Agreement with SunTrust Bank, as Administrative Agent, providing for waiver of compliance with the debt covenant applicable to the company at January 31, 2013. The Waiver includes a one-time waiver of the company’s failure to comply with the requirement that it maintain a specified leverage ratio at the end of the company’s third fiscal quarter ending on January 31 each fiscal year. The Internal Revenue Service did not begin accepting electronic tax filings until January 30, 2013, approximately two weeks later than in previous tax seasons, the resulting delay in the receipt of revenue attributable to tax filings resulted in the company’s failure to satisfy the leverage ratio requirement at January 31, 2013.

JTH Holding, Inc., Q3 2013 Earnings Call, Mar 12, 2013

JTH Holding, Inc. announced that they will report Q3, 2013 results at 5:00 PM, Eastern Standard Time on Mar 12, 2013