Liberty Tax, Inc. (TAX) saw its loss narrow to $8.54 million, or $0.67 a share for the quarter ended Jul. 31, 2015. In the previous year period, the company reported a loss of $8.64 million, or $0.67 a share. On the other hand, adjusted net loss for the quarter narrowed to $8.28 million, or $0.65 a share from a loss of $8.35 million or $0.65 a share, a year ago.
Revenue during the quarter dropped 4.03 percent to $7.52 million from $7.84 million in the previous year period.
Operating loss for the quarter was $13.87 million, compared with an operating loss of $14.02 million in the previous year period.
'I am pleased with our sales efforts thus far, the progress we are making to expand our office count, and our ability to engage closely with our franchisees and area developers to improve return counts in existing offices,' said John Hewitt, chief executive officer. 'We have developed several new pilot programs and continue to see progress and expansion with our SiempreTax brand.'
Operating cash flow remains negative
Liberty Tax, Inc. has spent $15.46 million cash to meet operating activities during the quarter as against cash outgo of $22.74 million in the last year period. The company has spent $12.46 million cash to meet investing activities during the quarter as against cash outgo of $9.48 million in the last year period.
Cash flow from financing activities was $11.25 million for the quarter as against cash outgo of $5.23 million in the last year period.
Cash and cash equivalents stood at $4.42 million as on Jul. 31, 2015, down 48.92 percent or $4.23 million from $8.65 million on Jul. 31, 2014.
Working capital declines
Liberty Tax, Inc. has witnessed a decline in the working capital over the last year. It stood at $58.45 million as at Jul. 31, 2015, down 7.24 percent or $4.57 million from $63.01 million on Jul. 31, 2014. Current ratio was at 2.72 as on Jul. 31, 2015, down from 3.25 on Jul. 31, 2014.
Days sales outstanding went up to 845 days for the quarter compared with 798 days for the same period last year.
Debt moves up marginally
Liberty Tax, Inc. has witnessed an increase in total debt over the last one year. It stood at $39.37 million as on Jul. 31, 2015, up 3.70 percent or $1.41 million from $37.97 million on Jul. 31, 2014. Total debt was 22.98 percent of total assets as on Jul. 31, 2015, compared with 23.23 percent on Jul. 31, 2014. Debt to equity ratio was at 0.45 as on Jul. 31, 2015, up from 0.43 as on Jul. 31, 2014. Interest coverage ratio improved to 34.60 for the quarter from 46.59 for the same period last year.
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