Liberty Tax, Inc. (TAX) saw its loss widen to $9.34 million, or $0.72 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $9.07 million, or $0.71 a share. On the other hand, adjusted net loss for the quarter widened to $9.24 million, or $0.72 a share from a loss of $9.07 million or $0.71 a share, a year ago.
Revenue during the quarter dropped 8.09 percent to $7.23 million from $7.87 million in the previous year period.
Operating loss for the quarter was $14.76 million, compared with an operating loss of $14.05 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $14.58 million compared to operating loss of $14.05 million in prior year period.
"Our preparations for the upcoming season are almost complete," said John Hewitt, chief executive officer. "We have the right product offerings in place for our customers and our franchisees. We are managing our expenses, and our Company-store team is prepared to deliver a strong season."
Operating cash flow remains negative
Liberty Tax, Inc. has spent $39.01 million cash to meet operating activities during the first half as against cash outgo of $37.32 million in the last year period.
The company has spent $24.83 million cash to meet investing activities during the first six months as against cash outgo of $29.25 million in the last year period.
Cash flow from financing activities was $57.88 million for the first six months, up 17.11 percent or $8.46 million, when compared with the last year period.
Cash and cash equivalents stood at $3.74 million as on Oct. 31, 2016, down 5.65 percent or $0.22 million from $3.96 million on Oct. 31, 2015.
Working capital increases
Liberty Tax, Inc. has recorded an increase in the working capital over the last year. It stood at $96.86 million as at Oct. 31, 2016, up 20.85 percent or $16.71 million from $80.15 million on Oct. 31, 2015. Current ratio was at 4.75 as on Oct. 31, 2016, up from 3.81 on Oct. 31, 2015.
Days sales outstanding went up to 1061 days for the quarter compared with 942 days for the same period last year.
Debt moves up
Liberty Tax, Inc. has witnessed an increase in total debt over the last one year. It stood at $87.37 million as on Oct. 31, 2016, up 8.92 percent or $7.16 million from $80.21 million on Oct. 31, 2015. Total debt was 40.96 percent of total assets as on Oct. 31, 2016, compared with 41.71 percent on Oct. 31, 2015. Debt to equity ratio was at 0.98 as on Oct. 31, 2016, down from 1.06 as on Oct. 31, 2015.
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