Jackson Hewitt 1Q Loss Widens On Severance Charge

PARSIPPANY, N.J. (AP) — Tax preparer Jackson Hewitt Tax Service Inc. said Thursday its fiscal first-quarter loss widened slightly as it took a charge tied to the departure of its former CEO.

Jackson Hewitt lost $21.8 million, or 76 cents per share, during the quarter ended July 31, compared with a loss of $20.5 million, or 72 cents per share, a year ago.

The company recorded a $4.3 million severance charge during the latest quarter as its former CEO Michael Yerington left in June. The charge included a cash payment of $2.8 million.

Excluding that charge and other special one-time items, the company lost $19.2 million, or 67 cents per share, during the fiscal first quarter.

Analysts polled by Thomson Reuters, on average, forecast a loss of 71 cents per share for the quarter. Analysts do not always include special items in their estimates.

Its revenue increased to $5 million from $4.3 million a year ago. The increase was primarily the result of a jump in revenue from financial product fees, which increased to $3.3 million during the quarter from $2.6 million during the year-ago period.