JTH HOLDING, INC. CJS SECURITIES CONFERENCE JANUARY 2013

Transcription

1 CJS SECURITIES CONFERENCE JANUARY 2013

2 Safe Harbor Statement This presentation may contain forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variations of words such as expects, anticipates, intends, plans, believes, seeks, estimates, projects, forecasts, targets, would, will, should, could, or may or other similar expressions. Forward-looking statements provide management s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, income, earnings per share, capital expenditures, dividends, liquidity, capital structure or other financial items, descriptions of management s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. All forwardlooking statements speak only as of the date they are made and reflect the Company s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forwardlooking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond the Company s control and that are described in our Annual Report on Form 10-K for the fiscal year ended April 30, 2012 in the section entitled Risk Factors, as well as additional factors we have described and may describe from time to time in other filings with the Securities and Exchange Commission. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties. 2

3 Company Overview JTH Holding, Inc. (NASDAQ: TAX) is the parent company of Liberty Tax Service Fastest-growing national retail preparer of paid tax returns Gaining market share every year for 13 years Third largest in the United States and second largest in Canada Stable industry with consolidation opportunities Internal consolidation opportunities acquisition of Area Developer territories Ranked the 7 th best franchise on Forbes Top 20 Franchises for the Buck in February 2012 Top Ten Fastest Growing Franchisor in the 21 st century Clear goal Culture Experienced team 3

4 Certainties in Life - Death, Taxes and Change! (in millions) Total Number of Individual Tax Returns CAGR 1.0% Projected CAGR 1.1% Market Segmentation Paid Tax Preparation Do It Yourself 42% 41% 40% 38% 37% 37% 37% 40% 39% 40% 39% 40% 58% 59% 60% 62% 63% 63% 63% 60% 61% 60% 61% 60% E 2012E 4 Source: IRS.gov, Publication 6187 Updated 7/12, SOI Tax Stats Historical Table 1, figures are for calendar years, Company reports

5 The Opportunity Consolidating Market US Paid Preparer Market Share is Fragmented H&R Block 18% Jackson Hewitt 3% Liberty 2% Other 76% 5

6 Liberty s Competitive Advantage Systematic approach and unique marketing strategies Three prong operational approach (Franchisee, Area Developer & Corporate) No CEO turnover Market share has grown 24% on average from E During the 21 st century, Liberty has grown by more returns than H&R Block and Jackson Hewitt combined In-house certification program for tax preparers 6 Source: JTH Holding, Inc., IRS and public information.

7 Cumulative Change in Offices Versus % All Franchises H&R Block Jackson Hewitt Liberty Tax 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0%

8 Growth in Key Metrics Total Franchisees CAGR = 5.2% 1,901 1,941 2,098 3,091 Total Offices CAGR = 10.6% 3,531 3,845 4,183 1, Total Returns (in thousands) CAGR = 7.4% 1,766 1,912 2,044 2,188 Systemwide Revenue (in millions) CAGR = 13.8% $243.6 $304.3 $338.6 $

9 Evolving Revenue Composition 2007 Revenue $74.7 Million 2012 Revenue $109.1 Million Franchise Fees 30% Other 7% Tax Preparation 7% Interest Income 9% Franchise Fees 13% Other 3% Tax Preparation 6% Interest Income 10% Reoccurring Revenue Increasing Royalties and Advertising Fees 30% Financial Products 17% Royalties and Advertising Fees 46% Financial Products 21% Source: JTH Holding, Inc. 9

10 Fiscal 2013 Outlook Net Income $ $21.5 million Growth of 15-23% Offices Growth of 11-13% Revenue $131 $136 million Growth of 20-25% Effective Tax Rate 38.6% 10

11 CJS SECURITIES CONFERENCE JANUARY 2013