LIBERTY TAX SERVICE DISCLOSES A 9.3% STAKE IN JACKSON HEWITT TAX SERVICE IN 13D FILINGS
VIRGINIA BEACH, Virginia-March 30, 2009 – JTH Tax, Inc., (DBA Liberty Tax Service) announced today that the company has filed a Schedule 13D with the Securities and Exchange Commission indicating that it has obtained a 9.3% stake in Jackson Hewitt Tax Service, Inc. (NYSE:JTX). The company believes that there may be benefits to exploring a potential strategic transaction with Jackson Hewitt.
Led by tax industry expert John Hewitt, Liberty Tax Service was founded in 1997 after Hewitt and several key employees left Jackson Hewitt just before the company was sold for $483 million to Cendant Corporation (NYSE:CD). Jackson Hewitt was spun-off from Cendant in 2004 and trades on the New York Stock Exchange. Liberty Tax has grown to over 3,000 locations in the United States and Canada and is currently ranked as the #3 franchise company in the world by Entrepreneur Magazine.
“We believe there are many interesting synergies possible in working with Jackson Hewitt,” stated John Hewitt.
About Liberty Tax Service
Liberty Tax Service is the fastest growing retail tax preparation company in the
industry’s history, with over 3,000 offices in the United States and Canada. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 6,000,000 individual income tax returns. With 40 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.
Liberty Tax Service provides computerized income tax preparation, electronic filing, refund loans, and online filing through eSmart Tax at www.esmarttax.com. Each office offers customers audit assistance, a money back guarantee, and free tax return checking. The Liberty Tax Service franchise opportunity has climbed to #3 on the latest Entrepreneur “Franchise 500.”
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “could,” “expect,” “forecast,” “anticipate,” “estimate,” “project,” “plan,” and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. The Company’s actual actions and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements as a result of unforeseen external factors. These factors may include, but are not limited to, changes in general economic and market conditions, including the ongoing volatility in the equity and credit markets, availability of suitable investment opportunities, the actions of third parties including other investors, fluctuations in interest rates, other general competitive factors, uncertainty around government policy, and the impact of regulatory changes.