Actually cash flow from operations went from $24,775,000 in 2011 to $20,443,000 in 2012. Please see page 57 of JTH 10K for details.
My point about cash flow is that so much money is needed to extend operating loans to franchisees. In 2012 that amount was $67,969,000.00 up from $56,400,000.00 in 2011. That's an increase of 20%, new offices only grew by 10%. If you divided the $67,969,000 by the 4183 office in 2012 that works out to $16,248.86 operating loans per office. If these franchisee's are so successful why do so many need the operating loans? I believe the rate is 12% so yes on paper it's a money maker for the company but what does it say about the heath of the individual franchisee?
You judge a company's financial health by the amount of cash it has on hand? Wow.
The thinly traded stock sold by a few employees is hardly indicative of the company's value. These are highly illiquid shares.
Assets increased by $21 million while liabilities increased by $12 million. Long term debt actually went down. The consolidated cash flow numbers are particularly scarey as net cash provided by operating activities doubled in a two-year period. Yes, they are in deep trouble.
Too funny. Stop embarassing yourself.
Every time you post you reveal your ignorance.
My analysis is based on the numbers presented in the company's financial statements and has nothing to do with my failing as a franchisee.
To your point about the IPO you take the position that it was market conditions that made them withdraw the IPO. If that was the case why not wait and come out with an IPO when conditions were better. The answer can be found right here on Yahoo. An average volumne of 3500 shares and a price now 17% lower then its initial price. These facts would suggest that others agree with my analysis.
One thing that I didn't point out in my earlier analysis is that JTH is a seasonal business and it's year-end coincides with the end of it's season. So it should have the most cash on-hand as of April 30, 2012. However, on JTH's balance sheet it shows in 2010 cash equaled only 3.27% of current assets and only 2.26% of current assets in 2011. Profits were going up but liquidity was going down. This trend continued in to 2012 which is why they had to turn part of their credit line into long term debt.
I'm looking forward to the August 29th quarterly filings! My quess is you will see a year over year decline in operating loans to franchisees.
You failed as a Liberty franchisee, but you think you're a good analyst of the company? Too funny.
The performance of franchisee debt is a significant source of income for the company and a source of financing for franchisees. H&R Block's busiest stores are also in the low income areas. You seem to be unaware of that.
The company did not fail to have a successful IPO, it withdrew its IPO due to market conditions. Actual analysts understand this. They chuckle at your pseudoanalysis.
Your analysis of the cash flow? You are joking, right? And beyone cash flow, do you have any idea how large Liberty's own credit facility is? Why do you think banks have granted the company so much credit, the vast majority of which is untapped?
You got to great lengths to make yourself sound intelligent, and I think you probably even fool yourself into thinking you understand things you don't udnerstand. But you seem to be in the same category at the taxnerd character, except you put on a cloak of faux intellectualism. I've never read a more stupid analysis of a compay's prospects in my life. Your dislike and bitterness toward the company's management is duely noted.
The real analysis you should be doing is why you failed when so many Liberty franchisees (there are about 2000 of them, you know) are succeeding?
You really don't have anything of value to add, do you.
I am sorry about your failed venture with Hewitt's company. You might be honest with yourself and consider that it may have something to do with your short comings rather than blame others. That's called learning from your own mistakes.
Good luck and I hope you can let go of your misplaced anger. It is very unhealthy.