The Stock is 40% higher at mid morning in heavy trading as they plan to build out their unique relationship with WalMart Stores. They announced an agreement with lenders to amend its Credit Agreement that provides Jackson Hewitt with the ability to fully fund its planned off-season operations and to achieve improved performance in the 2011 tax season. The company today also implemented changes intended to create a more efficient and responsive organization while achieving a lower cost structure at the outset of the 2011 fiscal year.
"Working constructively and collaboratively with our lenders, we have reached an agreement that allows us to effectively move forward with plans and preparations for the 2011 tax season," said Harry W. Buckley, Jackson Hewitt's president and chief executive officer. "We believe this agreement will help ensure that our off-season operating plans are fully funded as we continue our intensive efforts to identify a resolution of the RAL funding issue that resulted in financial and operational challenges this past tax season."
"We have also taken our first step toward improved operating and financial performance in the 2011 fiscal year by completing a restructuring of our organization," continued Buckley. "This restructuring will incrementally reduce our 2011 fiscal year pre-tax expenses by approximately $5 million, while streamlining our overall organization with an emphasis on achieving more efficient and effective field operations. We will continue to look for ways to control our costs, while working diligently to enhance our top line with a focus on achieving 100% RAL funding, improving client retention, attracting new clients and optimizing our exclusive Walmart arrangement."
"Working constructively and collaboratively with our lenders, we have reached an agreement that allows us to effectively move forward with plans and preparations for the 2011 tax season," said Harry W. Buckley, Jackson Hewitt's president and chief executive officer. "We believe this agreement will help ensure that our off-season operating plans are fully funded as we continue our intensive efforts to identify a resolution of the RAL funding issue that resulted in financial and operational challenges this past tax season."
"We have also taken our first step toward improved operating and financial performance in the 2011 fiscal year by completing a restructuring of our organization," continued Buckley. "This restructuring will incrementally reduce our 2011 fiscal year pre-tax expenses by approximately $5 million, while streamlining our overall organization with an emphasis on achieving more efficient and effective field operations. We will continue to look for ways to control our costs, while working diligently to enhance our top line with a focus on achieving 100% RAL funding, improving client retention, attracting new clients and optimizing our exclusive Walmart arrangement."
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