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Jackson Hewitt Falls 24% After Lenders Amend Credit AgreementBY Midnight Trader
— 11:47 AM ET 05/02/2011
11:47 AM Eastern Daylight Time, 05/02/2011 (MidnightTrader) -- Jackson Hewitt (JTX) is down after it said its lenders amended a credit agreement, delaying a principal payment and the possibility of a pre-packaged bankruptcy. The amendment extends the date by which the company has to make a $30 million principal payment, due April 30, to May 20, it said in a SEC filing, according to Reuters. The amendment also gives the company time until May 20 to work with the lenders to agree upon a 'mutually satisfactory restructuring' of its balance sheet, Reuters reports. Jackson Hewitt shares are down 24.3%. Price: 0.394, Change: -0.127, Percent Change: -24.34
http://www.midnighttrader.com
I,m in for a bit here @ .38 anyone joining me ??
well I have 5000 shares guess I will hold for now!
thatz a lota $$$$$$.....time will tell
would watch the stock.....it should tell u whatz about to happen
volume proceeds price
have been in-n-out couple times
itz a day trade for now for me till end of March
c c
do you think they will come up with the money!
daffy.....JTX has a note due April, 30.......IMVHO they will need to come up with all/most of the money in order to continue funding
From the last 10-Q under liquidity......link:
http://ih.advfn.com/p.php?pid=nmona&article=46816453
mandatory payment of $30 million due on April 30, 2011, at the direction of a supermajority of Lenders representing two-thirds of the aggregate loans.
------------------------------------------
lenders agreed to use good faith efforts to agree upon a mutually satisfactory restructuring of Jackson Hewitt's balance sheet and go-forward funding needs, and to execute definitive documentation relating thereto on or prior to April 29, 2011.
so this is saying no BK !
Weeeeeeeeeeeee!!!!!!!!!
JTX.....lenders agreed to mutually satisfactory restructuring of Jackson Hewitt's balance sheet and go-forward funding needs
Jackson Hewitt Tax Service Inc. ("Jackson Hewitt") (NYSE: JTX), the nation's second largest tax preparation company, today announced the cancellation of its 2011 third quarter earnings conference call and webcast (originally scheduled for Thursday, March 10, 2011 at 8:30 a.m. Eastern Time) in light of ongoing discussions between Jackson Hewitt and lenders under its senior secured credit agreement. As previously disclosed, pursuant to the credit agreement, Jackson Hewitt and the lenders agreed to use good faith efforts to agree upon a mutually satisfactory restructuring of Jackson Hewitt's balance sheet and go-forward funding needs, and to execute definitive documentation relating thereto on or prior to April 29, 2011. Jackson Hewitt expects to file its Quarterly Report on Form 10-Q for the period ending January 31, 2011 on March 10, 2011 in compliance with the rules of the Securities and Exchange Commission
http://pr-usa.net/index.php?option=com_content&task=view&id=650338&Itemid=29
c c
H&R Block Must Face False Advertising Claims brought by Jackson Hewitt, Judge Says
Mar 21, 2011 5:50 PM PT
Business ExchangeBuzz up!DiggPrint Email .H&R Block Inc. (HRB) lost a bid to get a lawsuit dismissed that was brought by Jackson Hewitt Tax Service Inc. (JTX), the second-largest U.S. tax preparer, accusing its competitor of making “false and misleading” claims about errors in returns prepared by Jackson Hewitt.
Jackson Hewitt alleged that its larger rival made a “highly material and false and disparaging advertising claim” that it “found errors in two out of three Jackson Hewitt tax returns,” according to the complaint.
In a one-page order today, U.S. District Judge Alvin K. Hellerstein in Manhattan wrote that Parsippany, New Jersey- based Jackson Hewitt should be allowed to seek further evidence on the issues and that “plaintifff has alleged sufficient allegations to survive the motion to dismiss” by H&R Block.
The claims were made in connection with the “Second Look Review” service of H&R Block, the biggest U.S. tax preparer, which reviews customers’ past tax returns prepared by other companies, according to the complaint.
The suit asks the court to bar H&R Block from making the allegedly false claims, plus unspecified damages.
“H&R Block stands behind our advertisements and will vigorously defend our claims,” Kate O’Neill Rauber, a spokeswoman for Kansas City, Missouri-based H&R Block, said in a statement.
The case is Jackson Hewitt Inc. v. H&R Block Tax Services LLC, 11-cv-00641, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Pamela MacLean in U.S. District Court, Northern District of California in San Francisco;
http://www.bloomberg.com/news/2011-03-22/h-r-block-must-face-false-advertising-claims-by-jackson-hewitt-judge-says.html?cmpid=yhoo
c c
Hey, thanks for the info. Well then something is up for sure, I hope
the rules have changed
it has gotten tighter to do naked shorting
naked shorting is selling shares not there...rokers seling shares non existant
If u had 1 mill. shares worth $ 1,000,000.00
naked shorting would increase share count
say it increased share count to 2 mill. shares = $ 500,00.00
it has gotten harder to short shares
very few brokerage firms are naked shoritng in todays market
TdAmeritrade won't do it
called them
they only have 100 shares you could short
c c
I think this horse still has some legs for Monday and Tuesday, there was no real reason for this company to go this low.
Pardon my ignorance on shorting, but could it be naked shorting?
aparently some one sees/knows something
c c
How about today's action after hours.
JTX .....NEWS....Jackson Hewitt Tax Service® Dare to Compare Program Saves New Clients $50 on What They Paid Competition Last Year
March 17, 2011 news was @ 3:25 PM ET.
Jackson Hewitt Tax Service® Dare to Compare Program Saves New Clients $50 on What They Paid Competition Last YearPR Newswire
PARSIPPANY, N.J.,
PARSIPPANY, N.J., March 17, 2011 /PRNewswire/ -- Jackson Hewitt Tax Service Inc., the nation's second largest individual tax preparation company, today announced Dare to Compare, a national promotional program that encourages taxpayers to try Jackson Hewitt® this tax season. With Dare to Compare, new clients who have their taxes prepared and filed at participating Jackson Hewitt offices through the tax filing deadline date of April 18, 2011, will pay $50 less than what they paid a competitor last year for tax preparation fees.*
http://money.msn.com/business-news/article.aspx?feed=PR&date=20110317&id=13175582
c c
oo sounds good ill keep watching for the bottom thanks
i think they had a bad earnings report. but the first 2 quarters of the year are probably the best for a tax service. so if you can find a bottom it might be a good play for a few months going forward.
ahah why is it dropping so much?
and any chance it could go up?
i was going to in the .74 .75 area. glad i didn't.
See page 27 under credit facility for possible prepackaged bankruptcy. That is where I copied my post from.
https://research.zecco.com/research/quotes/stock-financials/drawFiling.asp?docKey=137-000119312511061597-58P59D8QHT6EMQNS6A2SLBIIGS&docFormat=HTM&formType=10-Q#D10Q_HTM_TOC
I guess it's 3rd quarter report, my mistake, anyway, it shows company's newest quarter report as of Jan 31, 2011.
Let's see if I've figured out how to set up a link here. This should show JTX's fourth quarter report year end 2010.
https://research.zecco.com/research/quotes/stock-financials/drawFiling.asp?docKey=137-000119312511061597-58P59D8QHT6EMQNS6A2SLBIIGS&docFormat=HTM&formType=10-Q#D10Q_HTM_TOC
If that doesn't work then look up on the company's main website, there's a new fourth quarter report out.
On February 7, 2011, the Company entered into a Sixth Amendment to the Credit Agreement, which amended the requirement to apply cash on hand toward the reduction of certain outstanding loan amounts. It allowed for such cash, subject to a modified level of maximum expenditures, to be deposited in a cash collateral account that would be the property of Jackson Hewitt. The Company will be able to draw on the cash collateral account to meet its operational needs following the tax season subject to limitations set out under the agreement, as permitted under a budget to be agreed by the Company and its Lenders, and provided that the Company is not otherwise in default under the agreement. The Lenders and the Company also agreed to use good faith efforts to agree upon a mutually satisfactory plan for the restructuring of the Company’s balance sheet and go-forward funding needs, which may include a “pre-packaged bankruptcy,” and to execute definitive documentation relating thereto, on or prior to April 29, 2011. No assurance can be given with respect to the value, if any, that would be available for stockholders in any such restructuring. Failure to execute such definitive documentation by April 29, 2011 would permit the Lenders to trigger an event of default under the Credit Agreement and to cease further funding.
If a default were declared and the amended credit facility were terminated, or matured without renewal, there can be no assurance that any debt or equity financing alternatives will be available to the Company when needed or, if available at all, on terms which are acceptable to the Company. As such, there can be no assurance that the Company will have sufficient funding to meet its obligations on an ongoing basis. In this event, the Company will be required to consider restructuring alternatives including, but not limited to, seeking protection from creditors under bankruptcy laws. Given the conditions outlined in Note 16—“Credit Facility”, specifically the lenders’ ability to accelerate borrowings outstanding in the event of default, uncertainty arises that the Company will be able to continue as a going concern and, therefore, may be unable to realize its assets and settle its liabilities and commitments in the normal course of business. The Company’s financial statements for the nine months ended January 31, 2011 were prepared assuming the Company will continue as a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that could result should the Company be unable to continue as a going concern.
JTX - JTXQ?
Jackson Hewitt Tax Service Inc said it is working with its lenders on a restructuring plan that may include a pre-packaged bankruptcy, sending the second-biggest U.S. tax preparer's shares down 42 percent to a life low.
The recent clampdown by the U.S. government on refund anticipation loans (RALs), offered by tax preparers and funded by various banks, would take away debt-laden Jackson Hewitt's most profitable product, making it tougher for the company to reverse the loss of clients.
Banking regulators like the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency consider the loans -- which are repaid by the borrowers' annual tax refund -- risky and have asked banks to stop funding them.
Republic Bancorp, which funds the loans for Jackson Hewitt, is suing the government, claiming FDIC hasn't developed a clear set of standards for these loans.
The bank wants the government to await the outcome of another proceeding evaluating the safety of its loans -- that could come within the next three months.
A win for Republic Bancorp may be Jackson Hewitt's best bet.
Jackson Hewitt's credit agreements include covenants that require it to have full funding for its RAL program.
In December, the company got its lenders to waive the full funding covenant but with the very existence of the loans being threatened, further waivers seem unlikely.
In a regulatory filing, the company said it expects an agreement with its lenders on the restructuring by April 29.
Jackson Hewitt, which had $362.3 million in outstanding debt under the credit agreement as on January 31, has to pay about $25 million by July 15 besides mandatory payments of $30 million on April 30 and the remaining balance on maturity on October 6.
But the company is left with less than $5 million in cash and cash equivalents, according to a regulatory filing.
Traditional tax preparers such as H&R Block Inc and Jackson Hewitt have also been losing market share to Intuit Inc's TurboTax, as more people move to "do-it-yourself" models.
Jackson Hewitt, which appointed a new chief executive in January, posted a third-quarter net income of $5.4 million, or 19 cents a share, compared with a loss of $279 million, or $9.75 a share, a year ago.
Revenue rose 4 percent to $82.5 million.
Shares of the Parsippany, New Jersey-based company fell 42 percent to 73 cents on Thursday on the New York Stock Exchange.
Hey Double,
No worries......at the same time they are "regulating" products that are in demand.....they are also constantly tinkering with the tax code. They say that removing RALs is helping folks and in the end that may be correct kind of, but along with that it seems there are constant changes in EITC, child tax credit, unemployment, etc... and on and on to benefit the lowish income taxpayer.
We will always have a job. There will always be a need for paid prep.
Im not sure what the end result is going to be but as we all know when regulation affects revenue, business is left with no choice but to find other ways to cover that revenue loss.....which undoubtedly is passed on to the consumer.
If Republic cant do RALS......they are going to charge more to account holders for their accounts. Block raised their charges for RACs.....That govt help by removing RALs from the market place is in fact a straw man as the consumer is still going to be paying just in a different place.
fun and GAMES but in the end paid prep will be fine.
NO WORRIES
For sure on the weathering some bumps. The cheese is definitely moving in the industry and that's fine. It's these "shock tactic" announcements and strategically timed bombs by the FDIC and OTC that are pissing me off. Okay, change the industry but do they have to be so obvious with their attempted destruction of several public companies in the process.
It's okay...the FDIC just gets to make up their own rules it appears. Just ask the WAMUQ folks.
take care,
DD22
It definitely seems to be an industry in flux.
I'm thinking govt doesn't want banks involved in tax products at all with the possible implementation of treasury holding preparer fees.
I think they do want more people doing their own but I don't think they realize that some eitc folks will be claiming everyone under the sun on returns.
It's going to be interesting to see what the tax prep industry looks like in 5 years with modernized efile, preparer certification, increased due diligence requirements etc.....
Ultimately I think it's going to be a good thing for the industry but us tax preparers are probably going to have to weather a few bumps in the road until things settle back to a new normal
The action today just goes to show you how effin retarded "the street" is about anything really.
This won't even impact this year's tax season bottom line but yet we have already priced in the POTENTIAL loss of the RAL revenue for NEXT YEAR now with the chicken littles and shorters driving the action.
That's okay. It will just make the bounce bigger and sweeter. The FDIC needs it ass whipped for this type of action. They know exactly what the timing of this does to the company and the industry as a whole.
Remember, Uncle Sammy DOESN'T WANT you going to professional tax preparers to get help with your taxes. THEY KNOW if you do it yourself you will miss deductions and LEAVE MONEY ON THE TABLE FOR THEM....and NO FRIGGIN' TURBO TAX Box software program can do what a well trained preparer can do for anyone filing anything other than a 1040EZ Form...PERIOD.
Next will be some other very restrictive law or rule change governing only the tax preparation industry.
DD22
got mine. support coming in for the 1.30's. answer back with a vengenge Jackson Hewitt!
1.27 lod, standing by here. already took a small piece higher
JTX banker appealing decision by fdic delay should help JTX season will be over by the time they hear the case .Hearing is for next tax season looks like.
http://www.bizjournals.com/louisville/news/2011/02/11/republic-bank-ordered-to-stop-tax.html?ana=yfcpc
Likewise Greg...been a crazy busy one so far.
Uncle Sammy pretty much going to eliminate the RAL as a consumer product it looks like so make hay while the sun shines.
take care,
DD22
Double,
Hope the season is rolling well for you and the schedule A returns give you some extra busy time next week.
Enjoy and have fun
Thanks for the great video chart Quality. Very much appreciated and now a fan and follower of your sites.
JTX is poised for an even nicer move in the coming weeks...
Please look at the other stocks I'm managing the boards of as well if you are interested in stocks under the radar starting to move.
DD22
JTX 2/8/11
http://www.qualitystocks.net/videocharts.php
Jackson Hewitt Tax Service is not a current client of QualityStocks
Prediction...tomorrow it will open and be sold down about 3-5% where it will autotrade in a 1-2 cent spread channel all day long.
Repeat this pattern until it gets back to under a dollar I guess. Ridiculous. Actually I hope dumbasses sell and short it back down to .70 again so we can load up again cheap. JTX is having a great tax season so far but never mind that actual business or sales stuff...
I hate this market...completely.
DD22
Jackson Hewitt Expands Walmart Relationship
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=143467
Jackson Hewitt Tax Service Inc. is operating in 10% more Walmart stores nationwide in the 2011 tax season.
The Parsippany, N.J.-based tax service provider set up shop in 1,800 Walmart locations during 2010, the first year of its exclusive national arrangement with the retailer. This year the kiosks will be in 2,000 stores.
As Walmart's exclusive provider of in-store tax preparation services, Jackson Hewitt is undertaking an "extensive, all-inclusive" marketing campaign to reach the more than 130 million customers who visit Walmart stores in the United States on a weekly basis, as well as the 1.6 million associates working in those stores.
Leading the campaign is a national TV spot that highlights the low opening price at Jackson Hewitt locations in Walmart stores, with tax preparation as low as $38. There will also be in-store marketing ranging from signage and point-of-sale materials throughout several departments as well as advertising on Walmart's TV walls.
Online ads will appear at Walmart.com, including a co-branded Walmart/Jackson Hewitt site (www.Walmart.com/JacksonHewitt). There will also be advertising on Walmart's associate's Web site and editorial articles and advertising in the employee Walmart World magazine.
External components include direct mail, ads in Walmart's circular tab, local radio advertising, public relations and promotion within all Jackson Hewitt offices of Walmart's $3 check cashing services.
In an effort to further reach various target audiences, the company's 2011 promotional program is comprehensive and includes harder-hitting TV with a stronger message including tax preparation starting at $38, says Debra K. Dowd, senior vice president and chief marketing officer, Jackson Hewitt Tax Service Inc.
"Jackson Hewitt's commitment to delivering superior tax preparation services and customer value aligns very well with Walmart's commitment to saving people money to help them live better," Dowd tells Marketing Daily. "Additionally, both companies have a similar customer profile so the partnership works to both companies' advantage, as taxpayers can utilize both Jackson Hewitt's tax preparation services and Walmart MoneyCenters without leaving a Walmart store."
This is the first time that Jackson Hewitt is advertising the $3 check cashing service message with Walmart. The company is also expanding its signage throughout Walmart. Last year, signage was only at Jackson Hewitt's kiosks and Walmart's MoneyCenters.
Maybe she will find some support at the 200MA around $1.50....hopefully. There must be either some massive short positions or hedge funds slowly taking profits and unwinding positions. It's a pink so I guess it should trade and be manipulated just like a pink....
DD22
Shorted to absolute death by this douchebag market...I guess a .70 will be the pps I will put in my order.
What the dumbass street obviously doesn't know is that former HRB RAL customers are flocking to JTX for their RAL. Sales are going to be way better this early season than last year. But keep shorting and digging that hole for yourselves Mr. Market...JTX has a surprise for you like the last 300% rise that we had.
DD22
That's a result of JTX still having the RAL (Refund Anticipation Loan) as a product that HRB DOES NOT HAVE and WON'T HAVE for the entirety of the tax season.
For all the hundreds of thousands of HRB customers that want the RAL (Money in about a day) they will have to go to other tax preparers like JTX and Liberty Tax in order to get that this tax season.
JTX stands to benefit greatly from having that product competitive advantage this year.
DD22
JTX advertising 1 day refunds, HRB 15 days. lots of people got an I want it now mentality.
Probably just peeps flipping, be patient
why is there so much resistance around $2
That's the market for ya
alright this is confusing not 4 mins after i buy @195 it goes all the way down to 187 -what gives i slappd the ask
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