Jackson Hewitt Reports Early-Season Tax Filing Results Declares Fourth Quarter Dividend

PARSIPPANY, N.J., March 13 — Jackson Hewitt Tax Service Inc. (NYSE: JTX) today reported early-season tax filing results for the year-to-date period ended Tuesday, February 28, 2006. The Company's network prepared 2.7 million tax returns, an increase of 11.0%, as compared to the same period last year. Excluding the effect of an extra weekday in the third quarter of this year as compared to the fourth quarter of last year, tax returns grew by 10.1% which is in line with management's prior guidance of 10%.
The Company continues to expect full-year tax return growth to be in the 8-10% range and revenue per tax return growth in the 7-10% range. Management continues to estimate that revenues for the year ended April 30, 2006 will be $260-265 million and diluted earnings per share will be $1.51-1.56. Revenues for the fiscal year are estimated to include $1.7 million related to the prior agreement with Santa Barbara Bank & Trust and diluted EPS is estimated to include $0.03 related to that agreement offset by $0.05 related to the $2.7 million non-cash charge for the refinancing of debt in the first quarter.
The Company intends to report preliminary full tax season filing results after the market closes on May 11 and full-year financial results on June 1.
Separately, the Board of Directors of Jackson Hewitt Tax Service Inc. (NYSE: JTX) approved the Company's fiscal fourth quarter cash dividend of $0.08 per common share, payable on April 14, 2006 to stockholders of record as of March 28, 2006, at a regularly scheduled board meeting held on Friday, March 10, 2006.
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. (NYSE: JTX) is the second largest tax preparation service company in the United States with over 6,000 franchised and company-owned offices in 49 states and the District of Columbia. Specializing in electronic filing (IRS e-file), the Company provides full service, individual federal and state income tax preparation and facilitates related financial products. Most Jackson Hewitt offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey. More information about the Company may be obtained by visiting the Company's website at http://www.jacksonhewitt.com. To locate the Jackson Hewitt office nearest to you, please call 1-800-234-1040.
This press release contains statements, including, without limitation, statements related to the Company's expectations regarding full-year tax return growth, revenue per return growth, revenues and diluted earnings per share, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Because these forward-looking statements involve risk and uncertainties, actual results may differ materially from those expressed or implied in the forward-looking statements due to a number of factors, including but not limited to: the Company's ability to achieve the same level of growth in revenues and profits that it has in the past; government initiatives that simplify tax return preparation, improve the timing and efficiency of processing tax returns or decrease the number of tax returns filed or the size of tax refunds; government legislation and regulation of the industry and products and services, including refund anticipation loans; the success of the Company's franchise operations; changes in the Company's relationship with financial product providers and retailers; the Company's compliance with revolving credit facility covenants; the Company's exposure to litigation; the seasonality of the Company's business and its effect on the stock price; and the effect of market conditions within the tax return preparation industry. Additional information concerning these and other risks that could impact the Company's business can be found in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2005 and other public filings with the Securities and Exchange Commission. Copies are available from the SEC or the Jackson Hewitt website. The Company assumes no obligation and expressly disclaims any obligation to update or alter any forward-looking statements or information.
SOURCE Jackson Hewitt Tax Service Inc.
CONTACT: Investor Relations - David Kraut, Vice President, Treasury and Investor Relations, +1-973-630-0821, or Media Relations - Sheila Cort, Vice President, Corporate Communications, +1-973-630-0680, both of Jackson Hewitt Tax Service Inc.