On Tuesday, Nov. 28, tax preparer Jackson Hewitt (NYSE:JTX) released fiscal second-quarter 2006 earnings for the period ended Oct. 31, 2006. Here are the quick and dirty details for the quarter.

  • Total revenue fell 31.8% to $6.2 million as $2.8 million in financial product revenue was eliminated in the second quarter and will now be recognized during tax season.
  • Jackson Hewitt reported a loss of $0.46 per diluted share, but this is common, as the third and fourth fiscal quarters occur during tax season and constitute the bulk of revenue and earnings for the company.
  • Management repurchased 1.4 million shares during the quarter at a total cost of $45.5 million.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$7,280

$6,155

$9,026

(31.8%)

Net Profit

--

($15,849)

($11,288)

N/A

EPS

($0.38)

($0.46)

($0.31)

N/A

Diluted Shares

--

33,628

36,218

(7.2%)

*13 weeks ended Oct. 31, 2006 and 2005.

Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Operating Margin

(380.75%)

(189.54%)

Net Margin

(257.50%)

(125.06%)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$457

$687

(33.5%)

Accounts Rec.

$2,864

$4,986

(42.6%)



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$22,832

$18,225

25.3%

Long-Term Debt

$193,000

$173,000

11.6%



Learn the ways of the balance sheet.

Cash Flow Highlights
Fools will have to wait until Jackson Hewitt files its 10-Q for cash flow details. Boo!

Find out why Fools always follow the money.

Comparable companies:

  • H&R Block (NYSE:HRB)
  • Intuit (NASDAQ:INTU)

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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.