Franchise (TAX) 8-K Results of Operations and Financial Condition

Exhibit 99.1

CONTACTS:	Media: Martha O'Gorman
Investors: Kathy Donovan	Liberty Tax, Inc.
Liberty Tax, Inc.	Chief Marketing Officer
Vice President, Chief Financial Officer	(757) 301-8022
(757) 493-8855	martha@libtax.com
investorrelations@libtax.com

Liberty Tax Service Announces Fiscal Year 2016 Results

Virginia Beach, Va. (June 14, 2016) – Liberty Tax, Inc. (NASDAQ:TAX) (the "Company"), the parent company of Liberty Tax Service, today reported its results for fiscal year 2016. The Company reported that total revenue increased 7% to $173.4 million and GAAP earnings per share of $1.38 up 126% vs prior year. Non-GAAP earnings per share were $1.41 up 4% vs prior year.

The total number of customers served in company-owned and independently-owned and operated franchise offices fell by 3.8% to 2.16 million. Tax returns prepared in U.S. offices fell 3.9%, while total returns in Canada offices fell 2.9%.

The Company is continuing to implement several new initiatives such as SiempreTax+, which is already one of the fastest growing tax preparation franchises in history, even out pacing the initial growth of Liberty Tax Service. The Company will also be focusing on customer retention and enhanced compliance efforts to address an evolving industry environment.

"Our franchisees and leadership team have worked hard to overcome challenges facing Liberty and the entire tax industry," said John Hewitt, CEO. "Liberty was founded on a principle of delivering friendly and accurate tax preparation. Improving our standards and delivering an exceptional customer experience remains our highest priority."

Fiscal 2016 Results

($ in thousands except per share data)	GAAP							Non - GAAP*
	2016		2015		Change			2016		2015		Change
Revenue	$	173,429	$	162,172		7	%	$	173,429	$	162,172		7	%
Operating expenses		140,941		146,780		-4	%		140,276		129,283		9	%
Income before taxes		30,478		13,501		126	%		31,143		30,998		0	%
Diluted EPS		1.38		0.61		126	%		1.41		1.36		4	%
*See reconciliation of GAAP to Non-GAAP measures in Table E

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Highlights

· The company reported revenue growth of 7% to $173.4 million.

o Financial products revenue grew 22% to $45.3 million due to the company's new Refund Advance product as well as favorable pricing.

o Tax preparation fees increased 39% to $19.3 million due to an increase in the number of company-owned offices.

o Average net fee for tax preparation services in the U.S. increased 5.1%.

· GAAP earnings per share increased 126% to $1.38 from $0.61. Non-GAAP earnings per share increased 4% to $1.41 from $1.36.

· SiempreTax+ has successfully grown to 144 offices, an increase of roughly 150% over last season.

Dividend

On June 10, 2016, the Board of Directors approved a quarterly dividend to shareholders of $0.16 per share. The dividend will be paid on July 22, 2016 to holders of record of common stock and common stock equivalents on the close of business on July 12, 2016.

Conference Call

At 4:30 p.m. Eastern time on June 14, 2016, the Company will host a conference call for analysts, institutional investors and stockholders.  To access the call, please dial the number below approximately 10 minutes prior to the scheduled starting time:

U.S.                                       855-611-0856

International                        518-444-5569

Conference ID code:           24717726

The call will also be webcast in a listen-only format.  The link to the webcast may be accessed on the Company's investor relations website at www.libertytax.com, under the "About" tab.

A telephonic replay of the call will be available beginning shortly after the call continuing until Tuesday, June 21, 2016, by dialing 855-859-2056 (domestic) or 404-537-3406 (international).  The conference ID code is 24717726.  A replay of the webcast will also be available at the site listed above beginning shortly after its conclusion.

About Liberty Tax, Inc.

Founded in 1997 by CEO John T. Hewitt, Liberty Tax, Inc. (NASDAQ: TAX) is the parent company of Liberty Tax Service. Liberty Tax is one of the fastest-growing tax preparation franchises and has prepared nearly 22 million individual income tax returns in more than 4,400 offices and online. Liberty Tax's online services are available through eSmart Tax, Liberty Online and DIY Tax, and are all backed by the tax professionals at Liberty Tax locations and its nationwide network of approximately 21,000 seasonal tax preparers. Liberty Tax also supports local communities with fundraising endeavors and contributes as a national sponsor for many charitable causes. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on Twitter and Facebook.

About Non-GAAP Financial Information

This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying Tables E&F titled "Non-GAAP Financial Information."

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Forward Looking Statements

In addition to historical information, this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including implied and express statements regarding future growth.  These forward-looking statements, as well as Company guidance, are based upon the Company's current expectations and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties and speak only as of the date on which they are made, the Company's actual results could differ materially from these statements. These risks and uncertainties relate to, among other things; uncertainties regarding the Company's ability to attract and retain clients; the ability to continue to pay a quarterly dividend; the effect of health care reform on tax preparation-related revenue; the impact of the launch of a new franchise brand; uncertainties regarding the Company's ability to meet its prepared returns targets; competitive factors; the Company's effective income tax rate; litigation defense expenses and costs of judgments or settlements; and changes in market, economic, political or regulatory conditions. Information concerning these risks and uncertainties is contained in the Company's annual report on Form 10-K and in other filings by the Company with the U.S. Securities and Exchange Commission.  The Company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

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Table A
Liberty Tax, Inc.
Condensed Consolidated Statements of Operations
Unaudited, amounts in thousands, except per share and share data
	Fiscal Years ended April 30,
	2016			2015			$ change			% change
Revenues:
Franchise fees	$	5,038		$	6,246			(1,208	)		(19.3	%)
Area developer fees		6,008			6,901			(893	)		(12.9	%)
Royalties and advertising fees		80,274			80,469			(195	)		(0.2	%)
Financial products		45,327			37,058			8,269			22.3	%
Interest income		13,578			14,707			(1,129	)		(7.7	%)
Tax preparation fees, net of discounts		19,292			13,877			5,415			39.0	%
Other revenue		3,912			2,914			998			34.2	%
Total revenues		173,429			162,172			11,257			6.9	%
Operating expenses:
Employee compensation and benefits		42,882			41,079			1,803			4.4	%
Selling, general, and administrative expenses		43,927			40,604			3,323			8.2	%
Area developer expense		27,686			28,497			(811	)		(2.8	%)
Advertising expense		16,420			18,308			(1,888	)		(10.3	%)
Depreciation, amortization and impairment charges		10,026			9,900			126			1.3	%
Impairment of online software and assets		-			8,392			(8,392	)		100.0	%
Total operating expenses		140,941			146,780			(5,839	)		(4.0	%)
Income from operations		32,488			15,392			17,096			111.1	%
Other income (expense):
Foreign currency transaction income (loss)		29			(2	)		31			1,550.0	%
Interest expense		(2,039	)		(1,889	)		(150	)		(7.9	%)
Income before income taxes		30,478			13,501			16,977			125.7	%
Income tax expense		11,058			4,811			6,247			129.8	%
Net income	$	19,420		$	8,690			10,730			123.5	%
Net income attributable to Class A and Class B common stockholders	$	18,014		$	8,057			9,957			123.6	%
Net income per share of Class A and Class B
common stock
Basic	$	1.41		$	0.63			0.78			123.8	%
Diluted		1.38			0.61			0.77			126.2	%
Weighted-average shares outstanding
Basic		12,814,775			12,738,887			75,888			0.6	%
Diluted		14,024,761			14,294,773			(270,012	)		(1.9	%)

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Table B
Liberty Tax, Inc.
Condensed Consolidated Statements of Operations
Unaudited, amounts in thousands, except per share and share data
	Three months ended April 30,
	2016			2015			$ change			% change
Revenues:
Franchise fees	$	2,513		$	3,250			(737	)		(22.7	%)
Area developer fees		1,517			1,835			(318	)		(17.3	%)
Royalties and advertising fees		51,685			52,119			(434	)		(0.8	%)
Financial products		27,545			23,031			4,514			19.6	%
Interest income		6,075			7,507			(1,432	)		(19.1	%)
Tax preparation fees, net of discounts		14,487			11,029			3,458			31.4	%
Other revenue		592			148			444			300.0	%
Total revenues		104,414			98,919			5,495			5.6	%
Operating expenses:
Employee compensation and benefits		14,429			12,453			1,976			15.9	%
Selling, general, and administrative expenses		14,831			9,685			5,146			53.1	%
Area developer expense		16,964			17,721			(757	)		(4.3	%)
Advertising expense		2,348			4,286			(1,938	)		(45.2	%)
Depreciation, amortization and impairment charges		4,400			3,045			1,355			44.5	%
Impairment of online software and assets		-			8,392			(8,392	)		100.0	%
Total operating expenses		52,972			55,582			(2,610	)		(4.7	%)
Income from operations		51,442			43,337			8,105			18.7	%
Other income (expense):
Foreign currency transaction income		68			43			25			58.1	%
Interest expense		(447	)		(339	)		(108	)		(31.9	%)
Income before income taxes		51,063			43,041			8,022			18.6	%
Income tax expense		18,775			16,298			2,477			15.2	%
Net Income	$	32,288		$	26,743			5,545			20.7	%
Net income attributable to Class A and Class B common stockholders	$	29,961		$	24,795			5,166			20.8	%
Net income per share of Class A and Class B
common stock
Basic	$	2.33		$	1.95			0.38			19.5	%
Diluted		2.31			1.89			0.42			22.2	%
Weighted-average shares outstanding
Basic		12,877,919			12,728,341			149,578			1.2	%
Diluted		13,967,568			14,155,818			(188,250	)		(1.3	%)

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Table C
Liberty Tax, Inc.
Condensed Consolidated Balance Sheets
Unaudited, amounts in thousands
	April 30,			April 30,
	2016			2015
Current assets:
Cash and cash equivalents	$	9,906		$	21,387
Current receivables, net		74,122			65,927
Assets held for sale		9,886			5,160
Deferred income tax asset		3,496			6,921
Other current assets		5,838			6,470
Total current assets		103,248			105,865
Property, equipment, and software, net		40,957			36,232
Notes receivable - non-current, net		23,504			20,753
Goodwill		4,228			3,377
Other intangible assets, net		16,270			14,672
Other assets		7,524			3,247
Total assets	$	195,731		$	184,146
Current liabilities:
Current installments of long-term debt	$	5,947		$	3,934
Accounts payable and accrued expenses		14,064			17,321
Due to area developers		24,977			24,340
Income taxes payable		3,581			2,147
Deferred revenue - current		4,682			6,076
Total current liabilities		53,251			53,818
Long-term debt, excluding current installments		17,601			21,463
Revolving credit facility		-			-
Deferred revenue - non-current		7,056			7,640
Deferred income tax liability		6,322			2,363
Total liabilities		84,230			85,284
Stockholders' equity:
Special voting preferred stock, $0.01 par value per share		-			-
Class A common stock, $0.01 par value per share		120			119
Class B common stock, $0.01 par value per share		9			9
Exchangeable shares, $0.01 par value		10			10
Additional paid-in capital		7,153			4,082
Accumulated other comprehensive loss, net of taxes		(1,698	)		(697	)
Retained earnings		105,907			95,339
Total stockholders' equity		111,501			98,862
Total liabilities and stockholders' equity	$	195,731		$	184,146

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Table D
Liberty Tax, Inc.
Condensed Consolidated Statements of Cash Flows
Unaudited, amounts in thousands
	Fiscal Years ended April 30,
	2016			2015
Cash flows from operating activities:
Net Income	$	19,420		$	8,690
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts		7,282			5,726
Depreciation, amortization and impairment charges		10,026			18,292
Stock-based compensation expense related to equity classified awards		1,863			2,477
Gains on bargain purchases and sales of Company-owned offices		(855	)		(414	)
Deferred tax expense		7,384			(3,545	)
Changes in accrued income taxes		1,758			(7,491	)
Changes in other assets and liabilities		(17,061	)		782
Net cash provided by operating activities		29,817			24,517
Cash flows from investing activities:
Issuance of operating loans to franchisees		(101,552	)		(93,365	)
Payments received on operating loans to franchisees		89,786			88,776
Purchases of Company-owned offices and area developer rights		(4,787	)		(8,246	)
Proceeds from sale of Company-owned offices and area developer rights		2,934			3,687
Purchase of available-for-sale securities		(4,999	)		-
Purchases of property, equipment, and software		(10,692	)		(11,463	)
Net cash used in investing activities		(29,310	)		(20,611	)
Cash flows from financing activities:
Proceeds from the exercise of stock options		2,286			11,983
Repurchase of common stock		(1,977	)		(36,308	)
Payment of dividends		(8,852	)		(2,205	)
Repayment of long-term debt		(4,170	)		(5,850	)
Borrowings under revolving credit facility		166,232			154,633
Repayments under revolving credit facility		(166,232	)		(154,633	)
Payment for debt issuance costs		-			(917	)
Tax benefit of stock option exercises		899			4,803
Net cash used by financing activities		(11,814	)		(28,494	)
Effect of exchange rate changes on cash and cash equivalents, net		(174	)		(105	)
Net decrease in cash and cash equivalents		(11,481	)		(24,693	)
Cash and cash equivalents at beginning of period		21,387			46,080
Cash and cash equivalents at end of period	$	9,906		$	21,387

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Table E
Liberty Tax, Inc.
Non-GAAP Financial Information
Reconciliation of Other Non-GAAP Financial Measures
Unaudited, amounts in thousands, except per share data
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, we believe certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current year results and prior periods. Reconciliations to GAAP financial measures are provided below. These non-GAAP financial measures should be viewed in addition to, not as an alternative for, our reported GAAP results.
Fiscal Year Ended April 30, 2016
	Revenues		Expenses			Income from Operations		EBITDA		Income before Taxes		Net Income		Diluted EPS
As Reported	$	173,429	$	140,941		$	32,488	$	42,543	$	30,478	$	19,420	$	1.38
Adjustments:
Executive severance(1)		-		(413	)		413		413		413		263		0.02
Executive Task Force and compliance related costs		-		(252	)		252		252		252		161		0.01
Subtotal of adjustments		-		(665	)		665		665		665		424		0.03
As Adjusted	$	173,429	$	140,276		$	33,153	$	43,208	$	31,143	$	19,844	$	1.41
Stock-based compensation expense(2)	$	-	$	(1,771	)	$	1,771	$	1,771
Fiscal Year Ended April 30, 2015
	Revenues		Expenses			Income from Operations		EBITDA		Income before Taxes		Net Income (3)		Diluted EPS
As Reported	$	162,172	$	146,780		$	15,392	$	33,682	$	13,501	$	8,690	$	0.61
Adjustments:
Executive severance(1)		-		(1,488	)		1,488		1,488		1,488		915		0.06
Litigation costs		-		(7,617	)		7,617		7,617		7,617		4,685		0.33
Impairment of online software and assets		-		(8,392	)		8,392		-		8,392		5,161		0.36
Subtotal of adjustments		-		(17,497	)		17,497		9,105		17,497		10,761		0.75
As Adjusted	$	162,172	$	129,283		$	32,889	$	42,787	$	30,998	$	19,451	$	1.36
Stock-based compensation expense(2)	$	-	$	(1,883	)	$	1,883	$	1,883
(1) Includes stock-based compensation expense
(2) Excludes costs related to executive severance
(3) The non-GAAP tax rate of 38.5% used above excludes the income tax effects of the non-GAAP income before taxes adjustments described above and is consistent with our average and forecasted tax rate.

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Table F
Liberty Tax, Inc.
Non-GAAP Financial Information
Reconciliation of Other Non-GAAP Financial Measures
Unaudited, amounts in thousands, except per share data
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, we believe certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current year results and prior periods. Reconciliations to GAAP financial measures are provided below. These non-GAAP financial measures should be viewed in addition to, not as an alternative for, our reported GAAP results.
Three Months Ended April 30, 2016
	Revenues		Expenses			Income from Operations			EBITDA			Income before Taxes			Net Income			Diluted EPS
As Reported	$	104,414	$	52,972		$	51,442		$	55,910		$	51,063		$	32,288		$	2.31
Adjustments:
Executive Task Force and compliance related costs		-		(252	)		252			252			252			159			0.01
Subtotal of adjustments		-		(252	)		252			252			252			159			0.01
As Adjusted	$	104,414	$	52,720		$	51,694		$	56,162		$	51,315		$	32,447		$	2.32
Stock-based compensation expense	$	-	$	(515	)	$	515		$	515
Three Months Ended April 30, 2015
	Revenues		Expenses			Income from Operations			EBITDA			Income before Taxes			Net Income(1)			Diluted EPS
As Reported	$	98,919	$	55,582		$	43,337		$	54,817		$	43,041		$	26,743		$	1.89
Adjustments:
Executive severance		-		129			(129	)		(129	)		(129	)		(79	)		(0.01	)
Litigation costs		-		(1,421	)		1,421			1,421			1,421			874			0.06
Impairment of online software and assets		-		(8,392	)		8,392			-			8,392			5,161			0.37
Subtotal of adjustments		-		(9,684	)		9,684			1,292			9,684			5,956			0.42
As Adjusted	$	98,919	$	45,898		$	53,021		$	56,109		$	52,725		$	32,699		$	2.31
Stock-based compensation expense	$	-	$	(475	)	$	475		$	475
(1) The non-GAAP tax rate of 38.5% used above excludes the income tax effects of the non-GAAP income before taxes adjustments described above and is consistent with our average and forecasted tax rate.

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Table G
Liberty Tax, Inc.
Operational Data
Unaudited
	Fiscal years ended April 30,
	2016		2015
Franchisees
U.S.		1,856		1,907
Canada		130		125
Total Franchisees		1,986		2,032
Offices
U.S.
Franchised		3,967		3,944
Company-Owned		258		125
Total U.S.		4,225		4,069
Canada
Franchised		210		202
Company-Owned		52		57
Total Canada		262		259
Total
Franchised		4,177		4,146
Company-Owned		310		182
Total Offices		4,487		4,328
Tax Returns Processed
U.S.		1,832,000		1,907,000
Canada		330,000		340,000
Total Returns Processed in Offices		2,162,000		2,247,000
Online		145,000		167,000
Total Tax Returns Processed		2,307,000		2,414,000
Systemwide Revenue1
U.S.	$	417,600,000	$	413,200,000
Canada (CDN $)		27,400,000		26,400,000
Canada (USD $)		21,200,000		21,800,000
US Average Net Fee Per Return2	$	228	$	217
1 Our systemwide revenue represents the total tax preparation revenue generated by our franchised and company-owned offices. It does not represent our revenue. But because franchise royalties are derived from the operations of our franchisees, and because we maintain an infrastructure to support systemwide operations, we consider growth in systemwide revenue to be an important measurement.
2 The net average fee per tax return prepared reflects amounts for our franchised and company-owned offices.

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