Jackson Hewitt Tax Service Inc. announced today that it has reached an agreement with its lenders on an amendment (the “Amendment”)
to 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.”