HOUSTON, June 2 /PRNewswire-FirstCall/ -- TaxMasters, Inc. (OTC Bulletin Board: TAXS), the IRS tax relief company, today announced the company's financial results for the first quarter ended March 31, 2010.
For the first quarter of 2010, TaxMasters net revenue increased 56.1% to approximately $11.3 million, compared to approximately $7.3 million for the first quarter of fiscal 2009. Total operating expenses for the first quarter of 2010 were approximately $9.9 million, an increase of 62.9% compared to $6.1 million for the same period in 2009.
For the first quarter of 2010, the company reported net income from operations of approximately $1.5 million, an increase of approximately 20% compared to approximately $1.2 million for the same period in 2009. The increase was attributable to the increase in revenue offset by increases in compensation costs and advertising expenses.
For the quarter ended March 31, 2010, the company reported net income of approximately $0.9 million, versus net income of approximately $1.2 million for the first quarter of fiscal 2009. The decrease in net income for the first quarter of 2010 compared to the same period in 2009 is mainly due to the tax expense of $0.5 million for the first quarter of 2010.
Patrick Cox, President and Chairman of TaxMasters, Inc., said, "Our 56% growth in revenue in the first quarter of 2010 is a reflection of the strong demand for our services. While taxpayers have many options to address their tax problems, our growth demonstrates that taxpayers who need help in dealing with the IRS are choosing TaxMasters. We also generated earnings in the first quarter of 2010 despite the additional costs we incurred as a result of the new hires to our professional staff and the expansion of our national marketing campaign. As a result, at March 31, 2010, we employed 323 total personnel, a 30% increase over the past twelve months, while the growing momentum in the demand for our services reflects our heightened visibility as a public company."
Mr. Cox concluded, "Economic conditions continue to pose a mounting financial challenge for many individuals and small businesses. Due to the complexity of tax laws and the vigorous collection efforts of the IRS, professional assistance is frequently the best way to resolve tax problems. We have increased our professional staff and strengthened our organizational infrastructure so that we can effectively respond to this rising need for the services we offer."
In conjunction with this release, TaxMasters will provide an audio review of financial results of the quarter ended March 31, 2010 via its website at www.txmstr.com. The review will be available for download and review on June 18, 2010.
About TaxMasters, Inc.
TaxMasters, Inc. (OTC Bulletin Board: TAXS), the IRS tax relief company, is the first publicly traded tax resolution firm in the United States. Started by Patrick R. Cox in 2001, TaxMasters offers services and counsel to taxpayers across the country facing seemingly insurmountable tax problems, and relief from substantial federal tax debt. Employing over 300 people, TaxMasters leverages the expertise of ex-IRS agents, enrolled agents, attorneys, CPAs, and seasoned tax consultants ready to counsel and assist every day people with their specific tax problems. For more information about TaxMasters, Inc. and its commitment to help taxpayers in the United States solve tax problems, please visit www.txmstr.com. Follow TaxMasters on Twitter at http://twitter.com/gotaxmasters. Visit TaxMasters' blog at http://www.txmstr.com/blog/
Any forward-looking statements, as defined in the Securities Exchange Act of 1934, in this release (often identified by such words as "believes," "expects," "beginning," "intended," "planned") regarding future expectations, objectives, and plans for TaxMasters, Inc. are based on opinions and estimates of management at the time the statement was made. Various known and unknown factors may cause actual results to be materially different from the expected outcomes. TaxMasters, Inc. does not, as a matter of policy, update or revise forward-looking statements. Actual results may vary materially.
TaxMasters, Inc., Houston
SOURCE TaxMasters, Inc.