H&R Block Announces Tax Season Results Through March 31
KANSAS CITY, Mo.--(BUSINESS WIRE)--April 19, 2007--H&R Block Inc. (NYSE: HRB) today reported a 3 percent increase in total clients served to 16.4 million, up 483,000 over prior year, for the company's retail and digital tax businesses for the interim period from Nov. 1, 2006, through March 31, 2007. Digital tax clients served grew 13.8 percent over 2006, while office-based clients increased 0.4 percent.
"These stronger results demonstrate the value clients place on the H&R Block brand and the trust they have in our commitment to serve their needs," said Mark A. Ernst, chairman and chief executive officer. "Improved client satisfaction, standard-setting refund settlement products, and quality service and expertise from our tax professionals are all providing a solid platform for the growth of our tax businesses."
H&R Block plans to release preliminary full-season results for its U.S. tax operations before the NYSE market opening on May 10.
About H&R Block
H&R Block Inc. (NYSE: HRB) is a leading provider of tax, financial, and accounting and business consulting services and products. H&R Block is the world's largest tax services provider, having prepared more than 400 million tax returns since 1955. The company and its subsidiaries generated revenues of $3.6 billion and net income of $287 million from continuing operations in fiscal year 2006. The company currently operates in three principal business segments: Tax Services (income tax preparation and advice via in-office, online and software solutions); Business Services (accounting, tax and business consulting services for midsized companies); and Consumer Financial Services (investment and financial advisory services and banking services). Headquartered in Kansas City, Mo., H&R Block markets its continuing services and products under two leading brands - H&R Block and RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
Forward-Looking Statement
The information contained in this press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such statements are based upon current information and management's expectations regarding the company, speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such forward-looking statements. Such differences could be caused by a number of factors including, but not limited to, the uncertainty regarding completion of the sale of Option One Mortgage Corporation; pending the sale of Option One Mortgage Corporation, the uncertainty of the impact and effect of changes in the non-prime mortgage market, including changes in interest rates, loan origination volume and levels of early payment defaults and resulting loan repurchases; changes in market, economic, political or regulatory environments; and other risks described from time to time in reports and statements filed by the company and its subsidiaries with the Securities and Exchange Commission.
Table follows
H&R BLOCK
Preliminary U.S. Tax Operating Data
----------------------------------------------------------------------
(in thousands, except average fee)
February March YTD
--------- -------- -------------------------- ---------
11/1-1/31 2/1-2/28 3/1-3/15 3/16-3/31 Total 11/1-3/31
--------- -------- -------- --------- ------- ---------
Net tax prepa-
ration fees:(1)
Fiscal year
2007
Company-owned
operations $424,770 $613,275 $169,402 $179,855 $349,257 $1,387,302
Franchise
operations 218,894 298,496 73,014 71,547 144,561 661,951
------- ------- ------- ------- ------- ---------
$643,664 $911,771 $242,416 $251,402 $493,818 $2,049,253
======= ======= ======= ======= ======= =========
Fiscal year
2006(2)
Company-owned
operations $376,419 $606,078 $164,702 $170,842 $335,544 $1,318,041
Franchise
operations 190,535 282,127 68,080 66,994 135,074 607,736
------- ------- ------- ------- ------- ---------
$566,954 $888,205 $232,782 $237,836 $470,618 $1,925,777
======= ======= ======= ======= ======= =========
Percent change
Company-owned
operations 12.8% 1.2% 2.9% 5.3% 4.1% 5.3%
Franchise
operations 14.9% 5.8% 7.2% 6.8% 7.0% 8.9%
Total retail
operations 13.5% 2.7% 4.1% 5.7% 4.9% 6.4%
Total clients
served:(3)
Fiscal year
2007
Company-owned
operations 2,729 3,535 1,000 1,001 2,001 8,265
Franchise
operations 1,607 1,948 486 456 942 4,497
------- ------- ------- ------- ------- ---------
Total
retail
offices 4,336 5,483 1,486 1,457 2,943 12,762
Digital tax
solutions 1,279 1,620 403 313 716 3,615
------- ------- ------- ------- ------- ---------
5,615 7,103 1,889 1,770 3,659 16,377
======= ======= ======= ======= ======= =========
Fiscal year
2006(2)
Company-owned
operations 2,390 3,854 1,030 1,015 2,045 8,289
Franchise
operations 1,406 2,081 486 455 941 4,428
------- ------- ------- ------- ------- ---------
Total
retail
offices 3,796 5,935 1,516 1,470 2,986 12,717
Digital tax
solutions 1,157 1,362 374 284 658 3,177
------- ------- ------- ------- ------- ---------
4,953 7,297 1,890 1,754 3,644 15,894
======= ======= ======= ======= ======= =========
Percent change
Company-owned
operations 14.2% -8.3% -2.9% -1.4% -2.2% -0.3%
Franchise
operations 14.3% -6.4% 0.0% 0.2% 0.1% 1.6%
Total retail
operations 14.2% -7.6% -2.0% -0.9% -1.4% 0.4%
Digital tax
solutions 10.5% 18.9% 7.8% 10.2% 8.8% 13.8%
Total 13.4% -2.7% -0.1% 0.9% 0.4% 3.0%
Net average fee -
retail:(4)
Fiscal year
2007
Company-owned
operations $169.47 $165.86 $169.48 $180.16 $174.82 $169.15
Franchise
operations 147.42 146.08 150.19 157.10 153.54 148.10
------- ------- ------- ------- ------- ---------
$161.27 $158.82 $163.17 $172.94 $168.00 $161.72
======= ======= ======= ======= ======= =========
Fiscal year
2006(2)
Company-owned
operations $157.48 $157.25 $159.84 $168.37 $164.07 $159.00
Franchise
operations 135.51 135.54 140.18 147.28 143.61 137.24
------- ------- ------- ------- ------- ---------
$149.35 $149.64 $153.54 $161.84 $157.63 $151.43
======= ======= ======= ======= ======= =========
Percent change
Company-owned
operations 7.6% 5.5% 6.0% 7.0% 6.5% 6.4%
Franchise
operations 8.8% 7.8% 7.1% 6.7% 6.9% 7.9%
Total retail
operations 8.0% 6.1% 6.3% 6.9% 6.6% 6.8%
(1) Gross tax preparation fees less coupons and discounts.
(2) Prior year numbers have been reclassified between company-owned
and franchise offices for offices which commenced company-owned
operations during fiscal year 2007.
(3) Tax preparation clients for which revenue was earned and Instant
Money Advance Loan (IMAL) clients.
(4) Calculated as net tax preparation fees divided by retail tax
preparation clients served.
CONTACT: H&R Block Inc.
Media Relations:
Nick Iammartino, 816-854-4556
nick.iammartino@hrblock.com
or
Investor Relations:
Scott Dudley, 816-854-4505
scott.dudley@hrblock.com
SOURCE: H&R Block Inc.