8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): September 4, 2015

 

 

H&R BLOCK, INC.

(Exact name of registrant as specified in charter)

 

 

 

Missouri   1-6089   44-0607856

(State of Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

One H&R Block Way, Kansas City, MO 64105

(Address of Principal Executive Offices) (Zip Code)

(816) 854-3000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 8.01. Other Events.

On August 31, 2015, H&R Block, Inc., a Missouri corporation (the “Company”), completed its previously announced sale of certain assets and liabilities, including all of the deposit liabilities, of its subsidiary, H&R Block Bank, a federal savings bank, to BofI Federal Bank, a federal savings bank, and certain related transactions (collectively, the “P&A Transaction”). On September 2, 2015, the Company commenced a “modified Dutch auction” tender offer to purchase up to $1.5 billion in shares of its common stock at a price per share of not less than $32.25 and not greater than $37.00 (the “Tender Offer”). This Current Report on Form 8-K is being filed for the purpose of providing pro forma financial information giving effect to the P&A Transaction and the Tender Offer.

 

Item 9.01. Financial Statements and Exhibits.

 

(b) Pro forma financial information.

The unaudited pro forma consolidated financial information of the Company, which reflects the P&A Transaction and the Tender Offer described in Item 8.01, is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The unaudited pro forma consolidated financial information is provided for informational purposes. The Company does not believe that the P&A Transaction constituted the disposition of a business.

 

(d) Exhibits

 

Exhibit
Number

  

Description

99.1    Pro Forma Financial Information

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    H&R BLOCK, INC.
Date: September 4, 2015     By:  

/s/ Scott W. Andreasen

      Scott W. Andreasen
      Vice President and Secretary

 

3


EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Pro Forma Financial Information

 

4

EX-99.1

Exhibit 99.1

H&R BLOCK, INC.

Pro Forma Consolidated Financial Statements

(Unaudited)

Unaudited Pro Forma Consolidated Financial Data. The following unaudited pro forma consolidated financial information of H&R Block, Inc. (the “Company”) gives effect to (i) the sale on August 31, 2015 by the Company of certain assets and liabilities, including all of the deposit liabilities of its subsidiary, H&R Block Bank, a federal savings bank, to BofI Federal Bank, a federal savings bank, and the economic impact of the Program Management Agreement and the Receivables Participation Agreement entered into among the parties thereto in connection therewith (collectively, the “P&A Transaction”); (ii) the repurchase and retirement of 40.5 million shares of the Company’s common stock pursuant to its $1.5 billion “modified Dutch auction” tender offer (the “Offer”) commenced on September 2, 2015, at the maximum offering price stated therein of $37.00 per share (the “Repurchase”); and (iii) the use of $300 million of cash on hand and $1.2 billion in borrowings under the Company’s new line of credit expected to be entered into on or prior to the consummation of the Offer (the “2015 Credit Facility”) to fund the Repurchase (the “Financing” and, together with the P&A Transaction and the Repurchase, the “Transactions”). The unaudited pro forma consolidated statements of income give effect to the Transactions as if they had occurred on May 1, 2014, and the unaudited pro forma consolidated balance sheet gives effect to the Transactions as if they had occurred on July 31, 2015. The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States.

The Company’s historical consolidated financial statements have been adjusted in the unaudited pro forma consolidated financial statements to give effect to pro forma events that management believes are directly attributable to the Transactions, are factually supportable and are expected to have a continuing impact on the statement of income. The unaudited pro forma consolidated financial statements should be read in conjunction with the accompanying notes thereto and the Company’s financial statements and related notes contained in the Company’s 2015 Annual Report on Form 10-K filed with the SEC on June 17, 2015 and its Quarterly Report on Form 10-Q for the quarterly period ended July 31, 2015 filed with the SEC on September 4, 2015.

The unaudited pro forma consolidated financial statements have been presented for informational purposes only and are not necessarily indicative of what the Company’s financial position or results of operations actually would have been had the Transactions occurred as of the dates indicated. In addition, the unaudited pro forma consolidated financial information does not purport to project the future financial position or operating results of the Company. Our future results are subject to prevailing economic and industry specific conditions and financial, business and other known and unknown risks and uncertainties, certain of which are beyond our control. These factors include, without limitation, those described in our filings with the SEC, including under the heading “Risk Factors.”

The unaudited pro forma consolidated financial information is based on information available as of the date hereof and includes adjustments that are preliminary and may be revised. There can be no assurance that such revisions will not result in material changes. There can be no assurance that we will secure the necessary debt financing for the Offer on terms acceptable to us or at all. In addition, the assumed sources of funds for the Repurchase are estimates only and are based on currently available information. We may determine to vary the mix of cash, borrowings and other incremental debt to fund the Repurchase at the time of consummation thereof.


LOGO   H&R BLOCK

PRO FORMA CONSOLIDATED INCOME STATEMENT

Unaudited, amounts in thousands, except per share data

 

    For the year ended April 30, 2015  
    As Reported     Adjustments for
P&A Transaction
    Reclassifications
after P&A
Transaction
    Pro Forma for
P&A Transaction
    Adjustments for
the Offer
    Pro Forma for
the Offer
 

Revenues:

           

Service revenues

  $ 2,651,057      $ (8,046 ) (a)    $ —        $ 2,643,011      $ —        $ 2,643,011   

Royalty, interest and other revenues

    427,601        (7,041 ) (a)      (25,986 ) (e)      394,574        —          394,574   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    3,078,658        (15,087     (25,986     3,037,585        —          3,037,585   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

           

Cost of revenues:

           

Compensation and benefits

    852,480        —          —          852,480        —          852,480   

Occupancy and equipment

    378,624        —          —          378,624        —          378,624   

Provision for bad debt and loan losses

    74,993        (2,408 ) (a)      —          72,585        —          72,585   

Depreciation and amortization

    111,861        —          —          111,861        —          111,861   

Other

    212,532        11,959   (a)      (2,971 )  (e)      221,520        —          221,520   
      7,500   (b)      —           
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    1,630,490        17,051        (2,971     1,637,070        —          1,637,070   

Selling, general and administrative:

           

Marketing and advertising

    273,682        —          —          273,682        —          273,682   

Compensation and benefits

    238,527        —          —          238,527        —          238,527   

Amortization of intangibles

    47,943        —          —          47,943        —          47,943   

Other selling, general and administrative

    93,350        (1,718 ) (c)      —          91,632        —          91,632   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    653,502        (1,718     —          651,784        —          651,784   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    2,283,992        15,333        (2,971     2,288,854        —          2,288,854   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income

    1,314        —          25,986   (e)      27,300        —          27,300   

Interest expense on borrowings

    (45,246     —          —          (45,246     (21,902 ) (f)      (67,148

Other expense

    (7,929     —          (2,971 ) (e)      (10,900     —          (10,900
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before taxes

    742,805        (30,420     —          719,885        (21,902     697,983   

Income tax (benefit)

    256,061        (11,844 ) (d)      —          244,217        (8,528 ) (d)      235,689   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income from continuing operations

    486,744        (18,576     —          475,668        (13,374     462,294   

Net loss from discontinued operations

    (13,081     —          —          (13,081     —          (13,081
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 473,663      $ (18,576   $ —        $ 462,587      $ (13,374   $ 449,213   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic Earnings (Loss) Per Share:

           

Continuing operations

  $ 1.77      $ (0.07     $ 1.70      $ 0.22      $ 1.92   

Discontinued operations

    (0.05     —            (0.05     (0.01     (0.06
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Consolidated

  $ 1.72      $ (0.07     $ 1.65      $ 0.21      $ 1.86  (g),(h) 
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Diluted Earnings (Loss) Per Share:

           

Continuing operations

  $ 1.75      $ (0.07     $ 1.68      $ 0.22      $ 1.90   

Discontinued operations

    (0.04     —            (0.04     (0.02     (0.06
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Consolidated

  $ 1.71      $ (0.07     $ 1.64      $ 0.20      $ 1.84  (g),(h) 
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

           

Basic

    275,033              (38,007 ) (g)      237,026   

Diluted

    277,136              (38,007 ) (g)      239,129   

 

(a) Reflects reductions and/or increases in revenues and certain expenses from Emerald Cards, Emerald Advances and Refund Transfers pursuant to the terms of the PMA and the RPA.
(b) Reflects the annual program fee required to paid pursuant to the PMA.
(c) Reflects certain expenses that will not recur subsequent to the P&A Transaction as a result of the Company no longer having a federal savings bank.
(d) Assumes a pro forma tax rate of 38.94%.
(e) Reclassifications represent revenues and expenses related to mortgage loans held for investment and available for sale securities that were central to the operating activities of, and satisfied a regulatory requirement of, HRB Bank, which will no longer be central to the operating activities of the Company after the closing of the P&A Transaction. As a result, these items will be presented as non-operating income and expenses in the Company’s future reporting.
(f) Assumes borrowings of $1.2 billion under the 2015 Credit Facility at an assumed interest rate of 1.83%. We may determine to substitute some or all of the borrowings under the 2015 Credit Facility with other incremental debt issued on or prior to the closing of the Offer to fund the Repurchase. Any other debt issuances may be on terms that differ from the 2015 Credit Facility, including interest that may be at rates higher than the assumed rate on the 2015 Credit Facility. For every 0.125% increase/decrease in our interest rate our interest expense would change by approximately $1.5 million per year. We may determine to vary the mix of cash, borrowings and other incremental debt to fund the Repurchase at the time of the consummation thereof.
(g) Reflects the Repurchase of 40.5 million shares of the Company’s common stock at $37.00 per share, the maximum purchase price in the Offer, for an aggregate purchase price of $1.5 billion. Assumes the Financing consists of $300 million of cash on hand and $1.2 billion in borrowings under the 2015 Credit Facility. See note (f) above. We may determine to vary the mix of cash, borrowings and other incremental debt to fund the Repurchase at the time of the consummation thereof.
(h) Assuming the Repurchase of $1.5 billion in shares at $32.25 per share, the lowest purchase price in the Offer, the impact of the increase in the number of shares repurchased on EPS would be as follows:

 

     Basic EPS     Diluted EPS      

Continuing operations

   $ 1.96      $ 1.94     

Discontinued operations

     (0.05     (0.05  
  

 

 

   

 

 

   

Consolidated

   $ 1.91      $ 1.89     
  

 

 

   

 

 

   


LOGO   H&R BLOCK

PRO FORMA CONSOLIDATED INCOME STATEMENT

Unaudited, amounts in thousands, except per share data

 

    For the three months ended July 31, 2015  
    As Reported     Adjustments for
P&A Transaction
    Reclassifications
after P&A
Transaction
    Pro Forma for
P&A Transaction
    Adjustments for
the Offer
    Pro Forma for
the Offer
 

Revenues:

           

Service revenues

  $ 118,434      $ (1,520 ) (a)    $ —        $ 116,914      $ —        $ 116,914   

Royalty, interest and other revenues

    19,284        (216 ) (a)      (6,508 ) (e)      12,560        —          12,560   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    137,718        (1,736     (6,508     129,474        —          129,474   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

      —             

Cost of revenues:

           

Compensation and benefits

    55,789        —          —          55,789        —          55,789   

Occupancy and equipment

    89,855        —          —          89,855        —          89,855   

Provision for bad debt and loan losses

    2,005        —          —          2,005        —          2,005   

Depreciation and amortization

    27,084        —          —          27,084        —          27,084   

Other

    38,775        64   (a)      (1,019 ) (e)      39,695        —          39,695   
      1,875   (b)      —            —       
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    213,508        1,939        (1,019     214,428        —          214,428   

Selling, general and administrative:

           

Marketing and advertising

    8,531        —          —          8,531        —          8,531   

Compensation and benefits

    54,669        —          —          54,669        —          54,669   

Amortization of intangibles

    13,010        —          —          13,010        —          13,010   

Other selling, general and administrative

    21,982        (267 ) (c)      —          21,715        —          21,715   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    98,192        (267     —          97,925        —          97,925   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    311,700        1,672        (1,019     312,353        —          312,353   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income

    433        —          6,508   (e)      6,941        —          6,941   

Interest expense on borrowings

    (8,575     —          —          (8,575     (5,461 ) (f)      (14,036

Other expense

    (4,985     —          (1,019 ) (e)      (6,004     —          (6,004
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from continuing operations before taxes

    (187,109     (3,408     —          (190,517     (5,461     (195,978

Income tax benefit

    (90,604     (1,275 ) (d)      —          (91,879     (2,043 ) (d)      (93,922
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss from continuing operations

    (96,505     (2,133     —          (98,638     (3,418     (102,056

Net loss from discontinued operations

    (3,154     —          —          (3,154     —          (3,154
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

  $ (99,659   $ (2,133   $ —        $ (101,792   $ (3,418   $ (105,210
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic Loss Per Share:

           

Continuing operations

  $ (0.35   $ (0.01     $ (0.36   $ (0.06   $ (0.42

Discontinued operations

    (0.01     —            (0.01     —          (0.01
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Consolidated

  $ (0.36   $ (0.01     $ (0.37   $ (0.06   $ (0.43 ) (g),(h) 
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Diluted Loss Per Share:

           

Continuing operations

  $ (0.35   $ (0.01     $ (0.36   $ (0.06   $ (0.42

Discontinued operations

    (0.01     —            (0.01     —          (0.01
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Consolidated

  $ (0.36   $ (0.01     $ (0.37   $ (0.06   $ (0.43 ) (g),(h) 
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

           

Basic

    275,765              (30,405 ) (g)      245,360   

Diluted

    275,765              (30,405 ) (g)      245,360   

 

(a) Reflects reductions and/or increases in revenues and certain expenses from Emerald Cards, Emerald Advances and Refund Transfers pursuant to the terms of the PMA and the RPA.
(b) Reflects the pro forma quarterly impact of the annual program fee required to be paid pursuant to the PMA.
(c) Reflects certain expenses that will not recur subsequent to the P&A Transaction as a result of the Company no longer having a federal savings bank.
(d) Assumes a pro forma tax rate of 37.41%.
(e) Reclassifications represent revenues and expenses related to mortgage loans held for investment and available for sale securities that were central to the operating activities of, and satisfied a regulatory requirement of, HRB Bank, which will no longer be central to the operating activities of the Company after the closing of the P&A Transaction. As a result, these items will be presented as non-operating income and expenses in the Company’s future reporting.
(f) Assumes borrowings of $1.2 billion under the 2015 Credit Facility at an assumed annual interest rate of 1.83%. We may determine to substitute some or all of the borrowings under the 2015 Credit Facility with other incremental debt issued on or prior to the closing of the Offer to fund the Repurchase. Any other debt issuances may be on terms that differ from the 2015 Credit Facility, including interest that may be at rates higher than the assumed rate on the 2015 Credit Facility. For every 0.125% increase/decrease in our interest rate our interest expense would change by approximately $1.5 million per year. We may determine to vary the mix of cash, borrowings and other incremental debt to fund the Repurchase at the time of the consummation thereof.
(g) Reflects the Repurchase of 40.5 million shares of the Company’s common stock at $37.00 per share, the maximum purchase price in the Offer, for an aggregate purchase price of $1.5 billion. Assumes the Financing consists of $300 million of cash on hand and $1.2 billion in borrowings under the 2015 Credit Facility. See note (f) above. We may determine to vary the mix of cash, borrowings and other incremental debt to fund the Repurchase at the time of the consummation thereof.
(h) Assuming the Repurchase of $1.5 billion in shares at $32.25 per share, the lowest purchase price in the Offer, the impact of the increase in the number of shares repurchased on EPS would be as follows:

 

     Basic Loss Per Share     Diluted Loss Per Share      

Continuing operations

   $ (0.42   $ (0.42  

Discontinued operations

     (0.02     (0.02  
  

 

 

   

 

 

   

Consolidated

   $ (0.44   $ (0.44  
  

 

 

   

 

 

   


LOGO H&R BLOCK

PRO FORMA CONSOLIDATED BALANCE SHEET

Unaudited, amounts in thousands, except per share data

 

     As of July 31, 2015  
     As Reported     Adjustments for
P&A Transaction
    Pro Forma for
P&A Transaction
    Adjustments for
the Offer
    Pro Forma for
the Offer
 

ASSETS:

          

Cash and cash equivalents

   $ 1,299,382      $ (477,144 ) (a)    $ 822,238      $ (300,000 ) (b)    $ 522,238   

Cash and cash equivalents - restricted

     61,040        —          61,040        —          61,040   

Receivables, net

     103,194        —          103,194        —          103,194   

Deferred tax assets and income taxes receivable

     160,390        —          160,390        —          160,390   

Prepaid expenses and other current assets

     80,993        —          80,993        —          80,993   

Investments in available-for-sale securities

     406,360        —          406,360        —          406,360   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     2,111,359        (477,144     1,634,215        (300,000     1,334,215   

Mortgage loans held for investment, net

     230,130        —          230,130        —          230,130   

Property and equipment, net

     297,321        —          297,321        —          297,321   

Intangible assets, net

     417,009        —          417,009        —          417,009   

Goodwill

     454,394        —          454,394        —          454,394   

Deferred tax assets and income taxes receivable

     11,377        —          11,377        —          11,377   

Other noncurrent assets

     111,101        —          111,101        —          111,101   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 3,632,691      $ (477,144   $ 3,155,547      $ (300,000   $ 2,855,547   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES:

          

Customer banking deposits

   $ 476,732      $ (476,732 ) (a)    $ —        $ —        $ —     

Accounts payable and accrued expenses

     116,855        —          116,855        —          116,855   

Accrued salaries, wages and payroll taxes

     33,447        —          33,447        —          33,447   

Accrued income taxes

     245,541        —          245,541        —          245,541   

Current portion of long-term debt

     799        —          799        —          799   

Deferred revenue and other current liabilities

     316,880        —          316,880        —          316,880   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     1,190,254        (476,732     713,522        —          713,522   

Long-term debt

     505,197        —          505,197        1,200,000   (b)      1,705,197   

Deferred tax liabilities and reserves for uncertain tax positions

     137,603        —          137,603        —          137,603   

Deferred revenue and other noncurrent liabilities

     130,210        (412 ) (a)      129,798        —          129,798   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     1,963,264        (477,144     1,486,120        1,200,000        2,686,120   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

STOCKHOLDERS’ EQUITY:

          

Common stock

     3,166        —          3,166        (405 ) (b)      2,761   

Additional paid-in capital

     773,783        —          773,783        (24,324 ) (b)      749,459   

Accumulated other comprehensive income

     (8,234     —          (8,234     —          (8,234

Retained earnings

     1,679,234        —          1,679,234        (1,475,271 ) (b)      203,963   

Less treasury shares, at cost

     (778,522     —          (778,522     —          (778,522
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     1,669,427        —          1,669,427        (1,500,000     169,427   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 3,632,691      $ (477,144   $ 3,155,547      $ (300,000   $ 2,855,547   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book value per share:

   $ 6.04            $ 0.72  (c) 

 

(a) Reflects the transfer of customer banking deposits to BofI in accordance with the P&A Transaction.
(b) Reflects the Repurchase of 40.5 million shares of the Company’s common stock at $37.00 per share, the maximum purchase price in the Offer, for an aggregate purchase price of $1.5 billion. Assumes the Financing consists of $300 million of cash on hand and $1.2 billion in borrowings under the 2015 Credit Facility. The Credit Facility is expected to have a term of 5 years. We may determine to substitute some or all of the borrowings under the 2015 Credit Facility with other incremental debt issued on or prior to the closing of the Offer to fund the Repurchase. Any other debt issuances may be on terms that differ from the 2015 Credit Facility, including interest that may be at rates higher than the assumed rate on the 2015 Credit Facility. We may determine to vary the mix of cash, borrowings and other incremental debt to fund the Repurchase at the time of the consummation thereof.
(c) Pro forma book value per share reflects pro forma stockholders’ equity at July 31, 2015 of $169.4 million divided by pro forma common shares outstanding at July 31, 2015 calculated as follows:

 

(shares in thousands)    Assumes $37.00
purchase price
    Assumes $32.25
purchase price
     

Shares issued at July 31, 2015, as reported

     316,628        316,628     

Less: Treasury shares at July 31, 2015

     (40,312     (40,312  
  

 

 

   

 

 

   

Shares outstanding at July 31, 2015

     276,316        276,316     

Less: Shares assumed Repurchased (see (b) above)

     (40,541     (46,512  
  

 

 

   

 

 

   

Pro Forma shares outstanding at July 31, 2015

     235,775        229,804     

Book value per share

   $ 0.72      $ 0.74     
On a pro forma basis after giving effect to the Transactions, fixed charges would have exceeded earnings by approximately $196 million for the three months ended July 31, 2015.
     As Reported     Pro Forma for the
Offer
     

Pretax income (loss) from continuing operations

   $ (187,109   $ (195,978  

Add: Fixed charges

     26,773        32,098     
  

 

 

   

 

 

   

Total earnings before income taxes and fixed charges

   $ (160,336   $ (163,880  
  

 

 

   

 

 

   

Ratio of earnings to fixed charges

     —          —