Document


 

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): December 6, 2017

H&R BLOCK, INC.
(Exact name of registrant as specified in charter)
MISSOURI
1-06089
44-0607856
(State or other jurisdiction of
(Commission File Number)
(I.R.S. Employer
incorporation or organization)
 
Identification No.)

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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
 








Item 2.02.    Results of Operations and Financial Condition.
On December 6, 2017, the Company issued a press release regarding the Company’s results of operations for the fiscal quarter ended October 31, 2017. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number    Description
99.1    Press Release Issued December 6, 2017






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:
December 6, 2017
By:
/s/ Scott W. Andreasen
 
 
 
Scott W. Andreasen
 
 
 
Vice President and Secretary



Exhibit

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Exhibit 99.1
News Release
For Immediate Release: December 6, 2017
H&R Block Announces Fiscal 2018 Second Quarter Results In Line with Expectations
KANSAS CITY, Mo. - H&R Block, Inc. (NYSE: HRB) today released its financial results for the fiscal 2018 second quarter ended October 31, 2017. The company normally reports a fiscal second quarter loss due to the seasonality of its tax business. The fiscal second quarter typically represents less than 5% of annual revenues and approximately 15% of annual expenses.
Highlights1 
Fiscal second quarter financial results were in line with expectations
Revenues increased $10 million, or 7%, to $141 million primarily due to increased international tax preparation fees, positive fluctuations in foreign exchange rates, and favorable preseason results in the U.S.
Loss per share from continuing operations increased $0.04, from $0.67 to $0.71, due to both an increase in net loss from continuing operations and a year-over-year reduction in average shares outstanding, which negatively impacts those quarters with a loss
The company expects continued improvement in client trajectory in fiscal 2018, leading to modest revenue growth and margins consistent with the prior year

"During my first two months at H&R Block, I have been encouraged by the hard work of our associates and franchisees and their dedication to delivering for our clients and shareholders," said Jeff Jones, H&R Block's president and chief executive officer. "I'm confident in our plans for the upcoming tax season, which are centered on operational excellence, new products and partnerships, and compelling marketing and promotions. We're excited for the tax season to begin."
Fiscal 2018 Second Quarter Results From Continuing Operations
(in millions, except EPS)
 
Fiscal Year 2018
 
Fiscal Year 2017
Revenue
 
$
141

 
$
131

Pretax Loss
 
$
(236
)
 
$
(228
)
Net Loss
 
$
(148
)
 
$
(143
)
Weighted-Avg. Shares - Diluted
 
209.1

 
215.5

EPS2
 
$
(0.71
)
 
$
(0.67
)
EBITDA3
 
$
(170
)
 
$
(160
)
 
 
 
 
 
Key Financial Metrics
Total revenues increased $10 million, or 7%, to $141 million primarily due to increased international tax preparation fees, fluctuations in foreign exchange rates, and favorable preseason results in both the Assisted and DIY categories in the U.S.

1 
All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
2 All per share amounts are based on fully diluted shares at the end of the corresponding period.
3 The company reports non-GAAP financial measures of performance, including earnings before interest, tax, depreciation, and amortization (EBITDA), which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the company. See "About Non-GAAP Financial Information" below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).






Total operating expenses increased $18 million, or 5%, to $357 million primarily due to increases in compensation costs, along with increases in occupancy costs related to prior year acquisitions of franchisees.
Pretax loss increased $8 million to $236 million.
Loss per share from continuing operations increased $0.04, from $0.67 to $0.71. Approximately half of the increase was due to the reduction in share count, which will be accretive on a full year basis.

"Seasonal expenses increased in the second quarter, but we expect to continue last year's improved financial performance this fiscal year, targeting modest revenue growth and margins consistent with the prior year," said Tony Bowen, H&R Block's chief financial officer. "We are focused on executing our operational plans for the upcoming tax season to deliver these results."
Dividends
As previously announced, a quarterly cash dividend of $0.24 per share is payable on January 2, 2018 to shareholders of record as of December 4, 2017. H&R Block has paid quarterly dividends consecutively since the company went public in 1962.
Discontinued Operations
During the fiscal quarter, there were no material changes in estimated contingent losses related to Sand Canyon Corporation.  For additional information, please refer to disclosures in the company’s reports on Forms 10-K, 10-Q, and other filings with the Securities and Exchange Commission.
Conference Call
Discussion of the fiscal 2018 second quarter results, future outlook, and a general business update will occur during the company’s previously announced fiscal second quarter earnings conference call for analysts, institutional investors, and shareholders. The call is scheduled for 8:30 a.m. Eastern time on December 6, 2017. To access the call, please dial the number below approximately 10 minutes prior to the scheduled starting time:
U.S./Canada (855) 702-5257 or International (213) 358-0868
Conference ID: 89668795
The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and public. The link to the webcast can be accessed directly at http://investors.hrblock.com.
A replay of the call will be available beginning at 11:30 a.m. Eastern time on December 6, 2017, and continuing until January 8, 2018, by dialing (855) 859-2056 (U.S./Canada) or (404) 537-3406 (International). The conference ID is 89668795. The webcast will be available for replay beginning on December 7, 2017 at http://investors.hrblock.com.
About H&R Block
H&R Block, Inc. (NYSE: HRB) is a global consumer tax services provider. Tax return preparation services are provided by professional tax preparers in approximately 12,000 company-owned and





franchise retail tax offices worldwide, and through H&R Block tax software products for the DIY consumer. H&R Block also offers adjacent Tax Plus products and services. In fiscal 2017, H&R Block had annual revenues of over $3 billion with 23 million tax returns prepared worldwide. For more information, visit the H&R Block Newsroom.
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 titled "Non-GAAP Financial Information."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond the company's control, that are described in our Annual Report on Form 10-K for the fiscal year ended April 30, 2017 in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at http://investors.hrblock.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
For Further Information
Investor Relations:    Colby Brown, (816) 854-4559, colby.brown@hrblock.com
Media Relations:    Susan Waldron, (816) 854-5522, susan.waldron@hrblock.com


TABLES FOLLOW





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CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
(unaudited, in 000s - except per share amounts)
 
 
 
Three months ended October 31,
 
Six months ended October 31,
 
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
REVENUES:
 
 
 
 
 
 
 
 
Service revenues
 
$
127,923

 
$
118,940

 
$
252,618

 
$
231,324

Royalty, product and other revenues
 
12,931

 
12,392

 
26,038

 
25,193

 
 
140,854

 
131,332

 
278,656

 
256,517

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
Cost of revenues:
 
 
 
 
 
 
 
 
Compensation and benefits
 
65,884

 
57,728

 
121,476

 
110,083

Occupancy and equipment
 
105,304

 
99,067

 
203,771

 
193,492

Provision for bad debt
 
1,779

 
(131
)
 
4,238

 
1,286

Depreciation and amortization
 
29,729

 
29,911

 
58,345

 
57,378

Other
 
37,323

 
39,127

 
79,904

 
74,549

 
 
240,019

 
225,702

 
467,734

 
436,788

Selling, general and administrative:
 
 
 
 
 
 
 
 
Marketing and advertising
 
11,562

 
12,001

 
18,666

 
19,562

Compensation and benefits
 
62,138

 
58,293

 
118,511

 
115,815

Depreciation and amortization
 
15,063

 
15,839

 
30,045

 
29,654

Other selling, general and administrative
 
28,083

 
27,519

 
44,873

 
47,444

 
 
116,846

 
113,652

 
212,095

 
212,475

Total operating expenses
 
356,865

 
339,354

 
679,829

 
649,263

 
 
 
 
 
 
 
 
 
Other income (expense), net
 
1,011

 
2,173

 
2,231

 
4,814

Interest expense on borrowings
 
(21,265
)
 
(22,620
)
 
(42,542
)
 
(44,086
)
Loss from continuing operations before income tax benefit
 
(236,265
)
 
(228,469
)
 
(441,484
)
 
(432,018
)
Income tax benefit
 
(87,953
)
 
(85,054
)
 
(165,354
)
 
(167,577
)
Net loss from continuing operations
 
(148,312
)
 
(143,415
)
 
(276,130
)
 
(264,441
)
Net loss from discontinued operations
 
(5,254
)
 
(2,805
)
 
(8,003
)
 
(5,452
)
NET LOSS
 
$
(153,566
)
 
$
(146,220
)
 
$
(284,133
)
 
$
(269,893
)
 
 
 
 
 
 
 
 
 
BASIC AND DILUTED LOSS PER SHARE:
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.71
)
 
$
(0.67
)
 
$
(1.33
)
 
$
(1.21
)
Discontinued operations
 
(0.03
)
 
(0.01
)
 
(0.03
)
 
(0.03
)
Consolidated
 
$
(0.74
)
 
$
(0.68
)
 
$
(1.36
)
 
$
(1.24
)
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE BASIC AND DILUTED SHARES
 
209,065

 
215,535

 
208,500

 
218,009

 
 
 
 
 
 
 
 
 






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CONSOLIDATED BALANCE SHEETS
 
(unaudited, in 000s - except per share data)
 
As of
 
October 31, 2017
 
October 31, 2016
 
April 30, 2017
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Cash and cash equivalents
 
$
180,997

 
$
232,510

 
$
1,011,331

Cash and cash equivalents - restricted
 
100,665

 
109,538

 
106,208

Receivables, net
 
77,750

 
104,764

 
162,775

Prepaid expenses and other current assets
 
85,204

 
73,555

 
65,725

Mortgage loans held for sale, net
 

 
183,107

 

Total current assets
 
444,616

 
703,474

 
1,346,039

Property and equipment, net
 
262,226

 
293,060

 
263,827

Intangible assets, net
 
406,440

 
433,135

 
409,364

Goodwill
 
493,059

 
477,360

 
491,207

Deferred tax assets and income taxes receivable
 
9,205

 
81,755

 
83,728

Other noncurrent assets
 
101,015

 
93,394

 
99,943

Total assets
 
$
1,716,561

 
$
2,082,178

 
$
2,694,108

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
LIABILITIES:
 
 
 
 
 
 
Accounts payable and accrued expenses
 
$
114,875

 
$
139,808

 
$
217,028

Accrued salaries, wages and payroll taxes
 
42,897

 
40,754

 
183,856

Accrued income taxes and reserves for uncertain tax positions
 
43,879

 
68,832

 
348,199

Current portion of long-term debt
 
1,004

 
903

 
981

Deferred revenue and other current liabilities
 
190,522

 
184,560

 
189,216

Total current liabilities
 
393,177

 
434,857

 
939,280

Long-term debt and line of credit borrowings
 
1,493,828

 
1,967,206

 
1,493,017

Reserves for uncertain tax positions
 
138,024

 
117,553

 
159,085

Deferred revenue and other noncurrent liabilities
 
104,305

 
120,033

 
163,609

Total liabilities
 
2,129,334

 
2,639,649

 
2,754,991

COMMITMENTS AND CONTINGENCIES
 
 
 
 
 
 
STOCKHOLDERS’ EQUITY:
 
 
 
 
 
 
Common stock, no par, stated value $.01 per share
 
2,462

 
2,506

 
2,462

Additional paid-in capital
 
753,423

 
751,229

 
754,912

Accumulated other comprehensive loss
 
(14,222
)
 
(17,122
)
 
(15,299
)
Retained deficit
 
(433,556
)
 
(538,242
)
 
(48,206
)
Less treasury shares, at cost
 
(720,880
)
 
(755,842
)
 
(754,752
)
Total stockholders' equity (deficiency)
 
(412,773
)
 
(557,471
)
 
(60,883
)
Total liabilities and stockholders' equity
 
$
1,716,561

 
$
2,082,178

 
$
2,694,108

 
 
 
 
 
 
 






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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(unaudited, in 000s)
 
Six months ended October 31,
 
2017
 
2016
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
Net loss
 
$
(284,133
)
 
$
(269,893
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
Depreciation and amortization
 
88,390

 
87,032

Provision for bad debt
 
4,238

 
1,286

Deferred taxes
 
58,634

 
6,489

Stock-based compensation
 
11,627

 
12,472

Changes in assets and liabilities, net of acquisitions:
 
 
 
 
Receivables
 
77,958

 
48,653

Prepaid expenses and other current assets
 
(19,283
)
 
(7,386
)
Other noncurrent assets
 
8,984

 
7,713

Accounts payable and accrued expenses
 
(85,846
)
 
(99,378
)
Accrued salaries, wages and payroll taxes
 
(141,491
)
 
(120,672
)
Deferred revenue and other current liabilities
 
3,775

 
(46,531
)
Deferred revenue and other noncurrent liabilities
 
(60,857
)
 
(52,548
)
Income tax receivables, accrued income taxes and income tax reserves
 
(296,023
)
 
(282,234
)
Other, net
 
(14,430
)
 
(5,379
)
Net cash used in operating activities
 
(648,457
)
 
(720,376
)
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
Principal payments and sales of mortgage loans and real estate owned, net
 

 
19,009

Capital expenditures
 
(56,750
)
 
(44,918
)
Payments made for business acquisitions, net of cash acquired
 
(27,522
)
 
(36,151
)
Franchise loans funded
 
(10,939
)
 
(10,171
)
Payments received on franchise loans
 
10,322

 
14,263

Other, net
 
5,474

 
2,177

Net cash used in investing activities
 
(79,415
)
 
(55,791
)
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
Repayments of line of credit borrowings
 

 
(50,000
)
Proceeds from line of credit borrowings
 

 
525,000

Dividends paid
 
(100,082
)
 
(95,971
)
Repurchase of common stock, including shares surrendered
 
(7,581
)
 
(215,511
)
Proceeds from exercise of stock options
 
27,522

 
1,630

Other, net
 
(26,717
)
 
(43,734
)
Net cash provided by (used in) financing activities
 
(106,858
)
 
121,414

 
 
 
 
 
Effects of exchange rate changes on cash
 
(1,147
)
 
(4,110
)
 
 
 
 
 
Net decrease in cash, cash equivalents and restricted cash
 
(835,877
)
 
(658,863
)
Cash, cash equivalents and restricted cash, beginning of period
 
1,117,539

 
1,000,911

Cash, cash equivalents and restricted cash, end of period
 
$
281,662

 
$
342,048

 
 
 
 
 
SUPPLEMENTARY CASH FLOW DATA:
 
 
 
 
Income taxes paid, net of refunds received
 
$
76,451

 
$
112,339

Interest paid on borrowings
 
39,902

 
40,670

Accrued additions to property and equipment
 
3,874

 
12,920

Accrued purchase of common stock
 

 
7,143

 
 
 
 
 
Note: Effective May 1, 2017, we adopted the provisions of Accounting Standards Update No. 2016-18,"Restricted Cash (a consensus of the FASB Emerging Issues Task Force)," (ASU 2016-18) on a retrospective basis. Accordingly, the statements of cash flows explain the change in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents per ASU 2016-18. Amounts for prior periods have been retrospectively adjusted to conform to the current period presentation.





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FINANCIAL RESULTS
 
(unaudited, in 000s - except per share amounts)
 
 
 
Three months ended October 31,
 
Six months ended October 31,
 
 
2017
 
2016
 
2017
 
2016
REVENUES:
 
 
 
 
 
 
 
 
U.S. assisted tax preparation fees
 
$
36,665

 
$
35,339

 
$
66,628

 
$
60,768

U.S. royalties
 
7,008

 
6,828

 
13,975

 
13,353

U.S. DIY tax preparation fees
 
4,263

 
3,089

 
7,489

 
6,003

International revenues
 
47,934

 
43,539

 
88,351

 
82,414

Revenues from Refund Transfers
 
1,135

 
757

 
3,951

 
3,991

Revenues from Emerald Card®
 
9,180

 
8,644

 
24,167

 
21,709

Revenues from Peace of Mind® Extended Service Plan
 
24,585

 
22,689

 
56,528

 
49,720

Interest and fee income on Emerald Advance
 
594

 
655

 
1,258

 
1,459

Other
 
9,490

 
9,792

 
16,309

 
17,100

 
 
140,854

 
131,332

 
278,656

 
256,517

Compensation and benefits:
 
 
 
 
 
 
 
 
Field wages
 
57,716

 
50,096

 
105,839

 
95,139

Other wages
 
46,723

 
42,207

 
89,920

 
84,307

Benefits and other compensation
 
23,583

 
23,718

 
44,228

 
46,452

 
 
128,022

 
116,021

 
239,987

 
225,898

Occupancy and equipment
 
105,405

 
99,037

 
203,604

 
193,408

Marketing and advertising
 
11,562

 
12,001

 
18,666

 
19,562

Depreciation and amortization
 
44,792

 
45,750

 
88,390

 
87,032

Provision for bad debt
 
1,779

 
(131
)
 
4,238

 
1,286

Supplies
 
4,368

 
4,937

 
7,102

 
7,014

Other
 
60,937

 
61,739

 
117,842

 
115,063

Total operating expenses
 
356,865

 
339,354

 
679,829

 
649,263

 
 
 
 
 
 
 
 
 
Other income (expense), net
 
1,011

 
2,173

 
2,231

 
4,814

Interest expense on borrowings
 
(21,265
)
 
(22,620
)
 
(42,542
)
 
(44,086
)
Pretax loss
 
(236,265
)
 
(228,469
)
 
(441,484
)
 
(432,018
)
Income tax benefit
 
(87,953
)
 
(85,054
)
 
(165,354
)
 
(167,577
)
Net loss from continuing operations
 
(148,312
)
 
(143,415
)
 
(276,130
)
 
(264,441
)
Net loss from discontinued operations
 
(5,254
)
 
(2,805
)
 
(8,003
)
 
(5,452
)
NET LOSS
 
$
(153,566
)
 
$
(146,220
)
 
$
(284,133
)
 
$
(269,893
)
 
 
 
 
 
 
 
 
 
BASIC AND DILUTED LOSS PER SHARE:
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.71
)
 
$
(0.67
)
 
$
(1.33
)
 
$
(1.21
)
Discontinued operations
 
(0.03
)
 
(0.01
)
 
(0.03
)
 
(0.03
)
Consolidated
 
$
(0.74
)
 
$
(0.68
)
 
$
(1.36
)
 
$
(1.24
)
 
 
 
 
 
 
 
 
 
Weighted average basic and diluted shares
 
209,065

 
215,535

 
208,500

 
218,009

 
 
 
 
 
 
 
 
 
EBITDA from continuing operations (1)
 
$
(170,208
)
 
$
(160,099
)
 
$
(310,552
)
 
$
(300,900
)
 
 
 
 
 
 
 
 
 
(1) 
See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures.






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Three months ended October 31,
 
Six months ended October 31,
NON-GAAP FINANCIAL MEASURE - EBITDA
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Net loss - as reported
 
$
(153,566
)
 
$
(146,220
)
 
$
(284,133
)
 
$
(269,893
)
Discontinued operations, net
 
5,254

 
2,805

 
8,003

 
5,452

Net loss from continuing operations - as reported
 
(148,312
)
 
(143,415
)
 
(276,130
)
 
(264,441
)
Add back:
 
 
 
 
 
 
 
 
Income taxes of continuing operations
 
(87,953
)
 
(85,054
)
 
(165,354
)
 
(167,577
)
Interest expense of continuing operations
 
21,265

 
22,620

 
42,542

 
44,086

Depreciation and amortization of continuing operations
 
44,792

 
45,750

 
88,390

 
87,032

 
 
(21,896
)
 
(16,684
)
 
(34,422
)
 
(36,459
)
 
 
 
 
 
 
 
 
 
EBITDA from continuing operations
 
$
(170,208
)
 
$
(160,099
)
 
$
(310,552
)
 
$
(300,900
)
 
 
 
 
 
 
 
 
 
 
 
Three months ended October 31,
 
Six months ended October 31,
Supplemental Information
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Stock-based compensation expense:
 
 
 
 
 
 
 
 
Pretax
 
$
6,811

 
$
6,931

 
$
11,627

 
$
12,472

After-tax
 
4,402

 
4,467

 
7,525

 
7,946

Amortization of intangible assets:
 
 
 
 
 
 
 
 
Pretax
 
$
19,438

 
$
20,051

 
$
38,673

 
$
38,037

After-tax
 
12,557

 
12,940

 
25,029

 
24,233

 
 
 
 
 
 
 
 
 
NON-GAAP FINANCIAL INFORMATION
The accompanying press release contains non-GAAP financial measures. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.
We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business.
We may consider whether significant items that arise in the future should be excluded from our non-GAAP financial measures.
We measure the performance of our business using a variety of metrics, including EBITDA from continuing operations. We also use EBITDA from continuing operations and pretax income of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.