H&R Block Announces Interim Tax Season Results
KANSAS CITY, Mo.--(BUSINESS WIRE)--March 30, 2006--H&R Block Inc. (NYSE:HRB) today reported tax season results for the interim period from March 1 to March 15 showing an 8.6 percent increase in total clients served over the comparable prior-year period. Tax preparation and related fees at H&R Block's retail operations increased 7.9 percent.
For the period from Jan. 1 to March 15, tax preparation and related fees increased 2.8 percent over the same period of last year to $1.7 billion, while the average fee per client served rose 6.3 percent to $154.24. Total clients served by the company's retail operations and digital tax solutions business was up 0.3 percent to 14.0 million.
"We saw notable strength in both our retail and digital businesses during the first half of March," said Mark A. Ernst, chairman and chief executive officer. "Client demand for H&R Block's tax services and products continues to grow as we approach the last weeks of the tax filing season."
H&R Block plans to release additional interim tax season results for its U.S. tax operations before the NYSE market opening on April 18 and May 10.
About H&R Block
H&R Block Inc. (NYSE:HRB) is a leading provider of tax, financial, mortgage, 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 $4.4 billion in fiscal year 2005 from operations in four principal business segments: tax preparation and advice via in-office, online and software solutions; investment and financial advisory services; retail and wholesale mortgage services; and tax/accounting/business consulting services for mid-sized businesses. Headquartered in Kansas City, Mo., H&R Block markets its services and products under three leading brands -- H&R Block, Option One and RSM McGladrey. For more information, visit our Online Press Center at www.hrblock.com.
H&R BLOCK
Preliminary U.S. Tax Operating Data
----------------------------------------------------------------------
(in thousands, except average fee and number of offices)
January February March YTD
--------- --------- --------- -----------
1/1-1/31 2/1-2/28 3/1-3/15 1/1-3/15
--------- --------- --------- -----------
Tax preparation & related
fees:
Fiscal year 2006
Company-owned operations $379,959 $627,020 $173,796 $1,180,775
Franchise operations 191,610 288,406 70,145 550,161
--------- --------- --------- -----------
$571,569 $915,426 $243,941 $1,730,936
========= ========= ========= ===========
Fiscal year 2005(1)
Company-owned operations $367,294 $621,831 $160,503 $1,149,628
Franchise operations 183,556 284,961 65,477 533,994
--------- --------- --------- -----------
$550,850 $906,792 $225,980 $1,683,622
========= ========= ========= ===========
Percent change
Company-owned operations 3.4% 0.8% 8.3% 2.7%
Franchise operations 4.4% 1.2% 7.1% 3.0%
Total retail operations 3.8% 1.0% 7.9% 2.8%
Total clients served:
Fiscal year 2006
Company-owned operations 2,372 3,852 1,029 7,253
Franchise operations 1,398 2,084 487 3,969
--------- --------- --------- -----------
Total retail operations 3,770 5,936 1,516 11,222
Digital tax solutions(2) 1,143 1,294 358 2,795
--------- --------- --------- -----------
4,913 7,230 1,874 14,017
========= ========= ========= ===========
Fiscal year 2005(1)
Company-owned operations 2,450 4,093 1,020 7,563
Franchise operations 1,403 2,160 479 4,042
--------- --------- --------- -----------
Total retail operations 3,853 6,253 1,499 11,605
Digital tax solutions(2) 1,129 1,016 226 2,371
--------- --------- --------- -----------
4,982 7,269 1,725 13,976
========= ========= ========= ===========
Percent change
Company-owned operations -3.2% -5.9% 0.9% -4.1%
Franchise operations -0.4% -3.5% 1.7% -1.8%
Total retail operations -2.2% -5.1% 1.1% -3.3%
Digital tax solutions(2) 1.2% 27.4% 58.4% 17.9%
Total -1.4% -0.5% 8.6% 0.3%
Total retail day-to-day(3) -10.7% 0.1% 7.4% -3.0%
Average fee per client
served:(4)
Fiscal year 2006
Company-owned operations $160.19 $162.78 $168.90 $162.80
Franchise operations 137.06 138.39 144.03 138.61
--------- --------- --------- -----------
$151.61 $154.22 $160.91 $154.24
========= ========= ========= ===========
Fiscal year 2005(1)
Company-owned operations $149.92 $151.93 $157.36 $152.01
Franchise operations 130.83 131.93 136.70 132.11
--------- --------- --------- -----------
$142.97 $145.02 $150.75 $145.08
========= ========= ========= ===========
Percent change
Company-owned operations 6.8% 7.1% 7.3% 7.1%
Franchise operations 4.8% 4.9% 5.4% 4.9%
Total retail operations 6.0% 6.3% 6.7% 6.3%
Offices: FY 2006 FY 2005
--------- ---------
Company-owned offices 6,387 5,811 9.9%
Company-owned shared office
locations(5) 1,473 1,296 13.7%
--------- ---------
Total company-owned
offices 7,860 7,107 10.6%
--------- ---------
Franchise offices 3,703 3,528 5.0%
Franchise shared office
locations(5) 602 526 14.4%
--------- ---------
Total franchise
offices 4,305 4,054 6.2%
--------- ---------
12,165 11,161 9.0%
========= =========
(1) Prior year numbers have been reclassified between company-owned
and franchise operations for offices which commenced company-owned
operations during fiscal year 2006.
(2) Includes federal Taxcut software units sold, online completed and
paid federal returns and online state returns only when no payment
was made for a federal return.
(3) Calculated as the % difference between current year actuals and
day-to-day adjusted fiscal year 2005.
(4) Calculated as gross tax preparation and related fees divided by
clients served.
(5) Shared office locations include offices located within Wal-Mart,
Sears and other third-party businesses.
CONTACT: H&R Block Inc.
Media Relations:
Nick Iammartino, 816-932-4835
nick.iammartino@hrblock.com
or
Investor Relations:
Scott Dudley, 816-932-8342
scott.dudley@hrblock.com
SOURCE: H&R Block Inc.