H&R Block Announces Interim Tax Season Results
KANSAS CITY, Mo.--(BUSINESS WIRE)--March 29, 2007--H&R Block Inc. (NYSE: HRB) today reported tax season results for the interim period from Nov. 1, 2006, through March 15, 2007.
Total clients served (for both the company's retail operations and digital tax solutions business) reached 14.6 million, an increase of 467,000, or 3.3 percent, over the prior year period. Digital tax clients served advanced 14.1 percent over 2006 while office-based clients increased 0.5 percent.
"As we head toward the final weeks of tax season, H&R Block's expert tax professionals are ready to serve late-season filers," said Mark A. Ernst, chairman and chief executive officer.
H&R Block plans to release additional interim tax season results for its U.S. tax operations before the NYSE market opening on April 19 and 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.
H&R BLOCK
Preliminary U.S. Tax Operating Data
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(in thousands, except average fee and number of offices)
---------- --------- --------- -----------
February March YTD
---------- --------- --------- -----------
11/1-1/31 2/1-2/28 3/1-3/15 11/1-3/15
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Net tax preparation fees:
(1)
Fiscal year 2007
Company-owned
operations $424,770 $613,275 $169,402 $1,207,447
Franchise operations 218,894 298,496 73,014 590,404
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$643,664 $911,771 $242,416 $1,797,851
========== ========= ========= ===========
Fiscal year 2006 (2)
Company-owned
operations $376,419 $606,078 $164,702 $1,147,199
Franchise operations 190,535 282,127 68,080 540,742
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$566,954 $888,205 $232,782 $1,687,941
========== ========= ========= ===========
Percent change
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Company-owned
operations 12.8% 1.2% 2.9% 5.3%
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Franchise operations 14.9% 5.8% 7.2% 9.2%
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Total retail operations 13.5% 2.7% 4.1% 6.5%
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Total clients served: (3)
Fiscal year 2007
Company-owned
operations 2,729 3,535 1,000 7,264
Franchise operations 1,607 1,948 486 4,041
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Total retail offices 4,336 5,483 1,486 11,305
Digital tax solutions 1,279 1,620 403 3,302
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5,615 7,103 1,889 14,607
========== ========= ========= ===========
Fiscal year 2006 (2)
Company-owned
operations 2,390 3,854 1,030 7,274
Franchise operations 1,406 2,081 486 3,973
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Total retail offices 3,796 5,935 1,516 11,247
Digital tax solutions 1,157 1,362 374 2,893
---------- --------- --------- -----------
4,953 7,297 1,890 14,140
========== ========= ========= ===========
Percent change
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Company-owned
operations 14.2% -8.3% -2.9% -0.1%
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Franchise operations 14.3% -6.4% 0.0% 1.7%
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Total retail operations 14.2% -7.6% -2.0% 0.5%
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Digital tax solutions 10.5% 18.9% 7.8% 14.1%
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Total 13.4% -2.7% -0.1% 3.3%
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Net average fee - retail:
(4)
Fiscal year 2007
Company-owned
operations $169.47 $165.86 $169.48 $167.62
Franchise operations 147.42 146.08 150.19 147.07
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$161.27 $158.82 $163.17 $160.27
========== ========= ========= ===========
Fiscal year 2006 (2)
Company-owned
operations $157.48 $157.25 $159.84 $157.69
Franchise operations 135.51 135.54 140.18 136.10
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$149.35 $149.64 $153.54 $150.06
========== ========= ========= ===========
Percent change
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Company-owned
operations 7.6% 5.5% 6.0% 6.3%
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Franchise operations 8.8% 7.8% 7.1% 8.1%
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Total retail operations 8.0% 6.1% 6.3% 6.8%
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(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.