H&R Block Announces Tax Season Results Through Feb. 15
Total retail returns prepared year-to-date fell 8.2 percent, while the net average retail fee per tax return increased 1.9 percent. Total digital returns prepared by H&R Block (consisting of H&R Block At Home(TM) online and desktop software products, excluding Free File Alliance returns) were down 1.8 percent. Total online return growth of 3.1 percent was more than offset by a 7.6 percent decline in software-based returns. Total digital returns including the Free File Alliance fell 1.4 percent.
In light of the foregoing preliminary tax season results, the company's previously announced guidance for fiscal 2010 will not be reached.
"We believe industry filings are down significantly due to the recession and sustained, high levels of unemployment," said Russ Smyth, president and chief executive officer of H&R Block. "The weak economic conditions have also contributed to a greater shift to do-it-yourself tax preparation methods among first-half clients. We still have millions of clients to serve in the second-half of the tax season, which we are aggressively targeting," added Mr. Smyth.
Additional commentary will be available when the company reports fiscal 2010 third quarter financial results on Monday, March 8, after the New York Stock Exchange market closing.
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 100,000 highly trained tax professionals. The Company provides tax return preparation services in person, through H&R Block At Home(TM) online and desktop software products, and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
(in thousands,
except net YTD YTD % YTD YTD %
average fee) 1/31/10 1/31/09 Change 2/15/10 2/15/09 Change
--------- --------- ----- ----------- ----------- ----
Total returns
prepared: (1)
Company-owned
operations 2,292 2,467 -7.1% 4,402 4,854 -9.3%
Franchise
operations 1,347 1,451 -7.2% 2,638 2,815 -6.3%
--------- --------- ----- ----------- ----------- ----
Total retail
operations 3,639 3,918 -7.1% 7,040 7,669 -8.2%
--------- --------- ----- ----------- ----------- ----
Digital
software 635 780 -18.6% 1,138 1,231 -7.6%
Digital online 719 643 11.8% 1,469 1,425 3.1%
--------- --------- ----- ----------- ----------- ----
Sub-total 1,354 1,423 -4.8% 2,607 2,656 -1.8%
--------- --------- ----- ----------- ----------- ----
Digital Free
File Alliance 201 178 12.9% 412 406 1.5%
--------- --------- ----- ----------- ----------- ----
Total
digital tax
solutions 1,555 1,601 -2.9% 3,019 3,062 -1.4%
--------- --------- ----- ----------- ----------- ----
5,194 5,519 -5.9% 10,059 10,731 -6.3%
========= ========= ===== =========== =========== ====
Net tax
preparation fees
- retail: (2)
Company-owned
operations $ 469,911 $ 498,470 -5.7% $ 876,271 $ 953,282 -8.1%
Franchise
operations 244,184 251,818 -3.0% 463,598 478,051 -3.0%
--------- --------- ----- ----------- ----------- ----
$ 714,095 $ 750,288 -4.8% $ 1,339,869 $ 1,431,333 -6.4%
========= ========= ===== =========== =========== ====
Net average fee -
retail: (1,3)
Company-owned
operations $ 205.06 $ 202.15 1.4% $ 199.06 $ 196.56 1.3%
Franchise
operations 181.20 173.60 4.4% 175.70 169.85 3.4%
--------- --------- ----- ----------- ----------- ----
$ 196.23 $ 191.58 2.4% $ 190.31 $ 186.75 1.9%
========= ========= ===== =========== =========== ====
Same-Office
returns prepared:
(1,4)
Company-owned
operations 2,249 2,335 -3.7% 4,339 4,606 -5.8%
Franchise
operations 1,292 1,376 -6.1% 2,530 2,672 -5.3%
--------- --------- ----- ----------- ----------- ----
Total retail
operations 3,541 3,711 -4.6% 6,869 7,278 -5.6%
========= ========= ===== =========== =========== ====
Same-Office tax
preparation fees:
(1,4)
Company-owned
operations $ 466,519 $ 482,530 -3.3% $ 876,677 $ 925,252 -5.2%
Franchise
operations 235,255 241,324 -2.5% 451,161 461,215 -2.2%
--------- --------- ----- ----------- ----------- ----
Total retail
operations $ 701,774 $ 723,854 -3.1% $ 1,327,838 $ 1,386,467 -4.2%
========= ========= ===== =========== =========== ====
(1) Prior year numbers have been reclassified between company-owned and
franchise operations for offices which were refranchised during either
year.
(2) Amounts include gross tax preparation fees less coupons and discounts.
(3) Amounts are calculated as net retail tax preparation fees divided by
retail tax returns.
(4) Same-office returns represent returns prepared at 6,997 company and
4,160 franchise offices open in both fiscal year 2010 and fiscal year
2009.
For Further Information Investor Relations: Derek Drysdale 816-854-4513 Email Contact Media Relations: Gene King 816-854-4672 Email Contact
SOURCE: H & R Block
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