H&R Block Announces Tax Season Results Through March 15
Total reported retail client growth for the March 1-15 period was 8.2 percent, of which approximately 4.6 percent was related to ESP filers. On a year-to-date basis through March 15, total reported retail clients grew 3.3 percent of which 1 percent is estimated to be related to ESP filers and 1 percent is due to the additional leap year day.
The reported increase in net average retail fee for the March 1-15 period was 2.3 percent, but would have been approximately 5.8 percent without the impact of ESP filers. On a year-to-date basis, the reported increase in net average retail fee was 5.5 percent and would have been approximately 6.5 percent without ESP.
ESP filers are individuals who would not otherwise be required to file an income tax return, but who are filing in 2008 in order to be eligible to receive rebate checks under the ESP program. The company is offering special low fees to ESP filers, which affects calculations of average fees. In addition, determination of which clients are ESP filers is also subjective, which affects the precision of retail client growth percentages. The numbers set forth above reflect the company's best estimate of client growth and average fee adjusted for the impact of one-time ESP filers as well as the impact of leap year.
Digital clients served were down 4 percent in the March 1-15 period and down 6.5 percent year-to-date through March 15, representing a slight improvement from a decline of 6.8 percent for the year-to-date period ending February 29.
H&R Block plans to release interim results through March 31 for its U.S. tax operations on April 14, 2008 before the NYSE market open.
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4 billion in fiscal year 2007. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut(R) online and software solutions. The company also provides business services through RSM McGladrey and certain consumer financial services. 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)
-------------------------------------------------------
Period
-------------------------------------------------------
Feb Total YTD 2/29 YTD 3/15
11/1-1/31 (5) (5) 3/1-3/15 (6) (6)
--------- ---------- ---------- ------------ ----------
Net tax
preparation
fees: (1)
Fiscal year
2008
Company-
owned
operations $439,757 $690,811 $1,130,568 $188,660 $1,319,228
Franchise
operations 225,035 335,522 560,557 79,372 639,929
--------- ---------- ---------- ------------ ----------
$664,792 $1,026,333 $1,691,125 $268,032 $1,959,157
========= ========== ========== ============ ==========
Fiscal year
2007 (2)
Company-
owned
operations $424,770 $613,275 $1,038,045 $169,402 $1,207,447
Franchise
operations 218,894 298,496 517,390 73,014 590,404
--------- ---------- ---------- ------------ ----------
$643,664 $911,771 $1,555,435 $242,416 $1,797,851
========= ========== ========== ============ ==========
Percent
change
---------------------------------------------------------------------
Company-
owned
operations 3.5% 12.6% 8.9% 11.4% 9.3%
--------------------------------------------------------------------
Franchise
operations 2.8% 12.4% 8.3% 8.7% 8.4%
--------------------------------------------------------------------
Total retail
operations 3.3% 12.6% 8.7% 10.6% 9.0%
--------------------------------------------------------------------
Total clients
served: (3)
Fiscal year
2008
Company-
owned
operations 2,430 3,958 6,388 1,073 7,461
Franchise
operations 1,427 2,184 3,611 541 4,152
Lending
products
only 245 (157) 88 (2) 86
--------- ---------- ---------- ------------ ----------
Total
retail
offices 4,102 5,985 10,087 1,612 11,699
Digital tax
solutions 1,136 1,556 2,692 384 3,076
--------- ---------- ---------- ------------ ----------
5,238 7,541 12,779 1,996 14,775
========= ========== ========== ============ ==========
Fiscal year
2007 (2)
Company-
owned
operations 2,512 3,701 6,213 1,003 7,216
Franchise
operations 1,485 2,049 3,534 488 4,022
Lending
products
only 343 (261) 82 (3) 79
---------- ---------- ---------- ------------ ----------
Total
retail
offices 4,340 5,489 9,829 1,488 11,317
Digital tax
solutions 1,275 1,614 2,889 400 3,289
--------- ---------- ---------- ------------ ----------
5,615 7,103 12,718 1,888 14,606
========= ========== ========== ============ ==========
Percent
change
---------------------------------------------------------------------
Company-
owned
operations -3.3% 6.9% 2.8% 7.0% 3.4%
--------------------------------------------------------------------
Franchise
operations -3.9% 6.6% 2.2% 10.9% 3.2%
--------------------------------------------------------------------
Retail
operations
excluding
lending
products
only -3.5% 6.8% 2.6% 8.2% 3.3%
--------------------------------------------------------------------
Total retail
operations -5.5% 9.0% 2.6% 8.4% 3.4%
--------------------------------------------------------------------
Digital tax
solutions -10.9% -3.6% -6.8% -4.0% -6.5%
--------------------------------------------------------------------
Total -6.7% 6.2% 0.5% 5.7% 1.2%
Net average
fee - retail:
(4)
Fiscal year
2008
Company-
owned
operations $181.19 $175.02 $177.37 $176.60 $177.26
Franchise
operations 157.91 154.12 155.62 147.64 154.58
--------- ---------- ---------- ------------ ----------
$172.58 $167.59 $169.52 $166.91 $169.15
========= ========== ========== ============ ==========
Fiscal year
2007 (2)
Company-
owned
operations $169.47 $165.86 $167.32 $169.48 $167.62
Franchise
operations 147.42 146.08 146.65 150.19 147.07
--------- ---------- ---------- ------------ ----------
$161.27 $158.82 $159.82 $163.17 $160.27
========= ========== ========== ============ ==========
Percent
change
---------------------------------------------------------------------
Company-
owned
operations 6.9% 5.5% 6.0% 4.2% 5.8%
--------------------------------------------------------------------
Franchise
operations 7.1% 5.5% 6.1% -1.7% 5.1%
--------------------------------------------------------------------
Total retail
operations 7.0% 5.5% 6.1% 2.3% 5.5%
--------------------------------------------------------------------
(1)Gross tax preparation fees less coupons and discounts.
(2)Prior year numbers have not been reclassified between company-owned
and franchise offices for offices which commenced company-owned
operations during fiscal year 2008. Prior year numbers have been
reclassified between company-owned offices and Digital tax solutions
for certain products.
(3)Tax preparation clients for which revenue was earned and Emerald
Advance (EA) or Instant Money Advance Loan (IMAL) clients.
(4)Calculated as net tax preparation fees divided by retail tax
preparation clients served.
(5)Results are through 2/29/08 and 2/28/07 due to leap year.
(6)The additional day due to leap year represents approximately 71,000
company and 34,000 franchise clients served as of 3/15/08.
SOURCE: H&R Block Inc.
H&R Block Inc.
Media Relations:
Media Desk, 816-854-4287
or
Investor Relations:
Scott Dudley, 816-854-4505
scott.dudley@hrblock.com