H&R Block Reports Growth in U.S. Tax Return Volume Through April 19; To Announce Fiscal 2018 Results on June 12, 2018
“Our goal this fiscal year was to continue improving our client trajectory, which we achieved, with growth in DIY and improved performance in Assisted,” said
The improvement in Assisted resulted from the company’s strong promotional offerings which included an enhanced Refund Advance no-interest loan, Free Federal 1040EZ offer, and Half Off promotion. Assisted returns declined 0.6% for fiscal 2018 which compares favorably to the 2.5% decline for fiscal year 2017. The company also reported an increase in net average charge, which was in line with expectations.
DIY online returns increased 10.4%, driving overall DIY growth of 7.9%. The increase was attributable to continued product improvements, enhanced partnerships, the H&R Block More Zero® promotion, and new self-employed offering. Additionally, net average charge increased due to favorable mix.
The aforementioned results are included in a table attached to this press release.
In conjunction with the announcement of fiscal 2018 results, the company will host a conference call at
U.S./
Conference ID: 3975526
The call 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
About
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, effective tax rate, 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
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 |
| U.S. TAX OPERATING DATA | |||||||||||
| Fiscal Year-to-Date | |||||||||||
| April 19, | |||||||||||
| 2018 | 2017 | % Change | |||||||||
| Tax Returns Prepared: (in 000s) (1) (2) | |||||||||||
| Company-Owned Operations | 8,024 | 8,102 | (1.0)% | ||||||||
| Franchise Operations | 3,735 | 3,730 | 0.1% | ||||||||
| Total H&R Block Assisted | 11,759 | 11,832 | (0.6)% | ||||||||
| Desktop | 2,022 | 1,992 | 1.5% | ||||||||
| Online | 5,482 | 4,964 | 10.4% | ||||||||
| Total H&R Block DIY | 7,504 | 6,956 | 7.9% | ||||||||
| IRS Free File | 610 | 584 | 4.4% | ||||||||
| Total H&R Block U.S. Returns | 19,873 | 19,372 | 2.6% | ||||||||
| Net Average Charge: (3) | |||||||||||
| Company-Owned Operations | $ | 241.71 | $ | 237.59 | 1.7% | ||||||
| Franchise Operations (4) | 211.44 | 206.97 | 2.2% | ||||||||
| DIY Tax Software | 32.17 | 31.30 | 2.8% | ||||||||
| (1) | An assisted tax return is defined as a current or prior year individual tax return that has been accepted and paid for by the client. Also included are business returns, which account for less than 1% of assisted returns. A DIY return is defined as a return that has been electronically filed and accepted by the IRS. Also included are online returns paid and printed |
| (2) | Amounts have been reclassified between company-owned and franchise for offices which were refranchised or repurchased by the company during the year. |
| (3) | Net average charge is calculated as tax preparation fees divided by tax returns prepared. For DIY, net average charge excludes IRS Free File. |
| (4) | Net average charge related to H&R Block Franchise Operations represents tax preparation fees collected by H&R Block franchisees divided by tax returns prepared in franchise offices. H&R Block will recognize a portion of franchise revenues as franchise royalties based on the terms of franchise agreements. |
Source: HRB Tax Group, Inc.