Investor Relations


Press Release Details

H&R Block Reports Interim Tax Season Data Through March 15

April 2, 2002
KANSAS CITY, Mo., Apr 2, 2002 /PRNewswire-FirstCall via COMTEX/ --

Re-Affirms FY02 Earnings Guidance

H&R Block Inc. (NYSE: HRB) said its tax businesses have already served more than 13 million clients this year, reporting interim results for the current tax season. The interim results indicate that the company remains on track to meet expectations set by its previously announced guidance for revenue and earnings.

For the current tax season through March 15, H&R Block reported $1.4 billion in fees from tax preparation and related services, up 12.1 percent compared to the same period last year. Total clients served increased 3.6 percent to 13.2 million. The average fee per client served rose 9.1 percent to $117.03.

"We're pleased that our results through mid-March remain on track, but we also recognize the significance of the final four weeks of tax season yet to be reported. Current filing trends suggest that our tax businesses will meet their previously announced revenue and earnings goals for the full year," said Mark A. Ernst, president and chief executive officer.

On April 15, the company intends to release its next interim report on results for the tax season through March 31. On May 1, the company plans to announce preliminary results for the tax season through April 15. Fiscal 2002 fourth quarter and year-end results are scheduled to be announced June 12.

Through March 15, tax professionals in H&R Block offices prepared 12 million returns, an increase of 4.4 percent. During this period, H&R Block filed 11.9 million federal returns electronically, representing a 7.1 percent increase over the prior year. So far this tax season, 90.2 percent of returns processed by the company were filed electronically.

When H&R Block announced its third quarter earnings Feb. 27, the company said it expected its fiscal year earnings to be in the range of $2.20-to-$2.30 per share, an increase of 45-to-50 percent over last year's earnings. The company said it expected overall revenue growth to be within a target range of 10-to-15 percent for the year.

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements based upon current information and expectations. Such statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that could cause actual results to differ materially from what is expressed, implied or forecast in such forward-looking statements. Such differences could be caused by a number of factors, including, but not limited to, the uncertainties that the company will achieve its revenue, earnings and earnings per share goals for fiscal year 2002, that the level of growth experienced in U.S. tax operations through March 15, 2002 will continue throughout the remainder of the tax season and fiscal year, and that actual financial results for fiscal year 2002 will fall within the guidance provided by the company; changes in economic, political or regulatory environments; and risks described from time to time in reports and registration statements filed by H&R Block Inc. and its subsidiaries with the Securities and Exchange Commission. Readers should take these factors into account in evaluating such forward-looking statements.

About H&R Block

H&R Block Inc. is a diversified company with subsidiaries providing a range of financial products and services. In 2001, H&R Block served 19.2 million taxpayers -- more than any tax or accounting firm -- through its more than 10,400 offices located in the United States, Canada, Australia and the United Kingdom. H&R Block served another 2.3 million tax clients through its award-winning TaxCut(R) software program and through its online tax preparation services. Investment services and securities products are offered through H&R Block Financial Advisors Inc., member NYSE, SIPC. H&R Block, Inc. is not a registered broker-dealer. H&R Block Mortgage Corporation and Option One Mortgage Corporation offer a range of home mortgage products. RSM McGladrey Inc. is a national accounting, tax and consulting firm with 100 offices nationwide, as well as an affiliation with 550 offices in 75 countries as the U.S. member of RSM International. Additional information is available on the company's Web site at www.hrblock.com .

    H&R Block, Inc.
    Preliminary U.S. Tax Operating Data
    Amounts in thousands, except average charge and number of offices

                                            Period
                 1/1-1/31     2/1-2/15     2/16-2/28    3/1-3/15     YTD 3/15

    Tax preparation & related fees
    Fiscal year 2002
      Company
       owned
       offices   $259,783     $355,534     $156,840     $145,826    $917,983
      Franchised
       offices    149,078      199,762       91,427       73,205     513,472
                 $408,861     $555,296     $248,267     $219,031  $1,431,455

    Fiscal year 2001
      Company
       owned
       offices   $226,830     $321,949     $144,275     $129,435    $822,489
      Franchised
       offices    124,116      181,301       80,551       67,984     453,952
                 $350,946     $503,250     $224,826     $197,419  $1,276,441

    Percent change
      Company
       owned
       offices      14.5%        10.4%         8.7%        12.7%       11.6%
      Franchised
       offices      20.1%        10.2%        13.5%         7.7%       13.1%
      Total         16.5%        10.3%        10.4%        10.9%       12.1%

    Tax returns prepared
    Fiscal year 2002
      Company
       owned
       offices      2,129        2,873        1,253        1,094       7,349
      Franchised
       offices      1,354        1,815          837          661       4,667
                    3,483        4,688        2,090        1,755      12,016

    Fiscal year 2001
      Company
       owned
       offices      2,029        2,796        1,231        1,071       7,127
      Franchised
       offices      1,214        1,740          773          655       4,382
                    3,243        4,536        2,004        1,726      11,509

    Percent change
      Company
       owned
       offices       4.9%         2.8%         1.8%         2.1%        3.1%
      Franchised
       offices      11.5%         4.3%         8.3%         0.9%        6.5%
      Total          7.4%         3.4%         4.3%         1.7%        4.4%

    Total clients served
    Fiscal year 2002
      Company
       owned
       offices      2,149        2,902        1,264        1,102       7,417
      Franchised
       offices      1,406        1,877          860          672       4,815
      E-commerce *    143          414          219          173         949
                    3,698        5,193        2,343        1,947      13,181

    Fiscal year 2001
      Company
       owned
       offices      2,069        2,852        1,252        1,084       7,257
      Franchised
       offices      1,303        1,853          812          675       4,643
      E-commerce *    109          367          202          150         828
                    3,481        5,072        2,266        1,909      12,728

    Percent change
      Company
       owned
       offices       3.9%         1.8%         1.0%         1.7%        2.2%
      Franchised
       offices       7.9%         1.3%         5.9%        -0.4%        3.7%
      E-commerce *  31.2%        12.8%         8.4%        15.3%       14.6%
      Total          6.2%         2.4%         3.4%         2.0%        3.6%

    Tax returns filed electronically**
    Fiscal year 2002
      Company
       owned
       offices      2,081        2,726        1,109          911       6,827
      Franchised
       offices      1,333        1,675          693          480       4,181
      E-commerce *    119          382          214          165         880
                    3,533        4,783        2,016        1,556      11,888

    Fiscal year 2001
      Company
       owned
       offices      1,977        2,613        1,065          846       6,501
      Franchised
       offices      1,204        1,578          597          429       3,808
      E-commerce *     96          352          194          146         788
                    3,277        4,543        1,856        1,421      11,097

    Percent change
      Company
       owned
       offices       5.3%         4.3%         4.1%         7.7%        5.0%
      Franchised
       offices      10.7%         6.2%        16.1%        11.9%        9.8%
      E-commerce *  24.0%         8.5%        10.3%        13.0%       11.7%
      Total          7.8%         5.3%         8.6%         9.5%        7.1%

    Percent filed electronically
    Fiscal year 2002
      Company
       owned
       offices      96.8%        93.9%        87.7%        82.7%       92.0%
      Franchised
       offices      94.8%        89.2%        80.6%        71.4%       86.8%
      E-commerce *  83.2%        92.3%        97.7%        95.4%       92.7%
                    95.5%        92.1%        86.0%        79.9%       90.2%

    Fiscal year 2001
      Company
       owned
       offices      95.6%        91.6%        85.1%        78.0%       89.6%
      Franchised
       offices      92.4%        85.2%        73.5%        63.6%       82.0%
      E-commerce *  88.1%        95.9%        96.0%        97.3%       95.2%
                    94.1%        89.6%        81.9%        74.4%       87.2%

    Average fee per client served
    Fiscal year 2002
      Company
       owned
       offices    $120.89      $122.51      $124.08      $132.33     $123.77
      Franchised
       offices     106.03       106.43       106.31       108.94      106.64
                  $115.01      $116.20      $116.89      $123.47     $117.03

    Fiscal year 2001
      Company
       owned
       offices    $109.63      $112.89      $115.24      $119.40     $113.34
      Franchised
       offices      95.25        97.84        99.20       100.72       97.77
                  $104.08      $106.96      $108.93      $112.23     $107.26

    Percent change
      Company
       owned
       offices      10.3%         8.5%         7.7%        10.8%        9.2%
      Franchised
       offices      11.3%         8.8%         7.2%         8.2%        9.1%
      Total         10.5%         8.6%         7.3%        10.0%        9.1%

    Refund anticipation loans
    Fiscal year 2002
      Company
       owned
       offices      1,196        1,318          298          165       2,977
      Franchised
       offices        767          824          172           89       1,852
      E-commerce *      8           17            7            5          37
                    1,971        2,159          477          259       4,866

    Fiscal year 2001
      Company
       owned
       offices      1,020        1,177          272          152       2,621
      Franchised
       offices        647          704          150           79       1,580
      E-commerce *      5           17            8            5          35
                    1,672        1,898          430          236       4,236

    Percent change
      Company
       owned
       offices      17.3%        12.0%         9.6%         8.6%       13.6%
      Franchised
       offices      18.6%        17.1%        14.7%        12.7%       17.2%
      E-commerce *  60.0%         0.0%       -12.5%         0.0%        5.7%
      Total         17.9%        13.8%        10.9%         9.7%       14.9%

    Offices        FY 2002      FY 2001      % Change
      Company
       owned
       office       5,017        5,060        -0.8%
      Franchised
       offices      3,998        4,012        -0.3%
                    9,015        9,072        -0.6%

    * Includes on-line completed and paid returns and e-filings for software
       clients
    ** Includes Federal only. State returns also electronically filed are not
       included in this total.

                    
SOURCE H&R Block Inc.

CONTACT: Robert Schneider, Media Relations, +1-816-932-4835, or Mark Barnett, Investor Relations, +1-816-701-4443, both of H&R Block Inc. URL: http://www.hrblock.com

Copyright (C) 2002 PR Newswire. All rights reserved.