Investor Relations


Press Release Details

H&R Block Reports Interim Tax Season Data Through March 31

April 15, 2002
KANSAS CITY, Mo., Apr 15, 2002 /PRNewswire-FirstCall via COMTEX/ --

Re-Affirms FY02 Earnings Guidance

Reporting interim results for the current tax season, H&R Block Inc. (NYSE: HRB) said tax preparation and related fees from its tax businesses are up 10.6 percent through March 31. The company remains on track to meet expectations set by its previously announced guidance for revenue and earnings.

H&R Block has served 14.9 million clients for the current tax season through March 31, an increase of 2.5 percent compared to the same period last year. The company reported $1.6 billion in fees from tax preparation and related services. The average fee per client served rose 8.9 percent to $118.50.

"We're pleased that our results through the end of March remain on track. 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. "This year, the latter half of March included three Sundays, one of which was Easter. This left us with fewer active client days than in the comparable period last year. That's why our revenues in the last 15 days of March were lower than our full season trend," Ernst said.

On May 1, the company plans to announce preliminary results for the tax season through April 16. Fiscal 2002 fourth quarter and year-end results are scheduled to be announced June 12.

Through March 31, tax professionals in H&R Block offices prepared 13.6 million returns, an increase of 3 percent. During this period, H&R Block filed 13.2 million federal returns electronically, representing a 6.7 percent increase over the prior year. So far this tax season, 88.5 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 31, 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  3/16-3/31  YTD 3/31
    Tax preparation
     & related fees
      Fiscal year
       2002
        Company
         owned
         offices  $259,783  $355,534  $156,840  $145,826  $136,105 $1,054,088
        Franchised
         offices   149,078   199,762    91,427    73,205    65,591    579,063
                  $408,861  $555,296  $248,267  $219,031  $201,696 $1,633,151
      Fiscal year
       2001
        Company
         owned
         offices  $226,830  $321,949  $144,275  $129,435  $136,286   $958,775
        Franchised
         offices   124,116   181,301    80,551    67,984    64,285    518,237
                  $350,946  $503,250  $224,826  $197,419  $200,571 $1,477,012
      Percent
       change
        Company
         owned
         offices      14.5%     10.4%      8.7%     12.7%     -0.1%       9.9%
        Franchised
         offices      20.1%     10.2%     13.5%      7.7%      2.0%      11.7%
        Total         16.5%     10.3%     10.4%     10.9%      0.6%      10.6%


    Tax returns
     prepared
      Fiscal year
       2002
        Company owned
         offices     2,129     2,873     1,253     1,094       976      8,325
        Franchised
         offices     1,354     1,815       837       661       562      5,229
                     3,483     4,688     2,090     1,755     1,538     13,554
      Fiscal year
       2001
        Company owned
         offices     2,029     2,796     1,231     1,071     1,065      8,192
        Franchised
         offices     1,214     1,740       773       655       588      4,970
                     3,243     4,536     2,004     1,726     1,653     13,162
      Percent change
        Company owned
         offices       4.9%      2.8%      1.8%      2.1%     -8.4%       1.6%
        Franchised
         offices      11.5%      4.3%      8.3%      0.9%     -4.4%       5.2%
        Total          7.4%      3.4%      4.3%      1.7%     -7.0%       3.0%



    Total clients served
      Fiscal year 2002
       Company owned
        offices      2,149     2,902     1,264     1,102       981      8,398
       Franchised
        offices      1,406     1,877       860       672       569      5,384
       E-commerce *    143       414       219       173       151      1,100
                     3,698     5,193     2,343     1,947     1,701     14,882
      Fiscal year 2001
       Company owned
        offices      2,069     2,852     1,252     1,084     1,073      8,330
       Franchised
        offices      1,303     1,853       812       675       602      5,245
       E-commerce *    109       367       202       150       122        950
                     3,481     5,072     2,266     1,909     1,797     14,525
      Percent change
       Company owned
        offices        3.9%      1.8%      1.0%      1.7%     -8.6%       0.8%
       Franchised
        offices        7.9%      1.3%      5.9%     -0.4%     -5.5%       2.7%
       E-commerce *   31.2%     12.8%      8.4%     15.3%     23.8%      15.8%
       Total           6.2%      2.4%      3.4%      2.0%     -5.3%       2.5%



    Tax returns filed
     electronically**
      Fiscal year 2002
       Company owned
        offices      2,081     2,726     1,109       911       775      7,602
       Franchised
        offices      1,333     1,675       693       480       375      4,556
       E-commerce *    119       382       214       165       140      1,020
                     3,533     4,783     2,016     1,556     1,290     13,178
      Fiscal year
       2001
       Company owned
        offices      1,977     2,613     1,065       846       794      7,295
       Franchised
        offices      1,204     1,578       597       429       342      4,150
       E-commerce *     96       352       194       146       116        904
                     3,277     4,543     1,856     1,421     1,252     12,349
      Percent change
       Company owned
        offices        5.3%      4.3%      4.1%      7.7%     -2.4%       4.2%
       Franchised
        offices       10.7%      6.2%     16.1%     11.9%      9.6%       9.8%
       E-commerce *   24.0%      8.5%     10.3%     13.0%     20.7%      12.8%
       Total           7.8%      5.3%      8.6%      9.5%      3.0%       6.7%


    Percent filed
     electronically
      Fiscal year 2002
       Company owned
        offices       96.8%     93.9%     87.7%     82.7%     79.0%      90.5%
       Franchised
        offices       94.8%     89.2%     80.6%     71.4%     65.9%      84.6%
       E-commerce *   83.2%     92.3%     97.7%     95.4%     92.7%      92.7%
                      95.5%     92.1%     86.0%     79.9%     75.8%      88.5%
      Fiscal year
       2001
        Company owned
         offices      95.6%     91.6%     85.1%     78.0%     74.0%      87.6%
        Franchised
         offices      92.4%     85.2%     73.5%     63.6%     56.8%      79.1%
        E-commerce *  88.1%     95.9%     96.0%     97.3%     95.1%      95.2%
                      94.1%     89.6%     81.9%     74.4%     69.7%      85.0%



    Average fee per
     client served
      Fiscal year
       2002
        Company owned
         offices   $120.89   $122.51   $124.08   $132.33   $138.74    $125.52
        Franchised
         offices    106.03    106.43    106.31    108.94    115.27     107.55
                   $115.01   $116.20   $116.89   $123.47   $130.13    $118.50
      Fiscal year
       2001
        Company owned
         offices   $109.63   $112.89   $115.24   $119.40   $127.01    $115.10
        Franchised
         offices     95.25     97.84     99.20    100.72    106.79      98.81
                   $104.08   $106.96   $108.93   $112.23   $119.74    $108.80
      Percent change
        Company owned
         offices      10.3%      8.5%      7.7%     10.8%      9.2%       9.1%
        Franchised
         offices      11.3%      8.8%      7.2%      8.2%      7.9%       8.9%
        Total         10.5%      8.6%      7.3%     10.0%      8.7%       8.9%



    Refund anticipation
     loans
      Fiscal year 2002
        Company owned
         offices     1,196     1,318       298       165        99      3,076
        Franchised
         offices       767       824       172        89        49      1,901
        E-commerce *     8        17         7         5         4         41
                     1,971     2,159       477       259       152      5,018
       Fiscal year
        2001
         Company owned
          offices    1,020     1,177       272       152        94      2,715
         Franchised
          offices      647       704       150        79        45      1,625
         E-commerce *    5        17         8         5         3         38
                     1,672     1,898       430       236       142      4,378
       Percent change
         Company
          owned
          offices     17.3%     12.0%      9.6%      8.6%      5.3%      13.3%
         Franchised
          offices     18.6%     17.1%     14.7%     12.7%      8.9%      17.0%
         E-commerce * 60.0%      0.0%    -12.5%      0.0%     33.3%       7.9%
         Total        17.9%     13.8%     10.9%      9.7%      7.0%      14.6%


    Offices         FY 2002   FY 2001   % Change
      Company owned
       offices       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 for H&R Block Inc. URL: http://www.hrblock.com

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