Investor Relations


Press Release Details

H&R Block Reports Second Quarter Results, Raises Fiscal 2002 Earnings Guidance To $2.15 - $2.25 Per Share

November 28, 2001
KANSAS CITY, Mo., Nov 28, 2001 /PRNewswire via COMTEX/ --

Strong Mortgage Performance Drives 44 Percent Second Quarter Improvement

H&R Block Inc. (NYSE: HRB) today reported that its financial results improved 43.6 percent for the quarter ended Oct. 31, 2001, compared to the same period last year, resulting in a 15-cent per basic and diluted share loss. The company historically reports the majority of its profit during its fiscal fourth quarter. Today's reported net loss of $28 million for the second quarter compares with a net loss of $49.7 million, or 27 cents per basic and diluted share, last year. Revenues for the second quarter increased 12.2 percent to $378.7 million, compared with $337.5 million for the year-ago quarter.

"Once again, our mortgage operations delivered an outstanding quarter," said Mark A. Ernst, president and chief executive officer. "Option One and H&R Block Mortgage combined saw more than a 76 percent increase in loan originations from the previous year's quarter. Our retail channel, H&R Block Mortgage, continues to capitalize on the success of selling to our tax client base and at significantly lower acquisition costs."

Also during the second quarter, the company repurchased 7.7 million shares of its common stock for $284.3 million. In the current fiscal year, H&R Block has purchased a total of 9.7 million shares at a cost of $351.8 million, or an average price of $36.32.

"Our stock repurchase program is the leading component of our capital allocation plan," Ernst said. "We remain focused on allocating our capital in ways that create sustained shareholder value."

Fiscal 2002 second quarter results reflect the company's previously announced early adoption of Statement of Financial Accounting Standards No. 141 and 142 (SFAS 141 and 142) related to business combinations, goodwill and other intangible assets, which resulted in the elimination of goodwill and certain other intangible asset amortization as of May 1, 2001. The adoption of SFAS 141 and 142 represents $11.7 million, or 6 cents per share, of the improvement over the prior year second quarter.

Cash earnings improved 35.2 percent over the prior year's quarter with a loss of $18.5 million, or 10 cents per basic and diluted share, compared to a loss of $28.6 million, or 16 cents per basic and diluted share last year. The company defines cash earnings as net income or losses from operations excluding the after-tax effect of amortization expense of acquired intangible assets.

In the quarter, the company's performance as measured by earnings before interest (including interest expense on acquisition debt, investment income and interest allocated to operating business units), taxes, depreciation and amortization (EBITDA), improved from a negative $14.1 million last year to a positive $5.9 million this year.

Tax Operations

H&R Block's U.S. tax operations reported revenues of $28 million, an increase of $1.6 million, or 6.1 percent, compared with $26.4 million in the same quarter a year ago. Higher off-season tax preparation volumes and average fees drove the increase.

The pretax loss for the segment was $104.2 million, compared with a pretax loss of $85.7 million last year. The increased loss resulted primarily from: payroll taxes of $7.2 million associated with seasonal stock option exercises; increased technology development and marketing costs incurred earlier this year than in the previous year; somewhat higher rents; and increased field support wages related to the company's national tax training program.

"In anticipation of what we believe will be a good tax season, we have put key capabilities into place earlier in the year. This resulted in increased second-quarter spending, particularly related to some technology initiatives supporting our U.S. field operations," Ernst said. "However, the early preparation should result in reduced levels of spending during the third and fourth quarters and success in executing the upcoming tax season."

Amortization expense in the segment decreased by $2.9 million related to the adoption of SFAS 141 and 142. EBITDA declined by $21.3 million to a negative $92.3 million, or 30 percent over the prior year.

The pretax loss in International tax operations increased to $991,000 compared to $851,000 last year due primarily to an unfavorable Australian exchange rate. The company also experienced somewhat weaker than expected tax season results in Australia, offsetting an improved performance in Canada. EBITDA was a negative $229,000 compared with $508,000 last year.

Mortgage Operations

Mortgage operations, which primarily include Option One Mortgage Corporation and H&R Block Mortgage Corporation, reported that pretax earnings rose to $93.2 million, compared with $20.4 million last year. The adoption of SFAS 141 and 142 accounts for $3.4 million of the improvement over the prior year. Revenues rose 113.5 percent to $180.8 million.

A 76.3 percent increase in loan originations, larger servicing volume, improved pricing on loans generated, and contributions from retail mortgage combined for an outstanding quarter. In addition, higher volumes and cost controls helped drive a 14 percent decline in the cost of origination, contributing to the 193 basis point year-over-year improvement in operating profit margin. Operating profit margin for the quarter was 3.52 percent compared with 1.59 percent in last year's second quarter. Operating profit margin is defined as pretax earnings before goodwill amortization divided by mortgage fundings. EBITDA increased $70.7 million to $96.9 million, or 270 percent over the prior year.

"The performance of our mortgage business has been simply outstanding," Ernst said. "In its second consecutive profitable quarter, H&R Block Mortgage contributed 11 percent of the segment's $72.8 million year-over-year improvement. Ten percent of all loans originated, and 62 percent of all retail loans, came from H&R Block tax clients."

Option One and H&R Block Mortgage originated $2.6 billion in loans during the second quarter. Option One's ending servicing portfolio was $20.9 billion, compared with $14.8 billion last year.

Based on current trends and market conditions, the company expects continued strength in its mortgage segment through the remainder of its fiscal year.

Investment Services

H&R Block's investment services operations, which consists primarily of H&R Block Financial Advisors Inc., continues to be adversely impacted by poor market conditions, which were exacerbated by the Sept. 11 tragedy. Second quarter revenues totaled $64.8 million compared with $131.6 million last year. The segment reported a pretax loss of $9.1 million compared with pretax earnings of $11.8 million last year. The adoption of SFAS 141 and 142 positively impacted the change over the prior year by $4.1 million. Investment services reported a decline in EBITDA to $3.6 million from $28.4 million in the prior year.

"The tragic events of Sept. 11 have created significant uncertainty for the retail investor," Ernst said. "Our business strategy of offering financial advice to our clients is more relevant than ever before."

Business Services

Business services, which primarily includes RSM McGladrey, reported that acquisitions drove a 17.3 percent increase in revenues to $91.8 million, compared with $78.3 million last year. Pretax earnings of $2.6 million compared with a pretax loss of $1 million last year. Growth in consulting services slowed in late September, but rebounded strongly in October. Off- season losses from newly acquired firms and normal operating cost increases reduced results for the quarter. Business Services reports the bulk of its earnings in the fiscal fourth quarter of the year.

The adoption of SFAS 141 and 142 positively impacted results by $4.6 million compared to the second quarter last year. Business services reported a decline in EBITDA to $7.3 million, compared with $8.7 million last year.

Other

"Based on the continued strength of our mortgage operations and expectations for a solid tax filing season, we expect that earnings per share for fiscal 2002 will be in the range of $2.15 to $2.25," Ernst said. "We expect overall revenue growth to be within our target range of 10 to 15 percent per year."

Interest expense on acquisition debt decreased $5.1 million primarily due to lower interest rates.

Effective May 1, 2001, the company adopted a new methodology for allocation of corporate services and support costs to business units. This change was made in an effort to more accurately reflect each business line's performance. Prior year results have been restated to reflect the new methodology.

The Board of Directors of H&R Block declared a quarterly dividend of 16 cents per share payable Jan. 2, 2002, to shareholders of record Dec. 12, 2001.

A conference call with H&R Block management discussing second quarter results will be conducted live today at 5 p.m. EST (4 p.m. Central) and may be accessed at www.hrblock.com .

New Board Member Named

In other actions, Tom Decker Seip was elected to H&R Block's Board of Directors, filling the vacancy created by former Board member Robert E. Davis, who retired Sept. 12. Seip this year was named president and chief executive officer and director of Westaff Inc., a provider of temporary staffing and employment services. Prior to that, he worked more than 15 years at Charles Schwab Corporation in a variety of executive positions, including chief executive officer of Charles Schwab Investment Management Inc., the company's mutual fund subsidiary. Davis, a partner of Axess Corporation in Newark, Del., had been a member of H&R Block's Board of Directors for 20 years.

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 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; changes in competition and the effects of such changes; litigation involving the company; 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 wide 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 wide 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.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
              Unaudited, amounts in thousands, except per share data

                                              Three months ended October 31,
                                               2001        2000        1999

     Revenues                                $378,729    $337,474    $209,946

     Loss before income tax benefit           (47,077)    (86,356)    (72,157)

     Net loss                                $(28,011)   $(49,655)   $(44,737)

     Basic net earnings (loss) per share:

      Net loss                                 $(0.15)     $(0.27)     $(0.23)

      Basic shares outstanding                182,288     182,806     195,628


                                              Six months ended October 31,
                                               2001        2000       1999

     Revenues                               $702,854    $641,584   $331,506

     Loss before income tax benefit          (98,815)   (176,349)  (131,954)

     Net loss                               $(58,795)  $(101,401)  $(81,811)

     Basic net earnings (loss) per share:

      Net loss                                $(0.32)     $(0.55)    $(0.42)

      Basic shares outstanding               183,073     184,664    195,528


    Notes to Consolidated Statements of Operations

    On June 20, 2001, the Company's Board of Directors declared a two-for-one
    stock split of its Common Stock in the form of a 100% stock distribution
    effective August 1, 2001, to shareholders of record as of the close of
    business on July 10, 2001.
    Basic net earnings (loss) per share is based on the weighted average
    number of shares outstanding during each period.
    All periods presented have been adjusted to reflect the stock split.

    Reclassifications have been made to prior years to conform with current
    period presentation.

    In July 2001, the Financial Accounting Standards Board issued Statement of
    Financial Accounting Standards No. 141,  "Business Combinations," and No.
    142, "Goodwill and Other Intangible Assets" (SFAS 141 & 142).  SFAS 141
    addresses financial accounting and reporting for business combinations and
    replaces APB Opinion No. 16, "Business Combinations" (APB 16).  SFAS 141
    no longer allows the pooling of interests method of accounting for
    acquisitions, provides new recognition criteria for intangible assets and
    carries forward without reconsideration the guidance in APB 16 related to
    the application of the purchase method of accounting.  SFAS 142 addresses
    financial accounting and reporting for acquired goodwill and other
    intangible assets and replaces APB Opinion No. 17, "Intangible Assets"
    (APB 17).  SFAS 142 addresses how intangible assets should be accounted
    for upon their acquisition and after they have been initially recognized
    in the financial statements.  As of May 1, 2001, the Company elected early
    adoption of both SFAS 141 & 142.
    The implementation of these standards has the effect of reducing
    amortization expense of acquired intangible assets.

    On December 1, 1999, the Company completed the acquisition of the
    outstanding capital stock of Olde Financial Corporation and Financial
    Marketing Services, Inc. (collectively, OLDE).  The purchase price was
    $850 million in cash plus net tangible book value payments of $48.5
    million.  The acquisition was accounted for as a purchase and,
    accordingly, OLDE's results are included since the date of the
    acquisition.  The acquisition was funded with short-term borrowings and
    the issuance of $500 million in Senior Notes in the fourth quarter of
    fiscal 2000.

    On August 2, 1999, the Company, through a subsidiary, RSM McGladrey, Inc.,
    completed the purchase of substantially all of the non-attest assets of
    McGladrey & Pullen, LLP.  The purchase price was $240 million in cash
    payments over four years and the assumption of certain pension liabilities
    with a present value of $52.7 million.  The acquisition was accounted for
    as a purchase, and accordingly, results are included since the date of
    acquisition.

    During the six months ended October 31, 2001, 2000 and 1999, the Company
    issued shares of its common stock pursuant to provisions for exercise of
    the Company's stock option plans as follows:  2001 - 7,288,701 shares;
    2000 - 119,338 shares; 1999 - 1,234,056 shares.  During the same periods,
    the Company reacquired shares of its common stock as follows:  2001 -
    9,688,400 shares at an aggregate cost of $351,845,000; 2000 - 13,628,400
    shares at an aggregate cost of $222,816,000; 1999 - 1,443,600 shares at an
    aggregate cost of $32,366,000.


      H&R BLOCK, INC.
      SELECTED OPERATIONAL INFORMATION
      Unaudited, amounts in thousands

                                          Three months ended October 31,
                                           Revenues         Earnings (loss)
                                        2001      2000      2001       2000

      U.S. tax operations              $28,015   $26,403  $(104,225) $(85,724)
      International tax operations      13,709    14,899       (991)     (851)
      Mortgage operations              180,821    84,690     93,191    20,433
      Investment services               64,827   131,573     (9,135)   11,779
      Business services                 91,779    78,267      2,554    (1,030)
      Unallocated corporate               (422)    1,642     (9,818)   (7,359)
      Interest expense on acquisition
       debt                                -         -      (19,360)  (24,484)
                                      $378,729  $337,474    (47,784)  (87,236)
      Investment income, net                                  1,094     2,536
      Intercompany interest*                                   (387)   (1,656)
                                                            (47,077)  (86,356)
      Income tax benefit                                    (19,066)  (36,701)
      Net loss                                             $(28,011) $(49,655)

                                         Six months ended October 31,
                                        Revenues         Earnings (loss)
                                     2001      2000      2001       2000

      U.S. tax operations           $47,994   $37,753  $(185,393) $(171,286)
      International tax operations   18,541    19,798     (6,644)    (7,206)
      Mortgage operations           329,146   165,290    159,970     41,963
      Investment services           133,752   262,240    (15,233)    23,462
      Business services             171,761   154,364        383     (4,264)
      Unallocated corporate           1,660     2,139    (15,257)   (11,900)
      Interest expense on
       acquisition debt                 -         -      (40,758)   (51,772)
                                   $702,854  $641,584   (102,932)  (181,003)
      Investment income, net                               2,212      5,255
      Intercompany interest*                               1,905       (601)
                                                         (98,815)  (176,349)
      Income tax benefit                                 (40,020)   (74,948)
      Net loss                                          $(58,795) $(101,401)

      * Intercompany interest represents net interest expense charged to
      financial related businesses for corporate cash that was borrowed to
      fund their operating activities and net unallocated interest expense
      attributable to commitment fees on the unused portion of the Company's
      credit facility.

    H&R Block, Inc.
    Consolidated Balance Sheets
    Unaudited, amounts in thousands, except share data


                                                        October 31,
                                                   2001              2000
                                     ASSETS
    CURRENT ASSETS:
         Cash and cash equivalents                $599,002          $247,679
         Marketable securities --
          available-for-sale                         1,000            16,022
         Marketable securities -- trading           36,591            39,060
         Receivables from customers,
          brokers, dealers and clearing
          organizations, less allowance for
           doubtful accounts of $1,724
           and $840                                925,219         2,640,656
         Receivables, less allowance for
          doubtful accounts of
          $48,875 and $46,075                      323,251           354,207
         Prepaid expenses and other
          current assets                           415,414           153,733
            TOTAL CURRENT ASSETS                 2,300,477         3,451,357

    INVESTMENTS AND OTHER ASSETS:
         Investments in available-for-
          sale marketable securities               300,727           304,952
         Excess of cost over fair value
          of net tangible assets acquired,
          net of amortization                    1,073,734         1,070,051
         Other                                     248,686           210,245
                                                 1,623,147         1,585,248
    PROPERTY AND EQUIPMENT, at cost less
     accumulated depreciation and
     amortization                                  276,007           285,414
                                                $4,199,631        $5,322,019



                      LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES:
         Notes payable                            $881,697          $914,692
         Accounts payable to customers,
          brokers and dealers                      857,349         2,291,963
         Accounts payable, accrued
          expenses and deposits                    299,522           173,763
         Accrued salaries, wages and
          payroll taxes                            109,977            76,261
         Accrued taxes on earnings                 144,561            50,631
         Current portion of long-term debt          50,750            43,308
             TOTAL CURRENT LIABILITIES           2,343,856         3,550,618

    LONG-TERM DEBT                                 849,283           840,073

    OTHER NONCURRENT LIABILITIES                    92,740            96,800

    STOCKHOLDERS' EQUITY:
         Common stock, no par, stated
          value $.01 per share                       2,179             2,179
         Additional paid-in capital                458,019           420,003
         Retained earnings                       1,312,043         1,087,040
                                                 1,772,241         1,509,222
         Less cost of 36,680,380 and
          35,384,428 shares of common
          stock in treasury                        858,489           674,694
                                                   913,752           834,528
                                                $4,199,631        $5,322,019

    H&R Block, Inc.
    Consolidated Statements of Cash Flows
    Unaudited, amounts in thousands

                                                Six months ended October 31,
                                                   2001               2000
    Cash flows from operating activities:
     Net loss                                    $(58,795)         $(101,401)
     Adjustments to reconcile net loss
      to net cash used in operating activities:
       Depreciation and amortization               68,928             96,142
       Provision for bad debt                      17,099             14,254
       Accretion of acquisition liabilities         6,187              5,604
       Tax benefit from stock option exercises     41,805                -
       Changes in:
        Receivables from customers,
         brokers, dealers and clearing
         organizations                            385,413            216,723
        Receivables                                23,180             (7,592)
        Marketable securities - trading             9,567              6,343
        Prepaid expenses and other current
         assets                                  (154,472)            (8,792)
        Accounts payable to customers,
         brokers and dealers                     (200,651)          (278,237)
        Accounts payable, accrued
         expenses and deposits                    (61,688)           (48,599)
        Accrued salaries, wages and payroll
         taxes                                   (111,853)           (97,072)
        Accrued taxes on earnings                (151,038)          (175,786)
        Other, net                                (12,762)            (1,169)
       Net cash used in operating activities     (199,080)          (379,582)

    Cash flows from investing
     activities:
     Purchases of available-for-sale securities    (1,045)            (2,432)
     Maturities of available-for-sale securities   27,498             10,090
     Purchases of property and
      equipment, net                              (33,724)           (23,821)
     Payments made for business
      acquisitions, net of cash acquired          (23,468)           (10,659)
     Other, net                                   (13,028)           (18,114)
       Net cash used in investing
        activities                                (43,767)           (44,936)

    Cash flows from financing
     activities:
     Repayments of notes payable               (3,916,323)        (8,197,821)
     Proceeds from issuance of notes payable    4,798,020          8,828,716
     Payments on acquisition debt                 (47,179)           (63,993)
     Dividends paid                               (57,294)           (53,764)
     Payments to acquire treasury shares         (351,845)          (222,816)
     Proceeds from stock options exercised        144,263              1,708
     Other, net                                       394                266
      Net cash provided by financing activities   570,036            292,296

    Net increase (decrease) in cash and
     cash equivalents                             327,189           (132,222)
    Cash and cash equivalents at
     beginning of the period                      271,813            379,901
    Cash and cash equivalents at end of
     the period                                  $599,002           $247,679

    Supplementary cash flow data:
     Income taxes paid                            $99,328            $88,836
     Interest paid                                 52,107            118,715


    H&R Block, Inc.
    Consolidated Statements of Operations
    Unaudited, amounts in thousands, except per share data


                                                     Three Months Ended
                                                         October 31,
                                                   2001              2000
    Revenues:
       Service revenues                           $234,990          $265,982
       Product sales                               131,837            60,391
       Royalties                                     2,886             3,877
       Other income                                  9,016             7,224
                                                   378,729           337,474

    Operating expenses:
       Employee compensation and benefits          200,687           172,900
       Occupancy and equipment                      61,749            56,234
       Interest                                     29,785            63,973
       Depreciation and amortization                34,329            48,685
       Marketing and advertising                    17,091            14,728
       Supplies, freight and postage                 9,470            10,005
       Bad debt                                      6,263             8,733
       Other                                        67,516            51,123
                                                   426,890           426,381

    Operating loss                                 (48,161)          (88,907)

    Other income:
       Investment income, net                        1,093             2,536
       Other, net                                       (9)               15
                                                     1,084             2,551

    Loss before income tax benefit                 (47,077)          (86,356)
    Income tax benefit                             (19,066)          (36,701)

    Net loss                                      $(28,011)         $(49,655)

    Basic net loss per share                        $(0.15)           $(0.27)

    Basic shares outstanding                       182,288           182,806


    H&R Block, Inc.
    Consolidated Statements of Operations
    Unaudited, amounts in thousands, except per share data



                                                 Six months ended October 31,
                                                   2001               2000
    Revenues:
       Service revenues                           $443,174           $512,714
       Product sales                               236,223            111,591
       Royalties                                     4,443              5,193
       Other income                                 19,014             12,086
                                                   702,854            641,584

    Operating expenses:
       Employee compensation and benefits          376,716            319,440
       Occupancy and equipment                     121,428            116,458
       Interest                                     59,590            127,171
       Depreciation and amortization                68,928             96,142
       Marketing and advertising                    24,083             24,502
       Supplies, freight and postage                16,043             17,584
       Bad debt                                     17,099             14,254
       Other                                       120,147            107,634
                                                   804,034            823,185

    Operating loss                                (101,180)          (181,601)

    Other income:
       Investment income, net                        2,211              5,255
       Other, net                                      154                 (3)
                                                     2,365              5,252

    Loss before income tax benefit                 (98,815)          (176,349)
    Income tax benefit                             (40,020)           (74,948)

    Net loss                                      $(58,795)         $(101,401)

    Basic net loss per share                        $(0.32)            $(0.55)

    Basic shares outstanding                       183,073            184,664


                                 H&R Block, Inc.
                        Financial Services Operating Data

    H&R Block Financial Advisors, Inc.
                                          For the three months ended
                                  10/26/2001  10/27/2000  % change  07/27/2001
     Customer trades (000's)             377         626    -39.8%      389
     Customer daily average trades     6,285       9,788    -35.8%    6,180
     Average commission per trade     $63.17      $70.52    -10.4%   $62.29

     Number of active accounts
      (000's)                            609         623     -2.3%      621
     Average trades per active
      account per quarter               0.62        1.01    -38.4%     0.63
     Average trades per active
      account per year (annualized)     2.48        4.02    -38.4%     2.51

     Ending balance of assets under
      administration ($ bn's)          $27.1       $39.0    -30.6%   $ 30.1
     Average assets per
      active account                 $44,448     $62,553    -28.9%  $48,498

     Ending debit balances ($ bn's)     $0.9        $2.6    -66.6%   $ 1.2
     Ending credit balances ($ bn's)    $0.8        $0.8     -6.9%   $ 0.8


    Option One Mortgage Corporation
                                           For the three months ended

                                    10/31/2001  10/31/2000 % Change 07/31/2001
    Number of loans originated
     Wholesale                        18,172      11,900    52.7%    17,999
     Retail                            3,352       2,155    55.5%     3,695
      Total                           21,524      14,055    53.1%    21,694

    Volume of loans originated
     (000's)
     Wholesale                    $2,206,041  $1,252,710   76.1%  $2,120,528
     Retail                          438,158     247,424   77.1%     503,418
      Total                       $2,644,199  $1,500,134   76.3%  $2,623,946


     Loan sales                   $2,618,065  $2,283,814   14.6%  $2,618,446

    Servicing portfolio
     Number of loans serviced
      (000's)                          184.8       162.2   14.0%       180.5
     Servicing portfolio ($ bn's)      $20.9       $14.8   41.0%       $19.2


                    
SOURCE H&R Block Inc.

CONTACT:

Media Relations, Linda McDougall, +1-816-932-7542, or Investor Relations, Mark Barnett, +1-816-701-4443, both of H&R Block, Inc. URL: http://www.hrblock.com http://www.prnewswire.com

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