H&R Block Reports U.S. Tax Results Through April 19; To Announce Fiscal 2016 Results and Go Forward Plans on June 9
- Excluding impact of foreign currency exchange rate fluctuations and the divestiture of
H&R Block Bank, revenues expected to be consistent with the prior year despite a decrease in total U.S. tax returns prepared by and through H&R Blockof 4.6%
- Company announces structural changes designed to improve operations and profitability
Total H&R Block U.S. assisted returns prepared fell 5.8% through
Tax returns prepared through the company's tax software products, including online, desktop and mobile applications, declined 2.6%. The company believes this decline is primarily a result of aggressive pricing strategies by industry competitors. Improved monetization positively contributed to overall software revenues.
"The volume losses are not acceptable and as CEO, I take complete responsibility for delivering stronger results," said
Today, the company announced its intention to streamline operations in order to better align its resources and focus to achieve long-term growth. This includes the realignment of its field operations and a significant cost reduction effort, which will result in a more efficient and accountable organization. Going forward, the company will invest more selectively in growth opportunities, while rationalizing the cost structure and focusing on improving margins and free cash flow.
The company also announced changes in its domestic and international retail tax business, and its leadership team.
In other senior leader moves,
"Karen, Kip, and Greg will work closely together and each will report to me," said Cobb. "Their backgrounds and experience make them ideally suited to lead our core U.S. Retail business in each of their areas and improve our results in 2017 and beyond."
The company also announced
"Tony has been a key leader at
The company will be sharing more information regarding plans for fiscal 2017 and beyond during the conference call on June 9th. At that time, it will provide a detailed assessment of this season, fiscal 2016 results and outlook for fiscal 2017, further details on organizational changes, an update regarding cost reductions, and information regarding the company's capital structure, including its dividend policy.
"I believe in the future of
Form 8-K Filing
For additional information regarding matters described in this press release, please see the company's Form 8-K filed today with the
In conjunction with the announcement of fiscal 2016 results, the company will host a conference call at
- A detailed assessment of the U.S. tax season, including fiscal 2016 results;
- The company's approach to fiscal 2017 and beyond;
- Details regarding the aforementioned organizational announcement;
- An update on cost reductions;
- Information regarding the company's capital structure, including its dividend policy; and
- Other general matters.
To access the call, please dial the number below approximately 10 minutes prior to the scheduled starting time:
Conference ID: 80848967
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 Non-GAAP Financial Information
This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information."
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," "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, income, 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
|U.S. TAX OPERATING DATA||(in 000s)|
|Tax Returns Prepared: (1)|
|Total H&R Block Assisted||12,195||12,951||-5.8||%|
|Total H&R Block Tax Software||6,724||6,906||-2.6||%|
|Free File Alliance||674||672||0.3||%|
|Total H&R Block U.S. Returns||19,593||20,529||-4.6||%|
|(1) Amounts have been reclassified between company-owned and franchise for offices which were refranchised or repurchased by the company during either year.|