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