H&R Block Announces Interim Tax Season Results
KANSAS CITY, Mo.--(BUSINESS WIRE)--March 15, 2007--H&R Block Inc. (NYSE: HRB) today reported tax season results for the interim period from Nov. 1, 2006, through Feb. 28, 2007.
Total clients served (for both the company's retail operations and digital tax solutions business) was 12.7 million, an increase of 468,000, or 3.8 percent, from the prior year period. Digital tax clients served advanced 15 percent over 2006 while office based clients increased 1 percent.
"Our year to date results are solid and continue to reflect a slightly slower start to the tax season industrywide," said Mark A. Ernst, chairman and chief executive officer. "We are well positioned to serve the needs of our clients as we look to the April 17 filing deadline."
H&R Block plans to release additional interim tax season results for its U.S. tax operations before the NYSE market opening on March 29, April 19 and May 10.
About H&R Block
H&R Block Inc. (NYSE: HRB) is a leading provider of tax, financial, and accounting and business consulting services and products. H&R Block is the world's largest tax services provider, having prepared more than 400 million tax returns since 1955. The company and its subsidiaries generated revenues of $3.6 billion and net income of $287 million from continuing operations in fiscal year 2006. The company currently operates in three principal business segments: Tax Services (income tax preparation and advice via in-office, online and software solutions); Business Services (accounting, tax and business consulting services for midsized companies); and Consumer Financial Services (investment and financial advisory services and banking services). Headquartered in Kansas City, Mo., H&R Block markets its continuing services and products under two leading brands - H&R Block and RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
H&R BLOCK
Preliminary U.S. Tax Operating Data
----------------------------------------------------------------------
(in thousands, except average fee and number of offices)
February YTD
---------- ------------------------------ -----------
11/1-1/31 2/1-2/15 2/16-2/28 Total 11/1-2/28
---------- --------- ---------- --------- -----------
Net tax
preparation
fees: (1)
Fiscal year
2007
Company-
owned
operations $424,770 $427,286 $185,989 $613,275 $1,038,045
Franchise
operations 218,894 211,811 86,685 298,496 517,390
---------- --------- ---------- --------- -----------
$643,664 $639,097 $272,674 $911,771 $1,555,435
========== ========= ========== ========= ===========
Fiscal year
2006 (2)
Company-
owned
operations $376,419 $421,813 $184,265 $606,078 $982,497
Franchise
operations 190,535 200,555 81,572 282,127 472,662
---------- --------- ---------- --------- -----------
$566,954 $622,368 $265,837 $888,205 $1,455,159
========== ========= ========== ========= ===========
Percent
change
-------------------------------------------------------------------
Company-
owned
operations 12.8% 1.3% 0.9% 1.2% 5.7%
------------------------------------------------------------------
Franchise
operations 14.9% 5.6% 6.3% 5.8% 9.5%
------------------------------------------------------------------
Total retail
operations 13.5% 2.7% 2.6% 2.7% 6.9%
------------------------------------------------------------------
Total clients
served: (3)
Fiscal year
2007
Company-
owned
operations 2,729 2,413 1,122 3,535 6,264
Franchise
operations 1,607 1,359 589 1,948 3,555
---------- --------- ---------- --------- -----------
Total
retail
offices 4,336 3,772 1,711 5,483 9,819
Digital tax
solutions 1,279 1,144 476 1,620 2,899
---------- --------- ---------- --------- -----------
5,615 4,916 2,187 7,103 12,718
========== ========= ========== ========= ===========
Fiscal year
2006 (2)
Company-
owned
operations 2,390 2,678 1,176 3,854 6,244
Franchise
operations 1,406 1,486 595 2,081 3,487
---------- --------- ---------- --------- -----------
Total
retail
offices 3,796 4,164 1,771 5,935 9,731
Digital tax
solutions 1,157 823 539 1,362 2,519
---------- --------- ---------- --------- -----------
4,953 4,987 2,310 7,297 12,250
========== ========= ========== ========= ===========
Percent
change
-------------------------------------------------------------------
Company-
owned
operations 14.2% -9.9% -4.6% -8.3% 0.3%
------------------------------------------------------------------
Franchise
operations 14.3% -8.5% -1.0% -6.4% 2.0%
------------------------------------------------------------------
Total retail
operations 14.2% -9.4% -3.4% -7.6% 0.9%
------------------------------------------------------------------
Digital tax
solutions 10.5% 39.0% -11.7% 18.9% 15.1%
------------------------------------------------------------------
Total 13.4% -1.4% -5.3% -2.7% 3.8%
------------------------------------------------------------------
Net average fee
- retail: (4)
Fiscal year
2007
Company-
owned
operations $169.47 $166.58 $164.22 $165.86 $167.32
Franchise
operations 147.42 146.16 145.88 146.08 146.65
---------- --------- ---------- --------- -----------
$161.27 $159.21 $157.91 $158.82 $159.82
========== ========= ========== ========= ===========
Fiscal year
2006 (2)
Company-
owned
operations $157.48 $157.50 $156.68 $157.25 $157.34
Franchise
operations 135.51 134.92 137.07 135.54 135.53
---------- --------- ---------- --------- -----------
$149.35 $149.44 $150.09 $149.64 $149.52
========== ========= ========== ========= ===========
Percent
change
-------------------------------------------------------------------
Company-
owned
operations 7.6% 5.8% 4.8% 5.5% 6.3%
------------------------------------------------------------------
Franchise
operations 8.8% 8.3% 6.4% 7.8% 8.2%
------------------------------------------------------------------
Total retail
operations 8.0% 6.5% 5.2% 6.1% 6.9%
------------------------------------------------------------------
(1)Gross tax preparation fees less coupons and discounts.
(2)Prior year numbers have been reclassified between company-owned and
franchise offices for offices which commenced company-owned
operations during fiscal year 2007.
(3)Tax preparation clients for which revenue was earned and Instant
Money Advance Loan (IMAL) clients.
(4)Calculated as net tax preparation fees divided by retail tax
preparation clients served.
CONTACT: H&R Block Inc.
Media Relations:
Nick Iammartino, 816-854-4556
nick.iammartino@hrblock.com
or
Investor Relations:
Scott Dudley, 816-854-4505
scott.dudley@hrblock.com
SOURCE: H&R Block Inc.