H&R Block Announces Improvement in Tax Season Results Through March 15
KANSAS CITY, MO, Mar 23, 2010 (MARKETWIRE via COMTEX) -- H&R Block Inc. (NYSE: HRB) today announced preliminary tax season results for the interim period through March 15, 2010. Same-office tax returns prepared in retail operations for the March 1 - 15 period grew 7.0 percent compared to the prior-year, while total tax returns prepared increased 4.3 percent. Total retail returns prepared grew 4.4 percent and the net average retail fee per tax return increased 2.1 percent.
Tax season-to-date through March 15, same-office tax returns prepared in retail operations fell 5.1 percent compared to the prior-year. Total tax returns prepared were down 6.3 percent. Total retail returns prepared tax season-to-date fell 7.6 percent, while the net average retail fee per tax return increased 2.3 percent. Digital returns(1) prepared by H&R Block were down 3.4 percent, although online returns grew 2.6 percent. The aggregate number of digital returns including the Free File Alliance fell 2.9 percent. Software-based returns declined by 10.2 percent due to the company's decision to exit two unprofitable distribution channels.
"We believe our improved results in March are a combination of an increase in overall return filing trends, a deceleration of assisted returns shifting to digital, a more favorable reporting period and a reduction of market share loss in both our Retail and Digital businesses. While we reported positive growth for the first half of March, we are still disappointed in our tax season-to-date results," said Russ Smyth, H&R Block's president and chief executive officer. "We will continue to aggressively explore ways to grow new clients for the rest of the tax season, as well as continue to improve client satisfaction in order to enhance retention levels for FY2011," added Smyth.
H&R Block plans to release interim results through April 15 for its U.S. tax operations on April 21, 2010 before the NYSE market open.
(1) "Digital returns" consist of online and desktop software products, excluding Free File Alliance returns.
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 100,000 highly trained tax professionals. The Company provides tax return preparation services in person, through H&R Block At Home(TM) online and desktop software products, and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
Forward Looking Statements
This announcement may contain forward-looking statements, which are any statements that are not historical facts. These forward-looking statements, as well as the Company's guidance, are based upon the Company's current expectations and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties and speak only as of the date on which they are made, the Company's actual results could differ materially from these statements. These risks and uncertainties relate to, among other things, uncertainties regarding the Company's ability to attract and retain clients; meet its prepared returns targets; uncertainties and potential contingent liabilities arising from our former mortgage loan origination and servicing business; uncertainties in the residential mortgage market and its impact on loan loss provisions; uncertainties pertaining to the commercial debt market; competitive factors; the Company's effective income tax rate; litigation; uncertainties regarding the level of share repurchases; and changes in market, economic, political or regulatory conditions. Information concerning these risks and uncertainties is contained in Item 1A of the Company's 2009 annual report on Form 10-K and in other filings by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events, orotherwise.
H&R BLOCK
Preliminary U.S. Tax Operating Data
--------------------------------------------------------------------------
(in thousands, except net average fee)
March March
1-15, 1-15, % YTD YTD %
2010 2009 change 3/15/10 3/15/09 change
-------- -------- ------ ---------- ---------- ------
Net tax
preparation
fees -
retail: (2)
Company-owned
operations $177,212 $167,544 5.8% $1,238,192 $1,326,988 -6.7%
Franchise
operations 80,982 74,474 8.7% 635,890 655,013 -2.9%
-------- -------- ------ ---------- ---------- ------
$258,194 $242,018 6.7% $1,874,082 $1,982,001 -5.4%
======== ======== ====== ========== ========== ======
Total returns
prepared: (1)
Company-owned
operations 930 909 2.3% 6,310 6,904 -8.6%
Franchise
operations 483 444 8.8% 3,669 3,899 -5.9%
-------- -------- ------ ---------- ---------- ------
Total retail
operations 1,413 1,353 4.4% 9,979 10,803 -7.6%
-------- -------- ------ ---------- ---------- ------
Digital
software 197 187 5.3% 1,561 1,739 -10.2%
Digital
online 244 236 3.4% 2,030 1,979 2.6%
-------- -------- ------ ---------- ---------- ------
Sub-total 441 423 4.3% 3,591 3,718 -3.4%
-------- -------- ------ ---------- ---------- ------
Digital Free
File
Alliance 68 67 1.5% 569 568 0.2%
-------- -------- ------ ---------- ---------- ------
Total
digital tax
solutions 509 490 3.9% 4,160 4,286 -2.9%
-------- -------- ------ ---------- ---------- ------
1,922 1,843 4.3% 14,139 15,089 -6.3%
======== ======== ====== ========== ========== ======
Net average fee
- retail: (1,3)
Company-owned
operations $ 190.47 $ 184.49 3.2% $ 196.22 $ 192.40 2.0%
Franchise
operations 167.84 167.73 0.1% 173.34 168.04 3.1%
-------- -------- ------ ---------- ---------- ------
$ 182.74 $ 178.98 2.1% $ 187.81 $ 183.60 2.3%
======== ======== ====== ========== ========== ======
Same-Office net
tax preparation
fees: (1,4)
Company-owned
operations $175,282 $162,995 7.5% $1,223,719 $1,269,142 -3.6%
Franchise
operations 77,271 72,109 7.2% 608,923 623,448 -2.3%
-------- -------- ------ ---------- ---------- ------
Total
retail
operations $252,553 $235,104 7.4% $1,832,643 $1,892,590 -3.2%
======== ======== ------ ========== ========== ------
Same-Office
returns
prepared:(1,4)
Company-owned
operations 921 867 6.2% 6,227 6,559 -5.1%
Franchise
operations 463 426 8.6% 3,518 3,704 -5.0%
-------- -------- ------ ---------- ---------- ------
Total
retail
operations 1,384 1,293 7.0% 9,745 10,263 -5.1%
======== ======== ====== ========== ========== ======
(1) Prior year numbers have been reclassified between company-owned and
franchise operations for offices which were refranchised during either
year.
(2) Amounts include gross tax preparation fees less coupons and discounts.
(3) Amounts are calculated as net retail tax preparation fees divided by
retail tax returns.
(4) Same-office returns represent returns prepared at 6,978 company and
3,871 franchise H&R Block-branded offices open in both fiscal year 2010
and fiscal year 2009.
For Further Information
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