H&R Block Reports Tax Season Results Through April 15
KANSAS CITY, MO, Apr 21, 2010 (MARKETWIRE via COMTEX) --H&R Block Inc. (NYSE: HRB) today released its final tax season update for fiscal 2010.
Tax Season Results for March 1 - April 15
Same-office tax returns prepared in retail operations increased 0.8 percent compared to the prior year, while total returns prepared grew by 0.3 percent. Total retail returns prepared fell 1.7 percent and the net average retail fee per tax return declined by 1.2 percent over the prior year. Total digital tax returns prepared by H&R Block grew by 5.9 percent.
"Our second half results reflect improvement in the overall industry, as well as in our own performance," said Russ Smyth, H&R Block's president and chief executive officer. "Our retail business showed a significant reduction of market share loss during the second-half of the tax season. Our digital offerings grew by nearly 6 percent during this period, driven by software sales and Free-File Alliance (FFA) returns," added Smyth.
Tax Season-to-Date Results through April 15
Same-office tax returns prepared in retail operations fell 4.0 percent and total tax returns prepared were down 4.9 percent over the prior year. Total retail returns prepared declined by 6.6 percent, while the net average retail fee per tax return increased 1.0 percent. Aggregate tax preparation fees for retail operations fell 5.5 percent to $2.61 billion.
Total digital tax returns prepared by H&R Block were down 0.6 percent, driven by a 6.1 percent decline in software-based returns that was entirely due to the company's decision to exit two unprofitable distribution channels. Online returns grew by 2.6 percent, while returns prepared through the FFA increased 4.7 percent.
The Company plans to report its fourth quarter and fiscal 2010 results on Thursday, June 24, after the New York Stock Exchange market closing.
H&R BLOCK
Preliminary U.S. Tax Operating Data
(in thousands, except net average fee)
March 1 - March 1 -
YTD YTD % April 15, April 15, %
2/28/10 2/28/09 Change 2010 2009 Change
---------- ---------- ----- ---------- ---------- -----
Net tax
preparation fees
- retail: (1,2)
Company-owned
operations $1,060,980 $1,159,444 -8.5% $ 699,352 $ 726,974 -3.8%
Franchise
operations 554,908 580,539 -4.4% 296,727 297,776 -0.4%
---------- ---------- ----- ---------- ---------- -----
$1,615,888 $1,739,983 -7.1% $ 996,079 $1,024,750 -2.8%
========== ========== ===== ========== ========== =====
Total returns
prepared: (2)
Company-owned
operations 5,380 5,995 -10.3% 3,559 3,650 -2.5%
Franchise
operations 3,186 3,455 -7.8% 1,725 1,723 0.1%
---------- ---------- ----- ---------- ---------- -----
Total retail
operations 8,566 9,450 -9.4% 5,284 5,373 -1.7%
---------- ---------- ----- ---------- ---------- -----
Digital
software 1,364 1,551 -12.1% 744 694 7.2%
Digital online 1,786 1,743 2.5% 1,019 992 2.7%
---------- ---------- ----- ---------- ---------- -----
Sub-total 3,150 3,294 -4.4% 1,763 1,686 4.6%
---------- ---------- ----- ---------- ---------- -----
Digital Free
File Alliance 501 502 -0.2% 281 245 14.7%
---------- ---------- ----- ---------- ---------- -----
Total digital
tax
solutions 3,651 3,796 -3.8% 2,044 1,930 5.9%
---------- ---------- ----- ---------- ---------- -----
12,217 13,246 -7.8% 7,328 7,303 0.3%
========== ========== ===== ========== ========== =====
Net average fee -
retail: (2,3)
Company-owned
operations $ 197.21 $ 193.60 1.9% $ 196.48 $ 199.35 -1.4%
Franchise
operations 174.17 168.08 3.6% 172.07 172.86 -0.5%
---------- ---------- ----- ---------- ---------- -----
$ 188.64 $ 184.26 2.4% $ 188.52 $ 190.85 -1.2%
========== ========== ===== ========== ========== =====
Same-Office net
tax preparation
fees: (2,4)
Company-owned
operations $1,048,437 $1,106,147 -5.2% $ 691,495 $ 711,630 -2.8%
Franchise
operations $ 531,652 $ 551,339 -3.6% 285,765 289,960 -1.4%
---------- ---------- ----- ---------- ---------- -----
Total retail
operations $1,580,089 $1,657,486 -4.7% $ 977,260 $1,001,590 -2.4%
========== ========== ----- ========== ========== -----
Same-Office
returns
prepared: (2,4)
Company-owned
operations 5,306 5,692 -6.8% 3,518 3,482 1.0%
Franchise
operations 3,055 3,278 -6.8% 1,655 1,649 0.4%
---------- ---------- ----- ---------- ---------- -----
Total retail
operations 8,361 8,970 -6.8% 5,173 5,131 0.8%
========== ========== ===== ========== ========== =====
YTD YTD %
4/15/10 4/15/09 Change
----------- ----------- ------
Net tax
preparation fees
- retail: (1,2)
Company-owned
operations $ 1,760,332 $ 1,886,418 -6.7%
Franchise
operations 851,635 878,315 -3.0%
----------- ----------- ------
$ 2,611,967 $ 2,764,733 -5.5%
=========== =========== ======
Total returns
prepared: (2)
Company-owned
operations 8,939 9,645 -7.3%
Franchise
operations 4,911 5,178 -5.2%
----------- ----------- ------
Total retail
operations 13,850 14,823 -6.6%
----------- ----------- ------
Digital
software 2,108 2,245 -6.1%
Digital online 2,805 2,735 2.6%
----------- ----------- ------
Sub-total 4,913 4,980 -1.3%
----------- ----------- ------
Digital Free
File Alliance 782 747 4.7%
----------- ----------- ------
Total digital
tax
solutions 5,695 5,727 -0.6%
----------- ----------- ------
19,545 20,550 -4.9%
=========== =========== ======
Net average fee -
retail: (2,3)
Company-owned
operations $ 196.92 $ 195.77 0.6%
Franchise
operations 173.43 169.67 2.2%
----------- ----------- ------
$ 188.59 $ 186.65 1.0%
=========== =========== ======
Same-Office net
tax preparation
fees: (2,4)
Company-owned
operations $ 1,739,932 $ 1,817,777 -4.3%
Franchise
operations 817,417 841,299 -2.8%
----------- ----------- ------
Total retail
operations $ 2,557,349 $ 2,659,076 -3.8%
=========== =========== ------
Same-Office
returns
prepared: (2,4)
Company-owned
operations 8,824 9,174 -3.8%
Franchise
operations 4,710 4,927 -4.4%
----------- ----------- ------
Total retail
operations 13,534 14,101 -4.0%
=========== =========== ======
(1) Amounts include gross tax preparation fees less coupons and discounts.
(2) Prior year numbers have been reclassified between company-owned and
franchise operations for offices which were refranchised during either
year.
(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.
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.
For Further Information Investor Relations: Derek Drysdale 816-854-4513 Email Contact Media Relations: Jennifer Love 816-854-4448 Email Contact
SOURCE: H & R Block
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