UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): November 1, 2008
H&R BLOCK, INC.
(Exact name of registrant as specified in charter)
Missouri (State of Incorporation) |
1-6089 (Commission File Number) |
44-0607856 (I.R.S. Employer Identification Number) |
One H&R Block Way, Kansas City, MO 64105
(Address of Principal Executive Offices) (Zip Code)
(816) 854-3000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.01. Completion of Acquisition or Disposition of Assets.
On November 1, 2008, Block Financial LLC (Block Financial), an indirect wholly owned subsidiary of H&R Block, Inc. (the Company), completed the sale of all the outstanding shares of capital stock of HRB Financial Corporation (HRB Financial) to Ameriprise Financial, Inc. pursuant to a Stock Purchase Agreement dated August 12, 2008. HRB Financial owns H&R Block Financial Advisors, Inc., the Companys former securities brokerage business. Pursuant to the terms of the sale, Block Financial received sales proceeds of approximately $312 million in cash and repayment of approximately $48 million in intercompany liabilities, subject to post-closing adjustments.
Item 9.01. Financial Statements and Exhibits.
(b) |
Pro forma Financial Information |
Exhibit Number |
Description |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
H&R BLOCK, INC.
Date: |
November 6, 2008 |
By:/s/ Bret G. Wilson |
|
Bret G. Wilson |
|
Vice President and Secretary |
EXHIBIT INDEX
CONDENSED CONSOLIDATED BALANCE SHEETS ADJUSTED FOR HRB FINANCIAL CORPORATION DISCONTINUED OPERATIONS
Unaudited, amounts in thousands
|
|
July 31, 2008 |
|
||||||||||
|
|
As Reported |
|
|
|
Amounts Transferred to Discontinued Operations |
|
|
|
As Adjusted |
|
||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
355,998 |
|
|
|
($110,535 |
) |
|
|
$ |
245,463 |
|
Cash and cash equivalents - restricted |
|
|
221,338 |
|
|
|
(219,000 |
) |
|
|
|
2,338 |
|
Receivables from customers, brokers, dealers and clearing organizations, net |
|
|
401,859 |
|
|
|
(401,859 |
) |
|
|
|
— |
|
Receivables, net |
|
|
383,224 |
|
|
|
(16,223 |
) |
|
|
|
367,001 |
|
Prepaid expenses and other current assets |
|
|
438,872 |
|
|
|
(23,756 |
) |
|
|
|
415,116 |
|
Assets of discontinued operations, held for sale |
|
|
— |
|
|
|
1,005,238 |
|
|
|
|
1,005,238 |
|
Total current assets |
|
|
1,801,291 |
|
|
|
233,865 |
|
|
|
|
2,035,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held for investment, net |
|
|
868,603 |
|
|
|
— |
|
|
|
|
868,603 |
|
Property and equipment, net |
|
|
380,804 |
|
|
|
(17,329 |
) |
|
|
|
363,475 |
|
Intangible assets, net |
|
|
142,533 |
|
|
|
— |
|
|
|
|
142,533 |
|
Goodwill, net |
|
|
1,006,207 |
|
|
|
(173,954 |
) |
|
|
|
832,253 |
|
Other assets |
|
|
704,044 |
|
|
|
(42,582 |
) |
|
|
|
661,462 |
|
Total assets |
|
$ |
4,903,482 |
|
|
|
$ — |
|
|
|
$ |
4,903,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer deposits |
|
$ |
777,080 |
|
|
|
$ — |
|
|
|
$ |
777,080 |
|
Accounts payable to customers, brokers and dealers |
|
|
592,688 |
|
|
|
(592,688 |
) |
|
|
|
— |
|
Accounts payable, accrued expenses and other current liabilities |
|
|
665,973 |
|
|
|
(38,485 |
) |
|
|
|
627,488 |
|
Accrued salaries, wages and payroll taxes |
|
|
142,690 |
|
|
|
(25,004 |
) |
|
|
|
117,686 |
|
Accrued income taxes |
|
|
263,784 |
|
|
|
— |
|
|
|
|
263,784 |
|
Current portion of long-term debt |
|
|
108,839 |
|
|
|
— |
|
|
|
|
108,839 |
|
Liabilities of discontinued operations, held for sale |
|
|
— |
|
|
|
670,932 |
|
|
|
|
670,932 |
|
Total current liabilities |
|
|
2,551,054 |
|
|
|
14,755 |
|
|
|
|
2,565,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
1,034,117 |
|
|
|
— |
|
|
|
|
1,034,117 |
|
Other noncurrent liabilities |
|
|
481,589 |
|
|
|
(14,755 |
) |
|
|
|
466,834 |
|
Total liabilities |
|
|
4,066,760 |
|
|
|
— |
|
|
|
|
4,066,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
4,359 |
|
|
|
— |
|
|
|
|
4,359 |
|
Additional paid-in capital |
|
|
686,802 |
|
|
|
— |
|
|
|
|
686,802 |
|
Accumulated other comprehensive income |
|
|
833 |
|
|
|
— |
|
|
|
|
833 |
|
Retained earnings |
|
|
2,204,940 |
|
|
|
— |
|
|
|
|
2,204,940 |
|
Less cost of shares of common stock in treasury |
|
|
(2,060,212 |
) |
|
|
— |
|
|
|
|
(2,060,212 |
) |
Total stockholders’ equity |
|
|
836,722 |
|
|
|
— |
|
|
|
|
836,722 |
|
Total liabilities and stockholders’ equity |
|
$ |
4,903,482 |
|
|
|
$ — |
|
|
|
$ |
4,903,482 |
|
Note: The unaudited condensed consolidated balance sheets present the assets and liabilities of HRB Financial Corporation as assets and liabilities of discontinued operations, held for sale. The amounts transferred to Discontinued Operations represent the reclassification of these assets and liabilities.
CONDENSED CONSOLIDATED BALANCE SHEETS ADJUSTED FOR HRB FINANCIAL CORPORATION DISCONTINUED OPERATIONS
Unaudited, amounts in thousands
|
|
April 30, 2008 |
|
||||||||||
|
|
As Reported |
|
|
|
Amounts Transferred to Discontinued Operations |
|
|
|
As Adjusted |
|
||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
726,845 |
|
|
|
($61,948 |
) |
|
|
$ |
664,897 |
|
Cash and cash equivalents - restricted |
|
|
219,031 |
|
|
|
(212,000 |
) |
|
|
|
7,031 |
|
Receivables from customers, brokers, dealers and clearing organizations, net |
|
|
438,899 |
|
|
|
(438,899 |
) |
|
|
|
— |
|
Receivables, net |
|
|
552,871 |
|
|
|
(18,642 |
) |
|
|
|
534,229 |
|
Prepaid expenses and other current assets |
|
|
443,934 |
|
|
|
(23,196 |
) |
|
|
|
420,738 |
|
Assets of discontinued operations, held for sale |
|
|
— |
|
|
|
987,592 |
|
|
|
|
987,592 |
|
Total current assets |
|
|
2,381,580 |
|
|
|
232,907 |
|
|
|
|
2,614,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held for investment, net |
|
|
966,301 |
|
|
|
— |
|
|
|
|
966,301 |
|
Property and equipment, net |
|
|
380,738 |
|
|
|
(17,074 |
) |
|
|
|
363,664 |
|
Intangible assets, net |
|
|
147,368 |
|
|
|
— |
|
|
|
|
147,368 |
|
Goodwill, net |
|
|
1,005,268 |
|
|
|
(173,954 |
) |
|
|
|
831,314 |
|
Other assets |
|
|
742,170 |
|
|
|
(41,879 |
) |
|
|
|
700,291 |
|
Total assets |
|
$ |
5,623,425 |
|
|
|
$ — |
|
|
|
$ |
5,623,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
$ |
25,000 |
|
|
|
$ — |
|
|
|
$ |
25,000 |
|
Customer deposits |
|
|
785,624 |
|
|
|
— |
|
|
|
|
785,624 |
|
Accounts payable to customers, brokers and dealers |
|
|
559,658 |
|
|
|
(559,658 |
) |
|
|
|
— |
|
Accounts payable, accrued expenses and other current liabilities |
|
|
782,280 |
|
|
|
(42,393 |
) |
|
|
|
739,887 |
|
Accrued salaries, wages and payroll taxes |
|
|
393,148 |
|
|
|
(27,436 |
) |
|
|
|
365,712 |
|
Accrued income taxes |
|
|
439,380 |
|
|
|
— |
|
|
|
|
439,380 |
|
Current portion of long-term debt |
|
|
111,286 |
|
|
|
— |
|
|
|
|
111,286 |
|
Liabilities of discontinued operations, held for sale |
|
|
— |
|
|
|
644,446 |
|
|
|
|
644,446 |
|
Total current liabilities |
|
|
3,096,376 |
|
|
|
14,959 |
|
|
|
|
3,111,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
1,031,784 |
|
|
|
— |
|
|
|
|
1,031,784 |
|
Other noncurrent liabilities |
|
|
507,447 |
|
|
|
(14,959 |
) |
|
|
|
492,488 |
|
Total liabilities |
|
|
4,635,607 |
|
|
|
— |
|
|
|
|
4,635,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
4,359 |
|
|
|
— |
|
|
|
|
4,359 |
|
Additional paid-in capital |
|
|
695,959 |
|
|
|
— |
|
|
|
|
695,959 |
|
Accumulated other comprehensive income |
|
|
2,486 |
|
|
|
— |
|
|
|
|
2,486 |
|
Retained earnings |
|
|
2,384,449 |
|
|
|
— |
|
|
|
|
2,384,449 |
|
Less cost of shares of common stock in treasury |
|
|
(2,099,435 |
) |
|
|
— |
|
|
|
|
(2,099,435 |
) |
Total stockholders’ equity |
|
|
987,818 |
|
|
|
— |
|
|
|
|
987,818 |
|
Total liabilities and stockholders’ equity |
|
$ |
5,623,425 |
|
|
|
$ — |
|
|
|
$ |
5,623,425 |
|
Note: The unaudited condensed consolidated balance sheets present the assets and liabilities of HRB Financial Corporation as assets and liabilities of discontinued operations, held for sale. The amounts transferred to Discontinued Operations represent the reclassification of these assets and liabilities.
CONDENSED CONSOLIDATED BALANCE SHEETS ADJUSTED FOR HRB FINANCIAL CORPORATION DISCONTINUED OPERATIONS
Unaudited, amounts in thousands
|
|
April 30, 2007 |
|
||||||||||
|
|
As Reported |
|
|
|
Amounts Transferred to Discontinued Operations |
|
|
|
As Adjusted |
|
||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
921,838 |
|
|
|
($104,921 |
) |
|
|
$ |
816,917 |
|
Cash and cash equivalents - restricted |
|
|
332,646 |
|
|
|
(329,000 |
) |
|
|
|
3,646 |
|
Receivables from customers, brokers, dealers and clearing organizations, net |
|
|
410,522 |
|
|
|
(410,522 |
) |
|
|
|
— |
|
Receivables, net |
|
|
556,255 |
|
|
|
(22,560 |
) |
|
|
|
533,695 |
|
Prepaid expenses and other current assets |
|
|
208,564 |
|
|
|
(18,696 |
) |
|
|
|
189,868 |
|
Assets of discontinued operations, held for sale |
|
|
1,746,959 |
|
|
|
1,126,856 |
|
|
|
|
2,873,815 |
|
Total current assets |
|
|
4,176,784 |
|
|
|
241,157 |
|
|
|
|
4,417,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held for investment, net |
|
|
1,358,222 |
|
|
|
— |
|
|
|
|
1,358,222 |
|
Property and equipment, net |
|
|
379,066 |
|
|
|
(19,608 |
) |
|
|
|
359,458 |
|
Intangible assets, net |
|
|
181,413 |
|
|
|
(21,365 |
) |
|
|
|
160,048 |
|
Goodwill, net |
|
|
993,919 |
|
|
|
(173,954 |
) |
|
|
|
819,965 |
|
Other assets |
|
|
454,646 |
|
|
|
(26,230 |
) |
|
|
|
428,416 |
|
Total assets |
|
$ |
7,544,050 |
|
|
|
$ — |
|
|
|
$ |
7,544,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
$ |
1,567,082 |
|
|
|
$ — |
|
|
|
$ |
1,567,082 |
|
Customer deposits |
|
|
1,129,263 |
|
|
|
— |
|
|
|
|
1,129,263 |
|
Accounts payable to customers, brokers and dealers |
|
|
633,189 |
|
|
|
(633,189 |
) |
|
|
|
— |
|
Accounts payable, accrued expenses and other current liabilities |
|
|
519,372 |
|
|
|
(56,614 |
) |
|
|
|
462,758 |
|
Accrued salaries, wages and payroll taxes |
|
|
307,854 |
|
|
|
(23,173 |
) |
|
|
|
284,681 |
|
Accrued income taxes |
|
|
439,472 |
|
|
|
— |
|
|
|
|
439,472 |
|
Current portion of long-term debt |
|
|
9,304 |
|
|
|
— |
|
|
|
|
9,304 |
|
Liabilities of discontinued operations, held for sale |
|
|
615,373 |
|
|
|
727,946 |
|
|
|
|
1,343,319 |
|
Total current liabilities |
|
|
5,220,909 |
|
|
|
14,970 |
|
|
|
|
5,235,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
537,134 |
|
|
|
— |
|
|
|
|
537,134 |
|
Other noncurrent liabilities |
|
|
371,508 |
|
|
|
(14,970 |
) |
|
|
|
356,538 |
|
Total liabilities |
|
|
6,129,551 |
|
|
|
— |
|
|
|
|
6,129,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
4,359 |
|
|
|
— |
|
|
|
|
4,359 |
|
Additional paid-in capital |
|
|
676,766 |
|
|
|
— |
|
|
|
|
676,766 |
|
Accumulated other comprehensive income |
|
|
(1,320 |
) |
|
|
— |
|
|
|
|
(1,320 |
) |
Retained earnings |
|
|
2,886,440 |
|
|
|
— |
|
|
|
|
2,886,440 |
|
Less cost of shares of common stock in treasury |
|
|
(2,151,746 |
) |
|
|
— |
|
|
|
|
(2,151,746 |
) |
Total stockholders’ equity |
|
|
1,414,499 |
|
|
|
— |
|
|
|
|
1,414,499 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,544,050 |
|
|
|
$ — |
|
|
|
$ |
7,544,050 |
|
Note: The unaudited condensed consolidated balance sheets present the assets and liabilities of HRB Financial Corporation as assets and liabilities of discontinued operations, held for sale. The amounts transferred to Discontinued Operations represent the reclassification of these assets and liabilities.
CONDENSED CONSOLIDATED INCOME STATEMENTS ADJUSTED FOR HRB FINANCIAL CORPORATION DISCONTINUED OPERATIONS
Unaudited, amounts in thousands, except per share data
|
|
Three Months Ended July 31, 2008 |
|
||||||
|
|
As reported |
|
Amounts Transferred to Discontinued Operations |
|
As Adjusted |
|
||
Revenues: |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
301,521 |
|
($60,801 |
) |
$ |
240,720 |
|
Other revenues: |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
25,238 |
|
(7,391 |
) |
|
17,847 |
|
Product and other revenues |
|
|
12,879 |
|
463 |
|
|
13,342 |
|
|
|
|
339,638 |
|
(67,729 |
) |
|
271,909 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
369,606 |
|
(52,033 |
) |
|
317,573 |
|
Cost of other revenues |
|
|
42,823 |
|
(258 |
) |
|
42,565 |
|
Selling, general and administrative |
|
|
140,470 |
|
(17,084 |
) |
|
123,386 |
|
|
|
|
552,899 |
|
(69,375 |
) |
|
483,524 |
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(213,261 |
) |
1,646 |
|
|
(211,615 |
) |
Other income, net |
|
|
(1,355 |
) |
- |
|
|
(1,355 |
) |
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before tax benefit |
|
|
(214,616 |
) |
1,646 |
|
|
(212,970 |
) |
Income tax benefit |
|
|
(85,247 |
) |
700 |
|
|
(84,547 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
|
(129,369 |
) |
946 |
|
|
(128,423 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations |
|
|
(3,350 |
) |
(946 |
) |
|
(4,296 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
($132,719 |
) |
$ - |
|
|
($132,719 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
|
($0.40 |
) |
$ 0.01 |
|
|
($0.39 |
) |
Net loss from discontinued operations |
|
|
(0.01 |
) |
(0.01 |
) |
|
(0.02 |
) |
Net loss |
|
|
($0.41 |
) |
$ - |
|
|
($0.41 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted shares |
|
|
327,141 |
|
327,141 |
|
|
327,141 |
|
Note: The unaudited condensed consolidated income statements present the results of operations of HRB Financial Corporation as discontinued operations. The amounts transferred to Discontinued Operations represent the reclassification of these results of operations, as adjusted for eliminations and overhead costs which were previously allocated to this business, totaling $2.0 million.
CONDENSED CONSOLIDATED INCOME STATEMENTS ADJUSTED FOR HRB FINANCIAL CORPORATION DISCONTINUED OPERATIONS
Unaudited, amounts in thousands, except per share data
|
|
Twelve Months Ended April 30, 2008 |
|
||||||
|
|
As reported |
|
Amounts Transferred to Discontinued Operations |
|
As Adjusted |
|
||
Revenues: |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
3,663,636 |
|
($269,730 |
) |
$ |
3,393,906 |
|
Other revenues: |
|
|
|
|
|
|
|
|
|
Product and other revenues |
|
|
541,387 |
|
(221 |
) |
|
541,166 |
|
Interest income |
|
|
198,854 |
|
(47,296 |
) |
|
151,558 |
|
|
|
|
4,403,877 |
|
(317,247 |
) |
|
4,086,630 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
2,489,726 |
|
(209,248 |
) |
|
2,280,478 |
|
Cost of other revenues |
|
|
312,826 |
|
(5,111 |
) |
|
307,715 |
|
Selling, general and administrative |
|
|
881,886 |
|
(92,988 |
) |
|
788,898 |
|
|
|
|
3,684,438 |
|
(307,347 |
) |
|
3,377,091 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
719,439 |
|
(9,900 |
) |
|
709,539 |
|
Interest expense - acquisition debt |
|
|
(2,019 |
) |
- |
|
|
(2,019 |
) |
Other income, net |
|
|
27,801 |
|
(250 |
) |
|
27,551 |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before taxes |
|
|
745,221 |
|
(10,150 |
) |
|
735,071 |
|
Income taxes |
|
|
290,745 |
|
(1,621 |
) |
|
289,124 |
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
|
454,476 |
|
(8,529 |
) |
|
445,947 |
|
|
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations |
|
|
(763,123 |
) |
8,529 |
|
|
(754,594 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
($308,647 |
) |
$ - |
|
|
($308,647 |
) |
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
1.40 |
|
($0.03 |
) |
$ |
1.37 |
|
Net loss from discontinued operations |
|
|
(2.35 |
) |
0.03 |
|
|
(2.32 |
) |
Net loss |
|
|
($0.95 |
) |
$ - |
|
|
($0.95 |
) |
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding |
|
|
324,810 |
|
324,810 |
|
|
324,810 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
1.39 |
|
($0.03 |
) |
$ |
1.36 |
|
Net loss from discontinued operations |
|
|
(2.33 |
) |
0.03 |
|
|
(2.30 |
) |
Net loss |
|
|
($0.94 |
) |
$ - |
|
|
($0.94 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding |
|
|
327,468 |
|
327,468 |
|
|
327,468 |
|
Note: The unaudited condensed consolidated income statements present the results of operations of HRB Financial Corporation as discontinued operations. The amounts transferred to Discontinued Operations represent the reclassification of these results of operations, as adjusted for eliminations and overhead costs which were previously allocated to this business, totaling $11.5 million.
CONDENSED CONSOLIDATED INCOME STATEMENTS ADJUSTED FOR HRB FINANCIAL CORPORATION DISCONTINUED OPERATIONS
Unaudited, amounts in thousands, except per share data
|
|
Twelve Months Ended April 30, 2007 |
|
||||||
|
|
As reported |
|
Amounts Transferred to Discontinued Operations |
|
As Adjusted |
|
||
Revenues: |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
3,356,418 |
|
($248,083 |
) |
$ |
3,108,335 |
|
Other revenues: |
|
|
|
|
|
|
|
|
|
Product and other revenues |
|
|
529,835 |
|
(1,060 |
) |
|
528,775 |
|
Interest income |
|
|
135,021 |
|
(61,769 |
) |
|
73,252 |
|
|
|
|
4,021,274 |
|
(310,912 |
) |
|
3,710,362 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
2,340,395 |
|
(182,557 |
) |
|
2,157,838 |
|
Cost of other revenues |
|
|
182,262 |
|
(9,606 |
) |
|
172,656 |
|
Selling, general and administrative |
|
|
838,755 |
|
(110,215 |
) |
|
728,540 |
|
|
|
|
3,361,412 |
|
(302,378 |
) |
|
3,059,034 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
659,862 |
|
(8,534 |
) |
|
651,328 |
|
Interest expense - acquisition debt |
|
|
(46,920 |
) |
- |
|
|
(46,920 |
) |
Other income, net |
|
|
22,856 |
|
(3 |
) |
|
22,853 |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before taxes |
|
|
635,798 |
|
(8,537 |
) |
|
627,261 |
|
Income taxes |
|
|
261,461 |
|
(3,660 |
) |
|
257,801 |
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
|
374,337 |
|
(4,877 |
) |
|
369,460 |
|
|
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations |
|
|
(807,990 |
) |
4,877 |
|
|
(803,113 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
($433,653 |
) |
$ - |
|
|
($433,653 |
) |
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
1.16 |
|
($0.02 |
) |
$ |
1.14 |
|
Net loss from discontinued operations |
|
|
(2.50 |
) |
0.02 |
|
|
(2.48 |
) |
Net loss |
|
|
($1.34 |
) |
$ - |
|
|
($1.34 |
) |
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding |
|
|
322,688 |
|
322,688 |
|
|
322,688 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
1.15 |
|
($0.02 |
) |
$ |
1.13 |
|
Net loss from discontinued operations |
|
|
(2.48 |
) |
0.02 |
|
|
(2.46 |
) |
Net loss |
|
|
($1.33 |
) |
$ - |
|
|
($1.33 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding |
|
|
326,154 |
|
326,154 |
|
|
326,154 |
|
Note: The unaudited condensed consolidated income statements present the results of operations of HRB Financial Corporation as discontinued operations. The amounts transferred to Discontinued Operations represent the reclassification of these results of operations, as adjusted for eliminations and overhead costs which were previously allocated to this business, totaling $11.8 million.
CONDENSED CONSOLIDATED INCOME STATEMENTS ADJUSTED FOR HRB FINANCIAL CORPORATION DISCONTINUED OPERATIONS
Unaudited, amounts in thousands, except per share data
|
|
Twelve Months Ended April 30, 2006 |
|
||||||
|
|
As reported |
|
Amounts Transferred to Discontinued Operations |
|
As Adjusted |
|
||
Revenues: |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
3,013,005 |
|
($222,730 |
) |
$ |
2,790,275 |
|
Other revenues: |
|
|
|
|
|
|
|
|
|
Product and other revenues |
|
|
492,245 |
|
(4,430 |
) |
|
487,815 |
|
Interest income |
|
|
69,503 |
|
(60,795 |
) |
|
8,708 |
|
|
|
|
3,574,753 |
|
(287,955 |
) |
|
3,286,798 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
2,078,097 |
|
(183,358 |
) |
|
1,894,739 |
|
Cost of other revenues |
|
|
77,253 |
|
(6,643 |
) |
|
70,610 |
|
Selling, general and administrative |
|
|
882,389 |
|
(118,792 |
) |
|
763,597 |
|
|
|
|
3,037,739 |
|
(308,793 |
) |
|
2,728,946 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
537,014 |
|
20,838 |
|
|
557,852 |
|
Interest expense - acquisition debt |
|
|
(49,059 |
) |
- |
|
|
(49,059 |
) |
Other income, net |
|
|
22,527 |
|
- |
|
|
22,527 |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before taxes |
|
|
510,482 |
|
20,838 |
|
|
531,320 |
|
Income taxes |
|
|
212,941 |
|
7,568 |
|
|
220,509 |
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
|
297,541 |
|
13,270 |
|
|
310,811 |
|
|
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations |
|
|
192,867 |
|
(13,270 |
) |
|
179,597 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
490,408 |
|
$ - |
|
$ |
490,408 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share: |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
0.91 |
|
$ 0.04 |
|
$ |
0.95 |
|
Net loss from discontinued operations |
|
|
0.58 |
|
(0.04 |
) |
|
0.54 |
|
Net income |
|
$ |
1.49 |
|
$ - |
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding |
|
|
328,118 |
|
328,118 |
|
|
328,118 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
0.89 |
|
$ 0.04 |
|
$ |
0.93 |
|
Net loss from discontinued operations |
|
|
0.58 |
|
(0.04 |
) |
|
0.54 |
|
Net income |
|
$ |
1.47 |
|
$ - |
|
$ |
1.47 |
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding |
|
|
333,187 |
|
333,187 |
|
|
333,187 |
|
Note: The unaudited condensed consolidated income statements present the results of operations of HRB Financial Corporation as discontinued operations. The amounts transferred to Discontinued Operations represent the reclassification of these results of operations, as adjusted for eliminations and overhead costs which were previously allocated to this business, totaling $12.0 million.