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): March 8,
2010
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):
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
2.02. Results
of Operations and Financial Condition
On March
8, 2010, the Company issued a press release regarding the Company’s results of
operations for the fiscal quarter ended January 31, 2010. A copy of
the press release is furnished as Exhibit 99.1 to this Current Report on Form
8-K.
Item
9.01. Financial
Statements and Exhibits
|
(d)
|
Exhibits
|
|
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: March
8, 2010
|
By:/s/
Andrew J.
Somora
|
|
Andrew
J. Somora
|
|
|
Assistant
Secretary
|
EXHIBIT
INDEX
Exhibit 99.1
News
Release
H&R
Block Reports Fiscal 2010 Third Quarter Results
|
·
|
Consolidated
net income up 6.9% to $50.6 million, or $0.15 per
share
|
|
·
|
Net
income from continuing operations of $0.16 per share, down $0.04 to prior
year
|
|
·
|
Total
revenues decline 5.9% to $934.9
million
|
For Immediate Release March
8, 2010
KANSAS
CITY, Mo. – H&R Block, Inc. (NYSE: HRB) today reported consolidated net
income for the fiscal third quarter ended Jan. 31, 2010 of $50.6 million, or 15
cents per share, up 6.9 percent from the prior period of $47.4
million. Third quarter revenues declined 5.9 percent to $934.9
million, primarily driven by fewer tax returns prepared. Income from continuing
operations of $53.6 million, or $0.16 per share1, fell 19.8 percent from $66.8 million, or $0.20
per share, in the prior year period.
“While we are disappointed with our
early results this tax season, we remain committed to improving our performance
as the remainder of the season unfolds. We expect to outperform our
competitors regardless of the external factors like unemployment rates, but we
have not done so to-date,” said Russ Smyth, President and Chief Executive
Officer of H&R Block. “We continue to believe that our focus on increasing
client satisfaction, improving the quality of our service, enhancing our value
perception and continuing to reduce our cost structure is the right formula for
success,” added Mr. Smyth.
Tax
Services
Total
segment revenues fell 6.2 percent year-over-year to $747.7 million, primarily
reflecting a 7.1 percent decline in total retail tax returns
prepared. Pretax income of $131.2 million for the third quarter was
essentially flat compared with pretax income of $133.5 million a year ago,
despite the decline in revenues.
Interim
Tax Results through Feb. 28
Based upon various industry-wide
sources, the company believes that total IRS filings are down 4 to 5 percent
through Feb. 28, partially due to weather-related slowness in
February. The company anticipates that by the end of the tax season
total IRS filings will decline approximately 2.5 to 3.5 percent over the prior
year, or only approximately half the rate of decline seen in the period through
Feb. 28. However, this decline would nonetheless be nearly double the
company’s original estimate of lower returns.
The shift
from assisted preparation to internet based or other do-it-yourself (DIY) tax
preparation methods has accelerated in the early part of this tax season
compared with previous years. Historically late season filers, who
tend to have higher incomes, have shifted to DIY at a slower rate than early
season filers.
For the fiscal 2010 tax season through
Feb. 28, the company’s same-office tax returns prepared in retail operations
fell 6.8 percent compared to the prior-year period. Total retail tax
returns prepared through Feb. 28 were down 9.4 percent.
Digital
returns2 prepared by H&R Block were down 4.4
percent, although online returns grew 2.5 percent. The aggregate
number of digital returns including the Free File Alliance fell 3.8 percent.
Software-based returns declined by 12.1 percent due to the company’s decision to
exit two unprofitable distribution channels.
Total tax
preparation revenues through Feb. 28 fell $124.1 million, or 7.1 percent over
the comparable period in 2009. This reflects a 9.4 percent decline in
total retail returns prepared, partially offset by the impact of an increase of
2.4 percent in net average fees per retail return.
“Our initiatives to improve service
levels have resulted in stabilizing client retention levels through February
after years of steady declines. However, our efforts to drive new
client growth so far this year have not met our expectations,” said Mr. Smyth.
“We are focused on improving our top line results for the remainder of the year,
while we continue to reduce expenses. We have already demonstrated an ability to
reduce our cost structure without negatively affecting client experience, and we
believe we can continue to do even more in the future,” added Mr.
Smyth.
RSM
McGladrey
RSM
McGladrey (“RSM”) reported a third quarter pretax loss of $11.2 million compared
to pretax income of $10.7 million a year ago. The largest component
of this change was due to a $15.0 million goodwill impairment related to RSM’s
capital markets business.
Third quarter revenues fell $6.7
million, or 3.6 percent, compared to the prior year period. The drop
in revenues mainly stems from the impact of the overall weak economic
environment, which continues to pressure billable rates and hours within the
industry.
2 “Digital returns” consist of online and
desktop software products, excluding Free File Alliance
returns.
In February, RSM and McGladrey &
Pullen, LLP entered into new definitive agreements concerning their alternative
practice structure, which renewed the long-standing business relationship
between these two firms. This ends an uncertain period that had
adversely affected RSM’s ability to participate in proposals for new client
engagements. RSM also incurred legal and consulting expenses related to these
negotiations of $3.3 million in the third quarter and $6.2 million fiscal
year-to-date.
Corporate
Corporate
operations includes corporate support department costs, such as finance and
legal, as well as net interest margin and other gains/losses associated with
H&R Block Bank’s declining mortgage portfolio. For the third
quarter ended Jan. 31, 2010, Corporate operations reported a pretax loss of
$22.5 million, compared to a loss of $42.4 million in the prior
year. This represented an improvement of nearly 47 percent. Reduced
expenses in the fiscal third quarter included reductions in self-insured
liabilities, lower interest expense on corporate borrowings and reduced loss
provisions on mortgage loans held for investment.
Share
Repurchases and Financing Developments
The
company repurchased and retired 6.8 million shares during the third quarter at
an aggregate price of $150.0 million. On March 4, the Company closed a new
$1.7 billion committed line of credit (“CLOC“) with a consortium of banks led by
Bank of America, N.A., Wells Fargo Bank, N.A. and BNP Paribas. This
facility replaces the company’s prior aggregate $2 billion CLOCs and will mature
in July, 2013. The $650 million quarter-end net worth covenant remains
unchanged. Full details concerning the terms of the new CLOC will be
included in the company’s Form 10-Q for the third quarter of fiscal
2010.
Conference
Call
At 4:30
p.m. EST today, the company will host its fiscal third quarter conference call
for analysts, institutional investors and shareholders. To access the
call, please dial the number below approximately five to 10 minutes prior to the
scheduled starting time:
U.S./Canada (877) 247-6355 or
International (706) 679-0371
Conference ID: 57298613
The call
also will be webcast in a listen-only format for the media and
public. The link to the webcast can be accessed directly at http://investor-relations.hrblock.com.
A replay
of the call will be available beginning at 6 p.m. EST on March 8, and continuing
until March 30, by dialing (800) 642-1687 (U.S./Canada) or (706) 645-9291
(international). The conference ID is 57298613. The webcast will
be available for replay beginning on March 9 at http://investor-relations.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, or otherwise.
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™ 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,
derek.drysdale@hrblock.com
Media
Relations Gene
King, 816.854.4672, gene.king@hrblock.com
TABLE
FOLLOWS
|
KEY
OPERATING RESULTS
|
||||||||||||||||
|
Unaudited,
amounts in thousands, except per share data
|
||||||||||||||||
|
Three
months ended January 31,
|
||||||||||||||||
|
Revenues
|
Income
(loss)
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Tax
Services
|
$ | 747,685 | $ | 796,866 | $ | 131,189 | $ | 133,473 | ||||||||
|
Business
Services
|
178,482 | 185,177 | (11,222 | ) | 10,695 | |||||||||||
|
Corporate
and Eliminations
|
8,685 | 11,403 | (22,516 | ) | (42,429 | ) | ||||||||||
| $ | 934,852 | $ | 993,446 | 97,451 | 101,739 | |||||||||||
|
Income
tax
|
43,848 | 34,909 | ||||||||||||||
|
Net
income from continuing operations
|
53,603 | 66,830 | ||||||||||||||
|
Net
loss from discontinued operations
|
(2,968 | ) | (19,467 | ) | ||||||||||||
|
Net
income
|
$ | 50,635 | $ | 47,363 | ||||||||||||
|
Basic
earnings (loss) per share:
|
||||||||||||||||
|
Net income from continuing operations
|
$ | 0.16 | $ | 0.20 | ||||||||||||
|
Net loss from discontinued operations
|
(0.01 | ) | (0.06 | ) | ||||||||||||
|
Net
income
|
$ | 0.15 | $ | 0.14 | ||||||||||||
|
Basic
shares outstanding
|
332,999 | 337,338 | ||||||||||||||
|
Diluted
earnings (loss) per share:
|
||||||||||||||||
|
Net income from continuing operations
|
$ | 0.16 | $ | 0.20 | ||||||||||||
|
Net loss from discontinued operations
|
(0.01 | ) | (0.06 | ) | ||||||||||||
|
Net
income
|
$ | 0.15 | $ | 0.14 | ||||||||||||
|
Diluted
shares outstanding
|
334,297 | 338,687 | ||||||||||||||
|
Nine
months ended January 31,
|
||||||||||||||||
|
Revenues
|
Income
(loss)
|
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
|
Tax
Services
|
$ | 944,953 | $ | 983,300 | $ | (212,973 | ) | $ | (218,309 | ) | ||||||
|
Business
Services
|
562,702 | 592,873 | (9,727 | ) | 23,481 | |||||||||||
|
Corporate
and Eliminations
|
28,783 | 40,651 | (103,575 | ) | (143,856 | ) | ||||||||||
| $ | 1,536,438 | $ | 1,616,824 | (326,275 | ) | (338,684 | ) | |||||||||
|
Income
tax benefit
|
(122,789 | ) | (143,930 | ) | ||||||||||||
|
Net
loss from continuing operations
|
(203,486 | ) | (194,754 | ) | ||||||||||||
|
Net
loss from discontinued operations
|
(8,100 | ) | (26,476 | ) | ||||||||||||
|
Net
loss
|
$ | (211,586 | ) | $ | (221,230 | ) | ||||||||||
|
Basic
and diluted loss per share:
|
||||||||||||||||
|
Net loss from continuing operations
|
$ | (0.61 | ) | $ | (0.59 | ) | ||||||||||
|
Net loss from discontinued operations
|
(0.02 | ) | (0.08 | ) | ||||||||||||
|
Net
loss
|
$ | (0.63 | ) | $ | (0.67 | ) | ||||||||||
|
Basic
and diluted shares outstanding
|
334,293 | 331,429 | ||||||||||||||
|
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
|
Basic earnings per share is computed using the two-class method and is based on
the weighted average number of shares outstanding. The dilutive
effect of potential common shares is included in diluted earnings per share,
except in those periods with a loss from continuing operations.
Certain reclassifications have been made to prior year amounts to conform to the
current year presentation. Effective May 1, 2009, we realigned certain segments
of our business to reflect a new management reporting structure. The operations
of H&R Block Bank, which were previously reported as the Consumer Financial
Services segment, have now been reclassified, with activities that support our
retail tax network included in the Tax Services segment, and income and expenses
of our static portfolio of mortgage loans held for investment and related assets
included in Corporate. These reclassifications had no effect on our total
operating expenses, results of operations or stockholders’ equity as previously
reported.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
|
Amounts
in thousands, except per share data
|
||||||||||||
|
January
31,
|
January
31,
|
April
30,
|
||||||||||
|
2010
|
2009
|
2009
|
||||||||||
|
ASSETS
|
||||||||||||
|
Current
assets:
|
||||||||||||
|
Cash
and cash equivalents
|
$ | 1,727,677 | $ | 1,269,203 | $ | 1,654,663 | ||||||
|
Cash
and cash equivalents - restricted
|
85,313 | 75,893 | 51,656 | |||||||||
|
Receivables,
net
|
2,566,830 | 2,642,951 | 512,814 | |||||||||
|
Prepaid
expenses and other current assets
|
344,922 | 425,042 | 351,947 | |||||||||
|
Total
current assets
|
4,724,742 | 4,413,089 | 2,571,080 | |||||||||
|
Mortgage
loans held for investment, net
|
641,157 | 781,755 | 744,899 | |||||||||
|
Property
and equipment, net
|
362,170 | 383,704 | 368,289 | |||||||||
|
Intangible
assets, net
|
371,951 | 394,106 | 385,998 | |||||||||
|
Goodwill
|
843,054 | 848,443 | 850,230 | |||||||||
|
Other
assets
|
467,055 | 480,795 | 439,226 | |||||||||
|
Total
assets
|
$ | 7,410,129 | $ | 7,301,892 | $ | 5,359,722 | ||||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||||||
|
Current
liabilities:
|
||||||||||||
|
Short-term
borrowings
|
$ | 1,675,094 | $ | 690,485 | $ | - | ||||||
|
Customer
banking deposits
|
2,220,501 | 2,115,708 | 854,888 | |||||||||
|
Accounts
payable, accrued expenses and other current liabilities
|
756,501 | 734,755 | 705,945 | |||||||||
|
Accrued
salaries, wages and payroll taxes
|
182,151 | 206,959 | 259,698 | |||||||||
|
Accrued
income taxes
|
118,079 | 143,791 | 543,967 | |||||||||
|
Current
portion of long-term debt
|
2,576 | 9,030 | 8,782 | |||||||||
|
Current
Federal Home Loan Bank borrowings
|
25,000 | 104,000 | 25,000 | |||||||||
|
Total
current liabilities
|
4,979,902 | 4,004,728 | 2,398,280 | |||||||||
|
Long-term
debt
|
1,032,800 | 2,002,647 | 1,032,122 | |||||||||
|
Long-term
Federal Home Loan Bank borrowings
|
75,000 | - | 75,000 | |||||||||
|
Other
noncurrent liabilities
|
385,960 | 454,512 | 448,461 | |||||||||
|
Total
liabilities
|
6,473,662 | 6,461,887 | 3,953,863 | |||||||||
|
Stockholders'
equity:
|
||||||||||||
|
Common
stock, no par, stated value $.01 per share
|
4,374 | 4,442 | 4,442 | |||||||||
|
Additional
paid-in capital
|
826,503 | 835,329 | 836,477 | |||||||||
|
Accumulated
other comprehensive income (loss)
|
1,086 | (16,614 | ) | (11,639 | ) | |||||||
|
Retained
earnings
|
2,162,406 | 2,015,650 | 2,671,437 | |||||||||
|
Less
treasury shares, at cost
|
(2,057,902 | ) | (1,998,802 | ) | (2,094,858 | ) | ||||||
|
Total
stockholders' equity
|
936,467 | 840,005 | 1,405,859 | |||||||||
|
Total
liabilities and stockholders' equity
|
$ | 7,410,129 | $ | 7,301,892 | $ | 5,359,722 | ||||||
|
CONDENSED
CONSOLIDATED INCOME STATEMENTS
|
||||||||||||||||
|
Unaudited,
amounts in thousands, except per share data
|
||||||||||||||||
|
Three
months ended January 31,
|
Nine
months ended January 31,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Service
revenues
|
$ | 744,327 | $ | 799,687 | $ | 1,287,270 | $ | 1,356,744 | ||||||||
|
Product
and other revenues
|
142,179 | 135,155 | 176,422 | 166,582 | ||||||||||||
|
Interest
income
|
48,346 | 58,604 | 72,746 | 93,498 | ||||||||||||
| 934,852 | 993,446 | 1,536,438 | 1,616,824 | |||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Cost
of revenues
|
645,747 | 684,567 | 1,443,146 | 1,489,652 | ||||||||||||
|
Selling,
general and administrative
|
194,661 | 208,814 | 427,563 | 464,054 | ||||||||||||
| 840,408 | 893,381 | 1,870,709 | 1,953,706 | |||||||||||||
|
Operating
income (loss)
|
94,444 | 100,065 | (334,271 | ) | (336,882 | ) | ||||||||||
|
Other
income (expense), net
|
3,007 | 1,674 | 7,996 | (1,802 | ) | |||||||||||
|
Income
(loss) from continuing operations before taxes (benefit)
|
97,451 | 101,739 | (326,275 | ) | (338,684 | ) | ||||||||||
|
Income
taxes (benefit)
|
43,848 | 34,909 | (122,789 | ) | (143,930 | ) | ||||||||||
|
Net
income (loss) from continuing operations
|
53,603 | 66,830 | (203,486 | ) | (194,754 | ) | ||||||||||
|
Net
loss from discontinued operations
|
(2,968 | ) | (19,467 | ) | (8,100 | ) | (26,476 | ) | ||||||||
|
Net
income (loss)
|
$ | 50,635 | $ | 47,363 | $ | (211,586 | ) | $ | (221,230 | ) | ||||||
|
Basic
earnings (loss) per share:
|
||||||||||||||||
|
Net
income (loss) from continuing operations
|
$ | 0.16 | $ | 0.20 | $ | (0.61 | ) | $ | (0.59 | ) | ||||||
|
Net
loss from discontinued operations
|
(0.01 | ) | (0.06 | ) | (0.02 | ) | (0.08 | ) | ||||||||
|
Net
income (loss)
|
$ | 0.15 | $ | 0.14 | $ | (0.63 | ) | $ | (0.67 | ) | ||||||
|
Basic
shares outstanding
|
332,999 | 337,338 | 334,293 | 331,429 | ||||||||||||
|
Diluted
earnings (loss) per share:
|
||||||||||||||||
|
Net
income (loss) from continuing operations
|
$ | 0.16 | $ | 0.20 | $ | (0.61 | ) | $ | (0.59 | ) | ||||||
|
Net
loss from discontinued operations
|
(0.01 | ) | (0.06 | ) | (0.02 | ) | (0.08 | ) | ||||||||
|
Net
income (loss)
|
$ | 0.15 | $ | 0.14 | $ | (0.63 | ) | $ | (0.67 | ) | ||||||
|
Diluted
shares outstanding
|
334,297 | 338,687 | 334,293 | 331,429 | ||||||||||||
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
Unaudited,
amounts in thousands
|
||||||||
|
Nine
months ended January 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
Net
cash used in operating activities
|
$ | (2,729,047 | ) | $ | (2,423,562 | ) | ||
|
Cash
flows from investing activities:
|
||||||||
|
Principal
payments on mortgage loans held for investment, net
|
56,114 | 72,150 | ||||||
|
Purchases
of property and equipment
|
(63,242 | ) | (73,913 | ) | ||||
|
Payments
made for business acquisitions, net of cash acquired
|
(10,828 | ) | (290,868 | ) | ||||
|
Proceeds
from sale of businesses, net
|
66,760 | 11,556 | ||||||
|
Net
cash provided by investing activities of discontinued
operations
|
- | 255,066 | ||||||
|
Other,
net
|
22,370 | 12,283 | ||||||
|
Net
cash provided by (used in) investing activities
|
71,174 | (13,726 | ) | |||||
|
Cash
flows from financing activities:
|
||||||||
|
Repayments
of Federal Home Loan Bank borrowings
|
- | (40,000 | ) | |||||
|
Proceeds
from Federal Home Loan Bank borrowings
|
- | 15,000 | ||||||
|
Repayments
of short-term borrowings
|
(982,774 | ) | (888,983 | ) | ||||
|
Proceeds
from short-term borrowings
|
2,657,436 | 2,550,281 | ||||||
|
Customer
banking deposits
|
1,365,163 | 1,326,584 | ||||||
|
Dividends
paid
|
(151,317 | ) | (147,569 | ) | ||||
|
Repurchase
of common stock, including shares surrendered
|
(154,201 | ) | (7,387 | ) | ||||
|
Proceeds
from exercise of stock options
|
15,678 | 69,891 | ||||||
|
Proceeds
from issuance of common stock, net
|
- | 141,450 | ||||||
|
Net
cash provided by financing activities of discontinued
operations
|
- | 4,783 | ||||||
|
Other,
net
|
(29,434 | ) | 17,544 | |||||
|
Net
cash provided by financing activities
|
2,720,551 | 3,041,594 | ||||||
|
Effects
of exchange rates on cash
|
10,336 | - | ||||||
|
Net
increase in cash and cash equivalents
|
73,014 | 604,306 | ||||||
|
Cash
and cash equivalents at beginning of the period
|
1,654,663 | 664,897 | ||||||
|
Cash
and cash equivalents at end of the period
|
$ | 1,727,677 | $ | 1,269,203 | ||||
|
Supplementary
cash flow data:
|
||||||||
|
Income
taxes paid (refunds received), net
|
$ | 269,774 | $ | (13,006 | ) | |||
|
Interest
paid on borrowings
|
61,118 | 70,891 | ||||||
|
Interest
paid on deposits
|
8,654 | 11,484 | ||||||
|
Transfers
of loans to foreclosed assets
|
12,689 | 62,774 | ||||||
|
Interim
U.S. Tax Operating Data
|
||||||||||||||||||||||||
|
(amounts
in thousands, except net average fee)
|
||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
|
Tax
Season YTD 1/31 2010
|
Tax
Season YTD 1/31 2009
|
Percent
change
|
Tax
Season YTD 2/28 2010
|
Tax
Season YTD 2/28 2009
|
Percent
change
|
|||||||||||||||||||
|
Net
tax preparation fees - retail: (2)
|
||||||||||||||||||||||||
|
Company-owned
operations
|
$ | 469,911 | $ | 498,470 | -5.7 | % | $ | 1,060,980 | $ | 1,159,444 | -8.5 | % | ||||||||||||
|
Franchise
operations
|
244,184 | 251,818 | -3.0 | % | 554,908 | 580,539 | -4.4 | % | ||||||||||||||||
|
Total
retail operations
|
$ | 714,095 | $ | 750,288 | -4.8 | % | $ | 1,615,888 | $ | 1,739,983 | -7.1 | % | ||||||||||||
|
Total
returns prepared: (1)
|
||||||||||||||||||||||||
|
Company-owned
operations
|
2,292 | 2,467 | -7.1 | % | 5,380 | 5,995 | -10.3 | % | ||||||||||||||||
|
Franchise
operations
|
1,347 | 1,451 | -7.2 | % | 3,186 | 3,455 | -7.8 | % | ||||||||||||||||
|
Total
retail operations
|
3,639 | 3,918 | -7.1 | % | 8,566 | 9,450 | -9.4 | % | ||||||||||||||||
|
Digital
software
|
635 | 780 | -18.6 | % | 1,364 | 1,551 | -12.1 | % | ||||||||||||||||
|
Digital
online
|
719 | 643 | 11.8 | % | 1,786 | 1,743 | 2.5 | % | ||||||||||||||||
|
Sub-total
|
1,354 | 1,423 | -4.8 | % | 3,150 | 3,294 | -4.4 | % | ||||||||||||||||
|
Digital
Free File Alliance
|
201 | 178 | 12.9 | % | 501 | 502 | -0.2 | % | ||||||||||||||||
|
Total
digital tax solutions
|
1,555 | 1,601 | -2.9 | % | 3,651 | 3,796 | -3.8 | % | ||||||||||||||||
| 5,194 | 5,519 | -5.9 | % | 12,217 | 13,246 | -7.8 | % | |||||||||||||||||
|
Net
average fee - retail: (1,3)
|
||||||||||||||||||||||||
|
Company-owned
operations
|
$ | 205.06 | $ | 202.15 | 1.4 | % | $ | 197.21 | $ | 193.60 | 1.9 | % | ||||||||||||
|
Franchise
operations
|
181.20 | 173.60 | 4.4 | % | 174.17 | 168.08 | 3.6 | % | ||||||||||||||||
|
Total
retail operations
|
$ | 196.23 | $ | 191.58 | 2.4 | % | $ | 188.64 | $ | 184.26 | 2.4 | % | ||||||||||||
|
Same-office
tax preparation fees: (1,4)
|
||||||||||||||||||||||||
|
Company-owned
operations
|
$ | 466,519 | $ | 482,530 | -3.3 | % | $ | 1,048,437 | $ | 1,106,147 | -5.2 | % | ||||||||||||
|
Franchise
operations
|
235,255 | 241,323 | -2.5 | % | 531,652 | 551,339 | -3.6 | % | ||||||||||||||||
|
Total
retail operations
|
$ | 701,774 | $ | 723,853 | -3.1 | % | $ | 1,580,089 | $ | 1,657,486 | -4.7 | % | ||||||||||||
|
Same-office
returns prepared: (1,4)
|
||||||||||||||||||||||||
|
Company-owned
operations
|
2,249 | 2,335 | -3.7 | % | 5,306 | 5,692 | -6.8 | % | ||||||||||||||||
|
Franchise
operations
|
1,292 | 1,376 | -6.1 | % | 3,055 | 3,278 | -6.8 | % | ||||||||||||||||
|
Total
retail operations
|
3,541 | 3,711 | -4.6 | % | 8,361 | 8,970 | -6.8 | % | ||||||||||||||||
|
(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
offices open in both fiscal year 2010 and fiscal year
2009.
|