H&R Block, Inc. (NYSE:HRB) today released its financial results
for the fiscal 2018 second quarter ended October 31,
2017. The company normally reports a fiscal second quarter
loss due to the seasonality of its tax business. The fiscal
second quarter typically represents less than 5% of annual revenues
and approximately 15% of annual expenses.
Highlights1
- Fiscal second quarter financial results were in line with
expectations
- Revenues increased $10 million, or 7%, to $141 million
primarily due to increased international tax preparation fees,
positive fluctuations in foreign exchange rates, and favorable
preseason results in the U.S.
- Loss per share from continuing operations increased $0.04, from
$0.67 to $0.71, due to both an increase in net loss from continuing
operations and a year-over-year reduction in average shares
outstanding, which negatively impacts those quarters with a
loss
- The company expects continued improvement in client trajectory
in fiscal 2018, leading to modest revenue growth and margins
consistent with the prior year
"During my first two months at H&R Block, I have been
encouraged by the hard work of our associates and franchisees and
their dedication to delivering for our clients and shareholders,"
said Jeff Jones, H&R Block's president and chief executive
officer. "I'm confident in our plans for the upcoming tax
season, which are centered on operational excellence, new products
and partnerships, and compelling marketing and promotions.
We're excited for the tax season to begin."
Fiscal 2018 Second Quarter Results From Continuing
Operations
(in
millions, except EPS) |
|
Fiscal Year 2018 |
|
Fiscal Year 2017 |
Revenue |
|
$ |
141 |
|
|
$ |
131 |
|
Pretax Loss |
|
$ |
(236 |
) |
|
$ |
(228 |
) |
Net Loss |
|
$ |
(148 |
) |
|
$ |
(143 |
) |
Weighted-Avg. Shares - Diluted |
|
209.1 |
|
|
215.5 |
|
EPS2 |
|
$ |
(0.71 |
) |
|
$ |
(0.67 |
) |
EBITDA3 |
|
$ |
(170 |
) |
|
$ |
(160 |
) |
|
|
|
|
|
Key Financial Metrics
- Total revenues increased $10 million, or 7%, to $141 million
primarily due to increased international tax preparation fees,
fluctuations in foreign exchange rates, and favorable preseason
results in both the Assisted and DIY categories in the
U.S.
- Total operating expenses increased $18 million, or 5%, to $357
million primarily due to increases in compensation costs, along
with increases in occupancy costs, related to prior year
acquisitions of franchisees.
- Pretax loss increased $8 million to $236 million.
- Loss per share from continuing operations increased $0.04, from
$0.67 to $0.71. Approximately half of the increase was
due to the reduction in share count, which will be accretive on a
full year basis.
"Seasonal expenses increased in the second quarter, but we
expect to continue last year's improved financial performance this
fiscal year, targeting modest revenue growth and margins consistent
with the prior year," said Tony Bowen, H&R Block's chief
financial officer. "We are focused on executing our operational
plans for the upcoming tax season to deliver these results."
Dividends
As previously announced, a quarterly cash dividend of $0.24 per
share is payable on January 2, 2018 to shareholders of record as of
December 4, 2017. H&R Block has paid quarterly dividends
consecutively since the company went public in 1962.
Discontinued Operations
During the fiscal quarter, there were no material changes in
estimated contingent losses related to Sand Canyon
Corporation. For additional information, please refer to
disclosures in the company’s reports on Forms 10-K, 10-Q, and other
filings with the Securities and Exchange Commission.
Conference Call
Discussion of the fiscal 2018 second quarter results, future
outlook, and a general business update will occur during the
company’s previously announced fiscal second quarter earnings
conference call for analysts, institutional investors, and
shareholders. The call is scheduled for 8:30 a.m. Eastern time on
December 6, 2017. To access the call, please dial the number below
approximately 10 minutes prior to the scheduled starting time:
U.S./Canada (855) 702-5257 or International (213)
358-0868Conference ID: 89668795
The call, along with a presentation for viewing, will also be
webcast in a listen-only format for the media and public. The link
to the webcast can be accessed directly at
http://investors.hrblock.com.
A replay of the call will be available beginning at 11:30 a.m.
Eastern time on December 6, 2017, and continuing until January 8,
2018, by dialing (855) 859-2056 (U.S./Canada) or (404) 537-3406
(International). The conference ID is 89668795. The webcast will be
available for replay beginning on December 7, 2017 at
http://investors.hrblock.com.
About H&R Block
H&R Block, Inc. (NYSE:HRB) is a global consumer tax services
provider. Tax return preparation services are provided by
professional tax preparers in approximately 12,000 company-owned
and franchise retail tax offices worldwide, and through H&R
Block tax software products for the DIY consumer. H&R Block
also offers adjacent Tax Plus products and services. In fiscal
2017, H&R Block had annual revenues of over $3 billion with 23
million tax returns prepared worldwide. For more information, visit
the H&R Block Newsroom.
About Non-GAAP Financial Information
This press release and the accompanying tables include non-GAAP
financial information. For a description of these non-GAAP
financial measures, including the reasons management uses each
measure, and reconciliations of these non-GAAP financial measures
to the most directly comparable financial measures prepared in
accordance with generally accepted accounting principles, please
see the section of the accompanying tables titled "Non-GAAP
Financial Information."
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the securities laws. Forward-looking statements can
be identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts,"
"targets," "would," "will," "should," "goal," "could" or "may" or
other similar expressions. Forward-looking statements provide
management's current expectations or predictions of future
conditions, events or results. All statements that address
operating performance, events or developments that we expect or
anticipate will occur in the future are forward-looking statements.
They may include estimates of revenues, client trajectory, income,
earnings per share, cost savings, capital expenditures, dividends,
share repurchases, liquidity, capital structure or other financial
items, descriptions of management’s plans or objectives for future
operations, products or services, or descriptions of assumptions
underlying any of the above. All forward-looking statements speak
only as of the date they are made and reflect the company's good
faith beliefs, assumptions and expectations, but they are not
guarantees of future performance or events. Furthermore, the
company disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying
assumptions, factors, or expectations, new information, data or
methods, future events or other changes, except as required by law.
By their nature, forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially from those suggested by the forward-looking statements.
Factors that might cause such differences include, but are not
limited to, a variety of economic, competitive and regulatory
factors, many of which are beyond the company's control, that are
described in our Annual Report on Form 10-K for the fiscal year
ended April 30, 2017 in the section entitled "Risk Factors" and
additional factors we may describe from time to time in other
filings with the Securities and Exchange Commission. You may get
such filings for free at our website at
http://investors.hrblock.com. You should understand that it
is not possible to predict or identify all such factors and,
consequently, you should not consider any such list to be a
complete set of all potential risks or uncertainties.
1 All amounts in this release are unaudited. Unless
otherwise noted, all comparisons refer to the current period
compared to the corresponding prior year period.2 All
per share amounts are based on fully diluted shares at the end of
the corresponding period.3 The company reports non-GAAP financial
measures of performance, including earnings before interest, tax,
depreciation, and amortization (EBITDA), which it considers to be
useful metrics for management and investors to evaluate and compare
the ongoing operating performance of the company. See "About
Non-GAAP Financial Information" below for more information
regarding financial measures not prepared in accordance with
generally accepted accounting principles (GAAP).
For Further InformationInvestor Relations:
Colby Brown, (816) 854-4559, colby.brown@hrblock.comMedia
Relations: Susan Waldron, (816) 854-5522,
susan.waldron@hrblock.com
TABLES FOLLOW
CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
(unaudited, in 000s
- except per share amounts) |
|
|
Three months ended October 31, |
|
Six months ended October 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
Service
revenues |
|
$ |
127,923 |
|
|
$ |
118,940 |
|
|
$ |
252,618 |
|
|
$ |
231,324 |
|
Royalty,
product and other revenues |
|
12,931 |
|
|
12,392 |
|
|
26,038 |
|
|
25,193 |
|
|
|
140,854 |
|
|
131,332 |
|
|
278,656 |
|
|
256,517 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
Compensation and benefits |
|
65,884 |
|
|
57,728 |
|
|
121,476 |
|
|
110,083 |
|
Occupancy
and equipment |
|
105,304 |
|
|
99,067 |
|
|
203,771 |
|
|
193,492 |
|
Provision
for bad debt |
|
1,779 |
|
|
(131 |
) |
|
4,238 |
|
|
1,286 |
|
Depreciation and amortization |
|
29,729 |
|
|
29,911 |
|
|
58,345 |
|
|
57,378 |
|
Other |
|
37,323 |
|
|
39,127 |
|
|
79,904 |
|
|
74,549 |
|
|
|
240,019 |
|
|
225,702 |
|
|
467,734 |
|
|
436,788 |
|
Selling,
general and administrative: |
|
|
|
|
|
|
|
|
Marketing
and advertising |
|
11,562 |
|
|
12,001 |
|
|
18,666 |
|
|
19,562 |
|
Compensation and benefits |
|
62,138 |
|
|
58,293 |
|
|
118,511 |
|
|
115,815 |
|
Depreciation and amortization |
|
15,063 |
|
|
15,839 |
|
|
30,045 |
|
|
29,654 |
|
Other
selling, general and administrative |
|
28,083 |
|
|
27,519 |
|
|
44,873 |
|
|
47,444 |
|
|
|
116,846 |
|
|
113,652 |
|
|
212,095 |
|
|
212,475 |
|
Total
operating expenses |
|
356,865 |
|
|
339,354 |
|
|
679,829 |
|
|
649,263 |
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
1,011 |
|
|
2,173 |
|
|
2,231 |
|
|
4,814 |
|
Interest expense on
borrowings |
|
(21,265 |
) |
|
(22,620 |
) |
|
(42,542 |
) |
|
(44,086 |
) |
Loss from continuing
operations before income tax benefit |
|
(236,265 |
) |
|
(228,469 |
) |
|
(441,484 |
) |
|
(432,018 |
) |
Income tax benefit |
|
(87,953 |
) |
|
(85,054 |
) |
|
(165,354 |
) |
|
(167,577 |
) |
Net loss from
continuing operations |
|
(148,312 |
) |
|
(143,415 |
) |
|
(276,130 |
) |
|
(264,441 |
) |
Net loss from
discontinued operations |
|
(5,254 |
) |
|
(2,805 |
) |
|
(8,003 |
) |
|
(5,452 |
) |
NET
LOSS |
|
$ |
(153,566 |
) |
|
$ |
(146,220 |
) |
|
$ |
(284,133 |
) |
|
$ |
(269,893 |
) |
|
|
|
|
|
|
|
|
|
BASIC AND
DILUTED LOSS PER SHARE: |
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.71 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.33 |
) |
|
$ |
(1.21 |
) |
Discontinued operations |
|
(0.03 |
) |
|
(0.01 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
Consolidated |
|
$ |
(0.74 |
) |
|
$ |
(0.68 |
) |
|
$ |
(1.36 |
) |
|
$ |
(1.24 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE BASIC AND DILUTED SHARES |
|
209,065 |
|
|
215,535 |
|
|
208,500 |
|
|
218,009 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
(unaudited, in 000s - except per share data) |
As of |
|
October 31, 2017 |
|
October 31, 2016 |
|
April 30, 2017 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
180,997 |
|
|
$ |
232,510 |
|
|
$ |
1,011,331 |
|
Cash and
cash equivalents - restricted |
|
100,665 |
|
|
109,538 |
|
|
106,208 |
|
Receivables, net |
|
77,750 |
|
|
104,764 |
|
|
162,775 |
|
Prepaid
expenses and other current assets |
|
85,204 |
|
|
73,555 |
|
|
65,725 |
|
Mortgage
loans held for sale, net |
|
— |
|
|
183,107 |
|
|
— |
|
Total
current assets |
|
444,616 |
|
|
703,474 |
|
|
1,346,039 |
|
Property
and equipment, net |
|
262,226 |
|
|
293,060 |
|
|
263,827 |
|
Intangible assets, net |
|
406,440 |
|
|
433,135 |
|
|
409,364 |
|
Goodwill |
|
493,059 |
|
|
477,360 |
|
|
491,207 |
|
Deferred
tax assets and income taxes receivable |
|
9,205 |
|
|
81,755 |
|
|
83,728 |
|
Other
noncurrent assets |
|
101,015 |
|
|
93,394 |
|
|
99,943 |
|
Total
assets |
|
$ |
1,716,561 |
|
|
$ |
2,082,178 |
|
|
$ |
2,694,108 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
114,875 |
|
|
$ |
139,808 |
|
|
$ |
217,028 |
|
Accrued
salaries, wages and payroll taxes |
|
42,897 |
|
|
40,754 |
|
|
183,856 |
|
Accrued
income taxes and reserves for uncertain tax positions |
|
43,879 |
|
|
68,832 |
|
|
348,199 |
|
Current
portion of long-term debt |
|
1,004 |
|
|
903 |
|
|
981 |
|
Deferred
revenue and other current liabilities |
|
190,522 |
|
|
184,560 |
|
|
189,216 |
|
Total
current liabilities |
|
393,177 |
|
|
434,857 |
|
|
939,280 |
|
Long-term
debt and line of credit borrowings |
|
1,493,828 |
|
|
1,967,206 |
|
|
1,493,017 |
|
Reserves
for uncertain tax positions |
|
138,024 |
|
|
117,553 |
|
|
159,085 |
|
Deferred
revenue and other noncurrent liabilities |
|
104,305 |
|
|
120,033 |
|
|
163,609 |
|
Total
liabilities |
|
2,129,334 |
|
|
2,639,649 |
|
|
2,754,991 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
|
Common
stock, no par, stated value $.01 per share |
|
2,462 |
|
|
2,506 |
|
|
2,462 |
|
Additional paid-in capital |
|
753,423 |
|
|
751,229 |
|
|
754,912 |
|
Accumulated other comprehensive loss |
|
(14,222 |
) |
|
(17,122 |
) |
|
(15,299 |
) |
Retained
deficit |
|
(433,556 |
) |
|
(538,242 |
) |
|
(48,206 |
) |
Less
treasury shares, at cost |
|
(720,880 |
) |
|
(755,842 |
) |
|
(754,752 |
) |
Total
stockholders' equity (deficiency) |
|
(412,773 |
) |
|
(557,471 |
) |
|
(60,883 |
) |
Total
liabilities and stockholders' equity |
|
$ |
1,716,561 |
|
|
$ |
2,082,178 |
|
|
$ |
2,694,108 |
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(unaudited, in 000s) |
Six months ended October 31, |
|
2017 |
|
2016 |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net
loss |
|
$ |
(284,133 |
) |
|
$ |
(269,893 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
88,390 |
|
|
87,032 |
|
Provision
for bad debt |
|
4,238 |
|
|
1,286 |
|
Deferred
taxes |
|
58,634 |
|
|
6,489 |
|
Stock-based compensation |
|
11,627 |
|
|
12,472 |
|
Changes
in assets and liabilities, net of acquisitions: |
|
|
|
|
Receivables |
|
77,958 |
|
|
48,653 |
|
Prepaid
expenses and other current assets |
|
(19,283 |
) |
|
(7,386 |
) |
Other
noncurrent assets |
|
8,984 |
|
|
7,713 |
|
Accounts
payable and accrued expenses |
|
(85,846 |
) |
|
(99,378 |
) |
Accrued
salaries, wages and payroll taxes |
|
(141,491 |
) |
|
(120,672 |
) |
Deferred
revenue and other current liabilities |
|
3,775 |
|
|
(46,531 |
) |
Deferred
revenue and other noncurrent liabilities |
|
(60,857 |
) |
|
(52,548 |
) |
Income
tax receivables, accrued income taxes and income tax reserves |
|
(296,023 |
) |
|
(282,234 |
) |
Other,
net |
|
(14,430 |
) |
|
(5,379 |
) |
Net cash
used in operating activities |
|
(648,457 |
) |
|
(720,376 |
) |
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
Principal
payments and sales of mortgage loans and real estate owned,
net |
|
— |
|
|
19,009 |
|
Capital
expenditures |
|
(56,750 |
) |
|
(44,918 |
) |
Payments
made for business acquisitions, net of cash acquired |
|
(27,522 |
) |
|
(36,151 |
) |
Franchise
loans funded |
|
(10,939 |
) |
|
(10,171 |
) |
Payments
received on franchise loans |
|
10,322 |
|
|
14,263 |
|
Other,
net |
|
5,474 |
|
|
2,177 |
|
Net cash
used in investing activities |
|
(79,415 |
) |
|
(55,791 |
) |
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
Repayments of line of credit borrowings |
|
— |
|
|
(50,000 |
) |
Proceeds
from line of credit borrowings |
|
— |
|
|
525,000 |
|
Dividends
paid |
|
(100,082 |
) |
|
(95,971 |
) |
Repurchase of common stock, including shares surrendered |
|
(7,581 |
) |
|
(215,511 |
) |
Proceeds
from exercise of stock options |
|
27,522 |
|
|
1,630 |
|
Other,
net |
|
(26,717 |
) |
|
(43,734 |
) |
Net cash
provided by (used in) financing activities |
|
(106,858 |
) |
|
121,414 |
|
|
|
|
|
|
Effects of exchange
rate changes on cash |
|
(1,147 |
) |
|
(4,110 |
) |
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash |
|
(835,877 |
) |
|
(658,863 |
) |
Cash, cash equivalents
and restricted cash, beginning of period |
|
1,117,539 |
|
|
1,000,911 |
|
Cash, cash equivalents
and restricted cash, end of period |
|
$ |
281,662 |
|
|
$ |
342,048 |
|
|
|
|
|
|
SUPPLEMENTARY
CASH FLOW DATA: |
|
|
|
|
Income
taxes paid, net of refunds received |
|
$ |
76,451 |
|
|
$ |
112,339 |
|
Interest
paid on borrowings |
|
39,902 |
|
|
40,670 |
|
Accrued
additions to property and equipment |
|
3,874 |
|
|
12,920 |
|
Accrued
purchase of common stock |
|
— |
|
|
7,143 |
|
|
|
|
|
|
Note: Effective May 1, 2017, we adopted the
provisions of Accounting Standards Update No. 2016-18,"Restricted
Cash (a consensus of the FASB Emerging Issues Task Force)," (ASU
2016-18) on a retrospective basis. Accordingly, the statements of
cash flows explain the change in the total of cash, cash
equivalents and amounts generally described as restricted cash and
restricted cash equivalents per ASU 2016-18. Amounts for prior
periods have been retrospectively adjusted to conform to the
current period presentation.
FINANCIAL RESULTS |
|
(unaudited, in 000s - except per share amounts) |
|
|
Three months ended October 31, |
|
Six months ended October 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
REVENUES: |
|
|
|
|
|
|
|
|
U.S.
assisted tax preparation fees |
|
$ |
36,665 |
|
|
$ |
35,339 |
|
|
$ |
66,628 |
|
|
$ |
60,768 |
|
U.S.
royalties |
|
7,008 |
|
|
6,828 |
|
|
13,975 |
|
|
13,353 |
|
U.S. DIY
tax preparation fees |
|
4,263 |
|
|
3,089 |
|
|
7,489 |
|
|
6,003 |
|
International revenues |
|
47,934 |
|
|
43,539 |
|
|
88,351 |
|
|
82,414 |
|
Revenues
from Refund Transfers |
|
1,135 |
|
|
757 |
|
|
3,951 |
|
|
3,991 |
|
Revenues
from Emerald Card® |
|
9,180 |
|
|
8,644 |
|
|
24,167 |
|
|
21,709 |
|
Revenues
from Peace of Mind® Extended Service Plan |
|
24,585 |
|
|
22,689 |
|
|
56,528 |
|
|
49,720 |
|
Interest
and fee income on Emerald Advance |
|
594 |
|
|
655 |
|
|
1,258 |
|
|
1,459 |
|
Other |
|
9,490 |
|
|
9,792 |
|
|
16,309 |
|
|
17,100 |
|
|
|
140,854 |
|
|
131,332 |
|
|
278,656 |
|
|
256,517 |
|
Compensation and
benefits: |
|
|
|
|
|
|
|
|
Field
wages |
|
57,716 |
|
|
50,096 |
|
|
105,839 |
|
|
95,139 |
|
Other
wages |
|
46,723 |
|
|
42,207 |
|
|
89,920 |
|
|
84,307 |
|
Benefits
and other compensation |
|
23,583 |
|
|
23,718 |
|
|
44,228 |
|
|
46,452 |
|
|
|
128,022 |
|
|
116,021 |
|
|
239,987 |
|
|
225,898 |
|
Occupancy and
equipment |
|
105,405 |
|
|
99,037 |
|
|
203,604 |
|
|
193,408 |
|
Marketing and
advertising |
|
11,562 |
|
|
12,001 |
|
|
18,666 |
|
|
19,562 |
|
Depreciation and
amortization |
|
44,792 |
|
|
45,750 |
|
|
88,390 |
|
|
87,032 |
|
Provision for bad
debt |
|
1,779 |
|
|
(131 |
) |
|
4,238 |
|
|
1,286 |
|
Supplies |
|
4,368 |
|
|
4,937 |
|
|
7,102 |
|
|
7,014 |
|
Other |
|
60,937 |
|
|
61,739 |
|
|
117,842 |
|
|
115,063 |
|
Total
operating expenses |
|
356,865 |
|
|
339,354 |
|
|
679,829 |
|
|
649,263 |
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
1,011 |
|
|
2,173 |
|
|
2,231 |
|
|
4,814 |
|
Interest expense on
borrowings |
|
(21,265 |
) |
|
(22,620 |
) |
|
(42,542 |
) |
|
(44,086 |
) |
Pretax loss |
|
(236,265 |
) |
|
(228,469 |
) |
|
(441,484 |
) |
|
(432,018 |
) |
Income tax benefit |
|
(87,953 |
) |
|
(85,054 |
) |
|
(165,354 |
) |
|
(167,577 |
) |
Net loss from
continuing operations |
|
(148,312 |
) |
|
(143,415 |
) |
|
(276,130 |
) |
|
(264,441 |
) |
Net loss from
discontinued operations |
|
(5,254 |
) |
|
(2,805 |
) |
|
(8,003 |
) |
|
(5,452 |
) |
NET
LOSS |
|
$ |
(153,566 |
) |
|
$ |
(146,220 |
) |
|
$ |
(284,133 |
) |
|
$ |
(269,893 |
) |
|
|
|
|
|
|
|
|
|
BASIC AND
DILUTED LOSS PER SHARE: |
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.71 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.33 |
) |
|
$ |
(1.21 |
) |
Discontinued operations |
|
(0.03 |
) |
|
(0.01 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
Consolidated |
|
$ |
(0.74 |
) |
|
$ |
(0.68 |
) |
|
$ |
(1.36 |
) |
|
$ |
(1.24 |
) |
|
|
|
|
|
|
|
|
|
Weighted average basic
and diluted shares |
|
209,065 |
|
|
215,535 |
|
|
208,500 |
|
|
218,009 |
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing
operations (1) |
|
$ |
(170,208 |
) |
|
$ |
(160,099 |
) |
|
$ |
(310,552 |
) |
|
$ |
(300,900 |
) |
|
|
|
|
|
|
|
|
|
(1) See "Non-GAAP Financial Information" for a
reconciliation of non-GAAP measures.
|
|
Three months ended October 31, |
|
Six months ended October 31, |
NON-GAAP FINANCIAL MEASURE - EBITDA |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
Net loss - as
reported |
|
$ |
(153,566 |
) |
|
$ |
(146,220 |
) |
|
$ |
(284,133 |
) |
|
$ |
(269,893 |
) |
Discontinued
operations, net |
|
5,254 |
|
|
2,805 |
|
|
8,003 |
|
|
5,452 |
|
Net loss from
continuing operations - as reported |
|
(148,312 |
) |
|
(143,415 |
) |
|
(276,130 |
) |
|
(264,441 |
) |
Add back: |
|
|
|
|
|
|
|
|
Income
taxes of continuing operations |
|
(87,953 |
) |
|
(85,054 |
) |
|
(165,354 |
) |
|
(167,577 |
) |
Interest
expense of continuing operations |
|
21,265 |
|
|
22,620 |
|
|
42,542 |
|
|
44,086 |
|
Depreciation and amortization of continuing operations |
|
44,792 |
|
|
45,750 |
|
|
88,390 |
|
|
87,032 |
|
|
|
(21,896 |
) |
|
(16,684 |
) |
|
(34,422 |
) |
|
(36,459 |
) |
|
|
|
|
|
|
|
|
|
EBITDA from continuing
operations |
|
$ |
(170,208 |
) |
|
$ |
(160,099 |
) |
|
$ |
(310,552 |
) |
|
$ |
(300,900 |
) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended October 31, |
|
Six months ended October 31, |
Supplemental Information |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense: |
|
|
|
|
|
|
|
|
Pretax |
|
$ |
6,811 |
|
|
$ |
6,931 |
|
|
$ |
11,627 |
|
|
$ |
12,472 |
|
After-tax |
|
4,402 |
|
|
4,467 |
|
|
7,525 |
|
|
7,946 |
|
Amortization of
intangible assets: |
|
|
|
|
|
|
|
|
Pretax |
|
$ |
19,438 |
|
|
$ |
20,051 |
|
|
$ |
38,673 |
|
|
$ |
38,037 |
|
After-tax |
|
12,557 |
|
|
12,940 |
|
|
25,029 |
|
|
24,233 |
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL INFORMATION
The accompanying press release contains non-GAAP
financial measures. Non-GAAP financial measures should not be
considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP. Because
these measures are not measures of financial performance under GAAP
and are susceptible to varying calculations, they may not be
comparable to similarly titled measures for other companies.
We consider our non-GAAP financial measures to
be performance measures and a useful metric for management and
investors to evaluate and compare the ongoing operating performance
of our business.
We may consider whether significant items that
arise in the future should be excluded from our non-GAAP financial
measures.
We measure the performance of our business using
a variety of metrics, including EBITDA from continuing operations.
We also use EBITDA from continuing operations and pretax income of
continuing operations, each subject to permitted adjustments, as
performance metrics in incentive compensation calculations for our
employees.
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