H&R Block, Inc. (NYSE: HRB) today released its preliminary U.S.
tax results, reflecting an increase in overall tax return volume
for the second consecutive year. For fiscal year 2019 through
April 19, tax returns prepared by or through H&R Block
increased 1.5 percent to 20.2 million.
“I am extremely proud of our performance this year, which
included the introduction of upfront, transparent pricing,
significant improvements to our DIY offerings, the launch of
innovative products in the emerging virtual space, and better
execution in our retail locations,” said Jeff Jones, H&R
Block’s president and chief executive officer. “These efforts
resulted in dramatic improvements in client satisfaction scores and
the second consecutive year of growth in clients.”
Overall client growth was driven by total DIY growth of 6.0
percent and DIY online growth of 9.3 percent. DIY net average
charge increased slightly due to favorable mix.
“Our DIY business continues to thrive in what is a highly
competitive market, as we’ve grown client volumes and taken market
share in each of the past three years,” said Jones. “We
achieved these results due to the strength of our award-winning
product, competitive pricing, and effective marketing strategies
that have driven improved awareness.”
Assisted returns decreased 1.7 percent for fiscal 2019, which
was anticipated due to the elimination of the Free Federal 1040EZ
promotion. The company also reported a decrease in net
average charge due to targeted price decreases, which was in line
with expectations.
The aforementioned results are included in a table attached to
this press release.
Fiscal 2019 Financial Outlook
"We executed well against our plans for the tax season and I'm
pleased that we will deliver the financial outlook we provided for
fiscal 2019," said Tony Bowen, chief financial officer.
"Additionally, we now anticipate a fiscal 2019 effective tax rate
of approximately 19 percent due to discrete benefits recorded in
the fourth quarter."
H&R Block to Announce Fiscal 2019 Results on June
11
In conjunction with the announcement of fiscal 2019 results, the
company will host a conference call at 8:30 a.m. Eastern time on
June 11, 2019 for analysts, institutional investors, and
shareholders to discuss fiscal 2019 results, outlook and a general
business update. To access the call, please dial the number below
approximately 10 minutes prior to the scheduled starting time:
U.S./Canada (866) 987-6821 or International (630)
652-5951Conference ID: 8988609
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. The presentation will be posted
on the Webcasts and Presentations page at
http://investors.hrblock.com following the conclusion of the
call.
A replay of the call will be available beginning at 11:30 a.m.
Eastern time on June 11, 2019, and continuing until July 11, 2019,
by dialing (855) 859-2056 (U.S./Canada) or (404) 537-3406
(International). The conference ID is 8988609. The webcast will be
available for replay beginning on June 12, 2019 and continuing for
90 days 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
2018, H&R Block had annual revenues of over $3.1 billion with
over 23 million tax returns prepared worldwide. For more
information, visit the H&R Block Newsroom.
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," "commits," "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,
effective tax rate, earnings per share, cost savings, capital
expenditures, dividends, share repurchases, liquidity, capital
structure, market share, industry volumes 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, 2018 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. In addition, factors that may cause
the company’s actual estimated effective tax rate to differ from
estimates include the company’s actual results from operations
compared to current estimates, future discrete items, changes in
interpretations and assumptions the company has made, and future
actions of the company. 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.
For Further Information
Investor Relations: Colby Brown, (816) 854-4559,
colby.brown@hrblock.comMedia Relations: Susan
Waldron, (816) 854-5522, susan.waldron@hrblock.com
U.S. TAX OPERATING DATA |
|
|
|
|
|
|
|
|
Fiscal Year-to-Date |
|
|
|
|
April 19, |
|
|
|
|
2019 |
|
2018 |
|
% Change |
Tax Returns Prepared:
(in 000s) (1) (2) |
|
|
|
|
|
|
Company-Owned Operations |
|
8,000 |
|
|
8,159 |
|
|
(1.9) |
% |
Franchise
Operations |
|
3,558 |
|
|
3,600 |
|
|
(1.2) |
% |
Total H&R Block Assisted |
|
11,558 |
|
|
11,759 |
|
|
(1.7) |
% |
|
|
|
|
|
|
|
Desktop |
|
1,961 |
|
|
2,022 |
|
|
(3.0) |
% |
Online |
|
5,992 |
|
|
5,482 |
|
|
9.3 |
% |
Total
H&R Block DIY |
|
7,953 |
|
|
7,504 |
|
|
6.0 |
% |
|
|
|
|
|
|
|
IRS Free
File |
|
661 |
|
|
610 |
|
|
8.4 |
% |
Total
H&R Block U.S. Returns |
|
20,172 |
|
|
19,873 |
|
|
1.5 |
% |
|
|
|
|
|
|
|
Net Average Charge:
(3) |
|
|
|
|
|
|
Company-Owned
Operations |
|
$ |
231.67 |
|
|
$ |
241.77 |
|
|
(4.2) |
% |
Franchise
Operations (4) |
|
$ |
216.39 |
|
|
$ |
210.17 |
|
|
3.0 |
% |
DIY |
|
$ |
32.49 |
|
|
$ |
32.17 |
|
|
1.0 |
% |
|
|
|
|
|
|
|
(1) An assisted tax return is
defined as a current or prior year individual tax return that has
been accepted and paid for by the client. Also included are
business returns, which account for less than 1% of assisted tax
returns. A DIY return is defined as a return that has been
electronically filed and accepted by the IRS. Also included
are online returns paid and printed.(2) Amounts have
been reclassified between company-owned and franchise for offices
which were refranchised or repurchased by the company during the
year.(3) Net average charge is calculated as tax
preparation fees divided by tax returns prepared. For DIY, net
average charge excludes IRS Free File.(4) Net average
charge related to H&R Block Franchise Operations represents tax
preparation fees collected by H&R Block franchisees divided by
returns prepared in franchise offices. H&R Block will recognize
a portion of franchise revenues as franchise royalties based on the
terms of franchise agreements.
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