H&R Block, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended January 31, 2018; Reaffirms Earnings Guidance for Fiscal 2018 and Provides Tax Rate Guidance for the Year of 2019
March 06, 2018 at 09:22 pm
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H&R Block, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended January 31, 2018. For the quarter, revenues were $488,426,000 against $451,882,000 a year ago. This is primarily the result of an increase in total U.S. client volumes of 4% through January 31, and planned inflationary increases and net average charge in assisted business. Loss from continuing operations before income taxes was $120,805,000 against $150,598,000 a year ago. Net loss from continuing operations was $242,925,000 against $101,212,000 a year ago. Net loss was $245,645,000 against $104,514,000 a year ago. Basic and diluted loss per share from continuing operations was $1.16 against $0.49 a year ago. Basic and diluted loss per share was $1.18 against $0.50 a year ago. LBITDA from continuing operations was $47,757,000 against $79,498,000 a year ago.
For nine months, revenues were $767,082,000 against $708,399,000 a year ago. Loss from continuing operations before income taxes was $562,289,000 against $582,616,000 a year ago. Net loss from continuing operations was $519,055,000 against $365,653,000 a year ago. Net loss was $529,778,000 against $374,407,000 a year ago. Basic and diluted loss per share from continuing operations was $2.49 against $1.71 a year ago. Basic and diluted loss per share was $2.54 against $1.75 a year ago. Net cash used in operating activities was $1,357,701,000 against $1,409,859,000 a year ago. Capital expenditures were $77,865,000 against $73,924,000 a year ago. LBITDA from continuing operations was $358,309,000 against $380,398,000 a year ago.
The company's expectations for revenue growth and margin are unchanged from the outlook provided in December 2017. The company expects its fiscal year effective tax rate to be 6%-9%, which is an update to the anticipated annual effective tax rate for fiscal 2018.
For fiscal 2019 and beyond, effective tax rate is expected to be in the 23% to 25% range.
H&R Block, Inc. is engaged in providing tax preparation services, financial products, and small business solutions. The Company provides assisted and do-it-yourself (DIY) tax return preparation solutions through multiple channels, including in-person, online and mobile applications, virtual, and desktop software and distributes H&R Block-branded services and products. It also offers small business financial solutions through its Company-owned and franchise offices and online through Wave. The Company provides additional services, including Refund Transfers (RT), Peace of Mind Extended Service Plan (POM), H&R Block Emerald Prepaid Mastercard (Emerald Card), H&R Block Emerald Advance Lines of Credit (EA), Tax Identity Shield (TIS), Refund Advances (RA), and small business financial solutions. The RTs enable clients to receive their tax refunds by their chosen method of disbursement and include a feature enabling clients to deduct tax preparation and related fees from their tax refunds.
H&R Block, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended January 31, 2018; Reaffirms Earnings Guidance for Fiscal 2018 and Provides Tax Rate Guidance for the Year of 2019