H&R Block, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended October 31, 2016, Provides Tax Rate Guidance for the Fiscal Year 2017
December 07, 2016 at 04:20 pm EST
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H&R Block, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended October 31, 2016. For the quarter, the company reported revenues of $131,332,000 against $128,415,000 for the same period in the last year. Total revenues increased $3 million as a result of favorable foreign exchange rates and the recognition of deferred revenues associated with the Peace of Mind product. Loss from continuing operations before income tax benefit was $228,469,000 against $237,719,000 for the same period in the last year. Net loss from continuing operations was $143,415,000 or $0.67 per basic and diluted share against $142,518,000 or $0.54 per basic and diluted share for the same period in the last year. Net loss was $146,220,000 or $0.68 per basic and diluted share against $145,007,000 or $0.55 per basic and diluted share for the same period in the last year. EBITDA was $160,099,000 against $181,145,000 for the same period in the last year. Adjusted pretax loss was $229 million against $225 million for the same period in the last year. Adjusted EBITDA was $160,676,000 against $168,760,000 for the same period in the last year. Adjusted net loss was $144 million or $0.67 per share against $135 million or $0.51 per share for the same period in the last year.
For the six months, the company reported revenues of $256,517,000 against $266,133,000 for the same period in the last year. Loss from continuing operations before income tax benefit was $432,018,000 against $424,828,000 for the same period in the last year. Net loss from continuing operations was $264,441,000 or $1.21 per basic and diluted share against $239,023,000 or $0.88 per basic and diluted share for the same period in the last year. Net loss was $269,893,000 or $1.24 per basic and diluted share against $244,666,000 or $0.90 per basic and diluted share for the same period in the last year. Net cash used in operating activities was $725,797,000 against $602,713,000 for the same period in the last year. Capital expenditures were $44,918,000 against $38,779,000 for the same period in the last year. EBITDA was $300,900,000 against $319,449,000 for the same period in the last year. Adjusted EBITDA was $300,665,000 against $306,106,000 for the same period in the last year.
The company expects its long-term effective tax rate to be approximately 34% to 36% with fiscal year 2017.
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 Second Quarter and Six Months Ended October 31, 2016, Provides Tax Rate Guidance for the Fiscal Year 2017