H&R Block, Inc. (NYSE: HRB) today released its financial
results for the fiscal 2019 second quarter ended October 31,
2018. 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 percent of annual
revenues and less than 15 percent of annual expenses.
Fiscal Second Quarter Highlights1
- Fiscal second quarter financial results were in line with
expectations.
- Revenues increased $8 million, or 6 percent, to $149 million
primarily due to increased Assisted tax preparation revenues and
the timing of revenues related to the company's Tax Plus
products.
- Pretax loss from continuing operations improved 2 percent to
$232 million; loss per share from continuing operations2 increased
$0.12 to $0.83 due to a lower effective tax rate, which negatively
impacts those fiscal quarters with a seasonal net loss.
- The company reiterated its financial outlook for the full
fiscal year.
"We’re implementing a number of initiatives for the upcoming tax
season that will significantly improve the way clients interact
with H&R Block, including our industry-leading announcement of
upfront, transparent pricing in all of our channels," said Jeff
Jones, H&R Block's president and chief executive officer.
"This, combined with our innovative virtual tax offerings will help
us deliver unique and better experiences to consumers, bring our
brand promise to life, and allow us to deliver for the long
term."
Fiscal 2019 Second Quarter Results From Continuing
Operations
"The fiscal second quarter results reflect planned increases in
expenses related to strategic investments being made in the
business," said Tony Bowen, H&R Block's chief financial
officer. "We are focused on executing the operational
elements of our strategy for the upcoming tax season, and remain on
track to achieve our financial outlook for the fiscal year."
|
|
|
|
|
(in
millions, except EPS) |
|
Q2 FY2019 |
|
Q2 FY2018 |
Revenue |
|
$ |
149 |
|
|
$ |
141 |
|
Pretax Loss |
|
$ |
(232 |
) |
|
$ |
(236 |
) |
Net Loss |
|
$ |
(171 |
) |
|
$ |
(148 |
) |
Weighted-Avg. Shares - Diluted |
|
205.5 |
|
|
209.1 |
|
EPS2 |
|
$ |
(0.83 |
) |
|
$ |
(0.71 |
) |
EBITDA3 |
|
$ |
(169 |
) |
|
$ |
(170 |
) |
|
|
|
|
|
Key Financial Metrics
- Total revenues increased $8.0 million, or 5.7 percent, to
$148.9 million primarily due to increased Assisted tax preparation
revenues and the timing of revenues from Tax Identity Shield®,
partially offset by lower international revenues related to
fluctuations in exchange rates.
- Total operating expenses increased $7.3 million, or 2.0
percent, to $364.1 million primarily due to increases in occupancy
and compensation expenses, partially offset by lower depreciation
and amortization and the timing of marketing expense.
- Pretax loss improved $4.3 million, or 1.8 percent, to $232.0
million.
- Loss per share from continuing operations increased $0.12, from
$0.71 to $0.83, due to a lower effective tax rate, which negatively
impacts those fiscal quarters with a seasonal net loss.
Dividends
As previously announced, a quarterly cash dividend of $0.25 per
share is payable on January 2, 2019 to shareholders of record as of
December 3, 2018. H&R Block has paid quarterly dividends
consecutively since the company went public in 1962.
Discontinued Operations
For information on Sand Canyon, please refer to disclosures in
the company’s reports on Forms 10-K, 10-Q, and other filings with
the SEC.
Conference Call
Discussion of the fiscal 2019 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, 2018. 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: 8661109
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 December 6, 2018, and continuing until January
6, 2019, by dialing (855) 859-2056 (U.S./Canada) or (404) 537-3406
(International). The conference ID is 8661109. The webcast will be
available for replay beginning on December 7, 2018 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.
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," "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, guidance from
the Internal Revenue Service, SEC, or the Financial Accounting
Standards Board about the Tax Legislation, 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.
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) from continuing operations,
EBITDA margin from continuing operations, and free cash flow, 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 Information
Investor Relations: Colby Brown, (816) 854-4559,
colby.brown@hrblock.comMedia Relations: Susan Waldron, (816)
854-5522, susan.waldron@hrblock.com
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
(unaudited, in 000s
- except per share amounts) |
|
|
Three months ended October 31, |
|
Six months ended October 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
127,267 |
|
|
$ |
127,923 |
|
|
$ |
254,127 |
|
|
$ |
252,618 |
|
Royalty,
product and other revenues |
|
21,604 |
|
|
12,931 |
|
|
39,927 |
|
|
26,038 |
|
|
|
148,871 |
|
|
140,854 |
|
|
294,054 |
|
|
278,656 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Costs of
revenues |
|
250,815 |
|
|
240,019 |
|
|
472,375 |
|
|
467,734 |
|
Selling,
general and administrative |
|
113,319 |
|
|
116,846 |
|
|
219,059 |
|
|
212,095 |
|
Total operating
expenses |
|
364,134 |
|
|
356,865 |
|
|
691,434 |
|
|
679,829 |
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
4,464 |
|
|
1,011 |
|
|
9,006 |
|
|
2,231 |
|
Interest expense on
borrowings |
|
(21,191 |
) |
|
(21,265 |
) |
|
(42,381 |
) |
|
(42,542 |
) |
Loss from continuing
operations before income tax benefit |
|
(231,990 |
) |
|
(236,265 |
) |
|
(430,755 |
) |
|
(441,484 |
) |
Income tax benefit |
|
(61,053 |
) |
|
(87,953 |
) |
|
(111,021 |
) |
|
(165,354 |
) |
Net loss from
continuing operations |
|
(170,937 |
) |
|
(148,312 |
) |
|
(319,734 |
) |
|
(276,130 |
) |
Net loss from
discontinued operations |
|
(5,339 |
) |
|
(5,254 |
) |
|
(9,212 |
) |
|
(8,003 |
) |
NET
LOSS |
|
$ |
(176,276 |
) |
|
$ |
(153,566 |
) |
|
$ |
(328,946 |
) |
|
$ |
(284,133 |
) |
|
|
|
|
|
|
|
|
|
BASIC AND
DILUTED LOSS PER SHARE: |
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.83 |
) |
|
$ |
(0.71 |
) |
|
$ |
(1.55 |
) |
|
$ |
(1.33 |
) |
Discontinued operations |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
Consolidated |
|
$ |
(0.86 |
) |
|
$ |
(0.74 |
) |
|
$ |
(1.59 |
) |
|
$ |
(1.36 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE BASIC AND DILUTED SHARES |
|
205,520 |
|
|
209,065 |
|
|
206,596 |
|
|
208,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
(unaudited, in 000s - except per share data) |
As of |
|
October 31, 2018 |
|
October 31, 2017 |
|
April 30, 2018 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
600,799 |
|
|
$ |
180,997 |
|
|
$ |
1,544,944 |
|
Cash and
cash equivalents - restricted |
|
122,507 |
|
|
100,665 |
|
|
118,734 |
|
Receivables, net |
|
61,286 |
|
|
77,750 |
|
|
146,774 |
|
Income
taxes receivable |
|
18,745 |
|
|
— |
|
|
12,310 |
|
Prepaid
expenses and other current assets |
|
87,665 |
|
|
85,204 |
|
|
68,951 |
|
Total
current assets |
|
891,002 |
|
|
444,616 |
|
|
1,891,713 |
|
Property
and equipment, net |
|
241,772 |
|
|
262,226 |
|
|
231,888 |
|
Intangible assets, net |
|
364,524 |
|
|
406,440 |
|
|
373,981 |
|
Goodwill |
|
507,191 |
|
|
493,059 |
|
|
507,871 |
|
Deferred
tax assets and income taxes receivable |
|
130,987 |
|
|
9,205 |
|
|
34,095 |
|
Other
noncurrent assets |
|
97,820 |
|
|
101,015 |
|
|
101,401 |
|
Total
assets |
|
$ |
2,233,296 |
|
|
$ |
1,716,561 |
|
|
$ |
3,140,949 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
114,393 |
|
|
$ |
114,875 |
|
|
$ |
251,975 |
|
Accrued
salaries, wages and payroll taxes |
|
43,396 |
|
|
42,897 |
|
|
141,499 |
|
Accrued
income taxes and reserves for uncertain tax positions |
|
94,257 |
|
|
43,879 |
|
|
263,050 |
|
Current
portion of long-term debt |
|
— |
|
|
1,004 |
|
|
1,026 |
|
Deferred
revenue and other current liabilities |
|
183,675 |
|
|
190,522 |
|
|
186,101 |
|
Total
current liabilities |
|
435,721 |
|
|
393,177 |
|
|
843,651 |
|
Long-term
debt |
|
1,491,328 |
|
|
1,493,828 |
|
|
1,494,609 |
|
Deferred
tax liabilities and reserves for uncertain tax positions |
|
235,799 |
|
|
138,024 |
|
|
229,430 |
|
Deferred
revenue and other noncurrent liabilities |
|
101,773 |
|
|
104,305 |
|
|
179,548 |
|
Total
liabilities |
|
2,264,621 |
|
|
2,129,334 |
|
|
2,747,238 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
|
Common
stock, no par, stated value $.01 per share |
|
2,420 |
|
|
2,462 |
|
|
2,462 |
|
Additional paid-in capital |
|
759,235 |
|
|
753,423 |
|
|
760,250 |
|
Accumulated other comprehensive loss |
|
(18,880 |
) |
|
(14,222 |
) |
|
(14,303 |
) |
Retained
earnings (deficit) |
|
(64,291 |
) |
|
(433,556 |
) |
|
362,980 |
|
Less
treasury shares, at cost |
|
(709,809 |
) |
|
(720,880 |
) |
|
(717,678 |
) |
Total
stockholders' equity (deficiency) |
|
(31,325 |
) |
|
(412,773 |
) |
|
393,711 |
|
Total
liabilities and stockholders' equity |
|
$ |
2,233,296 |
|
|
$ |
1,716,561 |
|
|
$ |
3,140,949 |
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(unaudited, in 000s) |
Six months ended October 31, |
|
2018 |
|
2017 |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net loss |
|
$ |
(328,946 |
) |
|
$ |
(284,133 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
81,925 |
|
|
88,390 |
|
Provision
for bad debt |
|
2,350 |
|
|
4,238 |
|
Deferred
taxes |
|
17,913 |
|
|
58,634 |
|
Stock-based compensation |
|
11,839 |
|
|
11,627 |
|
Changes
in assets and liabilities, net of acquisitions: |
|
|
|
|
Receivables |
|
75,324 |
|
|
77,958 |
|
Prepaid
expenses and other current assets |
|
(18,933 |
) |
|
(19,283 |
) |
Other
noncurrent assets |
|
9,147 |
|
|
8,984 |
|
Accounts
payable and accrued expenses |
|
(120,921 |
) |
|
(85,846 |
) |
Accrued
salaries, wages and payroll taxes |
|
(97,771 |
) |
|
(141,491 |
) |
Deferred
revenue and other current liabilities |
|
(10,408 |
) |
|
3,775 |
|
Deferred
revenue and other noncurrent liabilities |
|
(70,606 |
) |
|
(60,857 |
) |
Income
tax receivables, accrued income taxes and income tax reserves |
|
(179,660 |
) |
|
(296,023 |
) |
Other,
net |
|
1,056 |
|
|
(14,430 |
) |
Net cash
used in operating activities |
|
(627,691 |
) |
|
(648,457 |
) |
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
Capital
expenditures |
|
(66,422 |
) |
|
(56,750 |
) |
Payments
made for business acquisitions, net of cash acquired |
|
(24,549 |
) |
|
(27,522 |
) |
Franchise
loans funded |
|
(8,915 |
) |
|
(10,939 |
) |
Payments
received on franchise loans |
|
11,689 |
|
|
10,322 |
|
Other,
net |
|
4,993 |
|
|
5,474 |
|
Net cash
used in investing activities |
|
(83,204 |
) |
|
(79,415 |
) |
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
Dividends
paid |
|
(103,484 |
) |
|
(100,082 |
) |
Repurchase of common stock, including shares surrendered |
|
(102,096 |
) |
|
(7,581 |
) |
Proceeds
from exercise of stock options |
|
1,746 |
|
|
27,522 |
|
Other,
net |
|
(22,434 |
) |
|
(26,717 |
) |
Net cash
used in financing activities |
|
(226,268 |
) |
|
(106,858 |
) |
|
|
|
|
|
Effects of exchange
rate changes on cash |
|
(3,209 |
) |
|
(1,147 |
) |
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash |
|
(940,372 |
) |
|
(835,877 |
) |
Cash, cash equivalents
and restricted cash, beginning of period |
|
1,663,678 |
|
|
1,117,539 |
|
Cash, cash equivalents
and restricted cash, end of period |
|
$ |
723,306 |
|
|
$ |
281,662 |
|
|
|
|
|
|
SUPPLEMENTARY
CASH FLOW DATA: |
|
|
|
|
Income
taxes paid, net of refunds received |
|
$ |
50,197 |
|
|
$ |
76,451 |
|
Interest
paid on borrowings |
|
39,902 |
|
|
39,902 |
|
Accrued
additions to property and equipment |
|
4,765 |
|
|
3,874 |
|
|
|
|
|
|
|
|
|
FINANCIAL RESULTS |
|
(unaudited, in 000s - except per share amounts) |
|
|
Three months ended October 31, |
|
Six months ended October 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
REVENUES: |
|
|
|
|
|
|
|
|
U.S. assisted tax
preparation |
|
$ |
41,652 |
|
|
$ |
36,665 |
|
|
$ |
72,756 |
|
|
$ |
66,628 |
|
U.S.
royalties |
|
8,062 |
|
|
7,008 |
|
|
15,633 |
|
|
13,975 |
|
U.S. DIY
tax preparation |
|
2,994 |
|
|
4,263 |
|
|
5,775 |
|
|
7,489 |
|
International revenues |
|
45,497 |
|
|
47,934 |
|
|
84,676 |
|
|
88,351 |
|
Revenues
from Refund Transfers |
|
560 |
|
|
1,135 |
|
|
1,984 |
|
|
3,951 |
|
Revenues
from Emerald Card® |
|
9,478 |
|
|
9,180 |
|
|
23,724 |
|
|
24,167 |
|
Revenues
from Peace of Mind® Extended Service Plan |
|
24,318 |
|
|
24,585 |
|
|
60,895 |
|
|
56,528 |
|
Revenues
from Tax Identity Shield® |
|
5,243 |
|
|
257 |
|
|
9,984 |
|
|
511 |
|
Interest
and fee income on Emerald Advance |
|
397 |
|
|
594 |
|
|
844 |
|
|
1,258 |
|
Other |
|
10,670 |
|
|
9,233 |
|
|
17,783 |
|
|
15,798 |
|
|
|
148,871 |
|
|
140,854 |
|
|
294,054 |
|
|
278,656 |
|
Compensation and
benefits: |
|
|
|
|
|
|
|
|
Field
wages |
|
59,096 |
|
|
57,716 |
|
|
109,028 |
|
|
105,839 |
|
Other
wages |
|
50,046 |
|
|
46,723 |
|
|
97,868 |
|
|
89,920 |
|
Benefits
and other compensation |
|
24,178 |
|
|
23,583 |
|
|
47,109 |
|
|
44,228 |
|
|
|
133,320 |
|
|
128,022 |
|
|
254,005 |
|
|
239,987 |
|
Occupancy |
|
104,880 |
|
|
94,907 |
|
|
195,606 |
|
|
185,198 |
|
Marketing and
advertising |
|
8,586 |
|
|
11,562 |
|
|
15,480 |
|
|
18,666 |
|
Depreciation and
amortization |
|
41,493 |
|
|
44,792 |
|
|
81,925 |
|
|
88,390 |
|
Bad debt |
|
188 |
|
|
1,779 |
|
|
(670 |
) |
|
4,238 |
|
Supplies |
|
3,189 |
|
|
4,368 |
|
|
5,393 |
|
|
7,102 |
|
Other |
|
72,478 |
|
|
71,435 |
|
|
139,695 |
|
|
136,248 |
|
Total
operating expenses |
|
364,134 |
|
|
356,865 |
|
|
691,434 |
|
|
679,829 |
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
4,464 |
|
|
1,011 |
|
|
9,006 |
|
|
2,231 |
|
Interest expense on
borrowings |
|
(21,191 |
) |
|
(21,265 |
) |
|
(42,381 |
) |
|
(42,542 |
) |
Pretax loss |
|
(231,990 |
) |
|
(236,265 |
) |
|
(430,755 |
) |
|
(441,484 |
) |
Income tax benefit |
|
(61,053 |
) |
|
(87,953 |
) |
|
(111,021 |
) |
|
(165,354 |
) |
Net loss from
continuing operations |
|
(170,937 |
) |
|
(148,312 |
) |
|
(319,734 |
) |
|
(276,130 |
) |
Net loss from
discontinued operations |
|
(5,339 |
) |
|
(5,254 |
) |
|
(9,212 |
) |
|
(8,003 |
) |
NET
LOSS |
|
$ |
(176,276 |
) |
|
$ |
(153,566 |
) |
|
$ |
(328,946 |
) |
|
$ |
(284,133 |
) |
|
|
|
|
|
|
|
|
|
BASIC AND
DILUTED LOSS PER SHARE: |
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.83 |
) |
|
$ |
(0.71 |
) |
|
$ |
(1.55 |
) |
|
$ |
(1.33 |
) |
Discontinued operations |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
Consolidated |
|
$ |
(0.86 |
) |
|
$ |
(0.74 |
) |
|
$ |
(1.59 |
) |
|
$ |
(1.36 |
) |
|
|
|
|
|
|
|
|
|
Weighted average basic
and diluted shares |
|
205,520 |
|
|
209,065 |
|
|
206,596 |
|
|
208,500 |
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing
operations (1) |
|
$ |
(169,306 |
) |
|
$ |
(170,208 |
) |
|
$ |
(306,449 |
) |
|
$ |
(310,552 |
) |
|
|
|
|
|
|
|
|
|
(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 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Net loss - as
reported |
|
$ |
(176,276 |
) |
|
$ |
(153,566 |
) |
|
$ |
(328,946 |
) |
|
$ |
(284,133 |
) |
Discontinued
operations, net |
|
5,339 |
|
|
5,254 |
|
|
9,212 |
|
|
8,003 |
|
Net loss from
continuing operations - as reported |
|
(170,937 |
) |
|
(148,312 |
) |
|
(319,734 |
) |
|
(276,130 |
) |
Add back: |
|
|
|
|
|
|
|
|
Income
taxes of continuing operations |
|
(61,053 |
) |
|
(87,953 |
) |
|
(111,021 |
) |
|
(165,354 |
) |
Interest
expense of continuing operations |
|
21,191 |
|
|
21,265 |
|
|
42,381 |
|
|
42,542 |
|
Depreciation and amortization of continuing operations |
|
41,493 |
|
|
44,792 |
|
|
81,925 |
|
|
88,390 |
|
|
|
1,631 |
|
|
(21,896 |
) |
|
13,285 |
|
|
(34,422 |
) |
|
|
|
|
|
|
|
|
|
EBITDA from continuing
operations |
|
$ |
(169,306 |
) |
|
$ |
(170,208 |
) |
|
$ |
(306,449 |
) |
|
$ |
(310,552 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended October 31, |
|
Six months ended October 31, |
Supplemental Information |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense: |
|
|
|
|
|
|
|
|
Pretax |
|
$ |
7,480 |
|
|
$ |
6,811 |
|
|
$ |
11,839 |
|
|
$ |
11,627 |
|
After-tax |
|
5,715 |
|
|
4,402 |
|
|
8,989 |
|
|
7,525 |
|
Amortization of
intangible assets: |
|
|
|
|
|
|
|
|
Pretax |
|
$ |
17,585 |
|
|
$ |
19,438 |
|
|
$ |
35,724 |
|
|
$ |
38,673 |
|
After-tax |
|
13,503 |
|
|
12,557 |
|
|
27,125 |
|
|
25,029 |
|
|
|
|
|
|
|
|
|
|
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,
EBITDA margin from continuing operations, and free cash flow. We
also use EBITDA from continuing operations and pretax income from
continuing operations, each subject to permitted adjustments, as
performance metrics in incentive compensation calculations for our
employees.
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