Sunday, January 17States Top Leading News (STL.News)

H&R Block Reports Revenue Growth in Fiscal 2021 Second Quarter

KANSAS CITY, MO (STL.News) H&R Block, Inc. (NYSE: HRB) today released its financial results1 for the fiscal 2021 second quarter ended October 31, 2020.

  • Fiscal second quarter revenue growth of 10% to $177 million resulted from higher tax return volume in the U.S. and Canada, and an increase in small business payments processing and payroll volume at Wave.
  • Pretax loss improved $24 million to $(237) million due to the increase in revenue as well as lower operating expenses.  GAAP loss per share from continuing operations2 increased $0.24, to $(1.17), and adjusted non-GAAP loss per share3 increased $0.24, to $(1.09), due solely to a lower effective tax rate resulting from favorable tax planning.  The negative impact of this tax rate change is unique to fiscal quarters in which the company reports a loss, as the impact will be favorable on a full fiscal year basis.
  • The company repurchased and retired 9.5 million shares at an aggregate price of $150 million, or $15.83 per share.
  • In a separate release, the company today announced the next phase of its strategic transformation as it continues to innovate to better serve customers in the core areas of small business, financial products, and consumer tax.  Details of this strategy will be discussed during a virtual Investor Day hosted by the company today at 10:00 a.m. EST.

“The strong start to this fiscal year puts us on solid footing to execute against the next phase of our strategy during the second half of the year,” said Jeff Jones, H&R Block’s president and chief executive officer.  “Through a client-centric and digital-first approach, we’re innovating to solve financial problems for consumers and small business owners, as we drive toward long-term sustainable growth for H&R Block.”

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NOTE: this is NOT the complete release.

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