West Texas News

H and R Block issued the following announcement.

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.”

Fiscal 2021 Second Quarter Results From Continuing Operations

“We executed well for the first half of the fiscal year, delivering improved financial results as we head into the upcoming tax season,” said Tony Bowen, H&R Block’s chief financial officer. “Our plans for this fiscal year reflect our commitment to the financial principles of maintaining a strong balance sheet, investing in long-term growth opportunities, and returning capital to shareholders through dividends and share repurchases.”

Key Financial Metrics

• Total revenues increased $16 million, or 10%, to $177 million due to higher tax return volume in the U.S. and Canada, and an increase in small business payments processing and payroll volume at Wave.
• Total operating expenses decreased $22 million, or 5%, to $382 million primarily due to lower travel, consulting, client claims and refunds, and depreciation and amortization.
• Pretax loss improved $24 million to $237 million.
• GAAP loss per share from continuing operations increased $0.24, to $(1.17), and adjusted non-GAAP loss per share 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.

Capital Structure

The company also reported the following recent developments related to its capital structure:

• During the second quarter of fiscal 2021, the company repurchased and retired approximately 9.5 million shares at an aggregate price of $150 million, or $15.83 per share.
• As previously announced, a quarterly cash dividend of $0.26 per share is payable on January 4, 2021, to shareholders of record as of December 7, 2020. H&R Block has paid quarterly dividends consecutively since the company went public in 1962.

Discontinued Operations

On November 9, 2020, the court granted Sand Canyon’s (“SCC”) motion for summary judgment in both of the previously-disclosed Homeward cases and dismissed Homeward’s claims against SCC in their entirety. Additional information about SCC and the Homeward ruling, which Homeward has appealed, can be found in the company’s Form 10-Q for the second quarter of fiscal 2021 expected to be filed with the SEC today, previously filed Forms 10-K and 10-Q, and other filings.

Virtual Investor Day

As previously announced, the company will host a virtual Investor Day event today to discuss the next phase of its strategic transformation, fiscal 2021 outlook, and a general business update. The meeting will be streamed live via the company’s events page on its investor relations website, located at https://investors.hrblock.com/financial-information/events-calendar, beginning at 10:00 a.m. EST. Investor Day and earnings materials will be posted on the company’s investor relations website at https://investors.hrblock.com, with a webcast replay available at the same location.

Original source can be found here.