H&R Block(HRB) - 2024 Q1 - Quarterly Report

Revenue Performance - Total revenues for the three months ended September 30, 2023, were $183.8 million, a 2.0% increase from$ 179.985 million in the same period of 2022[9]. - Service revenues increased to $171.726 million, up from$ 167.194 million year-over-year, representing a growth of 3.0%[9]. - For the three months ended September 30, 2023, total revenues increased to $183.8 million, up from$ 180.0 million in the same period of 2022, representing a growth of approximately 2.0%[26]. - Total revenues for Q1 FY2024 increased by $3.8 million, or 2.1%, to$ 183.8 million compared to $179.9 million in Q1 FY2023[75]. - U.S. assisted tax preparation revenues rose by$ 3.0 million, or 8.1%, primarily due to a higher net average charge[76]. - International tax preparation revenues increased by $1.7 million, or 2.9%, driven by higher volumes in Australia[77]. Net Loss and Earnings Per Share - The net loss for the three months ended September 30, 2023, was$ 163.482 million, compared to a net loss of $168.421 million in the same period of 2022, showing a 2.8% improvement[9]. - The net loss from continuing operations attributable to common shareholders for Q1 FY2024 was$ 163.1 million, compared to a net loss of $167.5 million in Q1 FY2023, showing a slight improvement[29]. - Basic and diluted loss per share for continuing operations was$ 1.11, compared to $1.05 for the same period last year[9]. - Basic loss per share from continuing operations was$ (1.11) for the three months ended September 30, 2023, compared to $(1.05) for the same period in 2022[29]. - Net loss from continuing operations was$ 162.9 million, a decrease of $4.5 million, or 2.7%, compared to the prior year[80]. - Basic and diluted loss per share from continuing operations increased by 5.7% to$ (1.11) due to fewer shares outstanding from share repurchases[81]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $426.990 million, down from$ 986.975 million at the end of the previous quarter, a decrease of 56.7%[11]. - Net cash used in operating activities for the three months ended September 30, 2023, was $334.989 million, compared to$ 321.666 million in the same period of 2022, an increase of 4.1%[13]. - Cash used in operating activities totaled $335.0 million for the three months ended September 30, 2023, compared to$ 321.7 million in the prior year period, reflecting a year-over-year increase of approximately 4.1%[87]. - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $457,560,000, compared to$ 431,374,000 at the same time last year, an increase of approximately 6.1%[13]. - The company experienced a decrease in international cash balances due to foreign exchange rate changes, amounting to $3.7 million for the three months ended September 30, 2023[98]. Assets and Liabilities - Total current assets decreased to$ 631.840 million as of September 30, 2023, from $1.187 billion as of June 30, 2023, a decline of 46.6%[11]. - Total liabilities decreased to$ 2.856 billion as of September 30, 2023, from $3.040 billion as of June 30, 2023, a reduction of 6.0%[11]. - Total assets decreased from$ 3,072,258,000 as of June 30, 2023, to $2,511,052,000 as of September 30, 2023, representing a decline of approximately 18.2%[11]. - Total current liabilities decreased from$ 938,782,000 as of June 30, 2023, to $792,786,000 as of September 30, 2023, a decrease of about 15.5%[11]. - The total long-term debt as of September 30, 2023, is$ 1.489 billion, with an estimated fair value of $1.325 billion[42]. Operating Expenses - Total operating expenses increased by$ 1.0 million, or 0.3%, totaling $390.1 million, with other wages rising by$ 8.3 million, or 13.1%[78]. - The company reported total operating expenses of $390.126 million for the three months ended September 30, 2023, slightly higher than$ 389.096 million for the same period in 2022[9]. - Capital expenditures for the three months ended September 30, 2023, were $12.9 million, down from$ 16.2 million in the prior year[95]. Stock and Dividends - Dividends declared per share increased to $0.32 from$ 0.29 year-over-year, reflecting a growth of 10.3%[9]. - Cash dividends paid amounted to $42,953,000 for the three months ended September 30, 2023, slightly down from$ 43,093,000 in the same period last year[13]. - The company repurchased $132.0 million of its common stock at an average price of$ 40.43 per share during the quarter[92]. - The company repurchased common stock totaling $150,442,000 during the three months ended September 30, 2023, compared to$ 202,845,000 in the prior year period, reflecting a decrease of approximately 26%[13]. Tax and Compliance - The effective tax rate for continuing operations was 23.3% for the three months ended September 30, 2023, compared to 24.4% for the same period in 2022[47]. - The company had gross unrecognized tax benefits of $237.9 million as of September 30, 2023, a decrease of$ 2.2 million from the previous quarter[46]. - The company had no outstanding balance under its committed line of credit (CLOC) as of September 30, 2023, with amounts available to borrow not limited by the debt-to-EBITDA covenant[44]. Miscellaneous - The company provides assisted and DIY tax preparation solutions through multiple channels, including in-person and online services[73]. - The company reports a single segment that includes all of its continuing operations[73]. - The company has amended its Program Management Agreement and entered into a new participation agreement related to Earned Assets (EAs) originated by Pathward effective October 20, 2023[99].