H&R Block(US:HRB)2024-05-09 20:08Financial Performance - For the third quarter of fiscal 2024, H&R Block reported total revenue of $2.2 billion, an increase of $91.2 million or 4% compared to the prior year[4]. - Net income grew by 7%, resulting in earnings per share from continuing operations increasing from $4.14 to $4.87, a growth of 18%[3][5]. - The company reported a pretax income increase of $51.9 million to $907.4 million, driven by higher revenues[4]. - Total revenues for the three months ended March 31, 2024, increased to $2,184,834, up 4.4% from $2,093,649 in the same period of 2023[14]. - Net income for the three months ended March 31, 2024, was $690,737, representing a 7.4% increase compared to $643,429 in the prior year[14]. - Diluted earnings per share for continuing operations rose to $4.87, up from $4.14 in the same quarter of 2023, reflecting a 17.6% increase[14]. - EBITDA from continuing operations for Q1 2024 reached $964,100, compared to $910,039 in Q1 2023, reflecting an increase of about 5.9%[17]. - Adjusted net income from continuing operations for Q1 2024 was $701,622, up from $655,898 in Q1 2023, indicating a rise of approximately 6.9%[17]. - The company reported a total EBITDA of $566,432 for the nine months ended March 31, 2024, compared to $491,868 for the same period in 2023, reflecting a growth of approximately 15.1%[17]. Operating Expenses - Total operating expenses rose to $1.3 billion, an increase of $27.5 million, primarily due to higher field wages and legal fees[4]. - Total operating expenses for the three months ended March 31, 2024, were $1,256,630, an increase of 2.2% from $1,229,147 in the same period of 2023[14]. Shareholder Returns - The company has returned over $3.8 billion to shareholders since 2016 through dividends and share repurchases, buying back over 40% of its shares outstanding[6]. - H&R Block's cash dividend of $0.32 per share is payable on July 3, 2024, marking consecutive quarterly dividends since going public in 1962[11]. - The company repurchased common stock totaling $379,018 during the nine months ended March 31, 2024[16]. Future Projections - H&R Block expects to finish fiscal 2024 near the high end of its previously announced outlook, with revenue projected between $3.530 billion and $3.585 billion[11]. - Adjusted diluted earnings per share are projected to be in the range of $4.10 to $4.30 for fiscal 2024[11]. - The effective tax rate is now expected to be in the range of 21-22%, down from the previous estimate of 23%[6]. Cash Flow and Assets - Cash and cash equivalents decreased to $794,617 as of March 31, 2024, down from $986,975 as of June 30, 2023[15]. - Total assets increased to $3,213,322 as of March 31, 2024, compared to $3,072,258 as of June 30, 2023, marking a growth of 4.6%[15]. - Net cash provided by operating activities for the nine months ended March 31, 2024, was $420,264, down from $498,386 in the same period of 2023[16]. - Total liabilities increased to $3,343,128 as of March 31, 2024, from $3,040,194 as of June 30, 2023[15]. Non-GAAP Measures - The company continues to utilize non-GAAP financial measures to evaluate ongoing operating performance, including EBITDA and adjusted earnings per share[20]. - The adjustments made for non-GAAP measures include amortization of intangibles related to acquisitions, which amounted to $12,869 for Q1 2024[19]. - The company emphasizes the importance of free cash flow and free cash flow yield as part of its performance metrics[20].