H&R Block FY15 Profit Falls Slightly

(RTTNews) - H&R Block, Inc. (HRB) , the largest U.S. tax preparer, said Monday after the markets closed that its full year fiscal 2015 profit fell slightly from last year, as higher operating expenses offset a 1.8% increase in revenue.

For the fiscal year ended April 30, 2015, the Kansas City, Missouri-based company reported net income of $473.7 million or $1.71 per share, compared to $475.2 million or $1.72 per share for the fiscal year ended April 30, 2014.

Income from continuing operations for the fiscal year 2015 was $486.7 million or $1.75 per share, compared to $500.1 million or $1.81 per share the prior year.

Total revenue for the fiscal year 2015 rose 1.8% to $3.08 billion from $3.02 billion last year, driven by successful implementation of the company's pricing strategy and improved return mix in its retail locations, improved digital do-it-yourself volume and monetization, and the impact of franchise acquisitions.

Analysts polled by Thomson Reuters expected the company to earn $1.73 per share on revenue of $3.09 billion for the fiscal year 2015. Analysts' estimates typically exclude special items.

Returns prepared by and through H&R Block declined 0.1% to 24.2 million worldwide, mainly due to a 4.4% decrease in U.S. assisted tax returns prepared, mainly driven by the continued decline of returns containing the Earned Income Tax Credit, and, to a lesser extent, the second-year impact of the company's decision to discontinue the free federal 1040EZ promotion. The company believes the decline in volume was also exacerbated by the impact of industry-wide fraud.

"We saw positive changes in our assisted return mix, our DIY business did very well, both from a volume and a revenue perspective, and our tax professionals delivered expert ACA advice to their clients," said Bill Cobb, H&R Block's president and chief executive officer. "I'm pleased that despite the decline in volume we delivered top line revenue growth for the third consecutive year and achieved strong margins."

"This has been a challenging tax season impacted by changes in the timing of tax filings, the first year implementation of the ACA and the continued and growing issue of fraud in our industry," added Cobb.

A majority of the company's revenues and all of its fiscal earnings occur during its fiscal fourth quarter.

H&R Block shares are currently losing 1.44% in after hours trading after closing the day's regular trading session at $31.25, down 23 cents. The shares trade in a 52-week range of $27.42 to $35.80.