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H&R Block Reports FY24 Results; Announces 17% Dividend Increase, & $1.5B Share Repurchase Authorization

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H&R Block (NYSE: HRB) reported strong financial results for fiscal year 2024, with revenue increasing 4% to $3.6 billion and earnings per share from continuing operations rising 16% to $4.14. The company announced a 17% increase in its quarterly dividend to $0.375 per share and a new $1.5 billion share repurchase authorization.

Key highlights include:

  • Repurchased $350 million of shares in FY24, reducing outstanding shares by 5.5%
  • FY25 outlook projects continued revenue growth and improved EBITDA and earnings per share
  • Effective tax rate for FY25 expected to be approximately 13%, positively impacting EPS by about $0.50

The company's strong performance and shareholder-friendly actions reflect confidence in its strategy and future prospects.

H&R Block (NYSE: HRB) ha riportato risultati finanziari solidi per l'anno fiscale 2024, con un aumento del fatturato del 4% a 3,6 miliardi di dollari e un incremento del 16% degli utili per azione dalle operazioni continuative, che sono saliti a 4,14 dollari. L'azienda ha annunciato un aumento del 17% del dividendo trimestrale a 0,375 dollari per azione e una nuova autorizzazione per il riacquisto di azioni da 1,5 miliardi di dollari.

I punti salienti includono:

  • Riacquistati 350 milioni di dollari di azioni nell'anno fiscale 2024, riducendo le azioni in circolazione del 5,5%
  • Le previsioni per l'anno fiscale 2025 indicano una continua crescita del fatturato e un miglioramento dell'EBITDA e degli utili per azione
  • Il tasso d'imposta effettivo per l'anno fiscale 2025 è previsto intorno al 13%, influenzando positivamente l'EPS di circa 0,50 dollari

Le solide performance dell'azienda e le azioni a favore degli azionisti riflettono fiducia nella propria strategia e nelle prospettive future.

H&R Block (NYSE: HRB) reportó resultados financieros sólidos para el año fiscal 2024, con ingresos que aumentaron un 4% a 3.6 mil millones de dólares y ganancias por acción de las operaciones continuas que subieron un 16% a 4.14 dólares. La empresa anunció un aumento del 17% en su dividendo trimestral a 0.375 dólares por acción y una nueva autorización de recompra de acciones de 1.5 mil millones de dólares.

Los puntos destacados incluyen:

  • Recomprados 350 millones de dólares en acciones en el año fiscal 2024, reduciendo las acciones en circulación en un 5.5%
  • Las proyecciones para el año fiscal 2025 indican un crecimiento continuo en los ingresos y una mejora en el EBITDA y en las ganancias por acción
  • Se espera que la tasa impositiva efectiva para el año fiscal 2025 sea aproximadamente del 13%, impactando positivamente el EPS en alrededor de 0.50 dólares

El sólido rendimiento de la empresa y las acciones favorables a los accionistas reflejan confianza en su estrategia y en las perspectivas futuras.

H&R Block (NYSE: HRB)는 2024 회계연도에 강력한 재무 결과를 보고했으며, 매출이 4% 증가하여 36억 달러에 달하고 계속 운영에서의 주당 순이익이 16% 상승하여 4.14달러가 되었습니다. 회사는 분기 배당금을 주당 0.375달러17% 인상하고, 15억 달러의 자사주 매입 승인을 발표했습니다.

주요 하이라이트는 다음과 같습니다:

  • 회계연도 2024에 3억 5천만 달러의 주식을 재매입하여 유통 주식을 5.5% 감소시킴
  • 회계연도 2025 전망은 매출 증가와 EBITDA 및 주당 순이익 개선을 예측하고 있음
  • 회계연도 2025에 대한 유효 세율은 약 13%로 예상되며, 주당 순이익에 약 0.50달러 긍정적인 영향을 미침

회사의 강력한 성과와 주주 친화적인 행동은 전략과 미래 전망에 대한 신뢰를 반영합니다.

H&R Block (NYSE: HRB) a annoncé de solides résultats financiers pour l'exercice 2024, avec un chiffre d'affaires en hausse de 4% à 3,6 milliards de dollars et un bénéfice par action des opérations continues en hausse de 16% à 4,14 dollars. L'entreprise a annoncé une augmentation de 17% de son dividende trimestriel à 0,375 dollar par action et une nouvelle autorisation de rachat d'actions de 1,5 milliard de dollars.

Les faits saillants incluent :

  • Rachat de 350 millions de dollars d'actions pour l'exercice 2024, réduisant le nombre d'actions en circulation de 5,5%
  • Les prévisions pour l'exercice 2025 projettent une croissance continue du chiffre d'affaires ainsi qu'une amélioration de l'EBITDA et des bénéfices par action
  • Le taux d'imposition effectif pour l'exercice 2025 devrait être d'environ 13%, ayant un impact positif sur le BPA d'environ 0,50 dollar

La solide performance de l'entreprise et les actions en faveur des actionnaires reflètent la confiance dans sa stratégie et ses perspectives futures.

H&R Block (NYSE: HRB) berichtete über starke finanzielle Ergebnisse für das Geschäftsjahr 2024, mit einem Umsatzanstieg von 4% auf 3,6 Milliarden Dollar und einem Anstieg des Ergebnisses pro Aktie aus fortgeführten Aktivitäten um 16% auf 4,14 Dollar. Das Unternehmen gab eine 17%ige Erhöhung seiner vierteljährlichen Dividende auf 0,375 Dollar pro Aktie bekannt und genehmigte ein neues Aktienrückkaufprogramm über 1,5 Milliarden Dollar.

Wichtige Highlights sind:

  • Rückkauf von Aktien im Wert von 350 Millionen Dollar im Geschäftsjahr 2024, wodurch die ausstehenden Aktien um 5,5% reduziert wurden
  • Die Prognosen für das Geschäftsjahr 2025 zeigen ein fortgesetztes Umsatzwachstum sowie verbesserte EBITDA und Ergebnisse pro Aktie
  • Der effektive Steuersatz für das Geschäftsjahr 2025 wird voraussichtlich bei etwa 13% liegen, wodurch sich das EPS um etwa 0,50 Dollar positiv auswirkt

Die starke Leistung des Unternehmens und aktionärsfreundliche Maßnahmen spiegeln das Vertrauen in die eigene Strategie und die zukünftigen Perspektiven wider.

Positive
  • Revenue increased 4% to $3.6 billion in FY24
  • Earnings per share from continuing operations grew 16% to $4.14
  • Announced a 17% increase in quarterly dividend to $0.375 per share
  • New $1.5 billion share repurchase authorization approved
  • Repurchased $350 million of shares in FY24, reducing outstanding shares by 5.5%
  • FY25 outlook projects continued revenue growth and improved EBITDA and earnings per share
  • Expected effective tax rate of 13% for FY25, positively impacting EPS by about $0.50
Negative
  • Lower Emerald Card activity in the current year partially offset revenue growth

Insights

H&R Block's FY24 results showcase robust financial performance. The 4% revenue growth to $3.6 billion and 16% increase in EPS to $4.14 demonstrate solid operational execution. The 17% dividend hike and new $1.5 billion share repurchase authorization signal management's confidence in future cash flows and commitment to shareholder returns.

The company's ability to grow revenue while controlling costs (3% increase in operating expenses) led to improved profitability. The 7.2% increase in pretax income to $762.3 million is particularly impressive. The FY25 outlook, projecting further revenue growth and even faster EPS growth, suggests continued operational efficiency and potential market share gains.

Investors should note the company's strong capital return policy, having returned over $3.9 billion to shareholders since 2016. The projected 13% effective tax rate for FY25 could provide a significant boost to earnings, potentially adding $0.50 to EPS.

H&R Block's performance indicates resilience in the tax preparation market despite increasing competition from DIY software. The higher net average charge and increased company-owned volumes in the Assisted category suggest that customers still value professional tax services. The growth in online paid returns at a higher net average charge in DIY also points to successful digital transformation efforts.

The company's strategy of diversifying revenue streams beyond tax preparation seems to be paying off, although the lower Emerald Card® activity suggests potential challenges in the financial products segment. The continued investment in share repurchases (5.5% of outstanding shares bought back in FY24) could help support the stock price and improve per-share metrics.

The FY25 guidance, projecting revenue of $3.69 to $3.75 billion and adjusted EPS of $5.15 to $5.35, implies confidence in the company's ability to navigate potential economic headwinds and competitive pressures. This positive outlook could attract investor interest, especially given the company's history of consistent dividend payments and share repurchases.

KANSAS CITY, Mo., Aug. 15, 2024 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released its financial results1  for the fiscal year ended June 30, 2024.

  • H&R Block reported full year revenue of $3.6 billion (4% increase) and earnings per share from continuing operations2 of $4.14 (16% increase)
  • In FY24, the Company repurchased $350 million, or another 5.5%, of shares outstanding at an average price of $43.66
  • The Company announced a 17% increase in its quarterly dividend to $0.375 per share
  • The Company announced a new share repurchase authorization of $1.5 billion, which replaces the prior authorization
  • The FY25 outlook guides to another year of revenue growth, EBITDA that outpaces revenue, and earnings per share that grows even faster

"In fiscal 2024 we made strides across our different products and services that provide value to our clients and help enable their financial confidence," said Jeff Jones H&R Block's president and chief executive officer. "We continue to make progress, gain new insight, and translate this client success into value for shareholders, and are well positioned to build on this momentum in fiscal 2025 and beyond."

Fiscal 2024 Results from Continuing Operations and Key Financial Metrics

"I am pleased with our financial performance in 2024 resulting in another year of strong free cash flow and capital allocation," said Tony Bowen, H&R Block's chief financial officer. "In addition, today's announcement of a 17% dividend increase and new $1.5B share repurchase authorization reflects the Board's support of our strategy and confidence in our future."

  Year Ended June 30,
(in millions, except EPS) 2024
 2023
Revenue $3,610  $3,472 
Pretax Income $762  $711 
Net Income $598  $562 
Weighted-Avg. Shares - Diluted  143.9   157.2 
EPS2 $4.14  $3.56 
Adjusted EPS2 $4.41  $3.82 
EBITDA2 $963  $915 
         
  • Total revenue of $3.6 billion increased by $138.2 million, or 4.0%, primarily due to a higher net average charge and company-owned volumes in the Assisted category combined with greater online paid returns at a higher net average charge in DIY, partially offset by lower Emerald Card® activity in the current year.
  • Total operating expenses of $2.8 billion increased by $81.6 million, or 3.0%, primarily due to higher labor costs and bad debt expense, partially offset by lower consulting and outsourced services.
  • Pretax income of $762.3 million increased by $51.1 million, or 7.2%, primarily due to higher revenues in the current year.
  • Earnings per share from continuing operations2 of $4.14 increased by $0.58, or 16.3%; adjusted earnings per share from continuing operations2 of $4.41 increased by $0.59, or 15.4%.

Capital Structure

The Company reported the following related to its capital structure:

  • In fiscal year 2024, the Company repurchased and retired approximately 8.0 million shares, or 5.5% of shares outstanding, at an aggregate price of $350 million, or $43.66 per share.
  • The Company announced today that the Board of Directors approved a new share repurchase authorization of $1.5 billion, which replaces the prior authorization.
  • The Company also announced today that the Board of Directors increased the quarterly dividend by 17%, representing the seventh increase in seven years. The quarterly cash dividend is now $0.375 per share, payable on October 3, 2024 to shareholders of record as of September 5, 2024.

H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. Since 2016, the Company has returned more than $3.9 billion to shareholders in the form of share repurchases and dividends.

FY25 Outlook

For fiscal year 2025, the Company expects:

  • Revenue to be in the range of $3.69 to $3.75 billion.
  • EBITDA3 to be in the range of $975 million to $1.02 billion.
  • Effective tax rate to be approximately 13%. The tax rate is positively impacted due to the anticipated closure of various matters under examination and the expiration of statute of limitations. We expect this to contribute approximately 50 cents to EPS.
  • Adjusted Diluted Earnings Per Share3 to be in the range of $5.15 to $5.35.

Conference Call & Webcast

A conference call for analysts, institutional investors, and shareholders will be held at 4:30 p.m. Eastern time on Thursday, August 15, 2024. During the conference call the Company will discuss fiscal 2024 results, outlook, and give a general business update. To join live, participants must register at https://register.vevent.com/register/BIde20112dcb6f48afb47e1f4828d62d83. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.

The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/yzzds4pa and will be available for replay 2 hours after the call is concluded and continuing for 90 days.

About H&R Block

H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

About Non-GAAP Financial Information

This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information."

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company's control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

1 All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
2 All per share amounts are based on continuing operations and fully diluted shares at the end of the corresponding period. The company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, free cash flow, and free cash flow yield, which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the company. See "About Non-GAAP Financial Information" below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
3 Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.

For Further Information

Investor Relations: Michaella Gallina, (816) 854-3022, michaella.gallina@hrblock.com
  Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com
Media Relations: Teri Daley, (816) 854-3787, teri.daley@hrblock.com
   


FINANCIAL RESULTS (unaudited, in 000s - except per share amounts)
  Three months ended June 30, Year ended June 30,
  2024 2023 2024 2023
REVENUES:        
U.S. tax preparation and related services:        
Assisted tax preparation $652,405  $636,561  $2,274,835  $2,167,138 
Royalties  51,732   49,294   204,802   210,631 
DIY tax preparation  134,283   132,428   349,812   314,758 
Refund Transfers  21,357   23,100   142,249   143,310 
Peace of Mind® Extended Service Plan  33,987   36,341   93,087   95,181 
Tax Identity Shield®  16,576   19,028   33,386   38,265 
Other  18,918   16,407   51,555   45,252 
Total U.S. tax preparation and related services  929,258   913,159   3,149,726   3,014,535 
Financial services:        
Emerald Card® and SpruceSM  14,600   16,203   76,093   84,651 
Interest and fee income on Emerald Advance®  4,231   287   40,933   47,554 
Total financial services  18,831   16,490   117,026   132,205 
International  88,725   78,834   247,123   235,131 
Wave  25,816   23,663   96,472   90,314 
Total revenues $1,062,630  $1,032,146  $3,610,347  $3,472,185 
Compensation and benefits:        
Field wages  218,473   223,086   869,002   841,742 
Other wages  76,694   66,064   298,819   273,850 
Benefits and other compensation  57,759   51,053   228,723   220,530 
   352,926   340,203   1,396,544   1,336,122 
Occupancy  112,618   111,293   432,461   428,167 
Marketing and advertising  66,612   49,956   277,747   286,255 
Depreciation and amortization  30,780   31,841   121,784   130,501 
Bad debt  23,963   3,383   91,523   60,401 
Other  124,900   118,960   485,011   482,041 
Total operating expenses  711,799   655,636   2,805,070   2,723,487 
         
Other income (expense), net  15,143   14,472   36,125   35,492 
Interest expense on borrowings  (15,776)  (15,871)  (79,080)  (72,978)
Income from continuing operations before income taxes  350,198   375,111   762,322   711,212 
Income taxes  91,832   71,158   164,359   149,412 
Net income from continuing operations  258,366   303,953   597,963   561,800 
Net loss from discontinued operations  (549)  (1,682)  (2,646)  (8,100)
Net income $257,817  $302,271  $595,317  $553,700 
         
DILUTED EARNINGS PER SHARE:        
Continuing operations $1.82  $1.97  $4.14  $3.56 
Discontinued operations  (0.01)  (0.01)  (0.02)  (0.05)
Consolidated $1.81  $1.96  $4.12  $3.51 
         
WEIGHTED AVERAGE DILUTED SHARES  141,761   153,512   143,890   157,248 
         
Adjusted diluted EPS(1) $1.89  $2.05  $4.41  $3.82 
EBITDA(1) $396,754  $422,823  $963,186  $914,691 
         

(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures.

   
CONSOLIDATED BALANCE SHEETS (unaudited, in 000s - except per share data)
As of June 30, 2024 2023
     
ASSETS    
Cash and cash equivalents $1,053,326  $986,975 
Cash and cash equivalents - restricted  21,867   28,341 
Receivables, net  69,075   59,987 
Prepaid expenses and other current assets  95,208   112,183 
Total current assets  1,239,476   1,187,486 
Property and equipment, net  131,319   130,015 
Operating lease right of use asset  461,986   438,299 
Intangible assets, net  264,102   277,043 
Goodwill  785,226   775,453 
Deferred tax assets and income taxes receivable  271,658   211,391 
Other noncurrent assets  65,043   52,571 
Total assets $3,218,810  $3,072,258 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
LIABILITIES:    
Accounts payable and accrued expenses $155,830  $159,901 
Accrued salaries, wages and payroll taxes  105,548   95,154 
Accrued income taxes and reserves for uncertain tax positions  318,830   271,800 
Operating lease liabilities  206,070   205,391 
Deferred revenue and other current liabilities  191,050   206,536 
Total current liabilities  977,328   938,782 
Long-term debt  1,491,095   1,488,974 
Deferred tax liabilities and reserves for uncertain tax positions  291,063   264,567 
Operating lease liabilities  265,373   240,543 
Deferred revenue and other noncurrent liabilities  103,357   107,328 
Total liabilities  3,128,216   3,040,194 
COMMITMENTS AND CONTINGENCIES    
STOCKHOLDERS’ EQUITY:    
Common stock, no par, stated value $.01 per share  1,709   1,789 
Additional paid-in capital  762,583   770,376 
Accumulated other comprehensive loss  (48,845)  (37,099)
Retained earnings (deficit)  12,654   (48,677)
Less treasury shares, at cost  (637,507)  (654,325)
Total stockholders' equity  90,594   32,064 
Total liabilities and stockholders' equity $3,218,810  $3,072,258 
     
     


   
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in 000s)
Year ended June 30, 2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $595,317  $553,700 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization  121,784   130,501 
Provision for credit losses  82,567   52,290 
Deferred taxes  (40,940)  49,579 
Stock-based compensation  34,277   31,326 
Changes in assets and liabilities, net of acquisitions:    
Receivables  (108,394)  (57,244)
Prepaid expenses and other current and noncurrent assets  (7,287)  (7,011)
Accounts payable, accrued expenses, salaries, wages and payroll taxes  (4,662)  (67,627)
Deferred revenue, other current and noncurrent liabilities  (28,507)  (4,773)
Income tax receivables, accrued income taxes and income tax reserves  75,444   144,164 
Other, net  1,261   (3,064)
Net cash provided by operating activities  720,860   821,841 
     
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures  (63,678)  (69,698)
Payments made for business acquisitions, net of cash acquired  (43,358)  (48,246)
Franchise loans funded  (18,891)  (21,633)
Payments from franchisees  24,926   27,350 
Other, net  7,143   10,838 
Net cash used in investing activities  (93,858)  (101,389)
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
Repayments of line of credit borrowings  (1,025,000)  (970,000)
Proceeds from line of credit borrowings  1,025,000   970,000 
Dividends paid  (179,775)  (177,925)
Repurchase of common stock, including shares surrendered  (379,569)  (568,952)
Other, net  (4,967)  (4,115)
Net cash used in financing activities  (564,311)  (750,992)
     
Effects of exchange rate changes on cash  (2,814)  (4,857)
     
Net increase (decrease) in cash and cash equivalents, including restricted balances  59,877   (35,397)
Cash, cash equivalents and restricted cash, beginning of the year  1,015,316   1,050,713 
Cash, cash equivalents and restricted cash, end of the year $1,075,193  $1,015,316 
     
SUPPLEMENTARY CASH FLOW DATA:    
Income taxes paid (received), net $131,173  $(45,539)
Interest paid on borrowings  75,694   69,554 
Accrued additions to property and equipment  3,052   2,238 
Accrued dividends payable to common shareholders  44,653   42,953 
     
     


         
        (in 000s)
  Three months ended June 30, Year ended June 30,
NON-GAAP FINANCIAL MEASURE - EBITDA 2024
 2023 2024
 2023
         
Net income - as reported $257,817  $302,271  $595,317  $553,700 
Discontinued operations, net  549   1,682   2,646   8,100 
Net income from continuing operations - as reported  258,366   303,953   597,963   561,800 
Add back:        
Income taxes  91,832   71,158   164,359   149,412 
Interest expense  15,776   15,871   79,080   72,978 
Depreciation and amortization  30,780   31,841   121,784   130,501 
   138,388   118,870   365,223   352,891 
EBITDA from continuing operations $396,754  $422,823  $963,186  $914,691 
         
         


   
  (in 000s, except per share amounts)
  Three months ended June 30, Year ended June 30,
NON-GAAP FINANCIAL MEASURE - ADJUSTED EPS 2024 2023 2024 2023
         
Net income from continuing operations - as reported $258,366  $303,953  $597,963  $561,800 
Adjustments:        
Amortization of intangibles related to acquisitions (pretax)  13,142   12,865   50,835   51,411 
Tax effect of adjustments(1)  (2,936)  (1,599)  (11,751)  (10,797)
Adjusted net income from continuing operations $268,572  $315,219  $637,047  $602,414 
Diluted earnings per share from continuing operations - as reported $1.82  $1.97  $4.14  $3.56 
Adjustments, net of tax  0.07   0.08   0.27   0.26 
Adjusted diluted earnings per share from continuing operations $1.89  $2.05  $4.41  $3.82 
         

(1) The tax effect of adjustments is the difference between the tax provision calculation on a GAAP basis and on an adjusted non-GAAP basis.

NON-GAAP FINANCIAL INFORMATION

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.

We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow, and free cash flow yield. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.


FAQ

What was H&R Block's (HRB) revenue for fiscal year 2024?

H&R Block reported total revenue of $3.6 billion for fiscal year 2024, representing a 4% increase from the previous year.

How much did H&R Block (HRB) increase its quarterly dividend?

H&R Block announced a 17% increase in its quarterly dividend to $0.375 per share, payable on October 3, 2024.

What is the size of H&R Block's (HRB) new share repurchase authorization?

H&R Block announced a new share repurchase authorization of $1.5 billion, replacing the prior authorization.

What is H&R Block's (HRB) earnings per share outlook for fiscal year 2025?

H&R Block expects adjusted diluted earnings per share to be in the range of $5.15 to $5.35 for fiscal year 2025.

How much did H&R Block (HRB) spend on share repurchases in fiscal year 2024?

H&R Block repurchased approximately $350 million worth of shares in fiscal year 2024, reducing outstanding shares by 5.5%.

H&R Block, Inc.

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