H&R Block Reports Strong Tax Season Volume; Increases Market Share
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H&R Block Reports Strong Tax Season Volume; Increases Market Share

Financial Outlook Updated; Fiscal 2021 Results to be Released June 15, 2021

KANSAS CITY, Mo., May 24, 2021 // GLOBE NEWSWIRE // - H&R Block, Inc. (NYSE: HRB) (the “Company” or “H&R Block”) today released preliminary results for the 2021 U.S. tax season, reflecting strong growth in tax return volume and estimated market share gains both overall and in the Assisted category.

“The story of tax season 2021 is growth. We achieved our largest market share gains in over a decade and saw significant growth in Do-it Yourself (DIY) revenue,” said Jeff Jones, H&R Block’s president and chief executive officer. “Our efforts to transform the business are resonating with consumers and small business owners as we continue to blend technology and digital tools with human expertise and care. We made great progress in the first year of our Block Horizons strategy and are well-positioned for long-term growth.”

Tax Season Results

The Company estimates it gained approximately 0.3% of total market share when compared to last year’s completed tax season. In the Assisted category, the Company estimates it gained approximately 0.7% share. The share gain in Assisted represents a multi-year journey to improve our client trajectory and return to client growth, as well as initial benefits of our Block Experience imperative, which makes it easier and faster for customers to file their taxes. In DIY, strong revenue performance was the result of an increase in the net average charge related to improved mix, pricing actions, and an uptake of human help within the software through our Online Assist products.

“The industry shift back to Assisted, as well as our share gains within the category, validate that taxpayers need help and our multi-year efforts to improve client trajectory and return to growth are working,” said Jones. “Digital engagement from our assisted clients increased more than 50%, and the number of DIY clients accessing human help grew at a similar rate. Overall, we increased the digitization of our business, advanced how we serve small businesses at Block Advisors, achieved very strong growth at Wave, and made meaningful progress on our mobile banking product."

Tax season 2021 results are included in a table attached to this press release.

Fiscal 2021 Financial Outlook Update1

Had fiscal year 2021 included the complete 2021 tax season, the company would have substantially exceeded its prior outlook for both revenue and earnings. Because the tax season was extended through May 17, 2021, beyond the April 30 fiscal year, the Company is now anticipating fiscal 2021 results as follows:

  • Revenue in the range of $3.400 to $3.415 billion
  • Net income in the range of $585 million to $591 million
  • EBITDA2 in the range of $926 to $934 million
  • Effective tax rate in the range of 11.6% to 11.8%
  • GAAP EPS3 in the range of $3.08 to $3.11
  • Non-GAAP EPS2,3 in the range of $3.36 to $3.39

"We are very pleased with the robust performance across the business in 2021, including growth in clients, a return to over 30% growth at Wave, and solid fiscal management,” said Tony Bowen, H&R Block’s chief financial officer. “The extension of the tax season across fiscal years caused a timing difference in our financial results. Had we been able to include total 2021 tax season performance in fiscal 2021 totals, we would have significantly surpassed our previous outlook for both revenue and earnings. We look forward to sharing more detail on our earnings call in June."

Full Year Fiscal 2021 Results

H&R Block will report fourth quarter and fiscal 2021 full year results on Tuesday, June 15, 2021 after market close.

A conference call for analysts and investors will be held at 4:30 p.m. Eastern time on Tuesday, June 15, 2021. During the conference call the Company will discuss fiscal 2021 results and a general business update. To access the call, please dial the number below approximately 5 minutes prior to the scheduled start time:

Conference ID: 2575807

The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and public.

1 All amounts in this release are unaudited and from continuing operations.
2 The Company provides non-GAAP financial measures of performance, including earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations and adjusted earnings per share from continuing operations, 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 All per share amounts are based on weighted average fully diluted shares over the corresponding period.

    January 1, 2021
through May 18,
  January 1, 2020
through May 18,
  % Change
U.S. Tax Returns Prepared: (in 000s) (3)            
Company-owned operations   8,379     6,546     28.0   %
Franchise operations   3,216     2,760     16.5   %
Total H&R Block Assisted   11,595     9,306     24.6   %
Desktop   1,913     1,557     22.9   %
Online   6,917     5,966     15.9   %
Total H&R Block DIY   8,830     7,523     17.4   %
Total H&R Block U.S. Returns   20,425     16,829     21.4   %
Net Average Charge: (4)            
Company-owned operations   $ 221.64     $ 225.50     (1.7 ) %
Franchise operations (5)   209.45     214.12     (2.2 ) %
DIY   33.03     27.17     21.6   %


(1) Represents a completed tax season, as the U.S. federal tax filing deadline for 2020 individual returns was May 17, 2021.
(2) Represents a partial tax season, as the U.S. federal tax filing deadline for 2019 individual tax returns was July 15, 2020.
(3) An assisted tax return is defined as a current or prior year individual or business tax return that has been accepted and paid for by the client.  A DIY online return is defined as a current year individual or business tax return that has been accepted and paid for by the client. A DIY desktop return is defined as a current year individual or business tax return that has been electronically submitted to the IRS.
(4) Net average charge is calculated as total tax preparation fees, divided by tax returns prepared.
(5) Net average charge related to H&R Block Franchise operations represents tax preparation fees collected by H&R Block franchisees divided by returns prepared in franchise offices. H&R Block will recognize a portion of franchise revenues as franchise royalties based on the terms of franchise agreements.


Reconciliation of Forward-Looking Guidance for Non-GAAP Financial Measures    
    (in millions, except per share amounts)
    Range of Estimate
for year ended April 30, 2021
Income from continuing operations   $ 585      $ 591   
Add back:        
Income taxes of continuing operations   77      79   
Interest expense of continuing operations   107      107   
Depreciation and amortization of continuing operations   157      157   
    341      343   
EBITDA from continuing operations   $ 926      $ 934   
Diluted income per share from continuing operations (GAAP)   $ 3.08      $ 3.11   
Adjustments, net of tax (1)   0.28      0.28   
Adjusted diluted income per share from continuing operations   $ 3.36      $ 3.39   


(1) Reflects estimated adjustments for amortization of intangibles related to acquisitions, net of the related tax effects, which is the difference between the tax provision calculation on a GAAP basis and on an adjusted non-GAAP basis.


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, EBITDA margin from continuing operations, adjusted diluted earnings per share from continuing operations and free cash flow. We also use EBITDA from continuing operations and pretax income of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.





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