|
(Mark One)
|
|
|
|
☑
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
For the quarterly period ended
|
July 31, 2019
|
|
|
OR
|
|
☐
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
For the transition period from to
|
Missouri
|
|
44-0607856
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, without par value
|
HRB
|
New York Stock Exchange
|
|
|
|
|
|
|
|
Consolidated Statements of Operations and Comprehensive Loss
|
|
|
|
Three months ended July 31, 2019 and 2018
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
As of July 31, 2019, July 31, 2018 and April 30, 2019
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
Three months ended July 31, 2019 and 2018
|
|
|
|
|
|
Consolidated Statements of Stockholders' Equity
|
|
|
Three months ended July 31, 2019 and the fiscal year ended April 30, 2019
|
|
|
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal Proceedings
|
||
|
|
|
Risk Factors
|
||
|
|
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
||
|
|
|
Item 3.
|
Defaults Upon Senior Securities
|
|
|
|
|
Item 4.
|
Mine Safety Disclosures
|
|
|
|
|
|
|
|
Exhibits
|
||
|
|
|
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS |
(unaudited, in 000s, except
per share amounts) |
|
||||||
Three months ended July 31,
|
|
2019
|
|
|
2018
|
|
||
|
|
|
|
|
||||
REVENUES:
|
|
|
|
|
||||
Service revenues
|
|
$
|
132,159
|
|
|
$
|
126,860
|
|
Royalty, product and other revenues
|
|
18,203
|
|
|
18,323
|
|
||
|
|
150,362
|
|
|
145,183
|
|
||
OPERATING EXPENSES:
|
|
|
|
|
||||
Costs of revenues
|
|
229,392
|
|
|
221,560
|
|
||
Selling, general and administrative
|
|
116,136
|
|
|
105,740
|
|
||
Total operating expenses
|
|
345,528
|
|
|
327,300
|
|
||
|
|
|
|
|
||||
Other income (expense), net
|
|
9,123
|
|
|
4,542
|
|
||
Interest expense on borrowings
|
|
(21,071
|
)
|
|
(21,190
|
)
|
||
Loss from continuing operations before income tax benefit
|
|
(207,114
|
)
|
|
(198,765
|
)
|
||
Income tax benefit
|
|
(61,390
|
)
|
|
(49,968
|
)
|
||
Net loss from continuing operations
|
|
(145,724
|
)
|
|
(148,797
|
)
|
||
Net loss from discontinued operations, net of tax benefits of $1,358 and $1,162
|
|
(4,523
|
)
|
|
(3,873
|
)
|
||
NET LOSS
|
|
$
|
(150,247
|
)
|
|
$
|
(152,670
|
)
|
|
|
|
|
|
||||
BASIC AND DILUTED LOSS PER SHARE:
|
|
|
|
|
||||
Continuing operations
|
|
$
|
(0.72
|
)
|
|
$
|
(0.72
|
)
|
Discontinued operations
|
|
(0.02
|
)
|
|
(0.02
|
)
|
||
Consolidated
|
|
$
|
(0.74
|
)
|
|
$
|
(0.74
|
)
|
|
|
|
|
|
||||
DIVIDENDS DECLARED PER SHARE
|
|
$
|
0.26
|
|
|
$
|
0.25
|
|
|
|
|
|
|
||||
COMPREHENSIVE LOSS:
|
|
|
|
|
||||
Net loss
|
|
$
|
(150,247
|
)
|
|
$
|
(152,670
|
)
|
Unrealized gains on securities, net of taxes
|
|
—
|
|
|
3
|
|
||
Change in foreign currency translation adjustments
|
|
(2,320
|
)
|
|
(1,734
|
)
|
||
Other comprehensive loss
|
|
(2,320
|
)
|
|
(1,731
|
)
|
||
Comprehensive loss
|
|
$
|
(152,567
|
)
|
|
$
|
(154,401
|
)
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
1
|
2
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited, in 000s)
|
|
|||||
Three months ended July 31,
|
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net loss
|
|
$
|
(150,247
|
)
|
|
$
|
(152,670
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
38,605
|
|
|
40,432
|
|
||
Provision for bad debt
|
|
552
|
|
|
1,617
|
|
||
Deferred taxes
|
|
6,825
|
|
|
9,595
|
|
||
Stock-based compensation
|
|
6,674
|
|
|
4,359
|
|
||
Changes in assets and liabilities, net of acquisitions:
|
|
|
|
|
||||
Receivables
|
|
60,519
|
|
|
66,202
|
|
||
Prepaid expenses, other current and noncurrent assets
|
|
(9,917
|
)
|
|
(12,161
|
)
|
||
Accounts payable, accrued expenses, salaries, wages and payroll taxes
|
|
(284,643
|
)
|
|
(203,482
|
)
|
||
Deferred revenue, other current and noncurrent liabilities
|
|
(45,769
|
)
|
|
(40,760
|
)
|
||
Income tax receivables, accrued income taxes and income tax reserves
|
|
(99,929
|
)
|
|
(89,661
|
)
|
||
Other, net
|
|
(6,499
|
)
|
|
966
|
|
||
Net cash used in operating activities
|
|
(483,829
|
)
|
|
(375,563
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Capital expenditures
|
|
(15,181
|
)
|
|
(12,057
|
)
|
||
Payments made for business acquisitions, net of cash acquired
|
|
(394,411
|
)
|
|
(1,449
|
)
|
||
Franchise loans funded
|
|
(2,806
|
)
|
|
(1,805
|
)
|
||
Payments from franchisees
|
|
2,647
|
|
|
5,104
|
|
||
Other, net
|
|
50,944
|
|
|
3,645
|
|
||
Net cash used in investing activities
|
|
(358,807
|
)
|
|
(6,562
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Dividends paid
|
|
(52,512
|
)
|
|
(52,104
|
)
|
||
Repurchase of common stock, including shares surrendered
|
|
(36,456
|
)
|
|
(101,665
|
)
|
||
Proceeds from exercise of stock options
|
|
1,206
|
|
|
1,355
|
|
||
Other, net
|
|
(12,431
|
)
|
|
(17,494
|
)
|
||
Net cash used in financing activities
|
|
(100,193
|
)
|
|
(169,908
|
)
|
||
|
|
|
|
|
||||
Effects of exchange rate changes on cash
|
|
556
|
|
|
(1,153
|
)
|
||
|
|
|
|
|
||||
Net decrease in cash and cash equivalents, including restricted balances
|
|
(942,273
|
)
|
|
(553,186
|
)
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
|
1,707,727
|
|
|
1,663,678
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
765,454
|
|
|
$
|
1,110,492
|
|
|
|
|
|
|
||||
SUPPLEMENTARY CASH FLOW DATA:
|
|
|
|
|
||||
Income taxes paid, net of refunds received
|
|
$
|
36,138
|
|
|
$
|
31,969
|
|
Interest paid on borrowings
|
|
15,519
|
|
|
15,519
|
|
||
Accrued additions to property and equipment
|
|
127
|
|
|
9,974
|
|
||
Accrued purchase of common stock
|
|
16,801
|
|
|
—
|
|
||
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
3
|
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|
|
(amounts in 000s, except per share amounts)
|
|
|||||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
|
Accumulated Other
Comprehensive Income (Loss) |
|
|
Retained
Earnings |
|
|
Treasury Stock
|
|
Total
Stockholders’ Equity |
|
||||||||||||||
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
||||||||||||||
Balances as of May 1, 2019
|
|
238,337
|
|
|
$
|
2,383
|
|
|
$
|
767,636
|
|
|
$
|
(20,416
|
)
|
|
$
|
499,386
|
|
|
(36,377
|
)
|
|
$
|
(707,462
|
)
|
|
$
|
541,527
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(150,247
|
)
|
|
—
|
|
|
—
|
|
|
(150,247
|
)
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,320
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,320
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
6,557
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,557
|
|
||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(13,789
|
)
|
|
—
|
|
|
(2,786
|
)
|
|
906
|
|
|
17,631
|
|
|
1,056
|
|
||||||
Acquisition of treasury shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(314
|
)
|
|
(9,185
|
)
|
|
(9,185
|
)
|
||||||
Repurchase and retirement of common shares
|
|
(1,593
|
)
|
|
(16
|
)
|
|
(955
|
)
|
|
—
|
|
|
(43,101
|
)
|
|
—
|
|
|
—
|
|
|
(44,072
|
)
|
||||||
Cash dividends declared - $0.26 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52,512
|
)
|
|
—
|
|
|
—
|
|
|
(52,512
|
)
|
||||||
Balances as of July 31, 2019
|
|
236,744
|
|
|
$
|
2,367
|
|
|
$
|
759,449
|
|
|
$
|
(22,736
|
)
|
|
$
|
250,740
|
|
|
(35,785
|
)
|
|
$
|
(699,016
|
)
|
|
$
|
290,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|
|
(amounts in 000s, except per share amounts)
|
|
|||||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
|
Retained
Earnings (Deficit) |
|
|
Treasury Stock
|
|
Total
Stockholders’ Equity (Deficiency) |
|
||||||||||||||
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
||||||||||||||
Balances as of May 1, 2018
|
|
246,199
|
|
|
$
|
2,462
|
|
|
$
|
760,250
|
|
|
$
|
(14,303
|
)
|
|
$
|
362,980
|
|
|
(36,945
|
)
|
|
$
|
(717,678
|
)
|
|
$
|
393,711
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(152,670
|
)
|
|
—
|
|
|
—
|
|
|
(152,670
|
)
|
||||||
Cumulative effect of ASU 2016-16 (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,950
|
|
|
—
|
|
|
—
|
|
|
100,950
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,731
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,731
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
4,307
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,307
|
|
||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(9,945
|
)
|
|
—
|
|
|
(1,029
|
)
|
|
627
|
|
|
12,185
|
|
|
1,211
|
|
||||||
Acquisition of treasury shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(200
|
)
|
|
(4,560
|
)
|
|
(4,560
|
)
|
||||||
Repurchase and retirement of common shares
|
|
(4,173
|
)
|
|
(42
|
)
|
|
(2,503
|
)
|
|
—
|
|
|
(94,560
|
)
|
|
—
|
|
|
—
|
|
|
(97,105
|
)
|
||||||
Cash dividends declared - $0.25 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52,104
|
)
|
|
—
|
|
|
—
|
|
|
(52,104
|
)
|
||||||
Balances as of July 31, 2018
|
|
242,026
|
|
|
$
|
2,420
|
|
|
$
|
752,109
|
|
|
$
|
(16,034
|
)
|
|
$
|
163,567
|
|
|
(36,518
|
)
|
|
$
|
(710,053
|
)
|
|
$
|
192,009
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(176,276
|
)
|
|
—
|
|
|
—
|
|
|
(176,276
|
)
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,846
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,846
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
7,352
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,352
|
|
||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
—
|
|
|
(202
|
)
|
|
35
|
|
|
675
|
|
|
247
|
|
||||||
Acquisition of treasury shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
(431
|
)
|
|
(431
|
)
|
||||||
Cash dividends declared - $0.25 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51,380
|
)
|
|
—
|
|
|
—
|
|
|
(51,380
|
)
|
||||||
Balances as of October 31, 2018
|
|
242,026
|
|
|
$
|
2,420
|
|
|
$
|
759,235
|
|
|
$
|
(18,880
|
)
|
|
$
|
(64,291
|
)
|
|
(36,499
|
)
|
|
$
|
(709,809
|
)
|
|
$
|
(31,325
|
)
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(126,454
|
)
|
|
—
|
|
|
—
|
|
|
(126,454
|
)
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,238
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,238
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
6,067
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,067
|
|
||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(169
|
)
|
|
41
|
|
|
796
|
|
|
622
|
|
||||||
Acquisition of treasury shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(56
|
)
|
|
(56
|
)
|
||||||
Repurchase and retirement of common shares
|
|
(525
|
)
|
|
(5
|
)
|
|
(315
|
)
|
|
—
|
|
|
(11,981
|
)
|
|
—
|
|
|
—
|
|
|
(12,301
|
)
|
||||||
Cash dividends declared - $0.25 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51,382
|
)
|
|
—
|
|
|
—
|
|
|
(51,382
|
)
|
||||||
Balances as of January 31, 2019
|
|
241,501
|
|
|
$
|
2,415
|
|
|
$
|
764,982
|
|
|
$
|
(17,642
|
)
|
|
$
|
(254,277
|
)
|
|
(36,460
|
)
|
|
$
|
(709,069
|
)
|
|
$
|
(213,591
|
)
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
877,909
|
|
|
—
|
|
|
—
|
|
|
877,909
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,774
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,774
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
5,784
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,784
|
|
||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(1,231
|
)
|
|
—
|
|
|
(150
|
)
|
|
84
|
|
|
1,634
|
|
|
253
|
|
||||||
Acquisition of treasury shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(27
|
)
|
|
(27
|
)
|
||||||
Repurchase and retirement of common shares
|
|
(3,164
|
)
|
|
(32
|
)
|
|
(1,899
|
)
|
|
—
|
|
|
(73,501
|
)
|
|
—
|
|
|
—
|
|
|
(75,432
|
)
|
||||||
Cash dividends declared - $0.25 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50,595
|
)
|
|
—
|
|
|
—
|
|
|
(50,595
|
)
|
||||||
Balances as of April 30, 2019
|
|
238,337
|
|
|
$
|
2,383
|
|
|
$
|
767,636
|
|
|
$
|
(20,416
|
)
|
|
$
|
499,386
|
|
|
(36,377
|
)
|
|
$
|
(707,462
|
)
|
|
$
|
541,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
ASU 2016-16 was effective on May 1, 2018 and we adopted using the modified retrospective transition method. We recognized a $101.0 million cumulative effect adjustment to increase the opening balance of retained earnings and increase deferred tax assets resulting from intra-entity transfers of intellectual property in fiscal year 2018.
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
5
|
6
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
(in 000s)
|
|
|||
Assets acquired and liabilities assumed, net
|
|
$
|
4,495
|
|
Cash held in escrow
|
|
3,212
|
|
|
Identifiable intangible assets
|
|
87,760
|
|
|
Goodwill
|
|
303,359
|
|
|
Total identifiable assets and goodwill
|
|
$
|
398,826
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
7
|
|
|
|
|
(in 000s)
|
|
|||
Three months ended July 31,
|
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
|
||||
U.S. assisted tax preparation
|
|
$
|
32,992
|
|
|
$
|
31,104
|
|
U.S. royalties
|
|
6,859
|
|
|
7,571
|
|
||
U.S. DIY tax preparation
|
|
3,410
|
|
|
2,781
|
|
||
International
|
|
40,581
|
|
|
39,179
|
|
||
Refund Transfers
|
|
1,509
|
|
|
1,424
|
|
||
Emerald Card®
|
|
13,855
|
|
|
14,246
|
|
||
Peace of Mind® Extended Service Plan
|
|
32,837
|
|
|
36,577
|
|
||
Tax Identity Shield®
|
|
4,522
|
|
|
4,741
|
|
||
Interest and fee income on Emerald AdvanceTM
|
|
554
|
|
|
447
|
|
||
Wave
|
|
3,625
|
|
|
—
|
|
||
Other
|
|
9,618
|
|
|
7,113
|
|
||
Total revenues
|
|
$
|
150,362
|
|
|
$
|
145,183
|
|
|
|
|
|
|
8
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
(in 000s, except per share amounts)
|
|
|||||||
Three months ended July 31,
|
|
2019
|
|
|
2018
|
|
||
Net loss from continuing operations attributable to shareholders
|
|
$
|
(145,724
|
)
|
|
$
|
(148,797
|
)
|
Amounts allocated to participating securities
|
|
(149
|
)
|
|
(142
|
)
|
||
Net loss from continuing operations attributable to common shareholders
|
|
$
|
(145,873
|
)
|
|
$
|
(148,939
|
)
|
|
|
|
|
|
||||
Basic weighted average common shares
|
|
202,037
|
|
|
207,673
|
|
||
Potential dilutive shares
|
|
—
|
|
|
—
|
|
||
Dilutive weighted average common shares
|
|
202,037
|
|
|
207,673
|
|
||
|
|
|
|
|
||||
Loss per share from continuing operations attributable to common shareholders:
|
||||||||
Basic
|
|
$
|
(0.72
|
)
|
|
$
|
(0.72
|
)
|
Diluted
|
|
(0.72
|
)
|
|
(0.72
|
)
|
||
|
|
|
|
|
(in 000s)
|
|
|||||||||||||||||||||||
As of
|
|
July 31, 2019
|
|
July 31, 2018
|
|
April 30, 2019
|
||||||||||||||||||
|
|
Short-term
|
|
Long-term
|
|
Short-term
|
|
Long-term
|
|
Short-term
|
|
Long-term
|
||||||||||||
Loans to franchisees
|
|
$
|
12,301
|
|
|
$
|
45,542
|
|
|
$
|
28,250
|
|
|
$
|
35,776
|
|
|
$
|
22,427
|
|
|
$
|
35,325
|
|
Receivables for U.S. assisted and DIY tax preparation and related fees
|
|
19,686
|
|
|
3,716
|
|
|
9,084
|
|
|
5,503
|
|
|
34,284
|
|
|
3,716
|
|
||||||
H&R Block Instant RefundTM receivables
|
|
880
|
|
|
1,780
|
|
|
1,306
|
|
|
2,031
|
|
|
37,319
|
|
|
1,701
|
|
||||||
H&R Block Emerald AdvanceTM lines of credit
|
|
8,136
|
|
|
10,249
|
|
|
7,694
|
|
|
11,800
|
|
|
8,546
|
|
|
12,418
|
|
||||||
Software receivables from retailers
|
|
1,395
|
|
|
—
|
|
|
3,372
|
|
|
—
|
|
|
9,354
|
|
|
—
|
|
||||||
Royalties and other receivables from franchisees
|
|
7,834
|
|
|
99
|
|
|
4,257
|
|
|
—
|
|
|
11,888
|
|
|
97
|
|
||||||
Wave payment processing receivables
|
|
3,041
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
22,855
|
|
|
2,251
|
|
|
16,613
|
|
|
3,665
|
|
|
15,147
|
|
|
2,382
|
|
||||||
Total
|
|
$
|
76,128
|
|
|
$
|
63,637
|
|
|
$
|
70,576
|
|
|
$
|
58,775
|
|
|
$
|
138,965
|
|
|
$
|
55,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
9
|
|
|
|
|
(in 000s)
|
|
|||
Year of Origination
|
|
Current Balance
|
|
Non-Accrual
|
||||
|
|
|
|
|
||||
2019
|
|
$
|
4,431
|
|
|
$
|
2,795
|
|
2018 and prior
|
|
455
|
|
|
455
|
|
||
|
|
4,886
|
|
|
$
|
3,250
|
|
|
Allowance
|
|
(2,226
|
)
|
|
|
|||
Net balance
|
|
$
|
2,660
|
|
|
|
||
|
|
|
|
|
(in 000s)
|
|
|||||||
Year of origination:
|
|
Balance
|
|
|
Non-Accrual
|
|
||
2019
|
|
$
|
25,002
|
|
|
$
|
25,002
|
|
2018 and prior
|
|
6,941
|
|
|
6,941
|
|
||
Revolving loans
|
|
13,977
|
|
|
11,888
|
|
||
|
|
45,920
|
|
|
$
|
43,831
|
|
|
Allowance
|
|
(27,535
|
)
|
|
|
|||
Net balance
|
|
$
|
18,385
|
|
|
|
||
|
|
|
|
|
10
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
(in 000s)
|
|
|||||||||||
|
|
Goodwill
|
|
|
Accumulated Impairment Losses
|
|
|
Net
|
|
|||
Balances as of April 30, 2019
|
|
$
|
552,234
|
|
|
$
|
(32,297
|
)
|
|
$
|
519,937
|
|
Acquisition of Wave (1)
|
|
303,359
|
|
|
$
|
—
|
|
|
303,359
|
|
||
Other Acquisitions
|
|
1,083
|
|
|
—
|
|
|
1,083
|
|
|||
Disposals and foreign currency changes, net
|
|
(3,101
|
)
|
|
—
|
|
|
(3,101
|
)
|
|||
Impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balances as of July 31, 2019
|
|
$
|
853,575
|
|
|
$
|
(32,297
|
)
|
|
$
|
821,278
|
|
|
|
|
|
|
|
|
||||||
Balances as of April 30, 2018
|
|
$
|
540,168
|
|
|
$
|
(32,297
|
)
|
|
$
|
507,871
|
|
Acquisitions
|
|
651
|
|
|
—
|
|
|
651
|
|
|||
Disposals and foreign currency changes, net
|
|
(581
|
)
|
|
—
|
|
|
(581
|
)
|
|||
Impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balances as of July 31, 2018
|
|
$
|
540,238
|
|
|
$
|
(32,297
|
)
|
|
$
|
507,941
|
|
|
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
11
|
(in 000s)
|
|
|||||||||||
|
|
Gross
Carrying
Amount
|
|
|
Accumulated
Amortization
|
|
|
Net
|
|
|||
As of July 31, 2019: (1)
|
|
|
|
|
|
|
||||||
Reacquired franchise rights
|
|
$
|
350,679
|
|
|
$
|
(141,954
|
)
|
|
$
|
208,725
|
|
Customer relationships
|
|
300,156
|
|
|
(203,283
|
)
|
|
96,873
|
|
|||
Internally-developed software
|
|
144,768
|
|
|
(111,892
|
)
|
|
32,876
|
|
|||
Noncompete agreements
|
|
40,358
|
|
|
(31,980
|
)
|
|
8,378
|
|
|||
Franchise agreements
|
|
19,201
|
|
|
(13,654
|
)
|
|
5,547
|
|
|||
Purchased technology
|
|
104,700
|
|
|
(45,166
|
)
|
|
59,534
|
|
|||
Trade name
|
|
5,800
|
|
|
(48
|
)
|
|
5,752
|
|
|||
Acquired assets pending final allocation (2)
|
|
1,706
|
|
|
—
|
|
|
1,706
|
|
|||
|
|
$
|
967,368
|
|
|
$
|
(547,977
|
)
|
|
$
|
419,391
|
|
As of July 31, 2018:
|
|
|
|
|
|
|
||||||
Reacquired franchise rights
|
|
$
|
339,747
|
|
|
$
|
(119,386
|
)
|
|
$
|
220,361
|
|
Customer relationships
|
|
256,858
|
|
|
(171,542
|
)
|
|
85,316
|
|
|||
Internally-developed software
|
|
137,914
|
|
|
(114,622
|
)
|
|
23,292
|
|
|||
Noncompete agreements
|
|
32,888
|
|
|
(30,144
|
)
|
|
2,744
|
|
|||
Franchise agreements
|
|
19,201
|
|
|
(12,374
|
)
|
|
6,827
|
|
|||
Purchased technology
|
|
54,700
|
|
|
(39,210
|
)
|
|
15,490
|
|
|||
Acquired assets pending final allocation (2)
|
|
801
|
|
|
—
|
|
|
801
|
|
|||
|
|
$
|
842,109
|
|
|
$
|
(487,278
|
)
|
|
$
|
354,831
|
|
As of April 30, 2019:
|
|
|
|
|
|
|
||||||
Reacquired franchise rights
|
|
$
|
350,410
|
|
|
$
|
(136,345
|
)
|
|
$
|
214,065
|
|
Customer relationships
|
|
274,838
|
|
|
(195,174
|
)
|
|
79,664
|
|
|||
Internally-developed software
|
|
139,239
|
|
|
(109,885
|
)
|
|
29,354
|
|
|||
Noncompete agreements
|
|
33,376
|
|
|
(31,446
|
)
|
|
1,930
|
|
|||
Franchise agreements
|
|
19,201
|
|
|
(13,334
|
)
|
|
5,867
|
|
|||
Purchased technology
|
|
54,700
|
|
|
(43,518
|
)
|
|
11,182
|
|
|||
Acquired assets pending final allocation (2)
|
|
431
|
|
|
—
|
|
|
431
|
|
|||
|
|
$
|
872,195
|
|
|
$
|
(529,702
|
)
|
|
$
|
342,493
|
|
|
|
|
|
|
|
|
12
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
|
|
|
|
|
|
(in 000s)
|
|
|||||
As of
|
|
July 31, 2019
|
|
|
July 31, 2018
|
|
|
April 30, 2019
|
|
|||
Senior Notes, 4.125%, due October 2020
|
|
$
|
650,000
|
|
|
$
|
650,000
|
|
|
$
|
650,000
|
|
Senior Notes, 5.500%, due November 2022
|
|
500,000
|
|
|
500,000
|
|
|
500,000
|
|
|||
Senior Notes, 5.250%, due October 2025
|
|
350,000
|
|
|
350,000
|
|
|
350,000
|
|
|||
Capital lease obligation
|
|
—
|
|
|
5,376
|
|
|
—
|
|
|||
Debt issuance costs and discounts
|
|
(6,711
|
)
|
|
(9,332
|
)
|
|
(7,371
|
)
|
|||
|
|
1,493,289
|
|
|
1,496,044
|
|
|
1,492,629
|
|
|||
Less: Current portion
|
|
—
|
|
|
(1,038
|
)
|
|
—
|
|
|||
|
|
$
|
1,493,289
|
|
|
$
|
1,495,006
|
|
|
$
|
1,492,629
|
|
|
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
13
|
(in 000s)
|
|
|||||||
Three months ended July 31,
|
|
2019
|
|
|
2018
|
|
||
Interest income
|
|
$
|
8,026
|
|
|
$
|
4,497
|
|
Foreign currency gains (losses), net
|
|
9
|
|
|
(3
|
)
|
||
Other, net
|
|
1,088
|
|
|
48
|
|
||
|
|
$
|
9,123
|
|
|
$
|
4,542
|
|
|
|
|
|
|
14
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
|
|
(in 000s)
|
|
|
Operating lease costs
|
|
$
|
60,171
|
|
Variable lease costs
|
|
14,761
|
|
|
Subrental income
|
|
(349
|
)
|
|
Total lease costs
|
|
$
|
74,583
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
15
|
|
|
(dollars in 000s)
|
|
|
Cash paid for operating lease costs
|
|
$
|
58,881
|
|
Operating lease right of use assets obtained in exchange for operating lease liabilities (1)
|
|
$
|
157,216
|
|
Weighted-average remaining operating lease term (years)
|
|
3
|
|
|
Weighted-average operating lease discount rate
|
|
3.5
|
%
|
|
|
|
|
16
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
17
|
18
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
19
|
20
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|
(in 000s)
|
|
|||||||||||||||||
Three months ended July 31, 2019
|
|
H&R Block, Inc.
(Guarantor) |
|
|
Block Financial
(Issuer) |
|
|
Other
Subsidiaries |
|
|
Eliminations
|
|
|
Consolidated
H&R Block |
|
|||||
Total revenues
|
|
$
|
—
|
|
|
$
|
16,534
|
|
|
$
|
137,059
|
|
|
$
|
(3,231
|
)
|
|
$
|
150,362
|
|
Cost of revenues
|
|
—
|
|
|
5,216
|
|
|
224,698
|
|
|
(522
|
)
|
|
229,392
|
|
|||||
Selling, general and administrative
|
|
—
|
|
|
2,897
|
|
|
115,948
|
|
|
(2,709
|
)
|
|
116,136
|
|
|||||
Total operating expenses
|
|
—
|
|
|
8,113
|
|
|
340,646
|
|
|
(3,231
|
)
|
|
345,528
|
|
|||||
Other income (expense), net
|
|
(151,752
|
)
|
|
10,497
|
|
|
13,868
|
|
|
136,510
|
|
|
9,123
|
|
|||||
Interest expense on external borrowings
|
|
—
|
|
|
(21,056
|
)
|
|
(15
|
)
|
|
—
|
|
|
(21,071
|
)
|
|||||
Loss from continuing operations before income tax benefit
|
|
(151,752
|
)
|
|
(2,138
|
)
|
|
(189,734
|
)
|
|
136,510
|
|
|
(207,114
|
)
|
|||||
Income tax benefit
|
|
(1,505
|
)
|
|
(178
|
)
|
|
(59,707
|
)
|
|
—
|
|
|
(61,390
|
)
|
|||||
Net loss from continuing operations
|
|
(150,247
|
)
|
|
(1,960
|
)
|
|
(130,027
|
)
|
|
136,510
|
|
|
(145,724
|
)
|
|||||
Net loss from discontinued operations
|
|
—
|
|
|
(4,523
|
)
|
|
—
|
|
|
—
|
|
|
(4,523
|
)
|
|||||
Net loss
|
|
(150,247
|
)
|
|
(6,483
|
)
|
|
(130,027
|
)
|
|
136,510
|
|
|
(150,247
|
)
|
|||||
Other comprehensive loss
|
|
(2,320
|
)
|
|
—
|
|
|
(2,320
|
)
|
|
2,320
|
|
|
(2,320
|
)
|
|||||
Comprehensive loss
|
|
$
|
(152,567
|
)
|
|
$
|
(6,483
|
)
|
|
$
|
(132,347
|
)
|
|
$
|
138,830
|
|
|
$
|
(152,567
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in 000s)
|
|
|||||||||||||||||
Three months ended July 31, 2018
|
|
H&R Block, Inc.
(Guarantor) |
|
|
Block Financial
(Issuer) |
|
|
Other
Subsidiaries |
|
|
Eliminations
|
|
|
Consolidated
H&R Block |
|
|||||
Total revenues
|
|
$
|
—
|
|
|
$
|
16,832
|
|
|
$
|
131,477
|
|
|
$
|
(3,126
|
)
|
|
$
|
145,183
|
|
Cost of revenues
|
|
—
|
|
|
5,033
|
|
|
217,118
|
|
|
(591
|
)
|
|
221,560
|
|
|||||
Selling, general and administrative
|
|
—
|
|
|
3,250
|
|
|
105,025
|
|
|
(2,535
|
)
|
|
105,740
|
|
|||||
Total operating expenses
|
|
—
|
|
|
8,283
|
|
|
322,143
|
|
|
(3,126
|
)
|
|
327,300
|
|
|||||
Other income (expense), net
|
|
(153,616
|
)
|
|
9,827
|
|
|
7,048
|
|
|
141,283
|
|
|
4,542
|
|
|||||
Interest expense on external borrowings
|
|
—
|
|
|
(21,123
|
)
|
|
(67
|
)
|
|
—
|
|
|
(21,190
|
)
|
|||||
Loss from continuing operations before income tax benefit
|
|
(153,616
|
)
|
|
(2,747
|
)
|
|
(183,685
|
)
|
|
141,283
|
|
|
(198,765
|
)
|
|||||
Income tax benefit
|
|
(946
|
)
|
|
(3,701
|
)
|
|
(45,321
|
)
|
|
—
|
|
|
(49,968
|
)
|
|||||
Net income (loss) from continuing operations
|
|
(152,670
|
)
|
|
954
|
|
|
(138,364
|
)
|
|
141,283
|
|
|
(148,797
|
)
|
|||||
Net loss from discontinued operations
|
|
—
|
|
|
(3,873
|
)
|
|
—
|
|
|
—
|
|
|
(3,873
|
)
|
|||||
Net loss
|
|
(152,670
|
)
|
|
(2,919
|
)
|
|
(138,364
|
)
|
|
141,283
|
|
|
(152,670
|
)
|
|||||
Other comprehensive loss
|
|
(1,731
|
)
|
|
—
|
|
|
(1,731
|
)
|
|
1,731
|
|
|
(1,731
|
)
|
|||||
Comprehensive loss
|
|
$
|
(154,401
|
)
|
|
$
|
(2,919
|
)
|
|
$
|
(140,095
|
)
|
|
$
|
143,014
|
|
|
$
|
(154,401
|
)
|
|
|
|
|
|
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
21
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|
(in 000s)
|
|
|||||||||||||||||
As of July 31, 2019
|
|
H&R Block, Inc.
(Guarantor) |
|
|
Block Financial
(Issuer) |
|
|
Other
Subsidiaries |
|
|
Eliminations
|
|
|
Consolidated
H&R Block |
|
|||||
Cash & cash equivalents
|
|
$
|
—
|
|
|
$
|
4,641
|
|
|
$
|
603,027
|
|
|
$
|
—
|
|
|
$
|
607,668
|
|
Cash & cash equivalents - restricted
|
|
—
|
|
|
—
|
|
|
157,786
|
|
|
—
|
|
|
157,786
|
|
|||||
Receivables, net
|
|
—
|
|
|
26,392
|
|
|
49,736
|
|
|
—
|
|
|
76,128
|
|
|||||
Prepaid expenses and other current assets
|
|
2,811
|
|
|
1,682
|
|
|
100,630
|
|
|
—
|
|
|
105,123
|
|
|||||
Total current assets
|
|
2,811
|
|
|
32,715
|
|
|
911,179
|
|
|
—
|
|
|
946,705
|
|
|||||
Property and equipment, net
|
|
—
|
|
|
470
|
|
|
199,209
|
|
|
—
|
|
|
199,679
|
|
|||||
Operating lease right of use asset
|
|
—
|
|
|
334
|
|
|
485,813
|
|
|
—
|
|
|
486,147
|
|
|||||
Intangible assets, net
|
|
—
|
|
|
—
|
|
|
419,391
|
|
|
—
|
|
|
419,391
|
|
|||||
Goodwill
|
|
—
|
|
|
—
|
|
|
821,278
|
|
|
—
|
|
|
821,278
|
|
|||||
Deferred tax assets and income taxes receivable
|
|
464
|
|
|
15,953
|
|
|
125,999
|
|
|
—
|
|
|
142,416
|
|
|||||
Investments in subsidiaries
|
|
3,245,662
|
|
|
—
|
|
|
131,249
|
|
|
(3,376,911
|
)
|
|
—
|
|
|||||
Amounts due from affiliates
|
|
—
|
|
|
1,547,959
|
|
|
2,914,289
|
|
|
(4,462,248
|
)
|
|
—
|
|
|||||
Other noncurrent assets
|
|
—
|
|
|
62,455
|
|
|
31,929
|
|
|
—
|
|
|
94,384
|
|
|||||
Total assets
|
|
$
|
3,248,937
|
|
|
$
|
1,659,886
|
|
|
$
|
6,040,336
|
|
|
$
|
(7,839,159
|
)
|
|
$
|
3,110,000
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and accrued expenses
|
|
19,221
|
|
|
6,093
|
|
|
96,842
|
|
|
—
|
|
|
122,156
|
|
|||||
Accrued salaries, wages and payroll taxes
|
|
—
|
|
|
1,787
|
|
|
46,379
|
|
|
—
|
|
|
48,166
|
|
|||||
Accrued income taxes and reserves for uncertain tax positions
|
|
—
|
|
|
1,060
|
|
|
181,868
|
|
|
—
|
|
|
182,928
|
|
|||||
Operating lease liabilities
|
|
—
|
|
|
134
|
|
|
186,221
|
|
|
—
|
|
|
186,355
|
|
|||||
Deferred revenue and other current liabilities
|
|
—
|
|
|
23,861
|
|
|
169,503
|
|
|
—
|
|
|
193,364
|
|
|||||
Total current liabilities
|
|
19,221
|
|
|
32,935
|
|
|
680,813
|
|
|
—
|
|
|
732,969
|
|
|||||
Long-term debt
|
|
—
|
|
|
1,493,289
|
|
|
—
|
|
|
—
|
|
|
1,493,289
|
|
|||||
Deferred tax liabilities and reserves for uncertain tax positions
|
|
24,623
|
|
|
1,486
|
|
|
173,605
|
|
|
—
|
|
|
199,714
|
|
|||||
Operating lease liabilities
|
|
—
|
|
|
187
|
|
|
292,631
|
|
|
—
|
|
|
292,818
|
|
|||||
Deferred revenue and other noncurrent liabilities
|
|
—
|
|
|
740
|
|
|
99,666
|
|
|
—
|
|
|
100,406
|
|
|||||
Amounts due to affiliates
|
|
2,914,289
|
|
|
—
|
|
|
1,547,959
|
|
|
(4,462,248
|
)
|
|
—
|
|
|||||
Total liabilities
|
|
2,958,133
|
|
|
1,528,637
|
|
|
2,794,674
|
|
|
(4,462,248
|
)
|
|
2,819,196
|
|
|||||
Stockholders' equity
|
|
290,804
|
|
|
131,249
|
|
|
3,245,662
|
|
|
(3,376,911
|
)
|
|
290,804
|
|
|||||
Total liabilities and stockholders' equity
|
|
$
|
3,248,937
|
|
|
$
|
1,659,886
|
|
|
$
|
6,040,336
|
|
|
$
|
(7,839,159
|
)
|
|
$
|
3,110,000
|
|
|
|
|
|
|
|
|
|
|
|
|
22
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|
(in 000s)
|
|
|||||||||||||||||
As of July 31, 2018
|
|
H&R Block, Inc.
(Guarantor)
|
|
|
Block Financial
(Issuer)
|
|
|
Other
Subsidiaries
|
|
|
Eliminations
|
|
|
Consolidated
H&R Block
|
|
|||||
Cash & cash equivalents
|
|
$
|
—
|
|
|
$
|
3,759
|
|
|
$
|
975,357
|
|
|
$
|
—
|
|
|
$
|
979,116
|
|
Cash & cash equivalents - restricted
|
|
—
|
|
|
—
|
|
|
131,376
|
|
|
—
|
|
|
131,376
|
|
|||||
Receivables, net
|
|
—
|
|
|
40,457
|
|
|
30,119
|
|
|
—
|
|
|
70,576
|
|
|||||
Prepaid expenses and other current assets
|
|
2,811
|
|
|
1,954
|
|
|
96,290
|
|
|
—
|
|
|
101,055
|
|
|||||
Total current assets
|
|
2,811
|
|
|
46,170
|
|
|
1,233,142
|
|
|
—
|
|
|
1,282,123
|
|
|||||
Property and equipment, net
|
|
—
|
|
|
418
|
|
|
226,585
|
|
|
—
|
|
|
227,003
|
|
|||||
Intangible assets, net
|
|
—
|
|
|
—
|
|
|
354,831
|
|
|
—
|
|
|
354,831
|
|
|||||
Goodwill
|
|
—
|
|
|
—
|
|
|
507,941
|
|
|
—
|
|
|
507,941
|
|
|||||
Deferred tax assets and income taxes receivable
|
|
—
|
|
|
17,941
|
|
|
113,742
|
|
|
—
|
|
|
131,683
|
|
|||||
Investments in subsidiaries
|
|
2,762,660
|
|
|
—
|
|
|
128,396
|
|
|
(2,891,056
|
)
|
|
—
|
|
|||||
Amounts due from affiliates
|
|
—
|
|
|
1,538,119
|
|
|
2,560,781
|
|
|
(4,098,900
|
)
|
|
—
|
|
|||||
Other noncurrent assets
|
|
—
|
|
|
56,004
|
|
|
45,453
|
|
|
—
|
|
|
101,457
|
|
|||||
Total assets
|
|
$
|
2,765,471
|
|
|
$
|
1,658,652
|
|
|
$
|
5,170,871
|
|
|
$
|
(6,989,956
|
)
|
|
$
|
2,605,038
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and accrued expenses
|
|
$
|
2,216
|
|
|
$
|
7,511
|
|
|
$
|
135,744
|
|
|
$
|
—
|
|
|
$
|
145,471
|
|
Accrued salaries, wages and payroll taxes
|
|
—
|
|
|
1,423
|
|
|
36,045
|
|
|
—
|
|
|
37,468
|
|
|||||
Accrued income taxes and reserves for uncertain tax positions
|
|
—
|
|
|
1,060
|
|
|
177,253
|
|
|
—
|
|
|
178,313
|
|
|||||
Deferred revenue and other current liabilities
|
|
—
|
|
|
24,952
|
|
|
177,792
|
|
|
—
|
|
|
202,744
|
|
|||||
Total current liabilities
|
|
2,216
|
|
|
34,946
|
|
|
526,834
|
|
|
—
|
|
|
563,996
|
|
|||||
Long-term debt
|
|
—
|
|
|
1,490,668
|
|
|
4,338
|
|
|
—
|
|
|
1,495,006
|
|
|||||
Deferred tax liabilities and reserves for uncertain tax positions
|
|
10,465
|
|
|
3,989
|
|
|
216,838
|
|
|
—
|
|
|
231,292
|
|
|||||
Deferred revenue and other noncurrent liabilities
|
|
—
|
|
|
653
|
|
|
122,082
|
|
|
—
|
|
|
122,735
|
|
|||||
Amounts due to affiliates
|
|
2,560,781
|
|
|
—
|
|
|
1,538,119
|
|
|
(4,098,900
|
)
|
|
—
|
|
|||||
Total liabilities
|
|
2,573,462
|
|
|
1,530,256
|
|
|
2,408,211
|
|
|
(4,098,900
|
)
|
|
2,413,029
|
|
|||||
Stockholders' equity
|
|
192,009
|
|
|
128,396
|
|
|
2,762,660
|
|
|
(2,891,056
|
)
|
|
192,009
|
|
|||||
Total liabilities and stockholders' equity
|
|
$
|
2,765,471
|
|
|
$
|
1,658,652
|
|
|
$
|
5,170,871
|
|
|
$
|
(6,989,956
|
)
|
|
$
|
2,605,038
|
|
|
|
|
|
|
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
23
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|
(in 000s)
|
|
|||||||||||||||||
As of April 30, 2019
|
|
H&R Block, Inc.
(Guarantor)
|
|
|
Block Financial
(Issuer)
|
|
|
Other
Subsidiaries
|
|
|
Eliminations
|
|
|
Consolidated
H&R Block
|
|
|||||
Cash & cash equivalents
|
|
$
|
—
|
|
|
$
|
4,109
|
|
|
$
|
1,568,041
|
|
|
$
|
—
|
|
|
$
|
1,572,150
|
|
Cash & cash equivalents - restricted
|
|
—
|
|
|
—
|
|
|
135,577
|
|
|
—
|
|
|
135,577
|
|
|||||
Receivables, net
|
|
—
|
|
|
35,901
|
|
|
103,064
|
|
|
—
|
|
|
138,965
|
|
|||||
Prepaid expenses and other current assets
|
|
2,812
|
|
|
1,695
|
|
|
142,160
|
|
|
—
|
|
|
146,667
|
|
|||||
Total current assets
|
|
2,812
|
|
|
41,705
|
|
|
1,948,842
|
|
|
—
|
|
|
1,993,359
|
|
|||||
Property and equipment, net
|
|
—
|
|
|
552
|
|
|
211,540
|
|
|
—
|
|
|
212,092
|
|
|||||
Intangible assets, net
|
|
—
|
|
|
—
|
|
|
342,493
|
|
|
—
|
|
|
342,493
|
|
|||||
Goodwill
|
|
—
|
|
|
—
|
|
|
519,937
|
|
|
—
|
|
|
519,937
|
|
|||||
Deferred tax assets and income taxes receivable
|
|
3,218
|
|
|
15,953
|
|
|
122,808
|
|
|
—
|
|
|
141,979
|
|
|||||
Investments in subsidiaries
|
|
3,378,009
|
|
|
—
|
|
|
137,733
|
|
|
(3,515,742
|
)
|
|
—
|
|
|||||
Amounts due from affiliates
|
|
—
|
|
|
1,562,958
|
|
|
2,815,617
|
|
|
(4,378,575
|
)
|
|
—
|
|
|||||
Other noncurrent assets
|
|
—
|
|
|
54,976
|
|
|
35,109
|
|
|
—
|
|
|
90,085
|
|
|||||
Total assets
|
|
$
|
3,384,039
|
|
|
$
|
1,676,144
|
|
|
$
|
6,134,079
|
|
|
$
|
(7,894,317
|
)
|
|
$
|
3,299,945
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and accrued expenses
|
|
$
|
2,272
|
|
|
$
|
19,735
|
|
|
$
|
227,518
|
|
|
$
|
—
|
|
|
$
|
249,525
|
|
Accrued salaries, wages and payroll taxes
|
|
—
|
|
|
1,564
|
|
|
194,963
|
|
|
—
|
|
|
196,527
|
|
|||||
Accrued income taxes and reserves for uncertain tax positions
|
|
—
|
|
|
1,060
|
|
|
270,913
|
|
|
—
|
|
|
271,973
|
|
|||||
Deferred revenue and other current liabilities
|
|
—
|
|
|
21,144
|
|
|
183,832
|
|
|
—
|
|
|
204,976
|
|
|||||
Total current liabilities
|
|
2,272
|
|
|
43,503
|
|
|
877,226
|
|
|
—
|
|
|
923,001
|
|
|||||
Long-term debt
|
|
—
|
|
|
1,492,629
|
|
|
—
|
|
|
—
|
|
|
1,492,629
|
|
|||||
Deferred tax liabilities and reserves for uncertain tax positions
|
|
24,623
|
|
|
1,486
|
|
|
171,797
|
|
|
—
|
|
|
197,906
|
|
|||||
Deferred revenue and other noncurrent liabilities
|
|
—
|
|
|
793
|
|
|
144,089
|
|
|
—
|
|
|
144,882
|
|
|||||
Amounts due to affiliates
|
|
2,815,617
|
|
|
—
|
|
|
1,562,958
|
|
|
(4,378,575
|
)
|
|
—
|
|
|||||
Total liabilities
|
|
2,842,512
|
|
|
1,538,411
|
|
|
2,756,070
|
|
|
(4,378,575
|
)
|
|
2,758,418
|
|
|||||
Stockholders' equity
|
|
541,527
|
|
|
137,733
|
|
|
3,378,009
|
|
|
(3,515,742
|
)
|
|
541,527
|
|
|||||
Total liabilities and stockholders' equity
|
|
$
|
3,384,039
|
|
|
$
|
1,676,144
|
|
|
$
|
6,134,079
|
|
|
$
|
(7,894,317
|
)
|
|
$
|
3,299,945
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|
(in 000s)
|
|
|||||||||||||||||
Three months ended July 31, 2019
|
|
H&R Block, Inc.
(Guarantor)
|
|
|
Block Financial
(Issuer)
|
|
|
Other
Subsidiaries
|
|
|
Eliminations
|
|
|
Consolidated
H&R Block
|
|
|||||
Net cash used in operating activities
|
|
$
|
—
|
|
|
$
|
(13,442
|
)
|
|
$
|
(470,387
|
)
|
|
$
|
—
|
|
|
$
|
(483,829
|
)
|
Cash flows from investing:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
—
|
|
|
—
|
|
|
(15,181
|
)
|
|
—
|
|
|
(15,181
|
)
|
|||||
Payments made for business acquisitions, net of cash acquired
|
|
—
|
|
|
—
|
|
|
(394,411
|
)
|
|
—
|
|
|
(394,411
|
)
|
|||||
Franchise loans funded
|
|
—
|
|
|
(2,689
|
)
|
|
(117
|
)
|
|
—
|
|
|
(2,806
|
)
|
|||||
Payments from franchisees
|
|
—
|
|
|
2,352
|
|
|
295
|
|
|
—
|
|
|
2,647
|
|
|||||
Intercompany borrowings (payments)
|
|
—
|
|
|
14,999
|
|
|
(87,762
|
)
|
|
72,763
|
|
|
—
|
|
|||||
Other, net
|
|
—
|
|
|
(688
|
)
|
|
51,632
|
|
|
—
|
|
|
50,944
|
|
|||||
Net cash provided by (used in) investing activities
|
|
—
|
|
|
13,974
|
|
|
(445,544
|
)
|
|
72,763
|
|
|
(358,807
|
)
|
|||||
Cash flows from financing:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid
|
|
(52,512
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52,512
|
)
|
|||||
Repurchase of common stock, including shares surrendered
|
|
(36,456
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,456
|
)
|
|||||
Proceeds from exercise of stock options
|
|
1,206
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,206
|
|
|||||
Intercompany borrowings (payments)
|
|
87,762
|
|
|
—
|
|
|
(14,999
|
)
|
|
(72,763
|
)
|
|
—
|
|
|||||
Other, net
|
|
—
|
|
|
—
|
|
|
(12,431
|
)
|
|
—
|
|
|
(12,431
|
)
|
|||||
Net cash used in financing activities
|
|
—
|
|
|
—
|
|
|
(27,430
|
)
|
|
(72,763
|
)
|
|
(100,193
|
)
|
|||||
Effects of exchange rates on cash
|
|
—
|
|
|
—
|
|
|
556
|
|
|
—
|
|
|
556
|
|
|||||
Net increase (decrease) in cash, including restricted balances
|
|
—
|
|
|
532
|
|
|
(942,805
|
)
|
|
—
|
|
|
(942,273
|
)
|
|||||
Cash, cash equivalents and restricted cash, beginning of period
|
|
—
|
|
|
4,109
|
|
|
1,703,618
|
|
|
—
|
|
|
1,707,727
|
|
|||||
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
—
|
|
|
$
|
4,641
|
|
|
$
|
760,813
|
|
|
$
|
—
|
|
|
$
|
765,454
|
|
|
|
|
|
|
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
25
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|
(in 000s)
|
|
|||||||||||||||||
Three months ended July 31, 2018
|
|
H&R Block, Inc.
(Guarantor)
|
|
|
Block Financial
(Issuer)
|
|
|
Other
Subsidiaries
|
|
|
Eliminations
|
|
|
Consolidated
H&R Block
|
|
|||||
Net cash used in operating activities
|
|
$
|
—
|
|
|
$
|
(6,335
|
)
|
|
$
|
(369,228
|
)
|
|
$
|
—
|
|
|
$
|
(375,563
|
)
|
Cash flows from investing:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
—
|
|
|
—
|
|
|
(12,057
|
)
|
|
—
|
|
|
(12,057
|
)
|
|||||
Payments made for business acquisitions, net of cash acquired
|
|
—
|
|
|
—
|
|
|
(1,449
|
)
|
|
—
|
|
|
(1,449
|
)
|
|||||
Franchise loans funded
|
|
—
|
|
|
(1,791
|
)
|
|
(14
|
)
|
|
—
|
|
|
(1,805
|
)
|
|||||
Payments from franchisees
|
|
—
|
|
|
5,006
|
|
|
98
|
|
|
—
|
|
|
5,104
|
|
|||||
Intercompany borrowings (payments)
|
|
—
|
|
|
2,718
|
|
|
(152,414
|
)
|
|
149,696
|
|
|
—
|
|
|||||
Other, net
|
|
—
|
|
|
(185
|
)
|
|
3,830
|
|
|
—
|
|
|
3,645
|
|
|||||
Net cash provided by (used in) investing activities
|
|
—
|
|
|
5,748
|
|
|
(162,006
|
)
|
|
149,696
|
|
|
(6,562
|
)
|
|||||
Cash flows from financing:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid
|
|
(52,104
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52,104
|
)
|
|||||
Repurchase of common stock, including shares surrendered
|
|
(101,665
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(101,665
|
)
|
|||||
Proceeds from exercise of stock options
|
|
1,355
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,355
|
|
|||||
Intercompany borrowings (payments)
|
|
152,414
|
|
|
—
|
|
|
(2,718
|
)
|
|
(149,696
|
)
|
|
—
|
|
|||||
Other, net
|
|
—
|
|
|
—
|
|
|
(17,494
|
)
|
|
—
|
|
|
(17,494
|
)
|
|||||
Net cash used in financing activities
|
|
—
|
|
|
—
|
|
|
(20,212
|
)
|
|
(149,696
|
)
|
|
(169,908
|
)
|
|||||
Effects of exchange rates on cash
|
|
—
|
|
|
—
|
|
|
(1,153
|
)
|
|
—
|
|
|
(1,153
|
)
|
|||||
Net decrease in cash, including restricted balances
|
|
—
|
|
|
(587
|
)
|
|
(552,599
|
)
|
|
—
|
|
|
(553,186
|
)
|
|||||
Cash, cash equivalents and restricted cash, beginning of period
|
|
—
|
|
|
4,346
|
|
|
1,659,332
|
|
|
—
|
|
|
1,663,678
|
|
|||||
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
—
|
|
|
$
|
3,759
|
|
|
$
|
1,106,733
|
|
|
$
|
—
|
|
|
$
|
1,110,492
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
27
|
Consolidated - Financial Results
|
|
|
|
(in 000s, except per share amounts)
|
|
||||||||||
Three months ended July 31,
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
||||||
Revenues:
|
|
|
|
|
|
|
|
|
|||||||
U.S. assisted tax preparation
|
|
$
|
32,992
|
|
|
$
|
31,104
|
|
|
$
|
1,888
|
|
|
6.1
|
%
|
U.S. royalties
|
|
6,859
|
|
|
7,571
|
|
|
(712
|
)
|
|
(9.4
|
)%
|
|||
U.S. DIY tax preparation
|
|
3,410
|
|
|
2,781
|
|
|
629
|
|
|
22.6
|
%
|
|||
International
|
|
40,581
|
|
|
39,179
|
|
|
1,402
|
|
|
3.6
|
%
|
|||
Refund Transfers
|
|
1,509
|
|
|
1,424
|
|
|
85
|
|
|
6.0
|
%
|
|||
Emerald Card®
|
|
13,855
|
|
|
14,246
|
|
|
(391
|
)
|
|
(2.7
|
)%
|
|||
Peace of Mind® Extended Service Plan
|
|
32,837
|
|
|
36,577
|
|
|
(3,740
|
)
|
|
(10.2
|
)%
|
|||
Tax Identity Shield®
|
|
4,522
|
|
|
4,741
|
|
|
(219
|
)
|
|
(4.6
|
)%
|
|||
Interest and fee income on Emerald AdvanceTM
|
|
554
|
|
|
447
|
|
|
107
|
|
|
23.9
|
%
|
|||
Wave
|
|
3,625
|
|
|
—
|
|
|
3,625
|
|
|
**
|
|
|||
Other
|
|
9,618
|
|
|
7,113
|
|
|
2,505
|
|
|
35.2
|
%
|
|||
Total revenues
|
|
150,362
|
|
|
145,183
|
|
|
5,179
|
|
|
3.6
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|||||||
Field wages
|
|
53,803
|
|
|
49,932
|
|
|
3,871
|
|
|
7.8
|
%
|
|||
Other wages
|
|
53,837
|
|
|
47,822
|
|
|
6,015
|
|
|
12.6
|
%
|
|||
Benefits and other compensation
|
|
26,474
|
|
|
22,931
|
|
|
3,543
|
|
|
15.5
|
%
|
|||
|
|
134,114
|
|
|
120,685
|
|
|
13,429
|
|
|
11.1
|
%
|
|||
Occupancy
|
|
92,152
|
|
|
90,726
|
|
|
1,426
|
|
|
1.6
|
%
|
|||
Marketing and advertising
|
|
6,779
|
|
|
6,894
|
|
|
(115
|
)
|
|
(1.7
|
)%
|
|||
Depreciation and amortization
|
|
38,605
|
|
|
40,432
|
|
|
(1,827
|
)
|
|
(4.5
|
)%
|
|||
Bad debt
|
|
(968
|
)
|
|
(858
|
)
|
|
(110
|
)
|
|
(12.8
|
)%
|
|||
Other (1)
|
|
74,846
|
|
|
69,421
|
|
|
5,425
|
|
|
7.8
|
%
|
|||
Total operating expenses
|
|
345,528
|
|
|
327,300
|
|
|
18,228
|
|
|
5.6
|
%
|
|||
Other income (expense), net
|
|
9,123
|
|
|
4,542
|
|
|
4,581
|
|
|
100.9
|
%
|
|||
Interest expense on borrowings
|
|
(21,071
|
)
|
|
(21,190
|
)
|
|
119
|
|
|
0.6
|
%
|
|||
Pretax loss
|
|
(207,114
|
)
|
|
(198,765
|
)
|
|
(8,349
|
)
|
|
(4.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Income tax benefit
|
|
(61,390
|
)
|
|
(49,968
|
)
|
|
(11,422
|
)
|
|
22.9
|
%
|
|||
Net Loss from continuing operations
|
|
(145,724
|
)
|
|
(148,797
|
)
|
|
3,073
|
|
|
(2.1
|
)%
|
|||
Net loss from discontinued operations
|
|
(4,523
|
)
|
|
(3,873
|
)
|
|
(650
|
)
|
|
16.8
|
%
|
|||
Net Loss
|
|
$
|
(150,247
|
)
|
|
$
|
(152,670
|
)
|
|
$
|
2,423
|
|
|
(1.6
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
BASIC AND DILUTED LOSS PER SHARE:
|
|
|
|
|
|
|
|
|
|||||||
Continuing operations
|
|
$
|
(0.72
|
)
|
|
$
|
(0.72
|
)
|
|
$
|
—
|
|
|
—
|
%
|
Discontinued operations
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
—
|
%
|
|||
Consolidated
|
|
$
|
(0.74
|
)
|
|
$
|
(0.74
|
)
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||
EBITDA from continuing operations (2)
|
|
$
|
(147,438
|
)
|
|
$
|
(137,143
|
)
|
|
(10,295
|
)
|
|
7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We reclassified $2.2 million of supplies expense from its own financial statement line to other expenses for fiscal year 2019 to conform to the current year presentation.
|
28
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
Three months ended July 31,
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Consulting and outsourced services
|
|
$
|
18,189
|
|
|
$
|
20,815
|
|
|
$
|
(2,626
|
)
|
|
(12.6
|
)%
|
Bank partner fees
|
|
1,482
|
|
|
1,465
|
|
|
17
|
|
|
1.2
|
%
|
|||
Client claims and refunds
|
|
9,244
|
|
|
12,622
|
|
|
(3,378
|
)
|
|
(26.8
|
)%
|
|||
Employee travel and related expenses
|
|
8,425
|
|
|
6,829
|
|
|
1,596
|
|
|
23.4
|
%
|
|||
Technology-related expenses
|
|
17,410
|
|
|
11,766
|
|
|
5,644
|
|
|
48.0
|
%
|
|||
Credit card/bank charges
|
|
3,992
|
|
|
2,403
|
|
|
1,589
|
|
|
66.1
|
%
|
|||
Insurance
|
|
4,394
|
|
|
3,389
|
|
|
1,005
|
|
|
29.7
|
%
|
|||
Legal fees and settlements
|
|
3,273
|
|
|
2,573
|
|
|
700
|
|
|
27.2
|
%
|
|||
Supplies
|
|
3,286
|
|
|
2,204
|
|
|
1,082
|
|
|
49.1
|
%
|
|||
Other
|
|
5,151
|
|
|
5,355
|
|
|
(204
|
)
|
|
(3.8
|
)%
|
|||
|
|
$
|
74,846
|
|
|
$
|
69,421
|
|
|
$
|
5,425
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
29
|
|
|
(in 000s)
|
|
|||||
Three months ended July 31,
|
|
2019
|
|
|
2018
|
|
||
Net cash used in:
|
|
|
|
|
||||
Operating activities
|
|
$
|
(483,829
|
)
|
|
$
|
(375,563
|
)
|
Investing activities
|
|
(358,807
|
)
|
|
(6,562
|
)
|
||
Financing activities
|
|
(100,193
|
)
|
|
(169,908
|
)
|
||
Effects of exchange rates on cash
|
|
556
|
|
|
(1,153
|
)
|
||
Net change in cash, cash equivalents and restricted cash
|
|
$
|
(942,273
|
)
|
|
$
|
(553,186
|
)
|
|
|
|
|
|
As of
|
|
July 31, 2019
|
|
April 30, 2019
|
||||||||
|
|
Short-term
|
|
Long-term
|
|
Outlook
|
|
Short-term
|
|
Long-term
|
|
Outlook
|
Moody's
|
|
P-3
|
|
Baa3
|
|
Negative
|
|
P-3
|
|
Baa3
|
|
Negative
|
S&P
|
|
A-2
|
|
BBB
|
|
Stable
|
|
A-2
|
|
BBB
|
|
Stable
|
30
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
|
|
|
|
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
31
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
32
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
(1)
|
We purchased approximately 314 thousand shares in connection with funding employee income tax withholding obligations arising upon the lapse of restrictions on restricted shares and restricted share units.
|
(2)
|
In September 2015, we announced that our Board of Directors approved a $3.5 billion share repurchase program, effective through June 2019. In June 2019, our Board of Directors extended the share repurchase program through June 2022.
|
10.1
|
10.2
|
10.3
|
10.4
|
10.5
|
10.6
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
33
|
10.7
|
10.8
|
31.1
|
31.2
|
32.1
|
32.2
|
101.INS
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema
|
101.CAL
|
Inline XBRL Extension Calculation Linkbase
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
34
|
Q1 FY2020 Form 10-Q | H&R Block, Inc.
|
H&R BLOCK, INC.
|
|
/s/ Jeffrey J. Jones II
|
Jeffrey J. Jones II
|
President and Chief Executive Officer
|
September 6, 2019
|
|
/s/ Tony G. Bowen
|
Tony G. Bowen
|
Chief Financial Officer
|
September 6, 2019
|
|
/s/ Kellie J. Logerwell
|
Kellie J. Logerwell
|
Chief Accounting Officer
|
September 6, 2019
|
H&R Block, Inc. | Q1 FY2020 Form 10-Q
|
35
|
Date:
|
September 6, 2019
|
|
/s/ Jeffrey J. Jones II
|
|
|
|
Jeffrey J. Jones II
|
|
|
|
Chief Executive Officer
H&R Block, Inc.
|
Date:
|
September 6, 2019
|
|
/s/ Tony G. Bowen
|
|
|
|
Tony G. Bowen
|
|
|
|
Chief Financial Officer
H&R Block, Inc.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Jeffrey J. Jones II
|
Jeffrey J. Jones II
Chief Executive Officer
H&R Block, Inc.
|
September 6, 2019
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Tony G. Bowen
|
Tony G. Bowen
Chief Financial Officer
H&R Block, Inc.
|
September 6, 2019
|