HR Block 2005 Annual Report Download - page 5

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3
Letter t o Shareholders
By M any M easures,
2005 Was a Successful Year.
Letter to Shareholders >>>
It seems particularly fitting that as H&R Block
celebrated its 50th anniversary this year, we also
took significant steps that strengthened our leadership
position in the income tax services business.
Although we faced some challenges in the pursuit
of our mission to serve our clients’ financial as well
as income tax needs, our associates’ continuing
determination to grow the business and their
commitment to client service have enabled us to
meet these challenges head on. The company has
emerged stronger, well positioned for future growth,
and with greater confidence than ever before.
Certainly we have much to be proud of this year:
■Revenues grew 4%.
■Return on equity was 33.5%.
■Earnings exceeded $635 million.
At the same time, we saw our earnings per share
decline slightly by 4 percent to $1.88 per diluted
share. This was a result of several factors facing our
mortgage and financial advisors businesses, which
offset a 4 percent reduction in shares outstanding.
However, we ended the year in a strong financial
position with modest debt and solid capital levels.
Our approach to running the company remains
unchanged. We are committed to building our various
M ARK ERNST >>>
H&R Block Chairman, President
and Chief Executive Officer