HR Block 2014 Annual Report Download - page 31

H&R Block, Inc. | 2014 Form 10-K 23
ITEM 6. SELECTED FINANCIAL DATA
We derived the selected consolidated financial data presented below from our audited consolidated financial
statements as of and for each of the five annual periods ending April 30, 2014. Results of operations of fiscal years
2014, 2013 and 2012 are discussed in Item 7. The data set forth below should be read in conjunction with Item 7 and
the consolidated financial statements in Item 8. During fiscal year 2012, we sold our previously reported Business
Services segment and recorded a loss on the sale.
(in 000s, except per share amounts)
April 30, 2014 2013 2012 2011 2010
Revenues $ 3,024,295 $ 2,905,943 $ 2,893,771 $ 2,944,980 $ 3,014,835
Net income from continuing
operations 500,097 465,158 345,968 392,547 455,123
Net income 475,157 433,948 265,932 406,110 479,242
Basic earnings per share:
Continuing operations $ 1.82 $ 1.70 $ 1.16 $ 1.27 $ 1.37
Consolidated 1.73 1.59 0.89 1.31 1.44
Diluted earnings per share:
Continuing operations $ 1.81 $ 1.69 $ 1.16 $ 1.27 $ 1.36
Consolidated 1.72 1.58 0.89 1.31 1.43
Total assets $ 4,693,529 $ 4,537,779 $ 4,649,567 $ 5,289,453 $ 5,271,412
Long-term debt (1) 906,474 906,680 1,040,549 1,040,084 1,031,413
Stockholders' equity 1,556,549 1,263,547 1,325,892 1,449,574 1,440,630
Shares outstanding 274,228 272,635 292,119 305,366 323,306
Dividends per share (2) $ 0.80 $ 0.80 $ 0.70 $ 0.45 $ 0.75
(1) Includes current portion of long-term debt.
(2) Amounts represent dividends declared. In fiscal year 2010, a dividend of $0.15 per share paid in July 2010 was declared in April 2010.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Our subsidiaries provide tax preparation and retail banking services. Tax returns are either prepared by H&R Block tax
professionals (in company-owned or franchise offices or virtually via the internet) or prepared and filed by our clients
through H&R Block tax software, either online or using our software or mobile applications.
RECENT DEVELOPMENTS
In April 2014, our subsidiaries, HRB Bank and Block Financial, entered into a P&A Agreement with BofI. Pursuant to
the P&A Agreement, HRB Bank will sell certain assets and assign certain liabilities, including all of HRB Bank's deposit
liabilities, to BofI, subject to various closing conditions, including the receipt of certain required approvals, entry into
certain additional agreements, and the fulfillment of various other customary conditions. See Item 1, under "Business,"
and below under "Financial Condition - HRB Bank" for additional information.
The obligations of the parties to complete the P&A Transaction are subject to the fulfillment of numerous conditions
including regulatory approval. We cannot be certain when or if the conditions to and other components of the P&A
Transaction will be satisfied, or whether the P&A Transaction will be completed. In addition, there may be changes
to the terms and conditions of the P&A Agreement and other contemplated agreements as part of the regulatory
approval process.
In connection with the additional agreements being entered into upon the closing of the P&A Transaction, BofI
will offer H&R Block-branded financial products distributed by the Company to the Company's clients. An operating
subsidiary of the Company will provide certain marketing, servicing and operational support for such financial services
and products. We expect the net, ongoing annual financial impact of these agreements to be dilutive by approximately
$0.07 to $0.09 per share beginning in fiscal year 2015, based on current fully diluted shares outstanding. Results will
vary based upon the volume of financial services products sold and the actual closing date.