HR Block 2016 Annual Report Download - page 33

Download and view the complete annual report

Please find page 33 of the 2016 HR Block annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

H&R Block, Inc. | 2016 Form 10-K 25
Consolidated – Financial Results (in 000s, except per share amounts)
Year ended April 30, 2015 2014 $ Change % Change
Tax preparation fees:
U.S. assisted $ 1,865,438 $ 1,794,043 $ 71,395 4.0 %
International 207,772 200,152 7,620 3.8 %
U.S. DIY 231,854 206,516 25,338 12.3 %
2,305,064 2,200,711 104,353 4.7 %
Royalties 292,743 316,153 (23,410) (7.4)%
Revenues from Refund Transfers 171,094 181,394 (10,300) (5.7)%
Revenues from Emerald Card® 103,300 103,730 (430) (0.4)%
Revenues from Peace of Mind® Extended Service Plan 81,551 89,685 (8,134) (9.1)%
Interest and fee income on Emerald Advance 57,202 56,877 325 0.6 %
Other 67,704 75,745 (8,041) (10.6)%
Total revenues 3,078,658 3,024,295 54,363 1.8 %
Compensation and benefits:
Field wages 731,309 702,312 28,997 4.1 %
Other wages 176,697 192,580 (15,883) (8.2)%
Benefits and other compensation 183,001 171,510 11,491 6.7 %
1,091,007 1,066,402 24,605 2.3 %
Occupancy and equipment 375,743 365,036 10,707 2.9 %
Marketing and advertising 273,682 238,763 34,919 14.6 %
Depreciation and amortization 159,804 115,604 44,200 38.2 %
Bad debt 74,993 80,007 (5,014) (6.3)%
Supplies 42,872 36,527 6,345 17.4 %
Other 265,891 303,466 (37,575) (12.4)%
Total operating expenses 2,283,992 2,205,805 78,187 3.5 %
Other income 1,314 36,315 (35,001) (96.4)%
Interest expense on borrowings (45,246) (55,279) 10,033 18.1 %
Other expenses (7,929) (32,410) 24,481 75.5 %
Pretax income 742,805 767,116 (24,311) (3.2)%
Income taxes 256,061 267,019 (10,958) (4.1)%
Net income from continuing operations 486,744 500,097 (13,353) (2.7)%
Net loss from discontinued operations (13,081) (24,940) 11,859 47.6 %
Net income $ 473,663 $ 475,157 $ (1,494) (0.3)%
Basic earnings (loss) per share:
Continuing operations $ 1.77 $ 1.82 $ (0.05) (2.7)%
Discontinued operations (0.05) (0.09) 0.04 44.4 %
Consolidated $ 1.72 $ 1.73 $ (0.01) (0.6)%
Diluted earnings (loss) per share:
Continuing operations $ 1.75 $ 1.81 $ (0.06) (3.3)%
Discontinued operations (0.04) (0.09) 0.05 55.6 %
Consolidated $ 1.71 $ 1.72 $ (0.01) (0.6)%
EBITDA from continuing operations (1) $ 948,537 $ 940,108 $ 8,429 0.9 %
EBITDA from continuing operations - adjusted (1) 951,006 $ 932,329 18,677 2.0 %
(1) See "Non-GAAP Financial Information" at the end of this item for a reconciliation of non-GAAP measures.
FISCAL 2015 COMPARED TO FISCAL 2014
Revenues increased $54.4 million, or 1.8%, compared to fiscal year 2014. U.S. assisted tax preparation fees increased
$71.4 million, or 4.0%, while royalty revenues declined $23.4 million, or 7.4%, almost entirely due to acquisitions of
franchisee businesses. Return counts in our company-owned offices, excluding returns prepared in those offices
acquired during fiscal year 2015, declined 4.6% from fiscal year 2014.