HR Block 2016 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 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

34 2016 Form 10-K | H&R Block, Inc.
The following is a reconciliation of our results from continuing operations to our adjusted results from continuing
operations, which are non-GAAP financial measures:
(in 000s, except per share amounts)
Year ended April 30, 2016
Pretax Income Net Income EBITDA
From continuing operations $ 569,479 $ 383,553 $ 812,218
Adjustments (pretax):
Loss contingencies - litigation 1,978 1,978 1,978
Severance 12,001 12,001 12,001
Costs related to HRB Bank and recapitalization transactions 20,722 20,722 20,722
Losses (gains) on AFS securities (8,138) (8,138) (8,138)
Gain on sales of tax offices/businesses (127) (127) (127)
Tax effect of adjustments (1) — (10,176) —
26,436 16,260 26,436
As adjusted - from continuing operations $ 595,915 $ 399,813 $ 838,654
Adjusted EBITDA margin (2) 28%
Adjusted EPS $1.59
Year ended April 30, 2015
Pretax Income Net Income EBITDA
From continuing operations $ 742,805 $ 486,744 $ 948,537
Adjustments (pretax):
Loss contingencies - litigation (3,936) (3,936) (3,936)
Severance 6,699 6,699 6,699
Costs related to HRB Bank transaction 238 238 238
Losses (gains) on AFS securities 124 124 124
Gain on sales of tax offices/businesses (656) (656) (656)
Tax effect of adjustments (1) — (963) —
2,469 1,506 2,469
As adjusted - from continuing operations $ 745,274 $ 488,250 $ 951,006
Adjusted EBITDA margin (2) 31%
Adjusted EPS $1.75
Year ended April 30, 2014
Pretax Income Net Income EBITDA
From continuing operations $ 767,116 $ 500,097 $ 940,108
Adjustments (pretax):
Loss contingencies - litigation 1,844 1,844 1,844
Severance 5,204 5,204 5,204
Costs related to HRB Bank transaction 2,747 2,747 2,747
Losses (gains) on AFS securities (5,836) (5,836) (5,836)
Gain on sales of tax offices/businesses (11,738) (11,738) (11,738)
Tax effect of adjustments (1) — 3,045 —
(7,779) (4,734) (7,779)
As adjusted - from continuing operations $ 759,337 $ 495,363 $ 932,329
Adjusted EBITDA margin (2) 31%
Adjusted EPS $1.79
1 Tax effect of adjustments is computed as the pretax effect of the adjustments multiplied by our effective tax rate before discrete items.
2 Adjusted EBITDA margin from continuing operations is computed as adjusted EBITDA from continuing operations divided by revenues from
continuing operations.