Tax preparation giant H&R Block reported a loss for the second quarter due to a fall in international tax prep fees.
For the quarter ended October 31, Block reported a loss of $104.9 million, or 39 cents a share, compared with a year-earlier loss of $105.2 million, or 39 cents a share. Excluding litigation charges and other items, the adjusted loss from continuing operations was 42 cents a share, compared with 37 cents last year, according to reports.
The tax prep company stressed that it typically reports a second quarter operating loss due to “the seasonality of the tax business.”
Revenues from tax services fell $2 million to $128 million, primarily due to timing differences in Block’s Australian operations, the company said, “partially offset by increased Emerald Card fee revenue from increased year-round usage.”
Block’s operating expenses increased $27 million to $287 million due to timing of seasonal compensation, higher legal fees and depreciation expense, and pretax loss increased $29 million, to $159 million, the company added in a statement.
In fiscal 2013, Block saw revenues of $2.9 billion and prepared 25.4 million tax returns worldwide.
In April 2012, the company announced plans to lay off 350 full-time employees in its headquarters and close some 200 of its underperforming company-owned offices. Last summer, Block also tried to
