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 sell its banking assets but failed to close the sale to Republic Bancorp.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access