H&R Block reports strong year, conditionally

Tax preparation giant H&R Block reported that it beat its revenue expectations for the fiscal year that ended on June 30.

But the Fiscal Year 2022 results are not comparable to the prior-year period, the tax prep giant said, as the 2020 tax deadline was extended to July 15, and as a result 15 days of tax season 2020 were included in reported results for the fiscal year ended June 30, 2021. 

After the impact of the extended season, Block said, total revenue of $3.46 billion decreased $125 million, or 3.5%. Total operating expenses of $2.7 billion increased $21 million, or 0.8%, primarily due to higher marketing and technology costs, partially offset by lower depreciation and amortization and bad debt.
Pretax income of $659 million decreased $138 million, or 17.3%, due to the decrease in revenue because of the 2020 tax season extension.

Removing the impact of the extended season, however, saw Block's 2022 total revenue of $3.46 billion increase $165 million, or 5%. Pretax income of $659 million increased $99 million, or 17.6%.

In fiscal 2022, Block completed share repurchases of $550 million at an average price of $23.84, retiring 13% of its total shares outstanding. It also saw a 7% increase in its quarterly dividend, to 29 cents per share.

David Paul Morris/Bloomberg