H&R Block announced that for the fiscal 2016 first quarter ended July 31 its total revenues increased $4 million, or 3 percent, to $138 million.

The company attributed the raise primarily to higher product revenues, partially offset by the negative impact of foreign currency rates. The net loss from continuing operations improved $12 million, to $97 million. Total operating expenses increased 6.6 percent, to $297 million, resulting from increased occupancy costs and amortization due to the annualization of expenses related to prior year franchise acquisitions.

In a related development, Block’s board has approved a new $3.5 billion share repurchase program, effective through June 2019. The company intends to repurchase its shares over time through a combination of the tender offer and open market purchases, and may also repurchase shares through private transactions, exchange offers, additional tender offers or other means.

Block said it intends to make a modified Dutch auction tender offer to repurchase up to $1.5 billion of its common stock, at a price per share of not less than $32.25 and not greater than $37. Additional details will be available at formal commencement of the tender offer.

As of August 31, H&R Block had approximately 276.4 million shares outstanding. The company intends to use a combination of available cash, borrowings and incremental debt to fund the tender offer and related expenses.

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