H&R Block Reports U.S. Tax Results Through April 16; To Announce Fiscal 2015 Results on June 8

KANSAS CITY, MO--(Marketwired - April 23, 2015) -

• Assisted returns prepared declined due to the carryover impact of eliminating a promotion in the prior year and continued behavioral shifts in tax filers who claim the Earned Income Tax Credit (EITC)
• H&R Block tax software returns prepared through online, desktop and mobile applications grew 8.2% over the prior year; monetization improved significantly

H&R Block, Inc. (NYSE: HRB), the world's largest consumer tax services provider, today released its U.S. tax results through April 16, 2015. Total U.S. revenues increased compared to the prior year despite a 0.9% decrease¹ in returns prepared to 20.5 million. The company continues to expect EBITDA margins of approximately 30%.

Total H&R Block U.S. assisted returns prepared fell 4.6% through April 16. The company believes this decline is due to the second-year impact of discontinuing the company's free federal 1040EZ promotion and the ongoing impact of industry-wide fraud, particularly related to behavioral shifts in tax filers who claim the EITC. Tax returns prepared through the company's tax software products, including online, desktop and mobile applications, increased 8.2%. 

"Though our assisted return volume declined, we expect to report revenue growth for the second consecutive year and are on track to achieve our EBITDA margin guidance," said Cobb. "By focusing on our Tax Plus strategy, we improved client mix in both assisted and digital and continued to provide our clients with the exceptional expertise and client service that they expect from H&R Block." 

The Affordable Care Act (ACA) intersected with tax preparation for the first time in tax season 2015, requiring millions of taxpayers to file additional forms and in many cases resulting in modified refunds and tax penalties.

"This was the first tax season in what we've said will be a multi-year journey to fully realize the impacts of the ACA and I believe we are well positioned as the industry's ACA experts," said Bill Cobb, H&R Block's president and chief executive officer. "We invested in our tax professionals to enable them to provide valuable ACA guidance to our clients and I'm proud of how they delivered."