H&R Block (HRB) Total US Assisted Tax Returns Prepared Fell 4.6% Through April 16

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."

Additionally, fraud continued to negatively impact the tax industry as tax identity theft and improper EITC payments continue to cost taxpayers billions of dollars.

"The level of fraud we see in this industry is shocking, and we continue to lead the battle against it. While I'm pleased that others in the industry and our government leaders have joined us in this fight, there is still much more that needs to be done," Cobb said. "We need mandatory standards for paid tax preparers. Without them, consumers will continue to be victimized by people who aren't sufficiently trained, or worse, knowingly commit fraud. We also need uniform standards for tax returns claiming refundable credits such as the EITC, regardless of the channel through which they are filed. Congress has already provided clear legislative direction on this matter. Now the Treasury Department needs to put this fraud prevention change into effect for the 2016 tax filing season."

H&R Block to Announce Fiscal 2015 Results on June 8
In conjunction with the announcement of fiscal 2015 results, the company will host a conference call at 4:30 p.m. Eastern time on June 8, 2015 for analysts, institutional investors, and shareholders to discuss fiscal 2015 results, future outlook and a general business update. To access the call, please dial the number below approximately 10 minutes prior to the scheduled starting time:

U.S./Canada (866) 872-0323 or International (443) 842-7595
Conference ID: 8986376

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