June 11--H&R Block Inc. posted higher earnings and revenues in the just completed tax season despite handling fewer tax returns for customers.
The Kansas City-based company earned $475 million on revenues of $3 billion during its fiscal year that ended April 30. The profit was 9.5 percent higher than a year earlier and revenues were up 4.1 percent.
Previously, Block had said it handled 24.2 million tax returns, a drop of 2.6 percent from the previous tax season. H&R Block executives said the decline was mostly because it stopped doing 1040EZ tax returns free as a promotion.
Its shift in strategy meant focusing on earning more from doing each return on average.
"We delivered a strong year of both revenue and earnings growth," chief executive officer Bill Cobb said in the announcement. "Though we anticipated an overall decline in return counts, our Tax Plus strategy is working."
Because most of Block's work is done during the January-to-April tax season, the company posted most of its revenues and all of its profits in its final fiscal quarter. Earnings in the quarter were nearly $910 million on revenues of $2.56 billion.
To reach Mark Davis, call 816-234-4372 or send email to firstname.lastname@example.org.
(c)2014 The Kansas City Star (Kansas City, Mo.)
Visit The Kansas City Star (Kansas City, Mo.) at www.kansascity.com
Distributed by MCT Information Services