--- title: "H&R Block Reports Fiscal 2022 First Quarter Results; Reiterates Fiscal Year Financial Outlook" url: https://burnaze.com/article/f23ffcf9-4002-4627-bfed-8e83ee3edfa1 source: "Franchising.com" original_url: https://www.franchising.com/news/20211103_hr_block_reports_fiscal_2022_first_quarter_results_reiterates_fiscal_year_f.html category: "Franchisors" industry: "Franchise Industry" segment: "Franchisors" topics: ["Finance & M&A"] published: 2021-11-03T12:00:00.000Z modified: 2026-11-01T02:16:17.965Z image: https://images.unsplash.com/photo-1526304640581-d334cdbbf45e?w=1600&q=80&auto=format&fit=crop --- # H&R Block Reports Fiscal 2022 First Quarter Results; Reiterates Fiscal Year Financial Outlook **TL;DR:** H&R Block reported its fiscal 2022 first quarter results, demonstrating continued momentum across the business and reiterating its previously given fiscal year 2022 outlook. The company repurchased $166 million of shares and reported a total revenue of $193 million, which decreased by $225 million compared to the prior year. *originally published in Franchising.com on 2021-11-03. [Read the original](https://www.franchising.com/news/20211103_hr_block_reports_fiscal_2022_first_quarter_results_reiterates_fiscal_year_f.html).* ## Story - *Q1 results demonstrated continued momentum across the business and the Company reiterates its previously given fiscal year 2022 outlook.* - *The year over year quarterly results are not comparable due to last year’s tax season being extended to July 15, 2020, causing revenue and earnings to occur in the prior year first quarter that did not repeat in the first quarter ending September 30, 2021, as this year's tax season was extended only to May 17, 2021.* - *The Company repurchased $166 million of shares, retiring approximately 4% of the shares outstanding during the fiscal quarter.* "Our first fiscal quarter reflects continued momentum in the businesses, our ongoing commitment to returning capital to shareholders, and progress on our Block Horizons imperatives," said Jeff Jones, H&R Block's president and CEO. "Looking forward, we are well positioned for the 2022 tax season and I am more confident than ever in our ability to execute against our next phase of strategic growth." "We have made significant financial progress over the past several years, and our business continues to be strong," said Tony Bowen, H&R Block's chief financial officer. "We’re off to a great start to our fiscal year and were able to repurchase $166 million of shares during the quarter." Year over year quarterly results are not comparable due to last year’s tax season being extended to July 15, 2020 causing revenue and earnings to occur in the prior year first quarter that did not repeat in the first quarter ending September 30, 2021, as this year's tax season was extended only to May 17, 2021. Revenue recorded in last year's fiscal Q1 related to the extended tax season is estimated to be $246 million. - Total revenue of $193 million decreased by $225 million, or 54%, to the prior year. The decrease in revenue is entirely due to lower return volume because of the previous year's tax season extension. This was partially offset by Emerald Card revenue and strong growth from Wave. - Total operating expenses of $367 million decreased by $51 million, or 12%, primarily driven by lower tax pro compensation on lighter return volumes as the quarter took place after the 2021 filing deadline. - Pretax loss increased by $164 million to $197 million, entirely due to the decrease in revenue because of the previous year's tax season extension. - Loss per share from continuing operations2 increased from $0.32 to $0.84; adjusted loss per share from continuing operations increased from $0.24 to $0.78. The Company also reported the following related to its capital structure: - Fiscal year first quarter repurchases and retirements of common stock totaled approximately 6.8 million shares at an aggregate price of $166 million, or $24.37 per share. The Company has approximately $400 million remaining on its authorization which runs through June 2022. - As previously announced, a quarterly cash dividend of $0.27 per share was paid on October 1, 2021 to shareholders of record as of September 10, 2021. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. For information on Sand Canyon, please refer to disclosures in the Company’s reports on Forms 10-K, 10-Q, and other filings with the SEC. Discussion of the fiscal 2022 first quarter results, outlook, and a general business update will occur during the Company’s previously announced fiscal first quarter earnings conference call for analysts, institutional investors, and shareholders. The call is scheduled for 4:30 p.m. Eastern time on November 2, 2021. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies. We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, EBITDA margin from continuing operations, adjusted diluted earnings per share from continuing operations and free cash flow. We also use EBITDA from continuing operations and pretax income of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees. ## Entities - Franchising.com (publication) - General (sector) - H&R Block (company) - q1 results (topic) - share repurchase (topic) - revenue decrease (topic) - fiscal year outlook (topic) --- Originally reported by Franchising.com (https://www.franchising.com/news/20211103_hr_block_reports_fiscal_2022_first_quarter_results_reiterates_fiscal_year_f.html). Summarized by Burnaze (https://burnaze.com/article/f23ffcf9-4002-4627-bfed-8e83ee3edfa1).