After the market closed Feb. 22, tax preparation firm H&R Block
- Total sales grew 11% as tax season began with a strong January. H&R Block reported strength in its core tax preparation business, as well as in consumer financial services.
- There was an 8% sales decline and bottom-line loss in business services, the third operating segment, due to spending to "build awareness of the RSM McGladrey brand." Good call: If you've heard of RSM McGladrey, you may want to fill the Motley Fool CAPS community in on the details.
- Reported diluted earnings fell into negative territory because of losses from the mortgage business, which is considered a discontinued operation because management is evaluating alternatives for it. Block said it earned $0.08 from continuing operations.
- Their fiscal fourth quarter is key for tax firms such as Block, Jackson Hewitt
(NYSE:JTX) , and Intuit(NASDAQ:INTU) .
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$1,130,000 |
$955,116 |
$860,253 |
11.0% |
|
Net Profit |
-- |
($44,708) |
$12,113 |
N/A |
|
EPS |
$0.12 |
($0.14) |
$0.04 |
N/A |
|
Diluted Shares |
326,048 |
327,289 |
(0.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
31.13% |
30.33% |
0.80 |
|
Operating Margin |
2.92% |
(4.24%) |
7.16 |
|
Net Margin |
(4.68%) |
1.41% |
(6.09) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,515,190 |
$1,890,893 |
(19.9%) |
|
Accounts Rec. |
$424,874 |
$569,430 |
(25.4%) |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$496,084 |
$851,827 |
(41.8%) |
|
Long-Term Debt |
$416,183 |
$916,926 |
(54.6%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($2,597,859) |
($1,694,392) |
53.3% |
|
Capital Expenditures |
$129,905 |
$134,328 |
(3.3%) |
|
Free Cash Flow |
($2,727,764) |
($1,828,720) |
49.2% |
Find out why Fools always follow the money.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
