8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): December 8, 2020

H&R BLOCK, INC.

(Exact name of registrant as specified in charter)

Missouri	1-06089	44-0607856
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer
incorporation or organization)		Identification No.)

One H&R Block Way, Kansas City, MO 64105

(Address of Principal Executive Offices) (Zip Code)

(816) 854-3000

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, without par value	HRB	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.    Results of Operations and Financial Condition.

On December 8, 2020, the Company issued a press release regarding the Company’s results of operations for the fiscal quarter ended October 31, 2020. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01.    Regulation FD Disclosure.

On December 8, 2020, the Company issued a press release announcing its new Block Horizons strategy. A copy of the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information in Items 2.02 and 7.01, including Exhibits 99.1 and 99.2, are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number    Description

99.1    Press Release Issued December 8, 2020

99.2    Press Release Announcing Block Horizons Strategy Issued December 8, 2020

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			H&R BLOCK, INC.
Date:	December 8, 2020	By:	/s/ Scott W. Andreasen
			Scott W. Andreasen
			Vice President and Secretary

EX-99.1

Exhibit 99.1

News Release

For Immediate Release: December 8, 2020

H&R Block Reports Revenue Growth in Fiscal 2021 Second Quarter

KANSAS CITY, Mo. - H&R Block, Inc. (NYSE: HRB) today released its financial results1 for the fiscal 2021 second quarter ended October 31, 2020.

•Fiscal second quarter revenue growth of 10% to $177 million resulted from higher tax return volume in the U.S. and Canada, and an increase in small business payments processing and payroll volume at Wave.

•Pretax loss improved $24 million to $(237) million due to the increase in revenue as well as lower operating expenses. GAAP loss per share from continuing operations2 increased $0.24, to $(1.17), and adjusted non-GAAP loss per share3 increased $0.24, to $(1.09), due solely to a lower effective tax rate resulting from favorable tax planning. The negative impact of this tax rate change is unique to fiscal quarters in which the company reports a loss, as the impact will be favorable on a full fiscal year basis.

•The company repurchased and retired 9.5 million shares at an aggregate price of $150 million, or $15.83 per share.

•In a separate release, the company today announced the next phase of its strategic transformation as it continues to innovate to better serve customers in the core areas of small business, financial products, and consumer tax. Details of this strategy will be discussed during a virtual Investor Day hosted by the company today at 10:00 a.m. EST.

"The strong start to this fiscal year puts us on solid footing to execute against the next phase of our strategy during the second half of the year,” said Jeff Jones, H&R Block’s president and chief executive officer. “Through a client-centric and digital-first approach, we're innovating to solve financial problems for consumers and small business owners, as we drive toward long-term sustainable growth for H&R Block."

1    All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.

2 All per share amounts are based on fully diluted shares at the end of the corresponding period.

3 The company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, and free cash flow, which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the company. See "About Non-GAAP Financial Information" below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).

Fiscal 2021 Second Quarter Results From Continuing Operations

(in millions, except EPS)	Q2 FY2021		Q2 FY2020
Revenue	$	177	$	161
Pretax Loss	$	(237)	$	(261)
Net Loss	$	(222)	$	(184)
Weighted-Avg. Shares - Diluted	189.6		198.1
EPS2	$	(1.17)	$	(0.93)
Adjusted EPS2,3	$	(1.09)	$	(0.85)
EBITDA3	$	(168)	$	(197)

"We executed well for the first half of the fiscal year, delivering improved financial results as we head into the upcoming tax season," said Tony Bowen, H&R Block's chief financial officer. "Our plans for this fiscal year reflect our commitment to the financial principles of maintaining a strong balance sheet, investing in long-term growth opportunities, and returning capital to shareholders through dividends and share repurchases."

Key Financial Metrics

•Total revenues increased $16 million, or 10%, to $177 million due to higher tax return volume in the U.S. and Canada, and an increase in small business payments processing and payroll volume at Wave.

•Total operating expenses decreased $22 million, or 5%, to $382 million primarily due to lower travel, consulting, client claims and refunds, and depreciation and amortization.

•Pretax loss improved $24 million to $237 million.

•GAAP loss per share from continuing operations increased $0.24, to $(1.17), and adjusted non-GAAP loss per share increased $0.24, to $(1.09), due solely to a lower effective tax rate resulting from favorable tax planning. The negative impact of this tax rate change is unique to fiscal quarters in which the company reports a loss, as the impact will be favorable on a full fiscal year basis.

Capital Structure

The company also reported the following recent developments related to its capital structure:

•During the second quarter of fiscal 2021, the company repurchased and retired approximately 9.5 million shares at an aggregate price of $150 million, or $15.83 per share.

•As previously announced, a quarterly cash dividend of $0.26 per share is payable on January 4, 2021 to shareholders of record as of December 7, 2020. H&R Block has paid quarterly dividends consecutively since the company went public in 1962.

Discontinued Operations

On November 9, 2020, the court granted Sand Canyon's ("SCC") motion for summary judgment in both of the previously-disclosed Homeward cases and dismissed Homeward’s claims against SCC in their entirety. Additional information about SCC and the Homeward ruling, which Homeward has appealed, can be found in the company's Form 10-Q for the second quarter of fiscal 2021 expected to be filed with the SEC today, previously filed Forms 10-K and 10-Q, and other filings.

Virtual Investor Day

As previously announced, the company will host a virtual Investor Day event today to discuss the next phase of its strategic transformation, fiscal 2021 outlook, and a general business update. The meeting will be streamed live via the company’s events page on its investor relations website, located at https://investors.hrblock.com/financial-information/events-calendar, beginning at 10:00 a.m. EST.

Investor Day and earnings materials will be posted on the company’s investor relations website at https://investors.hrblock.com, with a webcast replay available at the same location.

About H&R Block

H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation, financial products and small business solutions. The company blends digital innovation with the human expertise and care of its associates and franchisees as it helps people get the best outcome at tax time, and better manage and access their money year-round. Through Block Advisors and Wave, the company helps small business owners thrive with disruptive products like Wave Money, a small business banking and bookkeeping solution, and the only business bank account to manage bookkeeping automatically. For more information, visit H&R Block News or follow @HRBlockNews on Twitter.

About Non-GAAP Financial Information

This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information."

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They also include the expected impact of the coronavirus (COVID-19) pandemic, including, without limitation, the impact on economic and financial markets, the Company’s capital resources and financial condition, the expected use of proceeds under the Company’s revolving credit facility, future expenditures, potential regulatory actions, such as extensions of tax filing deadlines or other related relief, changes in consumer behaviors and modifications to the Company’s operations related thereto. All forward-looking statements speak only as of the date they are made and reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or

expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the company's control, that are described in our Annual Report on Form 10-K for the fiscal year ended April 30, 2020 in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at http://investors.hrblock.com. In addition, factors that may cause the company’s actual estimated effective tax rate to differ from estimates include the company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the company has made, and future actions of the company. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

For Further Information

Investor Relations:Colby Brown, (816) 854-4559, colby.brown@hrblock.com

Media Relations:Angela Davied, (816) 854-5798, angela.davied@hrblock.com

TABLES FOLLOW

CONSOLIDATED STATEMENTS OF OPERATIONS					(unaudited, in 000s - except per share amounts)
	Three months ended October 31,				Six months ended October 31,
	2020		2019		2020		2019
REVENUES:
Service revenues	$	160,962	$	139,648	$	711,913	$	271,807
Royalty, product and other revenues	15,588		21,153		65,667		39,356
	176,550		160,801		777,580		311,163
OPERATING EXPENSES:
Costs of revenues	245,055		253,206		560,091		482,598
Selling, general and administrative	136,842		150,334		269,880		266,470
Total operating expenses	381,897		403,540		829,971		749,068
Other income (expense), net	(819)		2,739		2,392		11,862
Interest expense on borrowings	(30,861)		(21,306)		(62,986)		(42,377)
Loss from continuing operations before income taxes (benefit)	(237,027)		(261,306)		(112,985)		(468,420)
Income taxes (benefit)	(14,547)		(77,752)		15,939		(139,142)
Net loss from continuing operations	(222,480)		(183,554)		(128,924)		(329,278)
Net loss from discontinued operations	(1,246)		(4,445)		(3,543)		(8,968)
NET LOSS	$	(223,726)	$	(187,999)	$	(132,467)	$	(338,246)
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations	$	(1.17)	$	(0.93)	$	(0.68)	$	(1.65)
Discontinued operations	(0.01)		(0.02)		(0.02)		(0.04)
Consolidated	$	(1.18)	$	(0.95)	$	(0.70)	$	(1.69)
WEIGHTED AVERAGE DILUTED SHARES	189,607		198,079		191,103		200,058

CONSOLIDATED BALANCE SHEETS	(unaudited, in 000s - except per share data)
As of	October 31, 2020		October 31, 2019		April 30, 2020
ASSETS
Cash and cash equivalents	$	208,956	$	245,312	$	2,661,914
Cash and cash equivalents - restricted	178,368		176,332		211,106
Receivables, net	71,253		74,710		133,197
Prepaid expenses and other current assets	134,336		105,058		80,519
Total current assets	592,913		601,412		3,086,736
Property and equipment, net	164,742		206,216		184,367
Operating lease right of use asset	445,727		475,969		494,788
Intangible assets, net	390,371		425,377		414,976
Goodwill	727,483		815,331		712,138
Deferred tax assets and income taxes receivable	172,842		145,807		151,195
Other noncurrent assets	62,351		86,629		67,847
Total assets	$	2,556,429	$	2,756,741	$	5,112,047
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Accounts payable and accrued expenses	$	108,805	$	111,439	$	203,103
Accrued salaries, wages and payroll taxes	62,122		57,602		116,375
Accrued income taxes and reserves for uncertain tax positions	8,662		106,125		209,816
Current portion of long-term debt	—		648,651		649,384
Operating lease liabilities	191,114		162,897		195,537
Deferred revenue and other current liabilities	181,900		177,243		201,401
Total current liabilities	552,603		1,263,957		1,575,616
Long-term debt and line of credit borrowings	1,559,093		980,299		2,845,873
Deferred tax liabilities and reserves for uncertain tax positions	353,751		180,362		182,441
Operating lease liabilities	268,312		326,691		312,566
Deferred revenue and other noncurrent liabilities	102,636		81,179		124,510
Total liabilities	2,836,395		2,832,488		5,041,006
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock, no par, stated value $.01 per share	2,187		2,310		2,282
Additional paid-in capital	773,691		765,220		775,387
Accumulated other comprehensive loss	(31,707)		(21,817)		(51,576)
Retained earnings (deficit)	(335,617)		(122,535)		42,965
Less treasury shares, at cost	(688,520)		(698,925)		(698,017)
Total stockholders' equity (deficiency)	(279,966)		(75,747)		71,041
Total liabilities and stockholders' equity	$	2,556,429	$	2,756,741	$	5,112,047

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	(unaudited, in 000s)
Six months ended October 31,	2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(132,467)	$	(338,246)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	77,307		81,262
Provision	4,578		1,890
Deferred taxes	7,855		12,595
Stock-based compensation	14,935		16,094
Changes in assets and liabilities, net of acquisitions:
Receivables	51,584		71,859
Prepaid expenses, other current and noncurrent assets	(16,271)		13,889
Accounts payable, accrued expenses, salaries, wages and payroll taxes	(141,905)		(267,257)
Deferred revenue, other current and noncurrent liabilities	(41,855)		(74,996)
Income tax receivables, accrued income taxes and income tax reserves	(87,333)		(206,278)
Other, net	833		(4,128)
Net cash used in operating activities	(262,739)		(693,316)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(26,584)		(42,854)
Payments made for business acquisitions, net of cash acquired	(3,674)		(416,925)
Franchise loans funded	(11,922)		(16,021)
Payments from franchisees	18,321		7,902
Other, net	427		50,839
Net cash used in investing activities	(23,432)		(417,059)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of line of credit borrowings	(2,000,000)		—
Proceeds from line of credit borrowings	70,000		135,000
Repayments of long-term debt	(650,000)		—
Proceeds from issuance of long-term debt	647,965		—
Dividends paid	(100,198)		(104,063)
Repurchase of common stock, including shares surrendered	(153,154)		(190,369)
Proceeds from exercise of stock options	1,133		1,215
Other, net	(21,691)		(18,544)
Net cash used in financing activities	(2,205,945)		(176,761)
Effects of exchange rate changes on cash	6,420		1,053
Net decrease in cash and cash equivalents, including restricted balances	(2,485,696)		(1,286,083)
Cash, cash equivalents and restricted cash, beginning of period	2,873,020		1,707,727
Cash, cash equivalents and restricted cash, end of period	$	387,324	$	421,644
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net of refunds received	$	94,066	$	54,109
Interest paid on borrowings	61,183		39,952
Accrued additions to property and equipment	3,092		3,409
New operating right of use assets and related lease liabilities	71,537		204,962

FINANCIAL RESULTS	(unaudited, in 000s - except per share amounts)
	Three months ended October 31,				Six months ended October 31,
	2020		2019		2020		2019
REVENUES:
U.S. assisted tax preparation	$	48,922	$	41,226	$	386,650	$	74,218
U.S. royalties	7,576		7,820		43,525		14,679
U.S. DIY tax preparation	5,055		4,541		72,650		7,951
International	48,858		44,926		116,676		85,507
Refund Transfers	1,192		791		11,745		2,300
Emerald Card®	9,795		8,616		26,850		22,471
Peace of Mind® Extended Service Plan	24,775		25,660		56,770		58,497
Tax Identity Shield®	4,835		4,648		14,202		9,170
Interest and fee income on Emerald AdvanceTM	501		485		1,164		1,039
Wave	14,327		10,902		26,394		14,527
Other	10,714		11,186		20,954		20,804
Total revenues	176,550		160,801		777,580		311,163
Compensation and benefits:
Field wages	61,007		60,993		179,549		114,796
Other wages	59,062		60,744		119,756		114,581
Benefits and other compensation	32,146		28,708		65,944		55,182
	152,215		150,445		365,249		284,559
Occupancy	97,758		97,530		197,058		189,682
Marketing and advertising	9,317		9,651		28,128		16,430
Depreciation and amortization	37,799		42,657		77,307		81,262
Bad debt	1,113		2,035		2,969		1,067
Other	83,695		101,222		159,260		176,068
Total operating expenses	381,897		403,540		829,971		749,068
Other income (expense), net	(819)		2,739		2,392		11,862
Interest expense on borrowings	(30,861)		(21,306)		(62,986)		(42,377)
Pretax loss	(237,027)		(261,306)		(112,985)		(468,420)
Income taxes (benefit)	(14,547)		(77,752)		15,939		(139,142)
Net loss from continuing operations	(222,480)		(183,554)		(128,924)		(329,278)
Net loss from discontinued operations	(1,246)		(4,445)		(3,543)		(8,968)
NET LOSS	$	(223,726)	$	(187,999)	$	(132,467)	$	(338,246)
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations	$	(1.17)	$	(0.93)	$	(0.68)	$	(1.65)
Discontinued operations	(0.01)		(0.02)		(0.02)		(0.04)
Consolidated	$	(1.18)	$	(0.95)	$	(0.70)	$	(1.69)
Weighted average diluted shares	189,607		198,079		191,103		200,058
EBITDA from continuing operations (1)	$	(168,367)	$	(197,343)	$	27,308	$	(344,781)

(1) See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures.

(in 000s)
	Three months ended October 31,				Six months ended October 31,
NON-GAAP FINANCIAL MEASURE - EBITDA	2020		2019		2020		2019
Net loss - as reported	$	(223,726)	$	(187,999)	$	(132,467)	$	(338,246)
Discontinued operations, net	1,246		4,445		3,543		8,968
Net loss from continuing operations - as reported	(222,480)		(183,554)		(128,924)		(329,278)
Add back:
Income taxes (benefit) of continuing operations	(14,547)		(77,752)		15,939		(139,142)
Interest expense of continuing operations	30,861		21,306		62,986		42,377
Depreciation and amortization of continuing operations	37,799		42,657		77,307		81,262
	54,113		(13,789)		156,232		(15,503)
EBITDA from continuing operations	$	(168,367)	$	(197,343)	$	27,308	$	(344,781)

(in 000s, except per share amounts)
	Three months ended October 31,				Six months ended October 31,
NON-GAAP FINANCIAL MEASURE - ADJUSTED EPS	2020		2019		2020		2019
Net loss from continuing operations - as reported	$	(222,480)	$	(183,554)	$	(128,924)	$	(329,278)
Adjustments:
Amortization of intangibles related to acquisitions (pretax)	17,306		19,579		35,883		35,818
Tax effect of adjustments (1)	(755)		(4,549)		(5,155)		(8,711)
Adjusted net loss from continuing operations	$	(205,929)	$	(168,524)	$	(98,196)	$	(302,171)
Diluted loss per share - as reported	$	(1.17)	$	(0.93)	$	(0.68)	$	(1.65)
Adjustments, net of tax	0.08		0.08		0.16		0.14
Adjusted loss per share	$	(1.09)	$	(0.85)	$	(0.52)	$	(1.51)

(1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.

NON-GAAP FINANCIAL INFORMATION

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.

EX-99.2

Exhibit 99.2

News Release

For Immediate Release: December 8, 2020

H&R Block To Introduce Next Phase of Strategic Transformation at Virtual Investor Day

KANSAS CITY, Mo., (GLOBE NEWSWIRE) – Today, H&R Block, Inc. (NYSE: HRB) will introduce its Block Horizons strategy, the next phase of the company’s strategic transformation. This builds on previous work to strengthen the company’s foundation, and will position it for long-term, sustainable growth.

At the virtual event, Chief Executive Officer Jeff Jones, Chief Financial Officer Tony Bowen, and other members of the senior leadership team will provide an in-depth look at the three strategic imperatives that comprise the company’s new long-term strategy.

These imperatives—Small Business, Financial Products, and Block Experience—will enable H&R Block to serve more customers, in more ways, by better leveraging existing assets. They build on the company’s current business and encompass a new approach to the customer experience.

“We’re excited to enter the next phase of our transformation, leveraging our unique combination of human expertise, physical locations, and digital platforms,” Jones said. “We are well-positioned to benefit from the capabilities we have created to help consumers on their terms.”

Jones continued: “Building on the deep trust of millions of customers, our Block Horizons strategy will help the company become a year-round business and improve revenue and earnings growth.”

Today’s event will include details on how Block will execute on its strategy during the upcoming tax season and beyond.

Block Horizons imperatives will guide the company to growth

Block Horizons includes three strategic imperatives grounded in customer insight, market testing and a solid base of current business. They will guide the company’s path to achieving its financial and operational goals.

•Small Business: Building on an already-significant base of 2.4 million small business customers, the company will go to market with two small business brands: Wave and Block Advisors. Through this imperative, H&R Block seeks to further strengthen the spirit of entrepreneurship and enable small business owners to thrive, particularly as they lead the country’s growth post-pandemic.

•Financial Products: With approximately one-third of H&R Block’s 20 million tax customers being under-banked, the company will build on its Emerald Debit Card program, which today is linked to the tax event, to develop a year-round mobile banking platform. In addition, products like Wave Money will make spending and accounting for business transactions easier than ever by automatically bookkeeping business expenses and helping small business owners always be ready for tax time. These products aim to create financial confidence in consumers and small business owners.

•Block Experience: H&R Block is reimagining tax preparation for a digital-first world, blending technology and data with human expertise and care. This includes enabling clients to take advantage of all of Block’s capabilities, whether in-person, digital or a mix of both. MyBlock is the mobile hub that connects tax professionals and customers and becomes the platform to create deeper engagement.

H&R Block also updated its financial principles to reflect the company’s new long-term strategy, including:

•Annual revenue growth goal of 3-6% annually1

•EBITDA2 growing as fast or at a faster rate than revenue

•Redeployment of savings to the highest ROI opportunities

•Maintaining a strong balance sheet and access to liquidity to support growth investments

•Returning capital to shareholders through dividends and share repurchases

At today’s event, H&R Block will also provide an update on how the company plans to measure and manage the business going forward and will provide its outlook for fiscal year 2021.

Webcast Information

H&R Block’s live webcast of the Investor Day event, along with accompanying slides, can be accessed from the company’s website at https://investors.hrblock.com/financial-information/events-calendar, beginning at 10:00 a.m. EST.

About H&R Block

H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation, financial products and small business solutions. The company blends digital innovation with the human expertise and care of its associates and franchisees as it helps people get the best outcome at tax time, and better manage and access their money year-round. Through Block Advisors and Wave, the company helps small business owners thrive with disruptive products like Wave Money, a small business banking and bookkeeping solution, and the only business bank account to manage bookkeeping automatically. For more information, visit H&R Block News or follow @HRBlockNewson Twitter.

1 This financial target is not applicable to fiscal years 2021 and 2022 due to the financial impact of the pandemic.

2 Earnings before interest, tax, depreciation, and amortization from continuing operations (EBITDA) is a non-GAAP financial measure. Specific quantifications of the amounts that would be required to reconcile the company’s EBITDA growth financial principle to net income (the most directly comparable GAAP measure) for future periods are not available. Because of the variability of these and other items as well as the impact of future events on these items, management is unable to reconcile without unreasonable effort the expected range of EBITDA growth for the future to a comparable net income range.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “commits,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “goal,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They also include the expected impact of the coronavirus (COVID-19) pandemic, including, without limitation, the impact on economic and financial markets, the Company’s capital resources and financial condition, the expected use of proceeds under the Company’s revolving credit facility, future expenditures, potential regulatory actions, such as extensions of tax filing deadlines or other related relief, changes in consumer behaviors and modifications to the Company’s operations related thereto. All forward-looking statements speak only as of the date they are made and reflect the company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the company’s control, that are described in our Annual Report on Form 10-K for the fiscal year ended April 30, 2020 in the section entitled “Risk Factors” and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at http://investors.hrblock.com.In addition, factors that may cause the company’s actual estimated effective tax rate to differ from estimates include the company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the company has made, and future actions of the company. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

For Further Information

Investor Relations: Colby Brown (816) 854-4559, colby.brown@hrblock.com

Media Relations: Angela Davied (816) 854-5798, angela.davied@hrblock.com

XML

Cover Page	Dec. 08, 2020
Cover [Abstract]
Document Type	8-K
Document Period End Date	Dec. 08, 2020
Entity Registrant Name	H&R BLOCK, INC.
Entity Incorporation, State or Country Code	MO
Entity File Number	1-06089
Entity Tax Identification Number	44-0607856
Entity Address, Address Line One	One H&R Block Way
Entity Address, City or Town	Kansas City
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	64105
City Area Code	816
Local Phone Number	854-3000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	HRB
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000012659
Amendment Flag	false