Full-Year and Fourth-Quarter Results

H&R Block stepped up and delivered very impressive full-year and fourth-quarter results on June 30.

Full-year revenue rose 10% to $4.4 billion. Net income was up 21% to $454.5 million, producing earnings of $1.39 per share.

For the quarter, revenue was up 11% to $2.6 billion. Net income was $691.1 million, up 17% from the same period last year, producing earnings of $2.11 per share, outpacing analyst expectations of $2.03 per share.

The company noted that its tax services department scored a record performance, posting an 11.3% increase over the previous year.

Guidance Raised

After the encouraging results, H&R Block increased its guidance, saying it now expect full-year fiscal 2009 earnings to fall between $1.60 and $1.70 per share. Analysts are targeting the upper side of this range, projecting full-year earnings of $1.70.

Dividend Increase

The board of directors also voted to increase the company's dividend by 3 cents to 60 cents per share annually.

Debt Reduction and Share Repurchase Plan

H&R Block also noted that it now had outstanding debt of $441.2 million, down 63% and $750.5 million at the same time last year. The board also approved a share repurchase program of $2 billion to commence in 2009 and carry on through 2012.

The Chart

Shares of HRB spent most of 2007 in a steady decline, but this downward momentum now appears to have been disrupted as this stock is recoups its losses and once again is heading higher. More recently, shares have been pressuring the slight downward trend line right at $24. This is the next target, take a look at the chart below.

Zacks #1 Ranked Stocks have generated an average annual return of 31.8% since 1988. Every day we highlight four new Zacks Rank Buy stocks on the Zacks.com home page. Discover the Four Stocks we are Recommending Now!

-- Is mortgage interest deductible?

-- How do I report the sale of stock?

-- What are the tax implications of creating a home office?

-- Who qualifies as unmarried for tax purposes?

Participants receive 69 hours of instruction in the course which generally meets two or three times a week for three hours. Multiple class locations are offered, and course schedules are flexible so students can take the course without sacrificing existing work, school or family schedules.

Students will discover that the knowledge they gain may open the door to a new career that puts the skills they'll acquire during the classes to good use - like working at H&R Block.

"This course appeals to a wide range of people, from stay-at-home moms wanting to earn additional income, to military spouses, to people who simply want to ensure they're claiming all the tax benefits they're eligible for," said Diane Cooley, H&R Block vice president of knowledge development. "Whether you're interested in preparing your own taxes or in becoming an H&R Block tax professional, this class offers something for everyone."

To learn more about enrolling in the H&R Block Income Tax Course visit hrblock.com/taxcourses or call 1-800-HRBLOCK. Enrollment or completion of the H&R Block Income Tax Course is neither an offer nor guarantee of employment, and enrollment restrictions apply(1).

(1)This course is not intended for, nor open to any persons who are either currently employed by or seeking employment with any professional tax preparation company or organization other than H&R Block. State restrictions may apply. Valid at participating locations only. Void where prohibited.

About H&R Block

H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4 billion in fiscal year 2007. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut(R) online and software solutions. The company also provides business services through RSM McGladrey and certain consumer financial services. For more information visit our Online Press Center at www.hrblock.com.

SOURCE: H&R Block Inc.

H&R Block
Media Desk, 816-854-4287
mediadesk@hrblock.com

H&R Block expects to realize $57 million of this receivable over the next 60 days but doesn't expect it to affect its reported income in a significant way.

The company also said it completed repaying its entire outstanding balance under its revolving committed line of credit. Its outstanding short-term debt was reduced to zero.

Shares of H&R Block, a tax service provider, closed Wednesday at $21.87. Ryan Vlastelica rv/vj

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

MMMM

The payment marks the company's 183rd consecutive quarterly dividend.

Kansas City, Missouri-based H&R Block is a tax services provider that posted annual revenues of $4 billion in fiscal year 2007.

H&R Block provides income tax return preparation and related services and products via a nationwide network of around 13,000 company-owned and franchised offices and through TaxCut online and software products.

The company also provides business services through RSM McGladrey and certain consumer financial services.

FinancialWire" is a fully independent, proprietary news wire service of Investrend Information (a division of Investrend Communications, Inc.). FinancialWire" news is written by professional journalists, dedicated to pure journalistic standards. FinancialWire" does not receive or accept any compensation from any individual or subject company (or representative thereof) for its news or opinions. All FinancialWire" news is available at http://www.financialwire.net . Please address any inquiries to feedback@financialwire.net .

Free annual reports for companies mentioned in the news are available at http://investrend.ar.wilink.com/?level=279 .

http://www.financialwire.net