H&R Block, Inc. (HRB) saw its loss widen to $146.22 million, or $0.68 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $145.01 million, or $0.55 a share. On the other hand, adjusted net loss for the quarter widened to $143.78 million, or $0.67 a share from a loss of $134.78 million or $0.51 a share, a year ago.
Revenue during the quarter went up marginally by 2.27 percent to $131.33 million from $128.42 million in the previous year period. Gross margin for the quarter stood at negative 71.86 percent as compared to a negative 76.30 percent for the previous year period.
Operating loss for the quarter was $208.02 million, compared with an operating loss of $233.83 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $160.68 million compared to negative $168.76 million in the prior year second quarter.
"I'm pleased with our second quarter results, as revenues were up and expenses were down. I'm also extremely excited for the upcoming tax season. We have been hard at work developing and implementing a comprehensive and aggressive plan designed to deliver stronger results in tax season 2017," said Bill Cobb, H&R Block's president and chief executive officer. "Our associates and franchisees are excited about our new promotional offerings, including the previously announced interest-free Refund Advance loan and planned changes to our service delivery models. We are ready for the tax season to begin."
Operating cash flow remains negative
H&R Block has spent $725.80 million cash to meet operating activities during the first half as against cash outgo of $602.71 million in the last year period.
The company has spent $55.79 million cash to meet investing activities during the first half as against cash inflow of $365.08 million in the last year period
Cash flow from financing activities was $121.41 million for the first six months as against cash outgo of $1,397.97 million in the last year period.
Cash and cash equivalents stood at $232.51 million as on Oct. 31, 2016, down 35.54 percent or $128.17 million from $360.68 million on Oct. 31, 2015.
Debt increases substantially
H&R Block has witnessed an increase in total debt over the last one year. It stood at $1,968.11 million as on Oct. 31, 2016, up 31.97 percent or $476.79 million from $1,491.32 million on Oct. 31, 2015. Total debt was 94.52 percent of total assets as on Oct. 31, 2016, compared with 65.13 percent on Oct. 31, 2015.
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