H&R Block, Inc. (HRB) saw its loss widen to $104.51 million, or $0.50 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $81.73 million, or $0.35 a share. On the other hand, adjusted net loss for the quarter widened to $101.44 million, or $0.49 a share from a loss of $78.65 million or $0.34 a share, a year ago.
Revenue during the quarter dropped 4.78 percent to $451.88 million from $474.54 million in the previous year period. Gross margin for the quarter contracted 332 basis points over the previous year period to 13.96 percent. Operating margin for the quarter stood at negative 27.62 percent as compared to a negative 25.25 percent for the previous year period.
Operating loss for the quarter was $124.79 million, compared with an operating loss of $119.84 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $79.85 million compared to negative $77.50 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 17.67 percent for the quarter compared to negative 16.33 percent in the last year period.
"We are delivering what we promised in December. Through aggressive Assisted and DIY offers, we are achieving our goal of new client growth and I'm pleased that we gained market share in both the Assisted and DIY tax preparation categories in the first half of the tax season," said Bill Cobb, H&R Block's president and chief executive officer. "I'm proud of what we have accomplished so far. These results are in line with our expectations for the first half of the season. And with our new partner, IBM Watson, we are focused on continued execution of our reinvented client experience over the remainder of the tax season."
Operating cash flow remains negative
H&R Block, Inc. has spent $1,375.92 million cash to meet operating activities during the nine month period as against cash outgo of $1,426.95 million in the last year period.
Cash flow from investing activities was $64.74 million for the nine month period, down 79.38 percent or $249.30 million, when compared with the last year period.
Cash flow from financing activities was $638.46 million for the nine month period as against cash outgo of $688.20 million in the last year period.
Cash and cash equivalents stood at $221.17 million as on Jan. 31, 2017, up 16.71 percent or $31.66 million from $189.51 million on Jan. 31, 2016.
Debt remains almost stable
H&R Block, Inc. has recorded a decline in total debt over the last one year. It stood at $2,593.56 million as on Jan. 31, 2017, down 0.88 percent or $23.08 million from $2,616.64 million on Jan. 31, 2016. Total debt was 100.62 percent of total assets as on Jan. 31, 2017, compared with 91.04 percent on Jan. 31, 2016.
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