KANSAS CITY, Mo.--(BUSINESS WIRE)--Dec. 11, 2007--H&R Block Inc.
(NYSE:HRB) today publicly released its preliminary earnings for the
fiscal 2008 second quarter showing a net loss of $502.3 million, or
$1.55 per basic and diluted share, compared with a loss of $156.5
million, or 49 cents per share in the comparable period in the prior
year. Of the total loss, $366.2 million, or $1.13 per share, resulted
from discontinued operations, compared with a loss of $35.5 million,
or 11 cents per share, in last year's comparable period.
The company also filed a Form 12b-25 report with the Securities
and Exchange Commission (SEC) today setting forth its inability to
file its Form 10-Q for the quarter ended Oct. 31, 2007, within the
initial 40 day required period. In its Form 12b-25 filing, the company
reported that Deloitte & Touche LLP (D&T) was engaged as its
independent registered public accounting firm on Oct. 15, 2007. In
light of the engagement of D&T at such a late stage during the fiscal
quarter ending Oct. 31, 2007, and the time required for D&T to
complete its transition work, D&T and the company have not been able
to complete this work prior to the initial filing deadline.
The company further announced that D&T has not completed its
review of the timing of recognition of mortgage loan sales by Option
One Mortgage Corporation to loan warehouse trusts. These sales
occurred principally in prior years and in the first quarter of the
current fiscal year and relate entirely to the company's discontinued
mortgage operations. The company does not believe that this matter
will have a material impact on reported earnings for the quarter ended
Oct. 31, 2007, or on its ending balance sheet as of such date.
The company expects that it will be able to file its Form 10-Q no
later than Dec. 14, 2007, although its ability to do so depends on D&T
completing its review prior to such time. The company has postponed
its analyst call previously scheduled for Dec. 11 at 8 a.m. EST until
a time to be announced following filing its Form 10-Q.
Forward Looking Statements
This announcement may contain forward-looking statements, which
are any statements that are not historical facts. These
forward-looking statements are based upon the current expectations of
the company and there can be no assurance that such expectations will
prove to be correct. Because forward-looking statements involve risks
and uncertainties and speak only as of the date on which they are
made, the company's actual results could differ materially from these
statements. These risks and uncertainties relate to, among other
things, the termination of the origination activities of Option One
Mortgage Corporation; any disposition of the servicing business of
Option One Mortgage Corporation, in whole or in part; uncertainties in
the subprime mortgage industry and its impact on any operations of
Option One Mortgage Corporation that continue to be operated by H&R
Block; the liquidity demands associated with funding servicing
advances to loan pools serviced by the company; potential litigation
and other contingent liabilities arising from Option One Mortgage
Corporation's historical and ongoing operations; uncertainties
pertaining to the commercial debt market; competitive factors;
regulatory capital requirements; the company's effective income tax
rate; litigation; uncertainties associated with engaging a new
auditor; and changes in market, economic, political or regulatory
conditions. Information concerning these risks and uncertainties is
contained in Item 1A of the company's 2007 annual report on Form 10-K
and in other filings by the company with the Securities and Exchange
Commission.
About H&R Block
H&R Block Inc. (NYSE:HRB) is a leading provider of tax, financial,
and accounting and business consulting services and products. H&R
Block is the world's largest tax services provider, having prepared
more than 400 million tax returns since 1955. The company and its
subsidiaries reported revenues of $4.0 billion and net income from
continuing operations of $374.3 million in fiscal year 2007. The
company has continuing operations in three principal business
segments: Tax Services (income tax return preparation and related
services and products via in-office, online and software solutions);
Business Services (accounting, tax and business consulting services
primarily for midsized companies); and Consumer Financial Services
(brokerage services, investment planning and related financial advice
along with full-service consumer banking). Headquartered in Kansas
City, Mo., H&R Block markets its continuing services and products
under two leading brands - H&R Block and RSM McGladrey. For more
information visit our Online Press Center at www.hrblock.com.
CONTACT: H&R Block Inc.
Media Relations:
Nick Iammartino, 816-854-4556
nick.iammartino@hrblock.com
Investor Relations:
Scott Dudley, 816-854-4505
scott.dudley@hrblock.com
SOURCE: H&R Block Inc.
