H&R Block, Inc. (HRB) has reported an 11.80 percent rise in profit for the quarter ended Apr. 30, 2017. The company has earned $783.35 million, or $3.75 a share in the quarter, compared with $700.66 million, or $3.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $786.98 million, or $3.76 a share compared with $709.14 million or $3.16 a share, a year ago. Revenue during the quarter went up marginally by 1.32 percent to $2,327.92 million from $2,297.48 million in the previous year period. Gross margin for the quarter expanded 196 basis points over the previous year period to 64.83 percent. Total expenses were 47.01 percent of quarterly revenues, down from 49.47 percent for the same period last year. This has led to an improvement of 246 basis points in operating margin to 52.99 percent.
Operating income for the quarter was $1,233.52 million, compared with $1,160.85 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1,285.44 million compared with $1,222.25 million in the prior year period. At the same time, adjusted EBITDA margin improved 202 basis points in the quarter to 55.22 percent from 53.20 percent in the last year period.
"We came into this year with a very aggressive goal to change the client trajectory. With competitive promotions, impactful marketing and an improved client experience, we achieved this goal and also produced strong financial results, all during a year in which the industry experienced a decline in returns," said Bill Cobb, H&R Block's president and chief executive officer. "I couldn't be more proud of our team who delivered these impressive results."
Operating cash flow improves marginally H&R Block, Inc. has generated cash of $550.09 million from operating activities during the year, up 3.32 percent or $17.70 million, when compared with the last year.
Cash flow from investing activities was $99.32 million for the year, down 69.86 percent or $230.20 million, when compared with the last year.
The company has spent $530.42 million cash to carry out financing activities during the year as against cash outgo of $1,961.73 million in the last year period.
Cash and cash equivalents stood at $1,011.33 million as on Apr. 30, 2017, up 12.77 percent or $114.53 million from $896.80 million on Apr. 30, 2016.
Debt remains almost stable
Total debt of H&R Block, Inc. remained almost stable for the quarter at $1,494 million, when compared with the last year period. Interest coverage ratio improved to 53.81 for the quarter from 51.29 for the same period last year.
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