H&r Block, Inc. · NYSE:HRB
H&r Block — Q3 FY2019 Earnings Presentation
24 slides from H&r Block's earnings presentation, Mar 7, 2019
Slide 1: Third Quarter Fiscal 2019 Earnings Call
THIRD QUARTER FISCAL 2019 EARNINGS CALL PROVIDING THE BEST SOLUTIONS MARCH 7, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or vari
Slide 3: Jeff Jones, President & CEO
JEFF JONES PRESIDENT & CEO
Slide 4: Today's Call
Today’s Call 1 2 Industry Update H&R Block Update & Second Half Expectations 3 4 Q3 FY19 Financial FY19 Financial Results Outlook 3
Slide 5: Industry Update
Tax Season 2019 Industry Update
Slide 6: Tax Season 2019 industry mix change consistent with historical average
Tax Season 2019 industry mix change consistent with historical average Current industry mix change from Assisted to DIY is close to the average of the past five years Over the last several years, the mix change to DIY has occurred in the early part of the season, but moderates by the end When
Slide 7: H&R Block Update
Tax Season 2019 H&R Block Update
Slide 8: Key objectives of our enterprise strategy
Key objectives of our enterprise strategy Assisted Virtual Do-It-Yourself (DIY) Improving the value we deliver, Innovating in this emerging Investing to improve the including an investment in price space, leading the industry as product and user experience consumer expectations evolve Develo
Slide 9: Assisted: Significant improvements across every aspect of the business
Assisted: Significant improvements across every aspect of the business Key Changes Results Improved our value proposition through 7-point increase in client satisfaction scores for Pricing upfront, transparent pricing and targeted price decreases price/value One-third of tax pros have increased
Slide 10: DIY: Strong performance due to numerous product enhancements
DIY: Strong performance due to numerous product enhancements Key Changes Results Improved experience, giving more Mobile visibility of where clients are in the process 2-point increase in product conversion Streamlined the process for returning Increased mobile adoption Personalization clients b
Slide 11: Virtual: Leading the industry by creating a 3rd platform
Virtual: Leading the industry by creating a 3rd platform; offering consumers more ways to get taxes done Results The easiest way to have someone do your taxes for you; simply upload your Attracting new, younger filers to H&R Block documents using your smart phone and a tax pro does the rest For DI
Slide 12: H&R Block Update
Tax Season 2019 H&R Block Update
Slide 13: Jeff Jones, President & CEO
JEFF JONES PRESIDENT & CEO
Slide 14: Tony Bowen, Chief Financial Officer
TONY BOWEN CHIEF FINANCIAL OFFICER
Slide 15: Q3 FY19 Financial Results
Q3 FY19 Financial Results
Slide 16: Q3 FY19 Summary – Continuing Operations
Q3 FY19 Summary – Continuing Operations (in millions, except EPS) Q3 FY19 Q3 FY18 Revenue $ 468 $ 488 Pretax Loss $ (159) $ (121) Net Loss $ (120) $ (243) Weighted-Avg. Shares - Diluted 205.5 209.1 EPS1 $ (0.58) $ (1.16) EBITDA2 $ (92) $ (48) Note: All amounts are unaudited. The company normally rep
Slide 17: Q3 FY19 Financial Results
Q3 FY19 Financial Results
Slide 18: FY19 Financial Outlook
FY19 Financial Outlook
Slide 19: Tax Season 2019: First half vs. second half expectations
Tax Season 2019: First half vs. second half expectations 1st Half 2nd Half Full Year Client decline due to slow Client growth compared to prior Overall Volume: industry start and our elimination year of Free EZ promotion Client decline due to Free EZ Client growth compared to prior Volume: e
Slide 20: Reiterating financial outlook for FY19
Reiterating financial outlook for FY19 REVENUES EBITDA MARGIN1 EFFECTIVE TAX RATE $3,050M - $3,100M 24% - 26% 23% - 25% Pending discrete items could occur in Q42 1 EBITDA Margin from continuing operations is a non-GAAP financial measure. Specific quantifications of the amounts that would be required
Slide 21: Detailed FY19 financial outlook
Detailed FY19 financial outlook Fiscal 2019 Financial Outlook Revenues $3,050M - $3,100M EBITDA Margin1 24% - 26% Effective Tax Rate2 23% - 25% Depreciation & Amortization $165M - $175M Capital Expenditures $95M - $105M Interest Expense $85M - $90M 1 EBITDA Margin from continuing operations is a non
Slide 22: Jeff Jones, President & CEO
JEFF JONES PRESIDENT & CEO
Slide 23: Q&A
Q&A
Slide 24: Third Quarter Fiscal 2019 Earnings Call
THIRD QUARTER FISCAL 2019 EARNINGS CALL PROVIDING THE BEST SOLUTIONS MARCH 7, 2019