The nation’s biggest tax preparer, H&R Block reported yesterday that due to reduced income and restructuring costs its fourth-quarter profit declined by 11 percent as compared to last year.
Its Sales of financial products declined in spite of preparing a record quantity of tax returns, due to the free of cost refund advances. For the quarter ended April 30, H&R Block’s net income dropped from $658.6 million to $586.1 million. Revenue slipped by 2 percent from $2.05 billion to $2 billion.
H&R Block eliminated 350 jobs as well as closed roughly 200 stores. The company paid $31.2 million as severance costs and also $5.5 million as impairment charges.
For the complete fiscal year, H&R Block reported net income of $265.9 million, down 35 percent from $406.1 million as compared to last year. Revenue dropped 1.7 percent from $2.94 billion to $2.89 billion.
The company’s reorganization was initiated in April which resulted in the departures of president of retail tax services, Philip Mazzini, and Chief Financial Officer Jeff Brown. During this month former Ceridian Corp. CFO Greg Macfarlane succeeded Brown.
H&R Block reported preparation of 25.6 million tax returns all over the world during fiscal 2012, higher by 4 percent.Previous Post » Herman Miller Inc.: 4Q profit down