Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

H&R Block To Cut 350 Jobs, Close 200 Offices; Begins Search For New CFO

RELATED NEWS
Trade HRB now with 
4/25/2012 11:30 PM ET

H&R Block, Inc. (HRB: Quote), the largest U.S. tax preparer, said Wednesday that it will eliminate 350 jobs and close about 200 underperforming company-owned offices as part of a strategic realignment. Looking ahead to fiscal 2012, the company forecast earnings and revenue below analysts' expectations. H&R Block's shares fell 16 percent in extended trade following the news.

Further, H&R Block said it has retained Crist|Kolder Associates to lead the search for a new chief financial officer. Current CFO Jeff Brown will remain with the company and continue to serve as CFO during the search for a successor.

Once a successor is found, Brown will transition to the position of chief accounting and risk officer, where he will oversee all aspects of the company's accounting function and coordinate its enterprise risk management approach.

As part of the strategic realignment, Kansas, Missouri-based H&R Block said it is offering a voluntary separation program to eligible employees throughout the organization.

The company plans to eliminate about 350 full-time positions throughout its Kansas City headquarters and nationwide field organization. In the event it does not achieve the job cuts from the voluntary program, the company said that involuntary separations will follow.

Overall, H&R Block expects to realize net annualized savings of $85 million to $100 million by the end of fiscal year 2013 as a result of the strategic realignment.

H&R Block also announced an organizational realignment, including the formation of U.S. Client Services. The four executives leading this unit will all directly report to Cobb. Meanwhile, Phil Mazzini, President of Retail Tax Services, has resigned from the company effective April 30, 2012.

The company expects to incur a pretax charge for lease termination, severance and related costs of about $30 million, or $0.06 per share, which will be recorded in the fourth quarter ending April 30.

For fiscal 2012, H&R Block expects total revenues of about $2.9 billion and earnings from continuing operations of $1.09 to $1.15 per share.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.39 per share on revenues of $3.00 billion for the year. Analysts' estimates typically exclude special items.

In a separate press release, H&R Block reported that total U.S. tax returns prepared fiscal year-to-date through April 18 reached a record 22.2 million, up 4.5 percent from the same period last year.

Total digital tax returns prepared increased 12.3 percent fiscal-year-to-date through April 18, led by online unit growth of more than 20 percent. Total U.S. retail returns prepared grew 1 percent, while aggregate net U.S. retail tax preparation fees grew 1.1 percent for the comparable period.

HRB closed Wednesday's trading at $16.74, up $0.15 or 0.90 percent on 2.65 million shares. However, in after-hours, the stock declined $2.74 or 16.37 percent to $14.00.

Register
To receive FREE breaking news email alerts for H&R Block Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After reporting a bigger than expected increase in new orders for U.S. manufactured durable goods in the previous month, the Commerce Department released a report on Thursday that once again showed stronger than expected durable goods orders growth in the month of March. The report said durable goods orders surged up by 2.6 percent in March after jumping by a revised 2.1 percent in February. First-time claims for U.S. unemployment benefits rose by more than expected in the week ended April 19th, according to a report released by the Labor Department on Thursday, with initial jobless claims climbing further off their recent lows. The report said initial jobless claims rose to 329,000, an increase of 24,000 from the previous week's revised figure of 305,000. After giving back some ground in the previous session, stocks are likely to move back to the upside in early trading on Thursday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 40 points.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.