Earnings Fall At H&RBlock
KANSAS CITY, Mo. - (06/09/06) Tax preparers H&R BlockInc. said its fourth-quarter earnings fell 5% as the company beganrestructuring its mortgage business and settled a class-action suitrelated to its tax refund-anticipation loans. The nation's largesttax preparer reported earnings of $587.5 million, or $1.77 pershare, for the fiscal fourth quarter, ended April 30, compared with$614.9 million, or $1.83 per share, during the same period a yearago. The results included an after-tax charge of $6.4 million, ortwo cents per share, to cover restructuring the mortgage business.Revenue for the quarter rose 6% to $2.5 billion. H&R Blockearns the majority of its revenue in the fourth quarter, whichcovers most of the annual income tax filing season. For the fullyear, H&R Block reported earnings of $490.4 million, or $1.47per share, compared with $623.9 million, or $1.85 per share, lastyear. Those results include $49.1 million, or 15 cents per share,in after-tax charges to cover settling the revenue anticipationloan lawsuits.