H&R Block Reports Interim Tax Season Data Through March 15

Tax Season Results Continue to Meet Expectations



Apr 02, 2001, 01:00 ET from H&R Block Inc.

    KANSAS CITY, Mo., April 2 /PRNewswire/ -- H&R Block Inc. (NYSE:   HRB)
 reported today that revenues received from tax preparation and related
 services increased 10.7 percent to $1.3 billion for company-owned and
 franchised offices from Jan. 1 through March 15, compared to the same period
 last year.  The average fee for tax preparation and related services rose
 10.4 percent to $107.26, while total clients served increased 2.9 percent.
     "We're pleased that our results through mid-March remain on track, but we
 also recognize the significance of the four weeks of tax season yet to
 report," said Mark A. Ernst, president and chief executive officer.  "Current
 filing trends suggest we remain on course to meet our revenue and earnings
 goals for the full year."
     Through March 15, company-owned and franchised offices prepared
 11.5 million returns, an increase of 1.9 percent.  The number of clients
 served increased 2.9 percent to 12.8 million.  During this period, H&R Block
 filed 11.2 million federal returns electronically, representing a 7.7 percent
 increase over the prior year.  Through the period, 87.3 percent of returns
 processed by the company were filed electronically.
     Except for historical information contained herein, the matters set forth
 in this press release are forward-looking statements based upon current
 information and expectations.  Such statements speak only as of the date on
 which they are made, are not guarantees of future performance, and involve
 certain risks, uncertainties and assumptions that could cause actual results
 to differ materially from what is expressed, implied or forecast in such
 forward-looking statements.  Such differences could be caused by a number of
 factors, including, but not limited to, the uncertainties that the company
 will achieve or exceed its revenue, earnings, client and pricing growth goals
 for fiscal year 2001, that current filing trends will continue during the
 remainder of the tax season, that average fees will continue at current levels
 or increase during the remainder of fiscal year 2001, of the success of the
 company's marketing efforts, changes in economic, political or regulatory
 environments,  and risks described from time to time in reports and
 registration statements filed by H&R Block Inc and its subsidiaries with the
 Securities and Exchange Commission.  Readers should take these factors into
 account in evaluating such forward-looking statements.
 
     About H&R Block
     H&R Block Inc. is a diversified company with subsidiaries providing a wide
 range of financial products and services.  In 2000, H&R Block served
 19.2 million taxpayers -- more than any tax or accounting firm -- through its
 more than 10,000 offices located in the United States, Canada, Australia and
 the United Kingdom.  H&R Block served another 1.8 million tax clients through
 its award-winning software program, Kiplinger TaxCut(R), and through its new
 online tax preparation services.  Investment services and securities products
 are offered through H&R Block Financial Advisors Inc., member NYSE, SIPC.  H&R
 Block Inc. is not a registered broker-dealer.  H&R Block Mortgage Corporation
 and Option One Mortgage Corporation offer a full range of home mortgage
 products.  RSM McGladrey Inc. is a national accounting, tax and consulting
 firm with 100 offices nationwide, as well as an affiliation with 550 offices
 in 75 countries as the U.S. member of RSM International.  Quarterly results
 and other information are available on the company's Web site at
 www.hrblock.com .
 
 
     H&R Block, Inc.
     Preliminary U.S. Tax Operating Data
     Period January 1 through March 15
     Amounts in thousands, except average charge and number of offices
 
                                                    For the period ended
                                            03/15/2001   03/15/2000  % change
 
     Tax preparation & related fees
        Company owned offices                  $822,027     $735,834   11.7%
        Franchised offices                      454,414      417,347    8.9%
                                             $1,276,441   $1,153,181   10.7%
 
     Tax returns prepared
        Company owned offices                     7,124        7,051    1.0%
        Franchised offices                        4,385        4,247    3.2%
                                                 11,509       11,298    1.9%
 
     Total clients served
        Company owned offices                     7,254        7,267   -0.2%
        Franchised offices                        4,646        4,606    0.9%
        E-commerce *                                866          532   62.8%
                                                 12,766       12,405    2.9%
 
     Tax returns filed electronically**
        Company owned offices                     6,501        6,301    3.2%
        Franchised offices                        3,808        3,523    8.1%
        E-commerce *                                842          532   58.3%
                                                 11,151       10,356    7.7%
 
     Percent filed electronically
        Company owned offices                     89.6%        86.7%
        Franchised offices                        82.0%        76.5%
        E-commerce *                              97.2%       100.0%
                                                  87.3%        83.5%
 
     Average fee per client served
        Company owned offices                   $113.32      $101.26   11.9%
        Franchised offices                        97.81        90.61    7.9%
                                                $107.26       $97.13   10.4%
 
     Refund anticipation loans
        Company owned offices                     2,621        2,791   -6.1%
        Franchised offices                        1,580        1,619   -2.4%
        E-commerce *                                 35           24   45.8%
                                                  4,236        4,434   -4.5%
 
     Offices
        Company owned offices                     5,060        5,162   -2.0%
        Franchised offices                        4,012        4,048   -0.9%
                                                  9,072        9,210   -1.5%
 
     *  Includes on-line completed and paid returns and e-filings for
        software clients
 
     ** Includes Federal only.  State returns also electronically filed are
        not included in this total.
 
 

SOURCE H&R Block Inc.
    KANSAS CITY, Mo., April 2 /PRNewswire/ -- H&R Block Inc. (NYSE:   HRB)
 reported today that revenues received from tax preparation and related
 services increased 10.7 percent to $1.3 billion for company-owned and
 franchised offices from Jan. 1 through March 15, compared to the same period
 last year.  The average fee for tax preparation and related services rose
 10.4 percent to $107.26, while total clients served increased 2.9 percent.
     "We're pleased that our results through mid-March remain on track, but we
 also recognize the significance of the four weeks of tax season yet to
 report," said Mark A. Ernst, president and chief executive officer.  "Current
 filing trends suggest we remain on course to meet our revenue and earnings
 goals for the full year."
     Through March 15, company-owned and franchised offices prepared
 11.5 million returns, an increase of 1.9 percent.  The number of clients
 served increased 2.9 percent to 12.8 million.  During this period, H&R Block
 filed 11.2 million federal returns electronically, representing a 7.7 percent
 increase over the prior year.  Through the period, 87.3 percent of returns
 processed by the company were filed electronically.
     Except for historical information contained herein, the matters set forth
 in this press release are forward-looking statements based upon current
 information and expectations.  Such statements speak only as of the date on
 which they are made, are not guarantees of future performance, and involve
 certain risks, uncertainties and assumptions that could cause actual results
 to differ materially from what is expressed, implied or forecast in such
 forward-looking statements.  Such differences could be caused by a number of
 factors, including, but not limited to, the uncertainties that the company
 will achieve or exceed its revenue, earnings, client and pricing growth goals
 for fiscal year 2001, that current filing trends will continue during the
 remainder of the tax season, that average fees will continue at current levels
 or increase during the remainder of fiscal year 2001, of the success of the
 company's marketing efforts, changes in economic, political or regulatory
 environments,  and risks described from time to time in reports and
 registration statements filed by H&R Block Inc and its subsidiaries with the
 Securities and Exchange Commission.  Readers should take these factors into
 account in evaluating such forward-looking statements.
 
     About H&R Block
     H&R Block Inc. is a diversified company with subsidiaries providing a wide
 range of financial products and services.  In 2000, H&R Block served
 19.2 million taxpayers -- more than any tax or accounting firm -- through its
 more than 10,000 offices located in the United States, Canada, Australia and
 the United Kingdom.  H&R Block served another 1.8 million tax clients through
 its award-winning software program, Kiplinger TaxCut(R), and through its new
 online tax preparation services.  Investment services and securities products
 are offered through H&R Block Financial Advisors Inc., member NYSE, SIPC.  H&R
 Block Inc. is not a registered broker-dealer.  H&R Block Mortgage Corporation
 and Option One Mortgage Corporation offer a full range of home mortgage
 products.  RSM McGladrey Inc. is a national accounting, tax and consulting
 firm with 100 offices nationwide, as well as an affiliation with 550 offices
 in 75 countries as the U.S. member of RSM International.  Quarterly results
 and other information are available on the company's Web site at
 www.hrblock.com .
 
 
     H&R Block, Inc.
     Preliminary U.S. Tax Operating Data
     Period January 1 through March 15
     Amounts in thousands, except average charge and number of offices
 
                                                    For the period ended
                                            03/15/2001   03/15/2000  % change
 
     Tax preparation & related fees
        Company owned offices                  $822,027     $735,834   11.7%
        Franchised offices                      454,414      417,347    8.9%
                                             $1,276,441   $1,153,181   10.7%
 
     Tax returns prepared
        Company owned offices                     7,124        7,051    1.0%
        Franchised offices                        4,385        4,247    3.2%
                                                 11,509       11,298    1.9%
 
     Total clients served
        Company owned offices                     7,254        7,267   -0.2%
        Franchised offices                        4,646        4,606    0.9%
        E-commerce *                                866          532   62.8%
                                                 12,766       12,405    2.9%
 
     Tax returns filed electronically**
        Company owned offices                     6,501        6,301    3.2%
        Franchised offices                        3,808        3,523    8.1%
        E-commerce *                                842          532   58.3%
                                                 11,151       10,356    7.7%
 
     Percent filed electronically
        Company owned offices                     89.6%        86.7%
        Franchised offices                        82.0%        76.5%
        E-commerce *                              97.2%       100.0%
                                                  87.3%        83.5%
 
     Average fee per client served
        Company owned offices                   $113.32      $101.26   11.9%
        Franchised offices                        97.81        90.61    7.9%
                                                $107.26       $97.13   10.4%
 
     Refund anticipation loans
        Company owned offices                     2,621        2,791   -6.1%
        Franchised offices                        1,580        1,619   -2.4%
        E-commerce *                                 35           24   45.8%
                                                  4,236        4,434   -4.5%
 
     Offices
        Company owned offices                     5,060        5,162   -2.0%
        Franchised offices                        4,012        4,048   -0.9%
                                                  9,072        9,210   -1.5%
 
     *  Includes on-line completed and paid returns and e-filings for
        software clients
 
     ** Includes Federal only.  State returns also electronically filed are
        not included in this total.
 
 SOURCE  H&R Block Inc.