H&R Block, Inc. F3Q09 (Qtr End 01/31/09) Earnings Call Transcript

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2009-03-21 00:35:29.0

Tags: H&R Block Inc., Call Transcript, Retention, Earnings, UBS AG, Taxes, Free Trade, Personal Finance, Operational Accounting, Financial Planning, Finance, Seeking Alpha

Question-and-Answer Session


Operator

(Operator instructions) Your first question comes from the line of Andrew Fones.

Andrew Fones – UBS

Yes, thanks. First I need to just ask if you're reconfirming your guidance or not? Richard, I think you mentioned something about the low end of the guidance range, but I just wondered what your thoughts are on that? Thanks.

Richard Breeden

Andrew, if you look at the transcript, the words kind of speak for themselves. As I said, we remain generally on track to our performance expectations for the full year.

Andrew Fones – UBS

Okay. Thank you. And then Russ, I wanted to ask how retention is trending in the early season market relative to last year. Thanks.

Russ Smyth

Was the question on retention, Andrew?

Andrew Fones – UBS

Yes.

Russ Smyth

You want to know retail, digital or both?

Andrew Fones – UBS

Both if you've got it. Thank you.

Russ Smyth

Okay, I will ask Tim to give you retail and Sabrina to give you digital.

Tim Gokey

Our retail retention is down just over 2 points through the tax season today.

Sabrina Wiewel

Our digital retention overall is up 4%.

Russ Smyth

So Andrew, on the retail side, if we cut it by adjusted gross income levels, I'm sure what you would find is that the decline in the retail retention is primarily driven by the declines or the loss of clients in that $20,000 AGI and under level.

Andrew Fones – UBS

Right, understood. Okay. Thanks.

Operator

Your next question comes from the line of Scott Schneeberger.

Scott Schneeberger – Oppenheimer

Thanks. Could you speak a little bit to – I guess Richard, you mentioned that the guidance is generally maintained? Are we still looking for all in revenue growth in the tax segment, at least mid probably high single digits?

Russ Smyth

Tim, you want to handle that since it's specific to retail?

Tim Gokey

I would say that our overall – we saw tax season to-date is, net tax preparation fees for retail was at 4.2 through the end of February. So I would put it through the end of the year in the mid single digits.

Scott Schneeberger – Oppenheimer

Okay. In just retail, correct? Should we see some incremental revenues from other areas?

Russ Smyth

We've seen great growth in digital so far this year, and we don't see any signs why we should expect that to change. We continue to hold the market share increases that we have seen over the course of the season so far, so don't expect that we would see changes in that.

Scott Schneeberger – Oppenheimer

 

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