H&R BLOCK INC
For the period ended Jun 30, 2024. Filed Aug 15, 2024.
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FY2024 · Filed Aug 15, 2024
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Non-GAAP Financial Information
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.
We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.
We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow and free cash flow yield. We also use EBITDA from continuing operations and pretax income of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.
The following is a reconciliation of net income to EBITDA from continuing operations, which is a non-GAAP financial measure:
| (in 000s) | ||
|---|---|---|
| Year ended | June 30, 2024 | June 30, 2023 |
| Net income - as reported | $595,317 | $553,700 |
| Discontinued operations, net | 2,646 | 8,100 |
| Net income from continuing operations - as reported | 597,963 | 561,800 |
| Add back: | ||
| Income taxes | 164,359 | 149,412 |
| Interest expense | 79,080 | 72,978 |
| Depreciation and amortization | 121,784 | 130,501 |
| 365,223 | 352,891 | |
| EBITDA from continuing operations | $963,186 | $914,691 |
The following is a reconciliation of our results from continuing operations to our adjusted results from continuing operations, which is a non-GAAP financial measure:
| (in 000s, except per share amounts) | ||
|---|---|---|
| Year ended | June 30, 2024 | June 30, 2023 |
| Net income from continuing operations - as reported | $597,963 | $561,800 |
| Adjustments: | ||
| Amortization of intangibles related to acquisitions (pretax) | 50,835 | 51,411 |
| Tax effect of adjustments(1) | (11,751) | (10,797) |
| Adjusted net income from continuing operations | $637,047 | $602,414 |
| Diluted earnings per share from continuing operations - as reported | $4.14 | $3.56 |
| Adjustments, net of tax | 0.27 | 0.26 |
| Adjusted diluted earnings per share from continuing operations | $4.41 | $3.82 |
(1)The tax effect of adjustments is the difference between the tax provision calculation on a GAAP basis and on an adjusted non-GAAP basis.
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