H&R Block, Inc. (NYSE:HRB) Q2 2019 Earnings Conference Call Transcript

Dec 06, 2018 • 08:30 am ET


H&R Block, Inc. (NYSE:HRB) Q2 2019 Earnings Conference Call Transcript


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At this time, I would like to welcome everyone to the H&R Block Second Quarter Earnings Call. (Operator Instructions)

Colby Brown, Vice President of Finance and Investor Relations, you may begin your conference.

Colby Brown

Thank you for joining us to discuss our fiscal 2019 second quarter results. On the call today are Jeff Jones, our President and CEO, and Tony Bowen, our CFO. We've posted today's press release on the Investor Relations website at hrblock.com. Additionally, a presentation for viewing is available via the webcast and will also be posted to the Investor Relations website after this call.

(Forward-Looking Cautionary Statements)

With that, I'll now turn the call over to Jeff.

Jeff Jones

We appreciate everyone being flexible with the change in call time in honor of the late President Bush. We've been hard at work the past several months focused on executing our plans for the upcoming tax season. I want to thank our associates, tax pros and franchisees for all they're going to ensure we're ready to serve our clients as the season gets underway. We're taking the right steps toward long-term growth in clients, revenue and earnings, and ultimately, value for our shareholders. I continue to be excited for this season and for the future of our Company.

On today's call, I'll give a brief recap of our key objectives for the year, followed by how we are bringing this strategy to life in tax season '19. Tony will then provide details on our second quarter results and additional insight into our fiscal '19 outlook.

As a reminder, we announced our long-term enterprise strategy in June, and provided more detail on our Q1 call in August, including our key objectives by channel. To recap, in our assisted business, we are focused on improving the value we deliver to our clients, developing and delivering on a clear brand promise to differentiate H&R Block, and improving the quality and consistency of our service delivery in the tax office.

In our DIY business, we are investing to improve the product and user experience, pricing at a level that is competitive and provides value to our clients, and communicating that value to grow awareness and compel DIY consumers to switch to H&R Block. And in virtual, we will continue to innovate, leading the industry as consumer expectations evolve. By combining digital technology with the unmatched scale and expertise of our Tax Pro network, we will ensure taxpayers can access H&R Block, whether they want little to no help, complete in-person assistance or anything in between.

With those objectives as a backdrop, I'd now like to talk about the tangible ways we're bringing this strategy to life in the upcoming season. Let me start with the area in which we're making significant changes to improve our value proposition, our approach to pricing. In June, we announced that we will be investing in price decreases for certain segments of our assisted clients. Then in late October, we announced an important change in our approach, which is not