H&R Block, Inc. (NYSE:HRB) Q1 2021 Earnings Conference Call - Final Transcript

Sep 01, 2020 • 04:30 pm ET

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H&R Block, Inc. (NYSE:HRB) Q1 2021 Earnings Conference Call - Final Transcript

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Presentation
Executive
Tony Bowen

in our future.

Moving onto our dividend. We have continued our streak of paying quarterly dividends consecutively, since going public nearly six years ago. As we shared in the past, we evaluate our dividend after each fiscal year, which we did in June. This review resulted in us maintaining the dividend at its current level. To be abundantly clear, we have no plans to change our dividend payout level for the balance of this fiscal year. Our next evaluation of the dividend will be in June of next year. And while we cannot guarantee future dividend payments what the level of dividend would be at that time, we do have a goal of increasing the dividend over the long term, as evidenced by the 30% increase over the past five years.

Finally, turning to share repurchases. We have decided to resume our practice of repurchasing shares to offset dilution from equity grants. Consistent with prior practice, we will not discuss potential additional share repurchases other than mentioning it would be done opportunistically.

The last thing I'd like to discuss today is the agreement we reached with MetaBank to be the provider of our financial products, including Refund Transfer, Refund Advance, Emerald Advance and Emerald Card. MetaBank is a leader in providing financial solutions to consumers and has significant experience in the tax preparation industry. We worked with Meta in the past and know them to be an excellent partner. Both of our teams are hard at work to make the transition as seamless as possible for our clients. From a financial perspective, we expect this agreement to result in savings of $25 million to $30 million on a run rate basis. Though that number will be approximately $10 million lower in fiscal '21, as we're transitioning in mid-year and we will incur some one-time expenses.

In summary, we are off to a great start this fiscal year. We recently had a successful debt issuance and are excited to be partnering with Meta for years to come. I'm looking forward to sharing more with you regarding our expectations for fiscal year in December.

With that, I will now turn the call back over to Jeff.

Executive
Jeffrey J. Jones II

Thanks, Tony. Before concluding, I'd like to thank our associates, franchisees and tax pros for the agility and resilience they have demonstrated over the past several months. They truly make H&R Block a special place and are why we were able to accomplish so much during such a difficult time. We are now focusing on the future. And I'm looking forward to sharing an update with you in December.

With that, we'll open the line for questions. Operator?