WASHINGTON (dpa-AFX) - H&R Block, Inc. (HRB) announced that as part of its strategic realignment, it plans to eliminate approximately 350 full-time positions throughout its Kansas City headquarters and nationwide field organization. The company said it also will streamline its seasonal workforce and close approximately 200 underperforming company-owned offices.
As part of the strategic realignment, the company said it is offering a voluntary separation program to eligible employees throughout the organization. Overall, the company expects to realize net annualized savings of $85 million to $100 million by the end of fiscal year 2013 as a result of the strategic realignment.
The company also announced an organizational realignment, including the formation of U.S. Client Services.
Phil Mazzini, President of Retail Tax Services, has resigned from the company effective April 30, 2012.
The company also announced it has retained Crist|Kolder Associates to lead the search for a new Chief Financial Officer. The company's current CFO, Jeff Brown, will remain with the company and continue to serve as CFO during the search for a successor. Once a successor is found, Brown will transition to Chief Accounting and Risk Officer, where he will oversee all aspects of the company's accounting function and coordinate its enterprise risk management approach.
The company expects to incur a pretax charge for lease termination, severance and related costs of approximately $30 million, or $0.06 per share, which will be recorded in the fiscal fourth quarter ending April 30.
The company expects fiscal 2012 total revenues of approximately $2.9 billion and GAAP earnings from continuing operations of $1.09 to $1.15 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $1.39 per share on revenues of $3.00 billion for fiscal 2012. Analysts' estimates typically exclude special items.
In a separate press release, H&R Block reported that total U.S. tax returns prepared fiscal year-to-date through April 18 reached a record 22.2 million, up 4.5 percent compared to the prior year period.
Total digital tax returns prepared increased 12.3 percent fiscal-year-to-date through April 18, led by online unit growth of more than 20 percent. Total U.S. retail returns prepared grew 1.0 percent, while aggregate net U.S. retail tax preparation fees grew 1.1 percent for the comparable period.
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