H&R Block Reports FY24 Results; Announces 17% Dividend Increase, & $1.5B Share Repurchase Authorization
H&R Block (NYSE: HRB) reported strong financial results for fiscal year 2024, with revenue increasing 4% to $3.6 billion and earnings per share from continuing operations rising 16% to $4.14. The company announced a 17% increase in its quarterly dividend to $0.375 per share and a new $1.5 billion share repurchase authorization.
Key highlights include:
- Repurchased $350 million of shares in FY24, reducing outstanding shares by 5.5%
- FY25 outlook projects continued revenue growth and improved EBITDA and earnings per share
- Effective tax rate for FY25 expected to be approximately 13%, positively impacting EPS by about $0.50
The company's strong performance and shareholder-friendly actions reflect confidence in its strategy and future prospects.
H&R Block (NYSE: HRB) ha riportato risultati finanziari solidi per l'anno fiscale 2024, con un aumento del fatturato del 4% a 3,6 miliardi di dollari e un incremento del 16% degli utili per azione dalle operazioni continuative, che sono saliti a 4,14 dollari. L'azienda ha annunciato un aumento del 17% del dividendo trimestrale a 0,375 dollari per azione e una nuova autorizzazione per il riacquisto di azioni da 1,5 miliardi di dollari.
I punti salienti includono:
- Riacquistati 350 milioni di dollari di azioni nell'anno fiscale 2024, riducendo le azioni in circolazione del 5,5%
- Le previsioni per l'anno fiscale 2025 indicano una continua crescita del fatturato e un miglioramento dell'EBITDA e degli utili per azione
- Il tasso d'imposta effettivo per l'anno fiscale 2025 è previsto intorno al 13%, influenzando positivamente l'EPS di circa 0,50 dollari
Le solide performance dell'azienda e le azioni a favore degli azionisti riflettono fiducia nella propria strategia e nelle prospettive future.
H&R Block (NYSE: HRB) reportó resultados financieros sólidos para el año fiscal 2024, con ingresos que aumentaron un 4% a 3.6 mil millones de dólares y ganancias por acción de las operaciones continuas que subieron un 16% a 4.14 dólares. La empresa anunció un aumento del 17% en su dividendo trimestral a 0.375 dólares por acción y una nueva autorización de recompra de acciones de 1.5 mil millones de dólares.
Los puntos destacados incluyen:
- Recomprados 350 millones de dólares en acciones en el año fiscal 2024, reduciendo las acciones en circulación en un 5.5%
- Las proyecciones para el año fiscal 2025 indican un crecimiento continuo en los ingresos y una mejora en el EBITDA y en las ganancias por acción
- Se espera que la tasa impositiva efectiva para el año fiscal 2025 sea aproximadamente del 13%, impactando positivamente el EPS en alrededor de 0.50 dólares
El sólido rendimiento de la empresa y las acciones favorables a los accionistas reflejan confianza en su estrategia y en las perspectivas futuras.
H&R Block (NYSE: HRB)는 2024 회계연도에 강력한 재무 결과를 보고했으며, 매출이 4% 증가하여 36억 달러에 달하고 계속 운영에서의 주당 순이익이 16% 상승하여 4.14달러가 되었습니다. 회사는 분기 배당금을 주당 0.375달러로 17% 인상하고, 15억 달러의 자사주 매입 승인을 발표했습니다.
주요 하이라이트는 다음과 같습니다:
- 회계연도 2024에 3억 5천만 달러의 주식을 재매입하여 유통 주식을 5.5% 감소시킴
- 회계연도 2025 전망은 매출 증가와 EBITDA 및 주당 순이익 개선을 예측하고 있음
- 회계연도 2025에 대한 유효 세율은 약 13%로 예상되며, 주당 순이익에 약 0.50달러 긍정적인 영향을 미침
회사의 강력한 성과와 주주 친화적인 행동은 전략과 미래 전망에 대한 신뢰를 반영합니다.
H&R Block (NYSE: HRB) a annoncé de solides résultats financiers pour l'exercice 2024, avec un chiffre d'affaires en hausse de 4% à 3,6 milliards de dollars et un bénéfice par action des opérations continues en hausse de 16% à 4,14 dollars. L'entreprise a annoncé une augmentation de 17% de son dividende trimestriel à 0,375 dollar par action et une nouvelle autorisation de rachat d'actions de 1,5 milliard de dollars.
Les faits saillants incluent :
- Rachat de 350 millions de dollars d'actions pour l'exercice 2024, réduisant le nombre d'actions en circulation de 5,5%
- Les prévisions pour l'exercice 2025 projettent une croissance continue du chiffre d'affaires ainsi qu'une amélioration de l'EBITDA et des bénéfices par action
- Le taux d'imposition effectif pour l'exercice 2025 devrait être d'environ 13%, ayant un impact positif sur le BPA d'environ 0,50 dollar
La solide performance de l'entreprise et les actions en faveur des actionnaires reflètent la confiance dans sa stratégie et ses perspectives futures.
H&R Block (NYSE: HRB) berichtete über starke finanzielle Ergebnisse für das Geschäftsjahr 2024, mit einem Umsatzanstieg von 4% auf 3,6 Milliarden Dollar und einem Anstieg des Ergebnisses pro Aktie aus fortgeführten Aktivitäten um 16% auf 4,14 Dollar. Das Unternehmen gab eine 17%ige Erhöhung seiner vierteljährlichen Dividende auf 0,375 Dollar pro Aktie bekannt und genehmigte ein neues Aktienrückkaufprogramm über 1,5 Milliarden Dollar.
Wichtige Highlights sind:
- Rückkauf von Aktien im Wert von 350 Millionen Dollar im Geschäftsjahr 2024, wodurch die ausstehenden Aktien um 5,5% reduziert wurden
- Die Prognosen für das Geschäftsjahr 2025 zeigen ein fortgesetztes Umsatzwachstum sowie verbesserte EBITDA und Ergebnisse pro Aktie
- Der effektive Steuersatz für das Geschäftsjahr 2025 wird voraussichtlich bei etwa 13% liegen, wodurch sich das EPS um etwa 0,50 Dollar positiv auswirkt
Die starke Leistung des Unternehmens und aktionärsfreundliche Maßnahmen spiegeln das Vertrauen in die eigene Strategie und die zukünftigen Perspektiven wider.
- Revenue increased 4% to $3.6 billion in FY24
- Earnings per share from continuing operations grew 16% to $4.14
- Announced a 17% increase in quarterly dividend to $0.375 per share
- New $1.5 billion share repurchase authorization approved
- Repurchased $350 million of shares in FY24, reducing outstanding shares by 5.5%
- FY25 outlook projects continued revenue growth and improved EBITDA and earnings per share
- Expected effective tax rate of 13% for FY25, positively impacting EPS by about $0.50
- Lower Emerald Card activity in the current year partially offset revenue growth
Insights
H&R Block's FY24 results showcase robust financial performance. The 4% revenue growth to
The company's ability to grow revenue while controlling costs (3% increase in operating expenses) led to improved profitability. The 7.2% increase in pretax income to
Investors should note the company's strong capital return policy, having returned over
H&R Block's performance indicates resilience in the tax preparation market despite increasing competition from DIY software. The higher net average charge and increased company-owned volumes in the Assisted category suggest that customers still value professional tax services. The growth in online paid returns at a higher net average charge in DIY also points to successful digital transformation efforts.
The company's strategy of diversifying revenue streams beyond tax preparation seems to be paying off, although the lower Emerald Card® activity suggests potential challenges in the financial products segment. The continued investment in share repurchases (5.5% of outstanding shares bought back in FY24) could help support the stock price and improve per-share metrics.
The FY25 guidance, projecting revenue of
KANSAS CITY, Mo., Aug. 15, 2024 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released its financial results1 for the fiscal year ended June 30, 2024.
- H&R Block reported full year revenue of
$3.6 billion (4% increase) and earnings per share from continuing operations2 of$4.14 (16% increase) - In FY24, the Company repurchased
$350 million , or another5.5% , of shares outstanding at an average price of$43.66 - The Company announced a
17% increase in its quarterly dividend to$0.37 5 per share - The Company announced a new share repurchase authorization of
$1.5 billion , which replaces the prior authorization - The FY25 outlook guides to another year of revenue growth, EBITDA that outpaces revenue, and earnings per share that grows even faster
"In fiscal 2024 we made strides across our different products and services that provide value to our clients and help enable their financial confidence," said Jeff Jones H&R Block's president and chief executive officer. "We continue to make progress, gain new insight, and translate this client success into value for shareholders, and are well positioned to build on this momentum in fiscal 2025 and beyond."
Fiscal 2024 Results from Continuing Operations and Key Financial Metrics
"I am pleased with our financial performance in 2024 resulting in another year of strong free cash flow and capital allocation," said Tony Bowen, H&R Block's chief financial officer. "In addition, today's announcement of a
| Year Ended June 30, | ||||||||
| (in millions, except EPS) | 2024 | 2023 | ||||||
| Revenue | $ | 3,610 | $ | 3,472 | ||||
| Pretax Income | $ | 762 | $ | 711 | ||||
| Net Income | $ | 598 | $ | 562 | ||||
| Weighted-Avg. Shares - Diluted | 143.9 | 157.2 | ||||||
| EPS2 | $ | 4.14 | $ | 3.56 | ||||
| Adjusted EPS2 | $ | 4.41 | $ | 3.82 | ||||
| EBITDA2 | $ | 963 | $ | 915 | ||||
- Total revenue of
$3.6 billion increased by$138.2 million , or4.0% , primarily due to a higher net average charge and company-owned volumes in the Assisted category combined with greater online paid returns at a higher net average charge in DIY, partially offset by lower Emerald Card® activity in the current year. - Total operating expenses of
$2.8 billion increased by$81.6 million , or3.0% , primarily due to higher labor costs and bad debt expense, partially offset by lower consulting and outsourced services. - Pretax income of
$762.3 million increased by$51.1 million , or7.2% , primarily due to higher revenues in the current year. - Earnings per share from continuing operations2 of
$4.14 increased by$0.58 , or16.3% ; adjusted earnings per share from continuing operations2 of$4.41 increased by$0.59 , or15.4% .
Capital Structure
The Company reported the following related to its capital structure:
- In fiscal year 2024, the Company repurchased and retired approximately 8.0 million shares, or
5.5% of shares outstanding, at an aggregate price of$350 million , or$43.66 per share. - The Company announced today that the Board of Directors approved a new share repurchase authorization of
$1.5 billion , which replaces the prior authorization. - The Company also announced today that the Board of Directors increased the quarterly dividend by
17% , representing the seventh increase in seven years. The quarterly cash dividend is now$0.37 5 per share, payable on October 3, 2024 to shareholders of record as of September 5, 2024.
H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. Since 2016, the Company has returned more than
FY25 Outlook
For fiscal year 2025, the Company expects:
- Revenue to be in the range of
$3.69 t o$3.75 billion . - EBITDA3 to be in the range of
$975 million to$1.02 billion . - Effective tax rate to be approximately
13% . The tax rate is positively impacted due to the anticipated closure of various matters under examination and the expiration of statute of limitations. We expect this to contribute approximately 50 cents to EPS. - Adjusted Diluted Earnings Per Share3 to be in the range of
$5.15 t o$5.35 .
Conference Call & Webcast
A conference call for analysts, institutional investors, and shareholders will be held at 4:30 p.m. Eastern time on Thursday, August 15, 2024. During the conference call the Company will discuss fiscal 2024 results, outlook, and give a general business update. To join live, participants must register at https://register.vevent.com/register/BIde20112dcb6f48afb47e1f4828d62d83. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.
The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/yzzds4pa and will be available for replay 2 hours after the call is concluded and continuing for 90 days.
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.
About Non-GAAP Financial Information
This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company's control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
1 All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
2 All per share amounts are based on continuing operations and fully diluted shares at the end of the corresponding period. The company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, free cash flow, and free cash flow yield, which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the company. See "About Non-GAAP Financial Information" below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
3 Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.
For Further Information
| Investor Relations: | Michaella Gallina, (816) 854-3022, michaella.gallina@hrblock.com | |
| Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com | ||
| Media Relations: | Teri Daley, (816) 854-3787, teri.daley@hrblock.com | |
| FINANCIAL RESULTS | (unaudited, in 000s - except per share amounts) | |||||||||||||||
| Three months ended June 30, | Year ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| REVENUES: | ||||||||||||||||
| U.S. tax preparation and related services: | ||||||||||||||||
| Assisted tax preparation | $ | 652,405 | $ | 636,561 | $ | 2,274,835 | $ | 2,167,138 | ||||||||
| Royalties | 51,732 | 49,294 | 204,802 | 210,631 | ||||||||||||
| DIY tax preparation | 134,283 | 132,428 | 349,812 | 314,758 | ||||||||||||
| Refund Transfers | 21,357 | 23,100 | 142,249 | 143,310 | ||||||||||||
| Peace of Mind® Extended Service Plan | 33,987 | 36,341 | 93,087 | 95,181 | ||||||||||||
| Tax Identity Shield® | 16,576 | 19,028 | 33,386 | 38,265 | ||||||||||||
| Other | 18,918 | 16,407 | 51,555 | 45,252 | ||||||||||||
| Total U.S. tax preparation and related services | 929,258 | 913,159 | 3,149,726 | 3,014,535 | ||||||||||||
| Financial services: | ||||||||||||||||
| Emerald Card® and SpruceSM | 14,600 | 16,203 | 76,093 | 84,651 | ||||||||||||
| Interest and fee income on Emerald Advance® | 4,231 | 287 | 40,933 | 47,554 | ||||||||||||
| Total financial services | 18,831 | 16,490 | 117,026 | 132,205 | ||||||||||||
| International | 88,725 | 78,834 | 247,123 | 235,131 | ||||||||||||
| Wave | 25,816 | 23,663 | 96,472 | 90,314 | ||||||||||||
| Total revenues | $ | 1,062,630 | $ | 1,032,146 | $ | 3,610,347 | $ | 3,472,185 | ||||||||
| Compensation and benefits: | ||||||||||||||||
| Field wages | 218,473 | 223,086 | 869,002 | 841,742 | ||||||||||||
| Other wages | 76,694 | 66,064 | 298,819 | 273,850 | ||||||||||||
| Benefits and other compensation | 57,759 | 51,053 | 228,723 | 220,530 | ||||||||||||
| 352,926 | 340,203 | 1,396,544 | 1,336,122 | |||||||||||||
| Occupancy | 112,618 | 111,293 | 432,461 | 428,167 | ||||||||||||
| Marketing and advertising | 66,612 | 49,956 | 277,747 | 286,255 | ||||||||||||
| Depreciation and amortization | 30,780 | 31,841 | 121,784 | 130,501 | ||||||||||||
| Bad debt | 23,963 | 3,383 | 91,523 | 60,401 | ||||||||||||
| Other | 124,900 | 118,960 | 485,011 | 482,041 | ||||||||||||
| Total operating expenses | 711,799 | 655,636 | 2,805,070 | 2,723,487 | ||||||||||||
| Other income (expense), net | 15,143 | 14,472 | 36,125 | 35,492 | ||||||||||||
| Interest expense on borrowings | (15,776 | ) | (15,871 | ) | (79,080 | ) | (72,978 | ) | ||||||||
| Income from continuing operations before income taxes | 350,198 | 375,111 | 762,322 | 711,212 | ||||||||||||
| Income taxes | 91,832 | 71,158 | 164,359 | 149,412 | ||||||||||||
| Net income from continuing operations | 258,366 | 303,953 | 597,963 | 561,800 | ||||||||||||
| Net loss from discontinued operations | (549 | ) | (1,682 | ) | (2,646 | ) | (8,100 | ) | ||||||||
| Net income | $ | 257,817 | $ | 302,271 | $ | 595,317 | $ | 553,700 | ||||||||
| DILUTED EARNINGS PER SHARE: | ||||||||||||||||
| Continuing operations | $ | 1.82 | $ | 1.97 | $ | 4.14 | $ | 3.56 | ||||||||
| Discontinued operations | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.05 | ) | ||||||||
| Consolidated | $ | 1.81 | $ | 1.96 | $ | 4.12 | $ | 3.51 | ||||||||
| WEIGHTED AVERAGE DILUTED SHARES | 141,761 | 153,512 | 143,890 | 157,248 | ||||||||||||
| Adjusted diluted EPS(1) | $ | 1.89 | $ | 2.05 | $ | 4.41 | $ | 3.82 | ||||||||
| EBITDA(1) | $ | 396,754 | $ | 422,823 | $ | 963,186 | $ | 914,691 | ||||||||
(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures.
| CONSOLIDATED BALANCE SHEETS | (unaudited, in 000s - except per share data) | |||||||
| As of June 30, | 2024 | 2023 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 1,053,326 | $ | 986,975 | ||||
| Cash and cash equivalents - restricted | 21,867 | 28,341 | ||||||
| Receivables, net | 69,075 | 59,987 | ||||||
| Prepaid expenses and other current assets | 95,208 | 112,183 | ||||||
| Total current assets | 1,239,476 | 1,187,486 | ||||||
| Property and equipment, net | 131,319 | 130,015 | ||||||
| Operating lease right of use asset | 461,986 | 438,299 | ||||||
| Intangible assets, net | 264,102 | 277,043 | ||||||
| Goodwill | 785,226 | 775,453 | ||||||
| Deferred tax assets and income taxes receivable | 271,658 | 211,391 | ||||||
| Other noncurrent assets | 65,043 | 52,571 | ||||||
| Total assets | $ | 3,218,810 | $ | 3,072,258 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| LIABILITIES: | ||||||||
| Accounts payable and accrued expenses | $ | 155,830 | $ | 159,901 | ||||
| Accrued salaries, wages and payroll taxes | 105,548 | 95,154 | ||||||
| Accrued income taxes and reserves for uncertain tax positions | 318,830 | 271,800 | ||||||
| Operating lease liabilities | 206,070 | 205,391 | ||||||
| Deferred revenue and other current liabilities | 191,050 | 206,536 | ||||||
| Total current liabilities | 977,328 | 938,782 | ||||||
| Long-term debt | 1,491,095 | 1,488,974 | ||||||
| Deferred tax liabilities and reserves for uncertain tax positions | 291,063 | 264,567 | ||||||
| Operating lease liabilities | 265,373 | 240,543 | ||||||
| Deferred revenue and other noncurrent liabilities | 103,357 | 107,328 | ||||||
| Total liabilities | 3,128,216 | 3,040,194 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock, no par, stated value $.01 per share | 1,709 | 1,789 | ||||||
| Additional paid-in capital | 762,583 | 770,376 | ||||||
| Accumulated other comprehensive loss | (48,845 | ) | (37,099 | ) | ||||
| Retained earnings (deficit) | 12,654 | (48,677 | ) | |||||
| Less treasury shares, at cost | (637,507 | ) | (654,325 | ) | ||||
| Total stockholders' equity | 90,594 | 32,064 | ||||||
| Total liabilities and stockholders' equity | $ | 3,218,810 | $ | 3,072,258 | ||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | (unaudited, in 000s) | |||||||
| Year ended June 30, | 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 595,317 | $ | 553,700 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 121,784 | 130,501 | ||||||
| Provision for credit losses | 82,567 | 52,290 | ||||||
| Deferred taxes | (40,940 | ) | 49,579 | |||||
| Stock-based compensation | 34,277 | 31,326 | ||||||
| Changes in assets and liabilities, net of acquisitions: | ||||||||
| Receivables | (108,394 | ) | (57,244 | ) | ||||
| Prepaid expenses and other current and noncurrent assets | (7,287 | ) | (7,011 | ) | ||||
| Accounts payable, accrued expenses, salaries, wages and payroll taxes | (4,662 | ) | (67,627 | ) | ||||
| Deferred revenue, other current and noncurrent liabilities | (28,507 | ) | (4,773 | ) | ||||
| Income tax receivables, accrued income taxes and income tax reserves | 75,444 | 144,164 | ||||||
| Other, net | 1,261 | (3,064 | ) | |||||
| Net cash provided by operating activities | 720,860 | 821,841 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (63,678 | ) | (69,698 | ) | ||||
| Payments made for business acquisitions, net of cash acquired | (43,358 | ) | (48,246 | ) | ||||
| Franchise loans funded | (18,891 | ) | (21,633 | ) | ||||
| Payments from franchisees | 24,926 | 27,350 | ||||||
| Other, net | 7,143 | 10,838 | ||||||
| Net cash used in investing activities | (93,858 | ) | (101,389 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayments of line of credit borrowings | (1,025,000 | ) | (970,000 | ) | ||||
| Proceeds from line of credit borrowings | 1,025,000 | 970,000 | ||||||
| Dividends paid | (179,775 | ) | (177,925 | ) | ||||
| Repurchase of common stock, including shares surrendered | (379,569 | ) | (568,952 | ) | ||||
| Other, net | (4,967 | ) | (4,115 | ) | ||||
| Net cash used in financing activities | (564,311 | ) | (750,992 | ) | ||||
| Effects of exchange rate changes on cash | (2,814 | ) | (4,857 | ) | ||||
| Net increase (decrease) in cash and cash equivalents, including restricted balances | 59,877 | (35,397 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of the year | 1,015,316 | 1,050,713 | ||||||
| Cash, cash equivalents and restricted cash, end of the year | $ | 1,075,193 | $ | 1,015,316 | ||||
| SUPPLEMENTARY CASH FLOW DATA: | ||||||||
| Income taxes paid (received), net | $ | 131,173 | $ | (45,539 | ) | |||
| Interest paid on borrowings | 75,694 | 69,554 | ||||||
| Accrued additions to property and equipment | 3,052 | 2,238 | ||||||
| Accrued dividends payable to common shareholders | 44,653 | 42,953 | ||||||
| (in 000s) | ||||||||||||||||
| Three months ended June 30, | Year ended June 30, | |||||||||||||||
| NON-GAAP FINANCIAL MEASURE - EBITDA | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income - as reported | $ | 257,817 | $ | 302,271 | $ | 595,317 | $ | 553,700 | ||||||||
| Discontinued operations, net | 549 | 1,682 | 2,646 | 8,100 | ||||||||||||
| Net income from continuing operations - as reported | 258,366 | 303,953 | 597,963 | 561,800 | ||||||||||||
| Add back: | ||||||||||||||||
| Income taxes | 91,832 | 71,158 | 164,359 | 149,412 | ||||||||||||
| Interest expense | 15,776 | 15,871 | 79,080 | 72,978 | ||||||||||||
| Depreciation and amortization | 30,780 | 31,841 | 121,784 | 130,501 | ||||||||||||
| 138,388 | 118,870 | 365,223 | 352,891 | |||||||||||||
| EBITDA from continuing operations | $ | 396,754 | $ | 422,823 | $ | 963,186 | $ | 914,691 | ||||||||
| (in 000s, except per share amounts) | ||||||||||||||||
| Three months ended June 30, | Year ended June 30, | |||||||||||||||
| NON-GAAP FINANCIAL MEASURE - ADJUSTED EPS | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income from continuing operations - as reported | $ | 258,366 | $ | 303,953 | $ | 597,963 | $ | 561,800 | ||||||||
| Adjustments: | ||||||||||||||||
| Amortization of intangibles related to acquisitions (pretax) | 13,142 | 12,865 | 50,835 | 51,411 | ||||||||||||
| Tax effect of adjustments(1) | (2,936 | ) | (1,599 | ) | (11,751 | ) | (10,797 | ) | ||||||||
| Adjusted net income from continuing operations | $ | 268,572 | $ | 315,219 | $ | 637,047 | $ | 602,414 | ||||||||
| Diluted earnings per share from continuing operations - as reported | $ | 1.82 | $ | 1.97 | $ | 4.14 | $ | 3.56 | ||||||||
| Adjustments, net of tax | 0.07 | 0.08 | 0.27 | 0.26 | ||||||||||||
| Adjusted diluted earnings per share from continuing operations | $ | 1.89 | $ | 2.05 | $ | 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.
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 from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.
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