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Published: 2021-08-09 16:14:35 ET
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EX-99.1 2 restatedfinancialsex991.htm EX-99.1 Document
 Exhibit 99.1

                                                    

Introductory Note
On June 9, 2021, the Board of Directors approved a change of the Company's fiscal year end from April 30 to June 30. As a result, the Company's 2022 fiscal year began on July 1, 2021 and will end on June 30, 2022. The change to the fiscal year end had no impact on the Company’s historical consolidated financial position, results of operations, or cash flows. In order to aid in comparability to historical financial data, the Company has recast select unaudited historical financial information and metrics on the basis of a June 30 fiscal year end in the following table. Actual results for the comparable periods in the Company's 2022 fiscal year could differ materially from those experienced in the prior year periods reflected below.
SELECT RECAST FINANCIAL RESULTS(Unaudited) (in 000's except per share amounts)
September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Three Months EndedThree Months EndedThree Months EndedThree Months EndedTwelve Months Ended
REVENUES:
U.S. assisted tax preparation$207,167 $34,020 $1,290,892 $608,331 $2,140,410 
U.S. royalties22,652 5,357 150,117 60,503 238,629 
U.S. DIY tax preparation47,463 6,114 181,294 132,418 367,289 
International58,776 26,637 62,869 81,125 229,407 
Refund Transfers6,113 397 134,799 31,047 172,356 
Emerald Card®12,436 9,962 73,647 48,050 144,095 
Peace of Mind® Extended Service Plan27,192 18,570 17,668 34,421 97,851 
Tax Identity Shield®8,994 4,809 8,643 18,553 40,999 
Interest and fee income on Emerald AdvanceSM
526 14,039 38,247 429 53,241 
Wave13,737 14,837 16,082 18,478 63,134 
Other12,290 7,223 9,306 12,415 41,234 
Total revenues417,346 141,965 1,983,564 1,045,770 3,588,645 
Compensation and benefits:
Field wages92,545 66,307 409,741 243,530 812,123 
Other wages63,068 63,568 78,181 75,487 280,304 
Benefits and other compensation33,805 27,650 92,825 57,102 211,382 
Total compensation and benefits189,418 157,525 580,747 376,119 1,303,809 
Occupancy96,850 99,029 113,759 103,862 413,500 
Marketing and advertising15,492 15,490 183,109 50,654 264,745 
Depreciation and amortization38,237 39,699 39,100 37,782 154,818 
Bad debt520 16,570 46,066 19,197 82,353 
Other77,582 93,200 169,546 137,457 477,785 
Total operating expenses418,099 421,513 1,132,327 725,071 2,697,010 
Other income (expense), net2,504 538 449 1,498 4,989 
Interest expense on borrowings(34,697)(21,489)(22,471)(20,834)(99,491)
Pretax income (loss)(32,946)(300,499)829,215 301,363 797,133 
Income taxes (benefit)27,964 (46,510)69,543 55,678 106,675 
Net income (loss) from continuing operations(60,910)(253,989)759,672 245,685 690,458 
Net loss from discontinued operations(1,346)(1,762)(1,425)(1,976)(6,509)
Net income (loss)$(62,256)$(255,751)$758,247 $243,709 $683,949 
DILUTED EARNINGS (LOSS) PER SHARE:
Continuing operations$(0.32)$(1.38)$4.09 $1.32 $3.67 
Discontinued operations— (0.01)(0.01)(0.01)(0.03)
Consolidated$(0.32)$(1.39)$4.08 $1.31 $3.64 
WEIGHTED AVERAGE DILUTED SHARES192,314 183,883 184,905 184,849 187,316 
Adjusted Diluted EPS(1)
$(0.24)$(1.28)$4.11 $1.39 $3.94 
EBITDA from continuing operations (1)
39,988 (239,311)890,786 359,979 1,051,442 
(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Measures" for a reconciliation of non-GAAP measures.



Select Recast Non-GAAP Financial Measures
(Unaudited) (in 000's)
NON-GAAP FINANCIAL MEASURE - EBITDA
September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Three Months EndedThree Months EndedThree Months EndedThree Months EndedTwelve Months Ended
Net income (loss) - as reported$(62,256)$(255,751)$758,247 $243,709 $683,949 
Discontinued operations, net(1,346)(1,762)(1,425)(1,976)(6,509)
Net income (loss) from continuing operations - as reported(60,910)(253,989)759,672 245,685 690,458 
Add back:
Income taxes (benefit)27,964 (46,510)69,543 55,678 106,675 
Interest expense34,697 21,489 22,471 20,834 99,491 
Depreciation and amortization38,237 39,699 39,100 37,782 154,818 
100,898 14,678 131,114 114,294 360,984 
EBITDA from continuing operations$39,988 $(239,311)$890,786 $359,979 $1,051,442 

(Unaudited) (in 000s, except per share amounts)
NON-GAAP FINANCIAL MEASURE - ADJUSTED EPS
September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Three Months EndedThree Months EndedThree Months EndedThree Months EndedTwelve Months Ended
Net income (loss) from continuing operations - as reported$(60,910)$(253,989)$759,672 $245,685 $690,458 
Adjustments:
Amortization of intangibles related to acquisitions (pretax)17,638 16,531 16,229 15,848 66,246 
Tax effect of adjustments(1)
(1,854)2,086 (11,699)(3,648)(15,115)
Adjusted net income (loss) from continuing operations$(45,126)$(235,372)$764,202 $257,885 $741,589 
Diluted earnings (loss) per share from continuing operations - as reported$(0.32)$(1.38)$4.09 $1.32 $3.67 
Adjustments, net of tax0.08 0.10 0.02 0.07 0.27 
Adjusted diluted earnings (loss) per share from continuing operations$(0.24)$(1.28)$4.11 $1.39 $3.94 
(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, EBITDA margin from continuing operations, adjusted EBITDA margin from continuing operations, adjusted diluted earnings per share from continuing operations and free cash flow. 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.