H&R Block still doesn't know if it will have a refund loan program next year, the company told analysts as it reported results for the second quarter ended October 30. However, the tax preparation and business services company says it might offer a program via which taxpayers receive advances on refunds, minus tax preparation fees. Meanwhile the company remains in negotiations with HSBC, the bank that has funded its RAL program.Block has sued HSBC alleging that the institution is violating a contract under which it funds the refund loans by not taking steps necessary to ensure Block can offer a program. CEO Alan Bennett said the two parties are still talking. And he acknowledged that Block might be unable to offer RALs during the 2011 tax season.
Meanwhile, the company reported a loss of $109,049 for the most recently ended period, down from $128,587 a year earlier. Block normally loses money during the second quarter. It reported $322.9 million in revenue, down 1 percent from $326.8 million a year earlier. Tax revenue rose to $110.9 million from $109.3 million a year earlier. However, McGladrey revenue fell to $203.4 million, a decline from $206.6 million in last year's corresponding period.
