<div><div class="yn-story-content">
                <p>NEW YORK – H&amp;R Block Inc. on Wednesday posted a net loss for its fiscal third quarter, but offered positive data on the first part of tax season.</p>
                <p>Through February, the Kansas City, Mo.-based company said it prepared 6 percent more tax returns than a year ago. Total digital returns gained 13 percent, with online returns leaping 30 percent, a positive sign for Block, which has lagged the competition for do-it-yourself customers in recent years.</p>
                <p>The positive data helped to offset Block's third-quarter results.</p>
                <p>For the three months ended Jan. 31, the nation's largest tax preparer said its net loss was $12.7 million, or 4 cent per share, reversing a year-ago profit of $50.6 million, or 15 cents per share.</p>
                <p>Adjusted for various one-time items, third-quarter profit was 14 cents per share.</p>
                <p>Revenue fell 9 percent to $851.5 million, from $934.9 million last year. Block said it deferred $19.7 million in revenue to the fourth quarter because of a delay in processing certain returns by the Internal Revenue Service.</p>
                <p>Analysts, on average, were expecting adjusted profit of 4 cents per share, on revenue of $871.5 million.</p>
                <p>The positive data sent shares up in aftermarket trading, gaining $1.12, or 7.4 percent, to $16.38.</p>
                <p>The company said that after a slow start to the tax season, total returns prepared in its retail stores rose 3.2 percent through Feb. 28. Those gains came despite not being able to offer refund anticipation loans, short-term loans backed by refunds that are popular with low-income customers who often file very early in the season.</p>
                <p>"Despite the competitive disadvantage of not being able to offer RALs, we believe we gained share in both retail and online within the highly competitive early-season," said President and CEO Alan Bennett in a statement.</p>
                <p>The online gains reflected increased website traffic and a higher number of visitors deciding to use Block's online software. The company did see a 1 percent decline in use of its desktop software product.</p>
                <p>One item that may concern investors was a 7.1 percent drop in the net average charge per return filed at retail stores through the end of February. The company said the decline was due to its offer to file early 1040EZ forms at no charge, and the IRS delay that prevented filing of more complex, and therefore more expensive, returns until Feb. 14.</p>
                <p>Block said it expects the net average charge to rise through the rest of the season but end the season down 2 to 4 percent because of the free 1040EZ promotion.</p>
                <p>It also expects slower growth through the rest of the season because the promotion is over. By the end of the season, retail returns are expected to increase between a half percent and 1.5 percent.</p>
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