Missouri-based tax preparation company H&R Block Inc. plans to close 400 smaller company-run offices this year, President and CEO Jeffrey Jones said during the company's earnings call June 12.
Jones said the decision will help the company optimize its footprint and enable it to more effectively manage its field operations.
"I think one of the factors that led to kind of that number this year was really focused on quality and consistency of execution in the offices and what's the right kind of span of control to think about our field organization to lead the different offices," Jones told analysts.
Jones added that H&R Block has a plan in place to migrate clients and tax professionals to adjacent offices.
CNN Money, citing a company spokesperson, reported June 13 that the company does not plan to cut any jobs as a result of the closures and that the offices to be shut down are within 5 miles of other H&R Block locations.
CFO Tony Bowen told analysts that most of the closures are expected to take place in the second quarter and that they could cost the company $15 million to $20 million for fiscal year 2019.
During the earnings call, the tax preparation company also provided its financial outlook for fiscal year 2019. It expects revenue to be between $3.05 billion and $3.1 billion, and the EBITDA margin to be between 24% and 26%.
The announcement comes the same day that the company declared a 4% increase in its quarterly dividend to 25 cents.