Block Cites Mortgage Ops in Earnings Surge

H&R Block Inc., Kansas City, Mo., has reported that its mortgage operations contributed to a doubling of earnings to $78.9 million in the fiscal first quarter ended July 31 from $39.2 million a year ago.The company reduced its net loss from continuing operations by 20.4% to $27.7 million. "Our mortgage operations, particularly Option One Mortgage Corporation, and an increase in our investment income take credit for the dramatic improvement in our first quarter results," said Frank L. Salizzoni, H&R Block's president and chief executive officer. Mortgage operations, which also include H&R Block Mortgage Co., reported revenues of $52.7 million for the first quarter, up from $14.2 million a year ago, and pretax earnings totaled $13.8 million, compared with a pretax loss of $491,000 a year ago. Option One, which was acquired June 17, 1997, reported revenues of $44.3 million for the quarter, compared with $9.1 million for only half of the previous year's quarter. H&R Block's website address is http://www.hrblock.com.