Regis Corporation Reports Continued Profitability for the Third Fiscal Quarter 2024
Financial Highlights:
Third quarter fiscal 2024 compared to third quarter fiscal 2023:
-
System-wide revenue of
$286.8 million declined$12.5 million from$299.3 million and system-wide same-store sales improved 0.5%; -
Operating income of
$4.1 million improved$2.1 million from$2.0 million in the 2023 third quarter; -
Franchise adjusted EBITDA of
$5.8 million improved$1.0 million from$4.8 million in the 2023 third quarter; -
Net loss from continuing operations of
$2.4 million increased$0.2 million from a net loss of$2.2 million in the 2023 third quarter; -
Net loss of
$2.3 million increased$0.7 million from a net loss of$1.6 million in the 2023 third quarter; and -
Adjusted EBITDA of
$5.0 million improved$0.8 million from$4.2 million in the 2023 third quarter.
Fiscal year-to-date 2024 compared to year-to-date fiscal 2023:
-
System-wide revenue of
$885.4 million declined$33.3 million from$918.7 million and system-wide same-store sales improved 1.4%; -
Operating income of
$16.3 million improved$11.1 million from$5.2 million in the 2023 fiscal year; -
Franchise adjusted EBITDA of
$20.1 million improved$2.8 million from$17.3 million in the 2023 fiscal year; -
Net loss from continuing operations of
$2.2 million improved$4.3 million from a net loss of$6.5 million in the 2023 fiscal year; -
Net loss of
$0.1 million improved$2.5 million from a net loss of$2.6 million in the 2023 fiscal year; and -
Adjusted EBITDA of
$18.5 million improved$2.7 million from$15.8 million in the 2023 fiscal year.
Third Quarter Fiscal Year 2024 Consolidated Results |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(Dollars in millions, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated revenue |
|
$ |
49.2 |
|
|
$ |
55.8 |
|
|
$ |
153.6 |
|
|
$ |
177.6 |
|
System-wide revenue (1) |
|
|
286.8 |
|
|
|
299.3 |
|
|
|
885.4 |
|
|
|
918.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
System-wide same-store sales comps |
|
|
0.5 |
% |
|
|
6.0 |
% |
|
|
1.4 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
4.1 |
|
|
$ |
2.0 |
|
|
$ |
16.3 |
|
|
$ |
5.2 |
|
Loss from continuing operations |
|
|
(2.4 |
) |
|
|
(2.2 |
) |
|
|
(2.2 |
) |
|
|
(6.5 |
) |
Diluted loss per share from continuing operations |
|
|
(1.03 |
) |
|
|
(0.93 |
) |
|
|
(0.95 |
) |
|
|
(2.83 |
) |
Income from discontinued operations |
|
|
0.1 |
|
|
|
0.5 |
|
|
|
2.1 |
|
|
|
4.0 |
|
Net loss |
|
|
(2.3 |
) |
|
|
(1.6 |
) |
|
|
(0.1 |
) |
|
|
(2.6 |
) |
Diluted net loss per share |
|
|
(1.00 |
) |
|
|
(0.71 |
) |
|
|
(0.06 |
) |
|
|
(1.12 |
) |
Adjusted EBITDA (2) |
|
|
5.0 |
|
|
|
4.2 |
|
|
|
18.5 |
|
|
|
15.8 |
|
_______________________________________________________________________________ |
|
(1) |
Represents total sales within the system. |
(2) |
See GAAP to non-GAAP reconciliations within the attached section titled "Non-GAAP Reconciliations." |
Consolidated Revenue
Total consolidated revenue of
Operating Income
Regis reported third quarter 2024 operating income of
Loss from Continuing Operations
Regis reported third quarter 2024 net loss from continuing operations of
Net Loss
The Company reported third quarter 2024 net loss of
Adjusted EBITDA
Third quarter adjusted EBITDA of
Third Quarter Fiscal Year 2024 Segment Results |
||||||||||||||||||||||||
Franchise |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
|
Three Months Ended
|
|
Increase (Decrease) |
|
Nine Months Ended
|
|
(Decrease) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Dollars in millions) (1) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Royalties |
|
$ |
15.7 |
|
|
$ |
16.0 |
|
|
$ |
(0.3 |
) |
|
$ |
48.0 |
|
|
$ |
49.4 |
|
|
$ |
(1.4 |
) |
Fees |
|
|
2.6 |
|
|
|
2.5 |
|
|
|
0.1 |
|
|
|
7.7 |
|
|
|
8.3 |
|
|
|
(0.6 |
) |
Product sales to franchisees |
|
|
— |
|
|
|
0.6 |
|
|
|
(0.6 |
) |
|
|
0.5 |
|
|
|
2.2 |
|
|
|
(1.7 |
) |
Advertising fund contributions |
|
|
5.8 |
|
|
|
7.8 |
|
|
|
(2.0 |
) |
|
|
19.8 |
|
|
|
24.0 |
|
|
|
(4.2 |
) |
Franchise rental income |
|
|
23.8 |
|
|
|
26.6 |
|
|
|
(2.8 |
) |
|
|
72.5 |
|
|
|
85.8 |
|
|
|
(13.3 |
) |
Total Franchise revenue |
|
$ |
47.9 |
|
|
$ |
53.6 |
|
|
$ |
(5.7 |
) |
|
$ |
148.6 |
|
|
$ |
169.7 |
|
|
$ |
(21.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Franchise same-store sales comps |
|
|
0.5 |
% |
|
|
6.0 |
% |
|
|
|
|
1.3 |
% |
|
|
5.1 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Franchise adjusted EBITDA |
|
$ |
5.8 |
|
|
$ |
4.8 |
|
|
$ |
1.0 |
|
|
$ |
20.1 |
|
|
$ |
17.3 |
|
|
$ |
2.8 |
|
as a percent of revenue |
|
|
12.2 |
% |
|
|
9.0 |
% |
|
|
|
|
13.6 |
% |
|
|
10.2 |
% |
|
|
||||
as a percent of adjusted revenue (2) |
|
|
31.8 |
% |
|
|
25.1 |
% |
|
|
|
|
35.8 |
% |
|
|
29.0 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Franchise salons |
|
|
4,537 |
|
|
|
5,057 |
|
|
|
(520 |
) |
|
|
|
|
|
|
||||||
as a percent of total |
|
|
99.6 |
% |
|
|
98.6 |
% |
|
|
|
|
|
|
|
|
_______________________________________________________________________________ |
|
(1) |
Variances calculated on amounts shown in millions may result in rounding differences. |
(2) |
Adjusted revenue excludes non-margin revenue. See GAAP to non-GAAP reconciliations within the attached section titled "Non-GAAP Reconciliations." |
Franchise Revenue
Third quarter franchise revenue was
Royalties were
Franchise Adjusted EBITDA
Third quarter franchise adjusted EBITDA of
Company-Owned Salons |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
|
Three Months Ended
|
|
(Decrease) |
|
Nine Months Ended
|
|
(Decrease) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Dollars in millions) (1) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
$ |
1.3 |
|
|
$ |
2.2 |
|
|
$ |
(0.9 |
) |
|
$ |
5.0 |
|
|
$ |
7.9 |
|
|
$ |
(2.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-owned salon adjusted EBITDA |
|
$ |
(0.8 |
) |
|
$ |
(0.6 |
) |
|
$ |
(0.2 |
) |
|
$ |
(1.6 |
) |
|
$ |
(1.5 |
) |
|
$ |
(0.1 |
) |
as a percent of revenue |
|
|
(61.5 |
)% |
|
|
(27.3 |
)% |
|
|
|
|
(32.0 |
)% |
|
|
(19.0 |
)% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
20 |
|
|
|
70 |
|
|
|
(50 |
) |
|
|
|
|
|
|
||||||
as a percent of total |
|
|
0.4 |
% |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
______________________________________________________________________ | |
(1) |
Variances calculated on amounts shown in millions may result in rounding differences. |
Company-Owned Salon Revenue
Third quarter revenue for the Company-owned salon segment declined
Company-Owned Salon Adjusted EBITDA
Third quarter Company-owned salon adjusted EBITDA declined
Year-to-date company-owned salon adjusted EBITDA loss declined year-over-year. Excluding the
Balance Sheet and Cash Flow
The Company ended the third quarter of fiscal year 2024 with
Non-GAAP Reconciliations
For GAAP to non-GAAP reconciliations, please refer to the attached section titled "Non-GAAP Reconciliations." A complete reconciliation of reported earnings to adjusted earnings is included in this press release and is available on the Company’s website at www.regiscorp.com.
Earnings Webcast
About
This press release contains or may contain “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, “may,” “will,” “believe,” “project,” “forecast,” “expect,” “estimate,” “anticipate,” and “plan.” In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include a potential material adverse impact on our business and results of operations as a result of changes in consumer shopping trends and changes in manufacturer distribution channels; laws and regulations could require us to modify current business practices and incur increased costs; our potential responsibility for
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
(Dollars in thousands, except per share data) |
||||||||
|
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
5,886 |
|
|
$ |
9,508 |
|
Receivables, net |
|
|
9,514 |
|
|
|
10,885 |
|
Inventories, net |
|
|
720 |
|
|
|
1,681 |
|
Other current assets |
|
|
11,656 |
|
|
|
15,164 |
|
Total current assets |
|
|
27,776 |
|
|
|
37,238 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
|
5,437 |
|
|
|
6,422 |
|
|
|
|
173,345 |
|
|
|
173,791 |
|
Other intangibles, net |
|
|
2,518 |
|
|
|
2,783 |
|
Right of use asset |
|
|
311,120 |
|
|
|
360,836 |
|
Other assets |
|
|
23,511 |
|
|
|
26,307 |
|
Total assets |
|
$ |
543,707 |
|
|
$ |
607,377 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
9,947 |
|
|
$ |
14,309 |
|
Accrued expenses |
|
|
25,693 |
|
|
|
30,109 |
|
Short-term lease liability |
|
|
73,485 |
|
|
|
81,917 |
|
Total current liabilities |
|
|
109,125 |
|
|
|
126,335 |
|
|
|
|
|
|
||||
Long-term debt, net |
|
|
179,718 |
|
|
|
176,830 |
|
Long-term lease liability |
|
|
249,317 |
|
|
|
291,901 |
|
Other non-current liabilities |
|
|
41,369 |
|
|
|
49,041 |
|
Total liabilities |
|
|
579,529 |
|
|
|
644,107 |
|
Commitments and contingencies |
|
|
|
|
||||
Shareholders' deficit: |
|
|
|
|
||||
Common stock, |
|
|
114 |
|
|
|
114 |
|
Additional paid-in capital |
|
|
68,040 |
|
|
|
66,764 |
|
Accumulated other comprehensive income |
|
|
8,796 |
|
|
|
9,023 |
|
Accumulated deficit |
|
|
(112,772 |
) |
|
|
(112,631 |
) |
Total shareholders' deficit |
|
|
(35,822 |
) |
|
|
(36,730 |
) |
Total liabilities and shareholders' deficit |
|
$ |
543,707 |
|
|
$ |
607,377 |
|
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||||||
For the Three and Nine Months Ended |
||||||||||||||||
(Dollars and shares in thousands, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Royalties |
|
$ |
15,687 |
|
|
$ |
16,036 |
|
|
$ |
48,035 |
|
|
$ |
49,374 |
|
Fees |
|
|
2,617 |
|
|
|
2,510 |
|
|
|
7,740 |
|
|
|
8,301 |
|
Product sales to franchisees |
|
|
— |
|
|
|
644 |
|
|
|
451 |
|
|
|
2,194 |
|
Advertising fund contributions |
|
|
5,773 |
|
|
|
7,787 |
|
|
|
19,807 |
|
|
|
24,003 |
|
Franchise rental income |
|
|
23,780 |
|
|
|
26,629 |
|
|
|
72,534 |
|
|
|
85,845 |
|
Company-owned salon revenue |
|
|
1,324 |
|
|
|
2,167 |
|
|
|
5,039 |
|
|
|
7,894 |
|
Total revenue |
|
|
49,181 |
|
|
|
55,773 |
|
|
|
153,606 |
|
|
|
177,611 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of product sales to franchisees |
|
|
19 |
|
|
|
1,045 |
|
|
|
436 |
|
|
|
2,825 |
|
Inventory reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,228 |
|
General and administrative |
|
|
11,247 |
|
|
|
13,099 |
|
|
|
33,748 |
|
|
|
39,207 |
|
Rent |
|
|
1,766 |
|
|
|
2,077 |
|
|
|
4,257 |
|
|
|
5,920 |
|
Advertising fund expense |
|
|
5,773 |
|
|
|
7,787 |
|
|
|
19,807 |
|
|
|
24,003 |
|
Franchise rent expense |
|
|
23,780 |
|
|
|
26,629 |
|
|
|
72,534 |
|
|
|
85,845 |
|
Company-owned salon expense (1) |
|
|
1,503 |
|
|
|
2,088 |
|
|
|
4,301 |
|
|
|
7,291 |
|
Depreciation and amortization |
|
|
1,009 |
|
|
|
1,008 |
|
|
|
2,056 |
|
|
|
6,052 |
|
Long-lived asset impairment |
|
|
— |
|
|
|
36 |
|
|
|
170 |
|
|
|
36 |
|
Total operating expenses |
|
|
45,097 |
|
|
|
53,769 |
|
|
|
137,309 |
|
|
|
172,407 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
|
4,084 |
|
|
|
2,004 |
|
|
|
16,297 |
|
|
|
5,204 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other (expense) income: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
(6,153 |
) |
|
|
(4,787 |
) |
|
|
(18,529 |
) |
|
|
(13,123 |
) |
Other, net |
|
|
(298 |
) |
|
|
381 |
|
|
|
(199 |
) |
|
|
1,166 |
|
|
|
|
|
|
|
|
|
|
||||||||
Loss from operations before income taxes |
|
|
(2,367 |
) |
|
|
(2,402 |
) |
|
|
(2,431 |
) |
|
|
(6,753 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Income tax (expense) benefit |
|
|
(54 |
) |
|
|
241 |
|
|
|
201 |
|
|
|
213 |
|
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations |
|
|
(2,421 |
) |
|
|
(2,161 |
) |
|
|
(2,230 |
) |
|
|
(6,540 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Income from discontinued operations |
|
|
89 |
|
|
|
518 |
|
|
|
2,089 |
|
|
|
3,958 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
$ |
(2,332 |
) |
|
$ |
(1,643 |
) |
|
$ |
(141 |
) |
|
$ |
(2,582 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted: |
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations |
|
$ |
(1.03 |
) |
|
$ |
(0.93 |
) |
|
$ |
(0.95 |
) |
|
$ |
(2.83 |
) |
Income from discontinued operations |
|
|
0.04 |
|
|
|
0.22 |
|
|
|
0.89 |
|
|
|
1.71 |
|
Net loss per share (2) |
|
$ |
(1.00 |
) |
|
$ |
(0.71 |
) |
|
$ |
(0.06 |
) |
|
$ |
(1.12 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common and common equivalent shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
|
2,342 |
|
|
|
2,315 |
|
|
|
2,338 |
|
|
|
2,308 |
|
_______________________________________________________________________________ |
|
(1) |
Includes cost of service and product sold to guests in our Company-owned salons. Excludes general and administrative expense, rent and depreciation and amortization related to Company-owned salons. |
(2) |
Total is a recalculation; line items calculated individually may not sum to total due to rounding. |
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
For the Nine Months Ended |
||||||||
(Dollars in thousands) |
||||||||
|
||||||||
|
|
Nine Months Ended
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(141 |
) |
|
$ |
(2,582 |
) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
|
||||
Gain from sale of OSP |
|
|
(2,000 |
) |
|
|
(4,552 |
) |
Depreciation and amortization |
|
|
1,576 |
|
|
|
5,502 |
|
Long-lived asset impairment |
|
|
170 |
|
|
|
36 |
|
Deferred income taxes |
|
|
(50 |
) |
|
|
(49 |
) |
Inventory reserve |
|
|
— |
|
|
|
1,228 |
|
Non-cash interest |
|
|
1,956 |
|
|
|
51 |
|
Stock-based compensation |
|
|
1,201 |
|
|
|
1,668 |
|
Amortization of debt discount and financing costs |
|
|
2,240 |
|
|
|
2,144 |
|
Other non-cash items affecting earnings |
|
|
216 |
|
|
|
365 |
|
Changes in operating assets and liabilities, excluding the effects of asset sales |
|
|
(12,298 |
) |
|
|
(12,276 |
) |
Net cash used in operating activities |
|
|
(7,130 |
) |
|
|
(8,465 |
) |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(372 |
) |
|
|
(339 |
) |
Proceeds from sale of OSP, net of fees |
|
|
2,000 |
|
|
|
4,500 |
|
Net cash provided by investing activities |
|
|
1,628 |
|
|
|
4,161 |
|
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings on credit facility |
|
|
4,000 |
|
|
|
11,357 |
|
Repayments of long-term debt |
|
|
(2,499 |
) |
|
|
(9,491 |
) |
Debt refinancing fees |
|
|
(2,552 |
) |
|
|
(4,383 |
) |
Taxes paid for shares withheld |
|
|
(16 |
) |
|
|
(35 |
) |
Net cash used in financing activities |
|
|
(1,067 |
) |
|
|
(2,552 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
|
(11 |
) |
|
|
(103 |
) |
|
|
|
|
|
||||
Decrease in cash, cash equivalents, and restricted cash |
|
|
(6,580 |
) |
|
|
(6,959 |
) |
|
|
|
|
|
||||
Cash, cash equivalents and restricted cash: |
|
|
|
|
||||
Beginning of period |
|
|
21,396 |
|
|
|
27,464 |
|
End of period |
|
$ |
14,816 |
|
|
$ |
20,505 |
|
|
||||||||||||||||||
Same-Store Sales |
||||||||||||||||||
|
||||||||||||||||||
SYSTEM-WIDE SAME-STORE SALES (1): |
||||||||||||||||||
|
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
|
|
|
|
|
||||||||||||||
|
|
Service |
|
Retail |
|
Total |
|
Service |
|
Retail |
|
Total |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Supercuts |
|
2.1 |
% |
|
(10.7 |
)% |
|
1.6 |
% |
|
8.1 |
% |
|
(2.6 |
)% |
|
7.6 |
% |
SmartStyle |
|
(2.2 |
) |
|
(13.4 |
) |
|
(4.2 |
) |
|
1.9 |
|
|
(10.3 |
) |
|
(0.5 |
) |
Portfolio Brands |
|
2.9 |
|
|
(8.9 |
) |
|
1.9 |
|
|
9.4 |
|
|
2.3 |
|
|
8.8 |
|
Total |
|
1.5 |
% |
|
(11.4 |
)% |
|
0.5 |
% |
|
7.2 |
% |
|
(5.1 |
)% |
|
6.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
||||||||||||||
|
|
Service |
|
Retail |
|
Total |
|
Service |
|
Retail |
|
Total |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Supercuts |
|
2.6 |
% |
|
(7.0 |
)% |
|
2.2 |
% |
|
8.6 |
% |
|
(6.1 |
)% |
|
7.9 |
% |
SmartStyle |
|
(1.2 |
) |
|
(10.4 |
) |
|
(2.9 |
) |
|
0.7 |
|
|
(13.6 |
) |
|
(2.2 |
) |
Portfolio Brands |
|
3.8 |
|
|
(4.5 |
) |
|
3.0 |
|
|
7.2 |
|
|
(4.7 |
) |
|
6.1 |
|
Total |
|
2.2 |
% |
|
(7.8 |
)% |
|
1.4 |
% |
|
6.6 |
% |
|
(9.4 |
)% |
|
5.0 |
% |
_______________________________________________________________________________ |
|
(1) |
System-wide same-store sales are calculated as the total change in sales for system-wide franchise and company-owned locations that were open on a specific day of the week during the current period and the corresponding prior period. Quarterly system-wide same-store sales are the sum of the system-wide same-store sales computed on a daily basis. Franchise salons that do not report daily sales are excluded from same-store sales. System-wide same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation. |
|
||||||
System-Wide Location Counts |
||||||
|
||||||
|
|
|
|
|
||
|
|
|
|
|
||
FRANCHISE SALONS: |
|
|
|
|
||
Supercuts |
|
1,976 |
|
|
2,082 |
|
SmartStyle/Cost Cutters in Walmart Stores |
|
1,322 |
|
|
1,388 |
|
Portfolio Brands |
|
1,141 |
|
|
1,223 |
|
Total North American salons |
|
4,439 |
|
|
4,693 |
|
|
|
98 |
|
|
102 |
|
Total Franchise salons |
|
4,537 |
|
|
4,795 |
|
as a percent of total |
|
99.6 |
% |
|
98.6 |
% |
|
|
|
|
|
||
COMPANY-OWNED SALONS: |
|
|
|
|
||
Supercuts |
|
4 |
|
|
7 |
|
SmartStyle/Cost Cutters in Walmart Stores |
|
8 |
|
|
48 |
|
Portfolio Brands |
|
8 |
|
|
13 |
|
|
|
20 |
|
|
68 |
|
as a percent of total |
|
0.4 |
% |
|
1.4 |
% |
|
|
|
|
|
||
Grand Total, System-wide |
|
4,557 |
|
|
4,863 |
|
___________________________________________________________________ |
|
(1) |
Canadian and Puerto Rican salons are included in the North American salon totals |
Non-GAAP Reconciliations:
This press release includes a presentation of adjusted EBITDA and adjusted Franchise revenue, which are non-GAAP measures. The non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). We believe our presentation of the non-GAAP measures provides meaningful insight into our ongoing operating performance and a supplemental perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors’ analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information that research analysts frequently use to analyze financial performance.
Items impacting comparability are not defined terms within
The following items have been excluded from our non-GAAP adjusted EBITDA results: discontinued operations, one-time professional fees and legal settlements, severance expense, excess inventory impairment charges, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs.
We present adjusted revenue to provide a meaningful Franchise adjusted EBITDA margin, which removes non-margin revenue from total revenue to arrive at an adjusted margin. Margin is a common metric used by investors, however, the majority of our revenue is offset by equal expense, so it does not contribute to our margin. We remove the non-margin revenue from this metric in order to show a meaningful margin rate.
The method we use to produce non-GAAP results is not in accordance with
|
||||||||||||||||
Reconciliation of |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated reported net loss, as reported ( |
|
$ |
(2,332 |
) |
|
$ |
(1,643 |
) |
|
$ |
(141 |
) |
|
$ |
(2,582 |
) |
Interest expense, as reported |
|
|
6,153 |
|
|
|
4,787 |
|
|
|
18,529 |
|
|
|
13,123 |
|
Income taxes, as reported |
|
|
54 |
|
|
|
(241 |
) |
|
|
(201 |
) |
|
|
(213 |
) |
Depreciation and amortization, as reported |
|
|
1,009 |
|
|
|
1,008 |
|
|
|
2,056 |
|
|
|
6,052 |
|
Long-lived asset impairment, as reported |
|
|
— |
|
|
|
36 |
|
|
|
170 |
|
|
|
36 |
|
EBITDA |
|
$ |
4,884 |
|
|
$ |
3,947 |
|
|
$ |
20,413 |
|
|
$ |
16,416 |
|
|
|
|
|
|
|
|
|
|
||||||||
Inventory reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,228 |
|
Professional fees and legal settlements |
|
|
33 |
|
|
|
— |
|
|
|
62 |
|
|
|
1,248 |
|
Severance |
|
|
230 |
|
|
|
786 |
|
|
|
230 |
|
|
|
852 |
|
Lease liability benefit |
|
|
(59 |
) |
|
|
(297 |
) |
|
|
(281 |
) |
|
|
(1,515 |
) |
Lease termination fees |
|
|
43 |
|
|
|
266 |
|
|
|
205 |
|
|
|
1,571 |
|
Discontinued operations |
|
|
(89 |
) |
|
|
(518 |
) |
|
|
(2,089 |
) |
|
|
(3,958 |
) |
Adjusted EBITDA, non-GAAP financial measure |
|
$ |
5,042 |
|
|
$ |
4,184 |
|
|
$ |
18,540 |
|
|
$ |
15,842 |
|
|
||||||||||||||||
Reconciliation of Reported Franchise Adjusted EBITDA as a Percent of GAAP Franchise Revenue |
||||||||||||||||
to Franchise Adjusted EBITDA as a Percent of Adjusted Franchise Revenue |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Franchise adjusted EBITDA |
|
$ |
5,815 |
|
|
$ |
4,815 |
|
|
$ |
20,146 |
|
|
$ |
17,338 |
|
GAAP Franchise revenue |
|
|
47,857 |
|
|
|
53,606 |
|
|
|
148,567 |
|
|
|
169,717 |
|
Franchise adjusted EBITDA as a percent of GAAP Franchise revenue |
|
|
12.2 |
% |
|
|
9.0 |
% |
|
|
13.6 |
% |
|
|
10.2 |
% |
Non-margin revenue adjustments: |
|
|
|
|
|
|
|
|
||||||||
Franchise rental income |
|
$ |
(23,780 |
) |
|
$ |
(26,629 |
) |
|
$ |
(72,534 |
) |
|
$ |
(85,845 |
) |
Advertising fund contributions |
|
|
(5,773 |
) |
|
|
(7,787 |
) |
|
|
(19,807 |
) |
|
|
(24,003 |
) |
Adjusted Franchise revenue |
|
$ |
18,304 |
|
|
$ |
19,190 |
|
|
$ |
56,226 |
|
|
$ |
59,869 |
|
Franchise adjusted EBITDA as a percent of adjusted Franchise revenue |
|
|
31.8 |
% |
|
|
25.1 |
% |
|
|
35.8 |
% |
|
|
29.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501356014/en/
investorrelations@regiscorp.com
Source: