☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the quarterly period ended December 31, 2020
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OR | |||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from to |
Minnesota | 41-0749934 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
3701 Wayzata Boulevard, | Minneapolis | Minnesota | 55416 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Title of each class | Trading symbol | Name of exchange | ||||||||||||
Common Stock, $0.05 par value | RGS | NYSE |
December 31,
2020 |
June 30,
2020 |
|||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 50,850 | $ | 113,667 | ||||||||||
Receivables, net | 31,185 | 31,030 | ||||||||||||
Inventories | 51,483 | 62,597 | ||||||||||||
Other current assets | 17,226 | 19,138 | ||||||||||||
Total current assets | 150,744 | 226,432 | ||||||||||||
Property and equipment, net | 43,579 | 57,176 | ||||||||||||
Goodwill (Note 9) | 228,950 | 227,457 | ||||||||||||
Other intangibles, net | 4,532 | 4,579 | ||||||||||||
Right of use asset (Note 10) | 637,108 | 786,216 | ||||||||||||
Other assets | 40,237 | 40,934 | ||||||||||||
Total assets | $ | 1,105,150 | $ | 1,342,794 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 36,922 | $ | 50,918 | ||||||||||
Accrued expenses | 49,277 | 48,825 | ||||||||||||
Short-term lease liability (Note 10) | 127,649 | 137,271 | ||||||||||||
Total current liabilities | 213,848 | 237,014 | ||||||||||||
Long-term debt, net (Note 11) | 177,500 | 177,500 | ||||||||||||
Long-term lease liability (Note 10) | 540,930 | 680,454 | ||||||||||||
Long-term financing liabilities (Note 11) | 27,640 | 27,981 | ||||||||||||
Other non-current liabilities | 86,784 | 94,142 | ||||||||||||
Total liabilities | 1,046,702 | 1,217,091 | ||||||||||||
Commitments and contingencies (Note 7) | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock, $0.05 par value; issued and outstanding 35,768,086 and 35,625,716 common shares at December 31, 2020 and June 30, 2020, respectively
|
1,788 | 1,781 | ||||||||||||
Additional paid-in capital | 22,076 | 22,011 | ||||||||||||
Accumulated other comprehensive income | 8,786 | 7,449 | ||||||||||||
Retained earnings | 25,798 | 94,462 | ||||||||||||
Total shareholders’ equity | 58,448 | 125,703 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,105,150 | $ | 1,342,794 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Service | $ | 28,987 | $ | 101,805 | $ | 65,395 | $ | 243,746 | ||||||||||||||||||
Product | 23,146 | 43,983 | 47,895 | 89,639 | ||||||||||||||||||||||
Royalties and fees | 19,902 | 29,347 | 37,858 | 57,364 | ||||||||||||||||||||||
Franchise rental income (Note 10) | 32,285 | 33,630 | 64,568 | 65,054 | ||||||||||||||||||||||
Total revenue | 104,320 | 208,765 | 215,716 | 455,803 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of service | 22,097 | 67,358 | 50,620 | 157,840 | ||||||||||||||||||||||
Cost of product | 17,203 | 27,258 | 33,572 | 53,585 | ||||||||||||||||||||||
Site operating expenses | 10,350 | 26,330 | 23,589 | 59,272 | ||||||||||||||||||||||
General and administrative | 26,690 | 32,691 | 52,837 | 73,316 | ||||||||||||||||||||||
Rent (Note 10) | 12,902 | 20,495 | 26,127 | 44,759 | ||||||||||||||||||||||
Franchise rent expense | 32,285 | 33,630 | 64,568 | 65,054 | ||||||||||||||||||||||
Depreciation and amortization | 6,388 | 7,747 | 13,764 | 17,127 | ||||||||||||||||||||||
Long-lived asset impairment | 3,160 | — | 8,984 | — | ||||||||||||||||||||||
TBG mall location restructuring (Note 3) | — | 722 | — | 2,222 | ||||||||||||||||||||||
Total operating expenses | 131,075 | 216,231 | 274,061 | 473,175 | ||||||||||||||||||||||
Operating loss | (26,755) | (7,466) | (58,345) | (17,372) | ||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||
Interest expense | (3,701) | (1,464) | (7,463) | (2,903) | ||||||||||||||||||||||
Loss from sale of salon assets to franchisees, net | (3,226) | (12,407) | (3,888) | (18,267) | ||||||||||||||||||||||
Interest income and other, net | 403 | 2,869 | 517 | 3,040 | ||||||||||||||||||||||
Loss from continuing operations before income taxes | (33,279) | (18,468) | (69,179) | (35,502) | ||||||||||||||||||||||
Income tax benefit | 400 | 1,948 | 1,035 | 4,804 | ||||||||||||||||||||||
Loss from continuing operations | (32,879) | (16,520) | (68,144) | (30,698) | ||||||||||||||||||||||
Income from discontinued operations, net of taxes (Note 3) | — | 79 | — | 452 | ||||||||||||||||||||||
Net loss | $ | (32,879) | $ | (16,441) | $ | (68,144) | $ | (30,246) | ||||||||||||||||||
Net loss per share: | ||||||||||||||||||||||||||
Basic and diluted:
|
||||||||||||||||||||||||||
Loss from continuing operations | $ | (0.92) | $ | (0.46) | $ | (1.90) | $ | (0.85) | ||||||||||||||||||
Income from discontinued operations | 0.00 | 0.00 | 0.00 | 0.01 | ||||||||||||||||||||||
Net loss per share, basic and diluted (1) | $ | (0.92) | $ | (0.46) | $ | (1.90) | $ | (0.84) | ||||||||||||||||||
Weighted average common and common equivalent shares outstanding: | ||||||||||||||||||||||||||
Basic and diluted | 35,931 | 35,798 | 35,889 | 36,028 | ||||||||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Net loss | $ | (32,879) | $ | (16,441) | $ | (68,144) | $ | (30,246) | ||||||||||||||||||
Foreign currency translation adjustments | 835 | 541 | 1,337 | 138 | ||||||||||||||||||||||
Comprehensive loss | $ | (32,044) | $ | (15,900) | $ | (66,807) | $ | (30,108) |
Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Common Stock |
Additional
Paid-In Capital |
Accumulated
Other Comprehensive Income |
Retained
Earnings |
Total | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | 35,665,783 | $ | 1,783 | $ | 20,596 | $ | 7,951 | $ | 59,211 | $ | 89,541 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | (32,879) | (32,879) | ||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | 835 | — | 835 | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 1,314 | — | — | 1,314 | ||||||||||||||||||||||||||||||||
Net restricted stock activity | 102,303 | 5 | 166 | — | — | 171 | ||||||||||||||||||||||||||||||||
Minority interest | — | — | — | — | (534) | (534) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 35,768,086 | $ | 1,788 | $ | 22,076 | $ | 8,786 | $ | 25,798 | $ | 58,448 |
Three Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Common Stock |
Additional
Paid-In Capital |
Accumulated
Other Comprehensive Income |
Retained
Earnings |
Total | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance, September 30, 2019 | 35,548,036 | $ | 1,777 | $ | 20,880 | $ | 8,939 | $ | 252,143 | $ | 283,739 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | (16,441) | (16,441) | ||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | 541 | — | 541 | ||||||||||||||||||||||||||||||||
Exercise of SARs | 1,500 | — | 28 | — | — | 28 | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 332 | — | — | 332 | ||||||||||||||||||||||||||||||||
Net restricted stock activity | 14,075 | 1 | (10) | — | — | (9) | ||||||||||||||||||||||||||||||||
Minority interest | — | — | — | — | (168) | (168) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 35,563,611 | $ | 1,778 | $ | 21,230 | $ | 9,480 | $ | 235,534 | $ | 268,022 |
Six Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Common Stock |
Additional
Paid-In Capital |
Accumulated
Other Comprehensive Income |
Retained
Earnings |
Total | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | 35,625,716 | $ | 1,781 | $ | 22,011 | $ | 7,449 | $ | 94,462 | $ | 125,703 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | (68,144) | (68,144) | ||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | 1,337 | — | 1,337 | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 89 | — | — | 89 | ||||||||||||||||||||||||||||||||
Net restricted stock activity | 142,370 | 7 | (24) | — | — | (17) | ||||||||||||||||||||||||||||||||
Minority interest | — | — | — | — | (520) | (520) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 35,768,086 | $ | 1,788 | $ | 22,076 | $ | 8,786 | $ | 25,798 | $ | 58,448 |
Six Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Common Stock |
Additional
Paid-In Capital |
Accumulated
Other Comprehensive Income |
Retained
Earnings |
Total | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | 36,869,249 | $ | 1,843 | $ | 47,152 | $ | 9,342 | $ | 265,908 | $ | 324,245 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | (30,246) | (30,246) | ||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | 138 | — | 138 | ||||||||||||||||||||||||||||||||
Stock repurchase program | (1,504,000) | (75) | (26,281) | — | — | (26,356) | ||||||||||||||||||||||||||||||||
Exercise of SARs | 1,776 | — | 28 | — | — | 28 | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,139 | — | — | 2,139 | ||||||||||||||||||||||||||||||||
Net restricted stock activity | 196,586 | 10 | (1,808) | — | — | (1,798) | ||||||||||||||||||||||||||||||||
Minority interest | — | — | — | — | (128) | (128) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 35,563,611 | $ | 1,778 | $ | 21,230 | $ | 9,480 | $ | 235,534 | $ | 268,022 |
Six Months Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $ | (68,144) | $ | (30,246) | ||||||||||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||||||||
Non-cash adjustments related to discontinued operations | — | (586) | ||||||||||||
Depreciation and amortization | 11,123 | 14,484 | ||||||||||||
Salon asset impairment | — | 2,643 | ||||||||||||
Long-lived asset impairment | 8,984 | — | ||||||||||||
Deferred income taxes | (669) | (6,380) | ||||||||||||
Gain from sale of company headquarters, net | — | (2,513) | ||||||||||||
Loss from sale of salon assets to franchisees, net | 3,888 | 18,267 | ||||||||||||
Stock-based compensation | 89 | 2,139 | ||||||||||||
Amortization of debt discount and financing costs | 875 | 138 | ||||||||||||
Other non-cash items affecting earnings | 202 | (243) | ||||||||||||
Changes in operating assets and liabilities, excluding the effects of asset sales (1) | (21,812) | (17,032) | ||||||||||||
Net cash used in operating activities | (65,464) | (19,329) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital expenditures | (7,502) | (17,576) | ||||||||||||
Proceeds from sale of assets to franchisees | 7,148 | 69,414 | ||||||||||||
Costs associated with sale of salon assets to franchisees | (222) | (1,550) | ||||||||||||
Proceeds from company-owned life insurance policies | 1,200 | — | ||||||||||||
Proceeds from sale of company headquarters | — | 8,996 | ||||||||||||
Net cash provided by investing activities | 624 | 59,284 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Repayments of revolving credit facility | — | (30,000) | ||||||||||||
Repurchase of common stock | — | (28,246) | ||||||||||||
Taxes paid for shares withheld | (212) | (1,809) | ||||||||||||
Minority interest buyout | (562) | — | ||||||||||||
Distribution center lease payments | (478) | (480) | ||||||||||||
Net cash used in financing activities | (1,252) | (60,535) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (68) | 122 | ||||||||||||
Decrease in cash, cash equivalents, and restricted cash | (66,160) | (20,458) | ||||||||||||
Cash, cash equivalents and restricted cash: | ||||||||||||||
Beginning of period | 122,880 | 92,379 | ||||||||||||
End of period | $ | 56,720 | $ | 71,921 |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||
Franchise | Company-owned | Franchise | Company-owned | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Revenue recognized at a point in time: | ||||||||||||||||||||||||||
Service | $ | — | $ | 28,987 | $ | — | $ | 101,805 | ||||||||||||||||||
Product | 14,236 | 8,910 | 16,864 | 27,119 | ||||||||||||||||||||||
Total revenue recognized at a point in time | $ | 14,236 | $ | 37,897 | $ | 16,864 | $ | 128,924 | ||||||||||||||||||
Revenue recognized over time: | ||||||||||||||||||||||||||
Royalty and other franchise fees | $ | 15,187 | $ | — | $ | 18,644 | $ | — | ||||||||||||||||||
Advertising fund fees | 4,715 | — | 10,703 | — | ||||||||||||||||||||||
Franchise rental income | 32,285 | — | 33,630 | — | ||||||||||||||||||||||
Total revenue recognized over time | 52,187 | — | 62,977 | — | ||||||||||||||||||||||
Total revenue | $ | 66,423 | $ | 37,897 | $ | 79,841 | $ | 128,924 |
Six Months Ended December 31, 2020 | Six Months Ended December 31, 2019 | |||||||||||||||||||||||||
Franchise | Company-owned | Franchise | Company-owned | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Revenue recognized at a point in time: | ||||||||||||||||||||||||||
Service | $ | — | $ | 65,395 | $ | — | $ | 243,746 | ||||||||||||||||||
Product | 27,978 | 19,917 | 29,969 | 59,670 | ||||||||||||||||||||||
Total revenue recognized at a point in time | $ | 27,978 | $ | 85,312 | $ | 29,969 | $ | 303,416 | ||||||||||||||||||
Revenue recognized over time: | ||||||||||||||||||||||||||
Royalty and other franchise fees | $ | 28,634 | $ | — | $ | 36,235 | $ | — | ||||||||||||||||||
Advertising fund fees | 9,224 | — | 21,129 | — | ||||||||||||||||||||||
Franchise rental income | 64,568 | — | 65,054 | — | ||||||||||||||||||||||
Total revenue recognized over time | 102,426 | — | 122,418 | — | ||||||||||||||||||||||
Total revenue | $ | 130,404 | $ | 85,312 | $ | 152,387 | $ | 303,416 |
December 31,
2020 |
June 30,
2020 |
Balance Sheet Classification | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Receivables from contracts with customers, net | $ | 27,457 | $ | 22,991 | Accounts receivable, net | |||||||||||||||
Broker fees | 20,345 | 20,516 | Other assets | |||||||||||||||||
Deferred revenue: | ||||||||||||||||||||
Current | ||||||||||||||||||||
Gift card liability | $ | 2,536 | $ | 2,543 | Accrued expenses | |||||||||||||||
Deferred franchise fees unopened salons | 69 | 77 | Accrued expenses | |||||||||||||||||
Deferred franchise fees open salons | 5,854 | 5,537 | Accrued expenses | |||||||||||||||||
Total current deferred revenue | $ | 8,459 | $ | 8,157 | ||||||||||||||||
Non-current | ||||||||||||||||||||
Deferred franchise fees unopened salons | $ | 10,306 | $ | 11,855 | Other non-current liabilities | |||||||||||||||
Deferred franchise fees open salons | 33,674 | 33,623 | Other non-current liabilities | |||||||||||||||||
Total non-current deferred revenue | $ | 43,980 | $ | 45,478 |
Balance as of June 30, 2020 | $ | 6,899 | ||||||
Provision for doubtful accounts (1) | 1,627 | |||||||
Provision for franchisee rent (2) | 853 | |||||||
Write-offs | (632) | |||||||
Balance as of December 31, 2020 | $ | 8,747 |
Balance as of June 30, 2020 | $ | 20,516 | ||||||
Additions | 1,418 | |||||||
Amortization | (1,565) | |||||||
Write-offs | (24) | |||||||
Balance as of December 31, 2020 | $ | 20,345 |
Remainder of 2021 | $ | 2,959 | ||||||
2022 | 5,799 | |||||||
2023 | 5,622 | |||||||
2024 | 5,387 | |||||||
2025 | 4,993 | |||||||
Thereafter | 14,768 | |||||||
Total | $ | 39,528 |
Three Months Ended December 31, 2020 | Six Months Ended December 31, 2020 | |||||||||||||
Restricted stock units | 597,888 | 844,522 | ||||||||||||
Performance-based restricted stock units | — | 62,290 | ||||||||||||
Stock option units | 1,458,680 | 1,458,680 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Income tax benefit | $ | 400 | $ | 1,948 | $ | 1,035 | $ | 4,804 | ||||||||||||||||||
Effective tax rate | 1.2 | % | 10.5 | % | 1.5 | % | 13.5 | % |
December 31,
2020 |
June 30,
2020 |
||||||||||
(Dollars in thousands) | |||||||||||
Cash and cash equivalents | $ | 50,850 | $ | 113,667 | |||||||
Restricted cash, included in Other current assets (1) | 5,870 | 9,213 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 56,720 | $ | 122,880 |
Franchise Reporting Unit | ||||||||
(Dollars in thousands) | ||||||||
Goodwill, net at June 30, 2020 | $ | 227,457 | ||||||
Translation rate adjustments | 1,493 | |||||||
Goodwill, net at December 31, 2020 | $ | 228,950 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Minimum rent | $ | 10,484 | $ | 15,926 | $ | 20,205 | $ | 35,067 | |||||||||||||||
Percentage rent based on sales | 2 | 550 | 75 | 1,847 | |||||||||||||||||||
Real estate taxes and other expenses | 2,497 | 2,860 | 5,158 | 6,170 | |||||||||||||||||||
Lease termination expense (1) | 1,087 | 38 | 6,638 | 79 | |||||||||||||||||||
Lease liability benefit (2) | (2,226) | — | (8,286) | — | |||||||||||||||||||
Corporate segment rent | 653 | 720 | 1,375 | 1,005 | |||||||||||||||||||
Franchise segment non-reimbursable rent | 405 | 401 | 962 | 591 | |||||||||||||||||||
Total | $ | 12,902 | $ | 20,495 | $ | 26,127 | $ | 44,759 |
Fiscal Year | Leases for Franchise Salons | Leases for Company-owned Salons | Corporate Leases | Total Operating Lease Payments | Sublease Income To Be Received From Franchisees | Net Rent Commitments | ||||||||||||||||||||||||||||||||
Remainder of 2021 | $ | 61,792 | $ | 15,257 | $ | 914 | $ | 77,963 | $ | (61,792) | $ | 16,171 | ||||||||||||||||||||||||||
2022 | 114,759 | 25,415 | 1,483 | 141,657 | (114,759) | 26,898 | ||||||||||||||||||||||||||||||||
2023 | 101,513 | 19,539 | 1,520 | 122,572 | (101,513) | 21,059 | ||||||||||||||||||||||||||||||||
2024 | 88,919 | 14,647 | 1,558 | 105,124 | (88,919) | 16,205 | ||||||||||||||||||||||||||||||||
2025 | 75,170 | 8,328 | 1,598 | 85,096 | (75,170) | 9,926 | ||||||||||||||||||||||||||||||||
Thereafter | 201,054 | 18,670 | 7,824 | 227,548 | (201,054) | 26,494 | ||||||||||||||||||||||||||||||||
Total future obligations | $ | 643,207 | $ | 101,856 | $ | 14,897 | $ | 759,960 | $ | (643,207) | $ | 116,753 | ||||||||||||||||||||||||||
Less amounts representing interest | 79,438 | 9,401 | 2,542 | 91,381 | ||||||||||||||||||||||||||||||||||
Present value of lease liabilities | $ | 563,769 | $ | 92,455 | $ | 12,355 | $ | 668,579 | ||||||||||||||||||||||||||||||
Less current lease liabilities | 100,685 | 25,796 | 1,168 | 127,649 | ||||||||||||||||||||||||||||||||||
Long-term lease liabilities | $ | 463,084 | $ | 66,659 | $ | 11,187 | $ | 540,930 |
Maturity Date |
December 31,
2020 |
December 31,
2020 |
June 30,
2020 |
|||||||||||||||||||||||
(Fiscal Year) | (Interest rate %) | (Dollars in thousands) | ||||||||||||||||||||||||
Revolving credit facility | 2023 | 5.00% | $ | 177,500 | $ | 177,500 |
Maturity Date | Interest Rate |
December 31,
2020 |
June 30,
2020 |
|||||||||||||||||||||||
(Fiscal Year) | (Dollars in thousands) | |||||||||||||||||||||||||
Financial liability - Salt Lake City Distribution Center | 2034 | 3.30% | $ | 16,457 | $ | 16,773 | ||||||||||||||||||||
Financial liability - Chattanooga Distribution Center | 2034 | 3.70% | 11,183 | 11,208 | ||||||||||||||||||||||
Long- term financing liability | $ | 27,640 | $ | 27,981 |
Fiscal year | Salt Lake City Distribution Center | Chattanooga Distribution Center | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Remainder of 2021 | $ | 581 | $ | 409 | ||||||||||
2022 | 1,171 | 829 | ||||||||||||
2023 | 1,186 | 842 | ||||||||||||
2024 | 1,200 | 854 | ||||||||||||
2025 | 1,215 | 867 | ||||||||||||
Thereafter | 10,683 | 8,414 | ||||||||||||
Total | $ | 16,036 | $ | 12,215 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Long-lived asset impairment (1) | $ | 3,160 | $ | 1,126 | $ | 8,984 | $ | 2,643 |
December 31,
2020 |
June 30,
2020 |
|||||||||||||
FRANCHISE SALONS:
|
||||||||||||||
SmartStyle/Cost Cutters in Walmart Stores
|
1,535 | 1,317 | ||||||||||||
Supercuts
|
2,368 | 2,508 | ||||||||||||
Portfolio Brands (1)
|
1,207 | 1,217 | ||||||||||||
Total North American salons
|
5,110 | 5,042 | ||||||||||||
Total International salons (2)
|
159 | 167 | ||||||||||||
Total Franchise salons
|
5,269 | 5,209 | ||||||||||||
as a percent of total Franchise and Company-owned salons
|
83.6 | % | 76.1 | % | ||||||||||
COMPANY-OWNED SALONS:
|
||||||||||||||
SmartStyle/Cost Cutters in Walmart Stores
|
466 | 751 | ||||||||||||
Supercuts
|
154 | 210 | ||||||||||||
Portfolio Brands (1)
|
340 | 505 | ||||||||||||
Mall-based (3)
|
77 | 166 | ||||||||||||
Total Company-owned salons
|
1,037 | 1,632 | ||||||||||||
as a percent of total Franchise and Company-owned salons
|
16.4 | % | 23.9 | % | ||||||||||
OWNERSHIP INTEREST LOCATIONS:
|
||||||||||||||
Equity ownership interest locations
|
78 | 82 | ||||||||||||
Grand Total, System-wide
|
6,384 | 6,923 |
Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||
Franchise | Company-owned | Corporate | Consolidated | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Service | $ | — | $ | 28,987 | $ | — | $ | 28,987 | ||||||||||||||||||
Product | 14,236 | 8,910 | — | 23,146 | ||||||||||||||||||||||
Royalties and fees | 19,902 | — | — | 19,902 | ||||||||||||||||||||||
Franchise rental income | 32,285 | — | — | 32,285 | ||||||||||||||||||||||
Total revenue | 66,423 | 37,897 | — | 104,320 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of service | — | 22,097 | — | 22,097 | ||||||||||||||||||||||
Cost of product | 11,291 | 5,912 | — | 17,203 | ||||||||||||||||||||||
Site operating expenses | 4,748 | 5,602 | — | 10,350 | ||||||||||||||||||||||
General and administrative | 6,881 | 2,435 | 17,374 | 26,690 | ||||||||||||||||||||||
Rent | 405 | 11,844 | 653 | 12,902 | ||||||||||||||||||||||
Franchise rent expense | 32,285 | — | — | 32,285 | ||||||||||||||||||||||
Depreciation and amortization | 289 | 4,311 | 1,788 | 6,388 | ||||||||||||||||||||||
Long-lived asset impairment | 94 | 3,066 | — | 3,160 | ||||||||||||||||||||||
Total operating expenses | 55,993 | 55,267 | 19,815 | 131,075 | ||||||||||||||||||||||
Operating income (loss) | 10,430 | (17,370) | (19,815) | (26,755) | ||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||
Interest expense | — | — | (3,701) | (3,701) | ||||||||||||||||||||||
Loss from sale of salon assets to franchisees, net | — | — | (3,226) | (3,226) | ||||||||||||||||||||||
Interest income and other, net | — | — | 403 | 403 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 10,430 | $ | (17,370) | $ | (26,339) | $ | (33,279) |
Three Months Ended December 31, 2019 | ||||||||||||||||||||||||||
Franchise | Company-owned | Corporate | Consolidated | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Service | $ | — | $ | 101,805 | $ | — | $ | 101,805 | ||||||||||||||||||
Product | 16,864 | 27,119 | — | 43,983 | ||||||||||||||||||||||
Royalties and fees | 29,347 | — | — | 29,347 | ||||||||||||||||||||||
Franchise rental income | 33,630 | — | — | 33,630 | ||||||||||||||||||||||
Total revenue | 79,841 | 128,924 | — | 208,765 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of service | — | 67,358 | — | 67,358 | ||||||||||||||||||||||
Cost of product | 13,072 | 14,186 | — | 27,258 | ||||||||||||||||||||||
Site operating expenses | 10,704 | 15,626 | — | 26,330 | ||||||||||||||||||||||
General and administrative | 8,976 | 7,547 | 16,168 | 32,691 | ||||||||||||||||||||||
Rent | 401 | 19,374 | 720 | 20,495 | ||||||||||||||||||||||
Franchise rent expense | 33,630 | — | — | 33,630 | ||||||||||||||||||||||
Depreciation and amortization | 210 | 5,938 | 1,599 | 7,747 | ||||||||||||||||||||||
TBG mall location restructuring | 722 | — | — | 722 | ||||||||||||||||||||||
Total operating expenses | 67,715 | 130,029 | 18,487 | 216,231 | ||||||||||||||||||||||
Operating income (loss) | 12,126 | (1,105) | (18,487) | (7,466) | ||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||
Interest expense | — | — | (1,464) | (1,464) | ||||||||||||||||||||||
Loss from sale of salon assets to franchisees, net | — | — | (12,407) | (12,407) | ||||||||||||||||||||||
Interest income and other, net | — | — | 2,869 | 2,869 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 12,126 | $ | (1,105) | $ | (29,489) | $ | (18,468) |
Six Months Ended December 31, 2020 | ||||||||||||||||||||||||||
Franchise | Company-owned | Corporate | Consolidated | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Service | $ | — | $ | 65,395 | $ | — | $ | 65,395 | ||||||||||||||||||
Product | 27,978 | 19,917 | — | 47,895 | ||||||||||||||||||||||
Royalties and fees | 37,858 | — | — | 37,858 | ||||||||||||||||||||||
Franchise rental income | 64,568 | — | — | 64,568 | ||||||||||||||||||||||
Total revenue | 130,404 | 85,312 | — | 215,716 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of service | — | 50,620 | — | 50,620 | ||||||||||||||||||||||
Cost of product | 21,969 | 11,603 | — | 33,572 | ||||||||||||||||||||||
Site operating expenses | 9,258 | 14,331 | — | 23,589 | ||||||||||||||||||||||
General and administrative | 15,604 | 5,411 | 31,822 | 52,837 | ||||||||||||||||||||||
Rent | 962 | 23,790 | 1,375 | 26,127 | ||||||||||||||||||||||
Franchise rent expense | 64,568 | — | — | 64,568 | ||||||||||||||||||||||
Depreciation and amortization | 563 | 9,393 | 3,808 | 13,764 | ||||||||||||||||||||||
Long-lived asset impairment | 704 | 8,280 | — | 8,984 | ||||||||||||||||||||||
Total operating expenses | 113,628 | 123,428 | 37,005 | 274,061 | ||||||||||||||||||||||
Operating income (loss) | 16,776 | (38,116) | (37,005) | (58,345) | ||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||
Interest expense | — | — | (7,463) | (7,463) | ||||||||||||||||||||||
Loss from sale of salon assets to franchisees, net | — | — | (3,888) | (3,888) | ||||||||||||||||||||||
Interest income and other, net | — | — | 517 | 517 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 16,776 | $ | (38,116) | $ | (47,839) | $ | (69,179) |
Six Months Ended December 31, 2019 | ||||||||||||||||||||||||||
Franchise | Company-owned | Corporate | Consolidated | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Service | $ | — | $ | 243,746 | $ | — | $ | 243,746 | ||||||||||||||||||
Product | 29,969 | 59,670 | — | 89,639 | ||||||||||||||||||||||
Royalties and fees | 57,364 | — | — | 57,364 | ||||||||||||||||||||||
Franchise rental income | 65,054 | — | — | 65,054 | ||||||||||||||||||||||
Total revenue | 152,387 | 303,416 | — | 455,803 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of service | — | 157,840 | — | 157,840 | ||||||||||||||||||||||
Cost of product | 23,352 | 30,233 | — | 53,585 | ||||||||||||||||||||||
Site operating expenses | 21,130 | 38,142 | — | 59,272 | ||||||||||||||||||||||
General and administrative | 17,333 | 17,697 | 38,286 | 73,316 | ||||||||||||||||||||||
Rent | 591 | 43,163 | 1,005 | 44,759 | ||||||||||||||||||||||
Franchise rent expense | 65,054 | — | — | 65,054 | ||||||||||||||||||||||
Depreciation and amortization | 370 | 12,045 | 4,712 | 17,127 | ||||||||||||||||||||||
TBG mall location restructuring | 2,222 | — | — | 2,222 | ||||||||||||||||||||||
Total operating expenses | 130,052 | 299,120 | 44,003 | 473,175 | ||||||||||||||||||||||
Operating income (loss) | 22,335 | 4,296 | (44,003) | (17,372) | ||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||
Interest expense | — | — | (2,903) | (2,903) | ||||||||||||||||||||||
Loss from sale of salon assets to franchisees, net | — | — | (18,267) | (18,267) | ||||||||||||||||||||||
Interest income and other, net | — | — | 3,040 | 3,040 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 22,335 | 4,296 | $ | (62,133) | $ | (35,502) |
Three Months Ended December 31, 2019 | ||||||||||||||||||||
As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||
Loss from sale of salon assets to franchisees, net (1) | $ | (5,692) | $ | (6,715) | $ | (12,407) | ||||||||||||||
Interest income and other, net (2) | 4,346 | (1,477) | 2,869 | |||||||||||||||||
Loss from continuing operations before income taxes | (10,276) | (8,192) | (18,468) | |||||||||||||||||
Income tax benefit | 795 | 1,153 | 1,948 | |||||||||||||||||
Net loss | (9,402) | (7,039) | (16,441) | |||||||||||||||||
Net loss per share | (0.26) | (0.20) | (0.46) | |||||||||||||||||
Comprehensive loss | (8,861) | (7,039) | (15,900) | |||||||||||||||||
Goodwill as of December 31, 2019 | 293,019 | (6,715) | 286,304 | |||||||||||||||||
Other assets as of December 31, 2019 | 38,144 | (1,477) | 36,667 | |||||||||||||||||
Other non-current liabilities as of December 31, 2019 | 95,979 | (1,153) | 94,826 |
Six Months Ended December 31, 2019 | ||||||||||||||||||||
As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||
Loss from sale of salon assets to franchisees, net (1) | $ | (11,552) | $ | (6,715) | $ | (18,267) | ||||||||||||||
Interest income and other, net (2) | 4,517 | (1,477) | 3,040 | |||||||||||||||||
Loss from continuing operations before income taxes | (27,310) | (8,192) | (35,502) | |||||||||||||||||
Income tax benefit | 3,651 | 1,153 | 4,804 | |||||||||||||||||
Net loss | (23,207) | (7,039) | (30,246) | |||||||||||||||||
Net loss per share | (0.64) | (0.20) | (0.84) | |||||||||||||||||
Comprehensive loss | (23,069) | (7,039) | (30,108) |
Three Months Ended December 31, | Increase (Decrease) | Six Months Ended December 31, | Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Salons sold to franchisees | 145 | 443 | (298) | 282 | 988 | (706) | ||||||||||||||||||||||||||||||||
Cash proceeds received | $ | 3,413 | $ | 31,468 | $ | (28,055) | $ | 7,148 | $ | 69,414 | $ | (62,266) | ||||||||||||||||||||||||||
(Loss) gain on venditions, excluding goodwill derecognition | $ | (3,226) | $ | 14,993 | $ | (18,219) | $ | (3,888) | $ | 41,213 | $ | (45,101) | ||||||||||||||||||||||||||
Non-cash goodwill derecognition | — | (27,400) | 27,400 | — | (59,480) | 59,480 | ||||||||||||||||||||||||||||||||
Loss from sale of salon assets to franchisees, net | $ | (3,226) | $ | (12,407) | $ | 9,181 | $ | (3,888) | $ | (18,267) | $ | 14,379 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
SmartStyle | (32.2) | % | (4.3) | % | (33.0) | % | (3.1) | % | ||||||||||||||||||
Supercuts | (32.9) | (1.1) | (33.2) | (0.4) | ||||||||||||||||||||||
Portfolio Brands | (30.0) | (2.3) | (30.1) | (2.0) | ||||||||||||||||||||||
Consolidated system-wide same store sales | (32.0) | % | (2.3) | % | (32.3) | % | (1.7) | % |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2020 | 2019 | 2020 | 2019 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) |
% of Total
Revenues (1) |
(Decrease)
Increase |
($ in millions) |
% of Total
Revenues (1) |
(Decrease)
Increase |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service revenues | $ | 29.0 | $ | 101.8 | 27.8 | % | 48.8 | % | (2,100) | $ | 65.4 | $ | 243.7 | 30.3 | % | 53.5 | % | (2,320) | |||||||||||||||||||||||||||||||||||||||||
Product revenues | 23.1 | 44.0 | 22.1 | 21.1 | 100 | 47.9 | 89.6 | 22.2 | 19.7 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||||
Royalties and fees | 19.9 | 29.3 | 19.1 | 14.1 | 500 | 37.9 | 57.4 | 17.6 | 12.6 | 500 | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise rental income | 32.3 | 33.6 | 31.0 | 16.1 | 1,490 | 64.6 | 65.1 | 29.9 | 14.3 | 1,560 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of service (2) | 22.1 | 67.4 | 76.2 | 66.2 | 1,000 | 50.6 | 157.8 | 77.4 | 64.8 | 1,260 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of product (2) | 17.2 | 27.3 | 74.5 | 62.0 | 1,250 | 33.6 | 53.6 | 70.1 | 59.8 | 1,030 | |||||||||||||||||||||||||||||||||||||||||||||||||
Site operating expenses | 10.4 | 26.3 | 10.0 | 12.6 | (260) | 23.6 | 59.3 | 10.9 | 13.0 | (210) | |||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 26.7 | 32.7 | 25.6 | 15.7 | 990 | 52.8 | 73.3 | 24.5 | 16.1 | 840 | |||||||||||||||||||||||||||||||||||||||||||||||||
Rent | 12.9 | 20.5 | 12.4 | 9.8 | 260 | 26.1 | 44.8 | 12.1 | 9.8 | 230 | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise rent expense | 32.3 | 33.6 | 31.0 | 16.1 | 1,490 | 64.6 | 65.1 | 29.9 | 14.3 | 1,560 | |||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 6.4 | 7.7 | 6.1 | 3.7 | 240 | 13.8 | 17.1 | 6.4 | 3.8 | 260 | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived asset impairment | 3.2 | — | 3.1 | — | N/A | 9.0 | — | 4.2 | — | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||
TBG restructuring | — | 0.7 | — | 0.3 | (30) | — | 2.2 | — | 0.5 | (50) | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating loss (3) | (26.8) | (7.5) | (25.7) | (3.6) | (2,210) | (58.3) | (17.4) | (27.0) | (3.8) | (2,320) | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (3.7) | (1.5) | (3.5) | (0.7) | (280) | (7.5) | (2.9) | (3.5) | (0.6) | (290) | |||||||||||||||||||||||||||||||||||||||||||||||||
Loss from sale of salon assets to franchisees, net | (3.2) | (12.4) | (3.1) | (5.9) | 280 | (3.9) | (18.3) | (1.8) | (4.0) | 220 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest income and other, net | 0.4 | 2.9 | 0.4 | 1.4 | (100) | 0.5 | 3.0 | 0.2 | 0.7 | (50) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (4) | 0.4 | 1.9 | 1.2 | 10.3 | N/A | 1.0 | 4.8 | 1.5 | 13.5 | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations, net of income taxes | — | 0.1 | — | — | — | — | 0.5 | — | 0.1 | (10) |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Franchise salons: | ||||||||||||||||||||||||||
Product | $ | 14,236 | $ | 16,864 | $ | 27,978 | $ | 29,969 | ||||||||||||||||||
Royalties and fees | 19,902 | 29,347 | 37,858 | 57,364 | ||||||||||||||||||||||
Franchise rental income | 32,285 | 33,630 | 64,568 | 65,054 | ||||||||||||||||||||||
Total, Franchise salons | $ | 66,423 | $ | 79,841 | $ | 130,404 | $ | 152,387 | ||||||||||||||||||
Franchise salon same-store sales decrease (1) | (31.1) | % | (1.4) | % | (31.5) | % | (0.8) | % | ||||||||||||||||||
Company-owned salons: | ||||||||||||||||||||||||||
SmartStyle | $ | 13,633 | $ | 66,103 | $ | 32,746 | $ | 151,634 | ||||||||||||||||||
Supercuts | 6,200 | 16,967 | 11,819 | 41,321 | ||||||||||||||||||||||
Portfolio Brands | 18,064 | 45,854 | 40,747 | 110,461 | ||||||||||||||||||||||
Total, Company-owned salons | $ | 37,897 | $ | 128,924 | $ | 85,312 | $ | 303,416 | ||||||||||||||||||
Company-owned salon same-store sales decrease (2) | (36.2) | % | (3.6) | % | (35.4) | % | (2.7) | % | ||||||||||||||||||
Consolidated revenues | $ | 104,320 | $ | 208,765 | $ | 215,716 | $ | 455,803 | ||||||||||||||||||
Percent change from prior year | (50.0) | % | (24.0) | % | (52.7) | % | (19.0) | % |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Increase (Decrease) | 2020 | 2019 | Increase (Decrease) | ||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||
Product | $ | 14.2 | $ | 16.2 | $ | (2.0) | $ | 28.0 | $ | 28.0 | $ | — | |||||||||||||||||||||||
Product sold to TBG | — | 0.7 | (0.7) | — | 2.0 | (2.0) | |||||||||||||||||||||||||||||
Total product | 14.2 | 16.9 | (2.7) | 28.0 | 30.0 | (2.0) | |||||||||||||||||||||||||||||
Royalties and fees | 19.9 | 29.3 | (9.4) | 37.9 | 57.4 | (19.5) | |||||||||||||||||||||||||||||
Franchise rental income | 32.3 | 33.6 | (1.3) | 64.6 | 65.1 | (0.5) | |||||||||||||||||||||||||||||
Total franchise salons revenue (1) | $ | 66.4 | $ | 79.8 | $ | (13.4) | $ | 130.4 | $ | 152.4 | $ | (22.0) | |||||||||||||||||||||||
Franchise same-store sales (2) | (31.1) | % | (1.4) | % | (31.5) | % | (0.8) | % | |||||||||||||||||||||||||||
Operating income | $ | 10.4 | $ | 12.9 | $ | (2.5) | $ | 16.8 | $ | 24.7 | $ | (7.9) | |||||||||||||||||||||||
Operating loss from TBG restructuring | — | (0.8) | 0.8 | — | (2.4) | 2.4 | |||||||||||||||||||||||||||||
Total operating income (1) | $ | 10.4 | $ | 12.1 | $ | (1.7) | $ | 16.8 | $ | 22.3 | $ | (5.5) |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
SmartStyle | (30.4) | % | (7.6) | % | (31.0) | % | (7.6) | % | ||||||||||||||||||
Supercuts | (32.5) | (0.5) | (32.7) | 0.3 | ||||||||||||||||||||||
Portfolio Brands | (28.4) | (1.4) | (28.8) | (1.0) | ||||||||||||||||||||||
Total | (31.1) | % | (1.4) | % | (31.5) | % | (0.8) | % |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Increase (Decrease) | 2020 | 2019 | Increase (Decrease) | ||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||
Total revenue | $ | 37.9 | $ | 128.9 | $ | (91.0) | $ | 85.3 | $ | 303.4 | $ | (218.1) | |||||||||||||||||||||||
Company-owned same-store sales | (36.2) | % | (3.6) | % | (35.4) | % | (2.7) | % | |||||||||||||||||||||||||||
Operating (loss) income | $ | (17.4) | $ | (1.1) | $ | (16.3) | $ | (38.1) | $ | 4.3 | $ | (42.4) |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
SmartStyle | (35.3) | % | (3.5) | % | (35.4) | % | (2.2) | % | ||||||||||||||||||
Supercuts | (40.0) | (5.1) | (39.5) | (4.4) | ||||||||||||||||||||||
Portfolio Brands | (35.1) | (3.3) | (33.6) | (2.8) | ||||||||||||||||||||||
Total | (36.2) | % | (3.6) | % | (35.4) | % | (2.7) | % |
As of |
Debt to
Capitalization (1) |
Basis Point Increase (Decrease) (2) | ||||||||||||
December 31, 2020 | 77.8 | % | 1,580 | |||||||||||
June 30, 2020 | 62.0 | % | 3,520 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (in thousands) | ||||||||||||||||||||||
10/1/20 - 10/31/20 | — | $ | — | 29,974,657 | $ | 54,573 | ||||||||||||||||||||
11/1/20 - 11/30/20 | — | — | 29,974,657 | 54,573 | ||||||||||||||||||||||
12/1/20 - 12/31/20 | — | — | 29,974,657 | 54,573 | ||||||||||||||||||||||
Total | — | $ | — | 29,974,657 | $ | 54,573 |
Separation agreement, dated December 7, 2020, between the Company and Eric Bakken. | ||||||||
President and Chief Executive Officer of Regis Corporation: Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Executive Vice President and Chief Financial Officer of Regis Corporation: Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Chief Executive Officer and Chief Financial Officer of Regis Corporation: Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Exhibit 101 |
The following financial information from Regis Corporation's Quarterly Report on Form 10-Q for the quarterly and year-to-date periods ended December 31, 2020, formatted in Inline Xtensible Business Reporting Language (iXBRL) and filed electronically herewith: (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Earnings; (iii) the Condensed Consolidated Statements of Comprehensive Income; (iv) the Condensed Consolidated Statements of Cash Flows; and (v) the Notes to the Consolidated Financial Statements.
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Exhibit 104 |
The cover page from Regis Corporation's Quarterly Report on Form 10-Q for the quarterly and year-to-date periods ended December 31, 2020, formatted in iXBRL (included as Exhibit 101).
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Date: February 3, 2021 | By: | /s/ Kersten D. Zupfer | ||||||
Kersten D. Zupfer | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Accounting Officer) | ||||||||
February 3, 2021 | ||||||||
/s/ Felipe A. Athayde | ||||||||
Felipe A. Athayde, President and Chief Executive Officer |
February 3, 2021 | ||||||||
/s/ Kersten D. Zupfer | ||||||||
Kersten D. Zupfer, Executive Vice President and Chief Financial Officer |
February 3, 2021 | ||||||||
/s/ Felipe A. Athayde | ||||||||
Felipe A. Athayde, President and Chief Executive Officer | ||||||||
February 3, 2021 | ||||||||
/s/ Kersten D. Zupfer | ||||||||
Kersten D. Zupfer, Executive Vice President and Chief Financial Officer |