Regis Corporation Reports Continued Profitability for the Fourth Fiscal Quarter and Full Fiscal Year 2024
Regis (Nasdaq GM: RGS), a leader in the haircare industry, reported its financial results for Q4 and the full fiscal year 2024. The company achieved significant milestones, including strategic refinancing and the completion of the Zenoti migration. The new credit facility replaced $80 million of debt, saving $7 million in annual cash interest, extending the debt maturity to June 2029.
Key financial highlights for Q4 2024 include:
- System-wide revenue: $293.7M, down $18.1M YoY
- Operating income: $4.6M, up $1.0M YoY
- Net income: $91.2M, a $96.0M improvement YoY
- Diluted EPS: $38.10, a $40.17 improvement YoY
For the full fiscal year 2024:
- System-wide revenue: $1,179.5M, down $51.0M YoY
- Operating income: $20.9M, up $12.1M YoY
- Net income: $91.1M, a $98.5M improvement YoY
- Diluted EPS: $38.34, a $41.52 improvement YoY
The company highlighted lower rent expense and improved operating income as drivers of growth despite a decline in revenue due to fewer salons and other factors.
Regis (Nasdaq GM: RGS), un leader nel settore della cura dei capelli, ha riportato i suoi risultati finanziari per il quarto trimestre e l'intero anno fiscale 2024. L'azienda ha raggiunto traguardi significativi, inclusi il rifinanziamento strategico e il completamento della migrazione a Zenoti. La nuova linea di credito ha sostituito $80 milioni di debito, risparmiando $7 milioni in interessi annuali in contante, estendendo la scadenza del debito a giugno 2029.
Le principali evidenze finanziarie per il quarto trimestre 2024 includono:
- Ricavi complessivi: $293.7M, in calo di $18.1M rispetto all'anno precedente
- Reddito operativo: $4.6M, in aumento di $1.0M rispetto all'anno precedente
- Utile netto: $91.2M, un miglioramento di $96.0M rispetto all'anno precedente
- EPS diluiti: $38.10, un miglioramento di $40.17 rispetto all'anno precedente
Per l'intero anno fiscale 2024:
- Ricavi complessivi: $1,179.5M, in calo di $51.0M rispetto all'anno precedente
- Reddito operativo: $20.9M, in aumento di $12.1M rispetto all'anno precedente
- Utile netto: $91.1M, un miglioramento di $98.5M rispetto all'anno precedente
- EPS diluiti: $38.34, un miglioramento di $41.52 rispetto all'anno precedente
L'azienda ha evidenziato una minore spesa per affitto e un aumento del reddito operativo come i fattori di crescita, nonostante una diminuzione dei ricavi dovuta a un numero inferiore di saloni e ad altri fattori.
Regis (Nasdaq GM: RGS), un líder en la industria del cuidado del cabello, ha reportado sus resultados financieros para el cuarto trimestre y el año fiscal completo 2024. La compañía alcanzó hitos significativos, incluyendo el refinanciamiento estratégico y la finalización de la migración a Zenoti. La nueva línea de crédito reemplazó $80 millones de deuda, ahorrando $7 millones en intereses en efectivo anuales, extendiendo el vencimiento de la deuda hasta junio de 2029.
Los aspectos financieros clave para el cuarto trimestre 2024 incluyen:
- Ingresos totales: $293.7M, una disminución de $18.1M interanual
- Ingresos operativos: $4.6M, un aumento de $1.0M interanual
- Ingreso neto: $91.2M, una mejora de $96.0M interanual
- EPS diluidos: $38.10, una mejora de $40.17 interanual
Para el año fiscal completo 2024:
- Ingresos totales: $1,179.5M, una disminución de $51.0M interanual
- Ingresos operativos: $20.9M, un aumento de $12.1M interanual
- Ingreso neto: $91.1M, una mejora de $98.5M interanual
- EPS diluidos: $38.34, una mejora de $41.52 interanual
La compañía destacó que los menores gastos de alquiler y la mejora del ingreso operativo son factores de crecimiento, a pesar de una disminución de los ingresos debido a menos salones y otros factores.
레지스(Nasdaq GM: RGS)는 헤어케어 산업의 선두주자로서 2024 회계연도 4분기 및 연간 재무 결과를 발표했습니다. 이 회사는 전략적 재융자와 제노티(Zenoti) 마이그레이션 완료를 포함하여 중요한 이정표를 달성했습니다. 새로운 신용 시설은 $8000만의 부채를 대체하며 연간 현금 이자로 $700만을 절감시키고 부채 만기를 2029년 6월로 연장했습니다.
2024년 4분기 주요 재무 하이라이트는 다음과 같습니다:
- 시스템 전체 수익: $293.7M, 전년 대비 $18.1M 감소
- 영업 이익: $4.6M, 전년 대비 $1.0M 증가
- 순이익: $91.2M, 전년 대비 $96.0M 개선
- 희석 주당순이익(EPS): $38.10, 전년 대비 $40.17 개선
2024 회계연도 전체에 대해:
- 시스템 전체 수익: $1,179.5M, 전년 대비 $51.0M 감소
- 영업 이익: $20.9M, 전년 대비 $12.1M 증가
- 순이익: $91.1M, 전년 대비 $98.5M 개선
- 희석 주당순이익(EPS): $38.34, 전년 대비 $41.52 개선
이 회사는 수익 감소에도 불구하고 임대 비용 감소와 운영 이익 개선이 성장의 원동력이라고 강조했습니다. 이는 살롱 수 감소 및 기타 요인에 기인합니다.
Regis (Nasdaq GM: RGS), un leader dans l'industrie des soins capillaires, a publié ses résultats financiers pour le quatrième trimestre et l'ensemble de l'exercice fiscal 2024. L'entreprise a atteint des jalons significatifs, notamment un refinancement stratégique et l'achèvement de la migration vers Zenoti. La nouvelle facilitation de crédit a remplacé $80 millions de dette, économisant $7 millions d'intérêts en espèces annuels et prolongeant l'échéance de la dette jusqu'en juin 2029.
Les points clés financiers pour le quatrième trimestre 2024 incluent :
- Revenu global: $293.7M, en baisse de $18.1M par rapport à l'année précédente
- Bénéfice opérationnel: $4.6M, en hausse de $1.0M par rapport à l'année précédente
- Bénéfice net: $91.2M, une amélioration de $96.0M par rapport à l'année précédente
- BPA dilué: $38.10, une amélioration de $40.17 par rapport à l'année précédente
Pour l'exercice fiscal complet 2024 :
- Revenu global: $1,179.5M, en baisse de $51.0M par rapport à l'année précédente
- Bénéfice opérationnel: $20.9M, en hausse de $12.1M par rapport à l'année précédente
- Bénéfice net: $91.1M, une amélioration de $98.5M par rapport à l'année précédente
- BPA dilué: $38.34, une amélioration de $41.52 par rapport à l'année précédente
L'entreprise a souligné que la réduction des frais de loyer et l'amélioration du bénéfice opérationnel étaient des moteurs de croissance, malgré une baisse des revenus due à un nombre réduit de salons et d'autres facteurs.
Regis (Nasdaq GM: RGS), ein führendes Unternehmen in der Haarpflegebranche, hat seine finanziellen Ergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2024 veröffentlicht. Das Unternehmen hat bedeutende Meilensteine erreicht, darunter eine strategische Refinanzierung und den Abschluss der Zenoti-Migration. Die neue Kreditfazilität hat $80 Millionen Schulden ersetzt, wodurch $7 Millionen an jährlichen Zinskosten eingespart wurden, und die Fälligkeit der Schulden auf Juni 2029 verlängert.
Die wichtigsten finanziellen Kennzahlen für das vierte Quartal 2024 beinhalten:
- Systemweite Einnahmen: $293.7M, ein Rückgang um $18.1M im Jahresvergleich
- Betriebseinkommen: $4.6M, ein Anstieg um $1.0M im Jahresvergleich
- Nettoeinkommen: $91.2M, eine Verbesserung von $96.0M im Jahresvergleich
- Verwässertes EPS: $38.10, eine Verbesserung von $40.17 im Jahresvergleich
Für das gesamte Geschäftsjahr 2024:
- Systemweite Einnahmen: $1,179.5M, ein Rückgang um $51.0M im Jahresvergleich
- Betriebseinkommen: $20.9M, ein Anstieg um $12.1M im Jahresvergleich
- Nettoeinkommen: $91.1M, eine Verbesserung um $98.5M im Jahresvergleich
- Verwässertes EPS: $38.34, eine Verbesserung um $41.52 im Jahresvergleich
Das Unternehmen hob die geringeren Mietkosten und das verbesserte Betriebseinkommen als Wachstumstreiber hervor, trotz eines Rückgangs der Einnahmen aufgrund weniger Salons und anderer Faktoren.
- Net income of $91.2M in Q4 2024, a $96.0M improvement YoY.
- Diluted EPS of $38.10 in Q4 2024, a $40.17 improvement YoY.
- Adjusted EBITDA of $7.4M in Q4 2024, up $2.2M YoY.
- Franchise adjusted EBITDA of $26.3M for FY 2024, up $3.5M YoY.
- New credit facility reduced debt by over $80M and saved $7M annually.
- System-wide revenue of $293.7M in Q4 2024, down $18.1M YoY.
- System-wide revenue of $1,179.5M for FY 2024, down $51.0M YoY.
- Total consolidated revenue of $49.4M in Q4 2024, down $6.3M YoY.
- Decline in royalties, fees, advertising fund contributions, and franchise rental income.
Insights
Regis 's Q4 and FY2024 results show significant improvements in profitability and financial stability. The company reported a net income of
The new
However, the company's system-wide revenue decreased by
Regis 's performance reflects broader trends in the haircare industry. The decline in system-wide revenue and salon count suggests ongoing consolidation and potential shifts in consumer behavior. However, the company's ability to improve profitability despite these challenges is noteworthy.
The completion of the Zenoti point-of-sale migration is a significant operational milestone. This tech upgrade could enhance efficiency and customer experience, potentially driving future growth. However, the impact on sales and customer retention remains to be seen.
The company's focus on operational excellence and increasing traffic to salons indicates a strategic shift towards organic growth. This approach, combined with the improved financial flexibility from the refinancing, positions Regis to potentially capitalize on market opportunities and adapt to changing consumer preferences in the personal care sector.
Matthew Doctor, Regis Corporation's President and Chief Executive Officer, commented: "I am very pleased with the milestones achieved in fiscal 2024 that pave the way for a new day at Regis. The strategic refinancing completed in June 2024 was an outstanding result that puts Regis on solid financial footing and creates flexibility we have not had in years. Our results and continued growth in profitability is a testament to the hard work and dedication of our franchisees and employees. I am excited that for the first time since I have been CEO we are able to grow our franchisees sales and profitability with our undivided focus, and can start taking a longer-term view as opposed to the short-term blocking and tackling that was required to get to this point. With the Zenoti migration complete, and the right organization in place, we are ready to execute on a focused set of priorities to ultimately increase traffic to our salons through operational excellence and drive growth and value creation for all stakeholders."
Business Highlights and Updates:
- Entered into a new senior secured credit facility with TCW Asset Management Company LLC ("TCW"), a leading global asset manager, and Midcap Financial Trust ("Midcap") in June 2024;
-
A
$105 million $80 million $7 million $25 million - The new revolving credit facility and term loan will mature in June 2029 vs. previous debt maturity of August 2025;
- Completed Zenoti point-of-sale migration in August 2024; majority of earned migration proceeds to be received in the second quarter fiscal 2025
Financial Highlights:
Fourth quarter fiscal 2024 compared to fourth quarter fiscal 2023:
-
System-wide revenue of
$293.7 million $311.8 million $18.1 million 1.3% ; -
Operating income of
$4.6 million $3.6 million $1.0 million -
Adjusted EBITDA of
$7.4 million $5.2 million $2.2 million -
Franchise adjusted EBITDA of
$6.1 million $5.5 million $0.6 million -
Net income of
$91.2 million $4.8 million $96.0 million -
Diluted earnings per share of
$38.10 $2.07 $40.17
Full fiscal year 2024 compared to full fiscal year 2023:
-
System-wide revenue of
$1,179.5 million $1,230.5 million $51.0 million 0.7% ; -
Operating income of
$20.9 million $8.8 million $12.1 million -
Adjusted EBITDA of
$25.9 million $21.0 million $4.9 million -
Franchise adjusted EBITDA of
$26.3 million $22.8 million $3.5 million -
Net income of
$91.1 million $7.4 million $98.5 million -
Diluted earnings per share of
$38.34 $3.18 $41.52
Fourth Quarter Fiscal Year 2024 Consolidated Results |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Twelve Months Ended June 30, |
||||||||||||
(Dollars in millions, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated revenue |
|
$ |
49.4 |
|
|
$ |
55.7 |
|
|
$ |
203.0 |
|
|
$ |
233.3 |
|
System-wide revenue (1) |
|
|
293.7 |
|
|
|
311.8 |
|
|
|
1,179.5 |
|
|
|
1,230.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
System-wide same-store sales comps |
|
|
(1.3 |
)% |
|
|
2.5 |
% |
|
|
0.7 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
4.6 |
|
|
$ |
3.6 |
|
|
$ |
20.9 |
|
|
$ |
8.8 |
|
Income (loss) from continuing operations |
|
|
91.3 |
|
|
|
(4.8 |
) |
|
|
89.1 |
|
|
|
(11.3 |
) |
Diluted income (loss) per share from continuing operations |
|
|
38.14 |
|
|
|
(2.07 |
) |
|
|
37.50 |
|
|
|
(4.88 |
) |
(Loss) income from discontinued operations |
|
|
(0.1 |
) |
|
|
— |
|
|
|
2.0 |
|
|
|
4.0 |
|
Net income (loss) |
|
|
91.2 |
|
|
|
(4.8 |
) |
|
|
91.1 |
|
|
|
(7.4 |
) |
Diluted net income (loss) per share |
|
|
38.10 |
|
|
|
(2.07 |
) |
|
|
38.34 |
|
|
|
(3.18 |
) |
Adjusted EBITDA (2) |
|
|
7.4 |
|
|
|
5.2 |
|
|
|
25.9 |
|
|
|
21.0 |
|
_______________________________________________________________________________ |
|
(1) |
Represents total sales within the system. |
(2) |
See GAAP to non-GAAP reconciliations within the attached section titled "Non-GAAP Reconciliations." |
Revenue
Total consolidated revenue of
Operating Income
Regis reported fourth quarter 2024 income from operations of
Income (Loss) from Continuing Operations
Regis reported fourth quarter 2024 net income from continuing operations of
Net Income (Loss)
The Company reported fourth quarter 2024 net income of
Adjusted EBITDA
Fourth quarter adjusted EBITDA of
Fiscal year adjusted EBITDA of
Fourth Quarter Fiscal Year 2024 Segment Results |
||||||||||||||||||||||||
Franchise |
||||||||||||||||||||||||
|
|
Three Months Ended
|
|
Increase
|
|
Twelve Months Ended
|
|
Increase
|
||||||||||||||||
(Dollars in millions) (1) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Royalties |
|
$ |
16.1 |
|
|
$ |
16.6 |
|
|
$ |
(0.5 |
) |
|
$ |
64.1 |
|
|
$ |
66.0 |
|
|
$ |
(1.9 |
) |
Fees |
|
|
2.4 |
|
|
|
3.0 |
|
|
|
(0.6 |
) |
|
|
10.2 |
|
|
|
11.3 |
|
|
|
(1.1 |
) |
Product sales to franchisees |
|
|
— |
|
|
|
0.6 |
|
|
|
(0.6 |
) |
|
|
0.5 |
|
|
|
2.8 |
|
|
|
(2.3 |
) |
Advertising fund contributions |
|
|
5.9 |
|
|
|
7.7 |
|
|
|
(1.8 |
) |
|
|
25.7 |
|
|
|
31.7 |
|
|
|
(6.0 |
) |
Franchise rental income |
|
|
22.7 |
|
|
|
25.6 |
|
|
|
(2.9 |
) |
|
|
95.3 |
|
|
|
111.4 |
|
|
|
(16.1 |
) |
Total franchise revenue |
|
$ |
47.1 |
|
|
$ |
53.5 |
|
|
$ |
(6.4 |
) |
|
$ |
195.7 |
|
|
$ |
223.2 |
|
|
$ |
(27.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Franchise same-store sales comps |
|
|
(1.4 |
)% |
|
|
2.4 |
% |
|
|
|
|
0.6 |
% |
|
|
4.4 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Franchise adjusted EBITDA |
|
$ |
6.1 |
|
|
$ |
5.5 |
|
|
$ |
0.6 |
|
|
$ |
26.3 |
|
|
$ |
22.8 |
|
|
$ |
3.5 |
|
as a percent of revenue |
|
|
13.0 |
% |
|
|
10.2 |
% |
|
|
|
|
13.4 |
% |
|
|
10.2 |
% |
|
|
||||
as a percent of adjusted revenue (2) |
|
|
33.0 |
% |
|
|
27.1 |
% |
|
|
|
|
35.1 |
% |
|
|
28.5 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total franchise salons |
|
|
4,391 |
|
|
|
4,795 |
|
|
|
(404 |
) |
|
|
|
|
|
|
||||||
as a percent of total franchise and company-owned salons |
|
|
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
Fourth quarter franchise revenue was
Fiscal year 2024 franchise revenue was
Franchise Adjusted EBITDA
Fourth quarter franchise adjusted EBITDA of
Fiscal year 2024 franchise adjusted EBITDA of
Company-Owned Salons |
||||||||||||||||||||||||
|
|
Three Months Ended
|
|
Increase
|
|
Twelve Months Ended
|
|
Increase
|
||||||||||||||||
(Dollars in millions) (1) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total company-owned salon revenue |
|
$ |
2.3 |
|
|
$ |
2.2 |
|
|
$ |
0.1 |
|
|
$ |
7.3 |
|
|
$ |
10.1 |
|
|
$ |
(2.8 |
) |
Company-owned same-store sales comps |
|
|
2.4 |
% |
|
|
8.7 |
% |
|
|
|
|
3.5 |
% |
|
|
4.9 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-owned salon adjusted EBITDA |
|
$ |
1.3 |
|
|
$ |
(0.3 |
) |
|
$ |
1.6 |
|
|
$ |
(0.3 |
) |
|
$ |
(1.8 |
) |
|
$ |
1.5 |
|
as a percent of revenue |
|
|
56.5 |
% |
|
|
(13.6 |
)% |
|
|
|
|
(4.1 |
)% |
|
|
(17.8 |
)% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Company-owned salons |
|
|
17 |
|
|
|
68 |
|
|
|
(51 |
) |
|
|
|
|
|
|
||||||
as a percent of total franchise and company-owned salons |
|
|
0.4 |
% |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
||||||||
_______________________________________________________________________________ |
|
(1) |
Variances calculated on amounts shown in millions may result in rounding differences. |
Company-Owned Salon Revenue
Fourth quarter revenue for the company-owned salon segment improved
Fiscal year 2024 revenue for the company-owned salon segment declined
Company-Owned Salon Adjusted EBITDA
Fourth quarter company-owned salon adjusted EBITDA improved
Fiscal year 2024 company-owned salon adjusted EBITDA loss improved
Balance Sheet and Cash Flow
The Company ended 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
Regis Corporation will host a conference call via webcast discussing fourth quarter and fiscal year 2024 results today, August 28, 2024, at 7:30 a.m., Central time. Interested parties are invited to participate in the live webcast by registering for the event at www.regiscorp.com/investor-relations.html. The webcast will include a slide presentation. A replay of the presentation will be available on our website at the same web address.
About Regis Corporation
Regis Corporation (NasdaqGM:RGS) is a leader in the haircare industry. As of June 30, 2024, the Company franchised or owned 4,408 locations. Regis' franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters®, and First Choice Haircutters®. For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com.
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," "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 uncertainties 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 including increases in minimum wages; changes in general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; compliance with Nasdaq listing requirements; reliance on franchise royalties and overall success of our franchisees’ salons; our salons' dependence on a third-party supplier agreement for merchandise; our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' salons; our ability to maintain and enhance the value of our brands; reliance on information technology systems; reliance on external vendors; the use of social media; the effectiveness of our enterprise risk management program; ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreements with our franchisees; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; continued ability to compete in our business markets; reliance on our management team and other key personnel; the continued ability to maintain an effective system of internal control over financial reporting; changes in tax exposure; the ability of our Tax Preservation Plan to protect the future availability of the Company's tax assets; potential litigation and other legal or regulatory proceedings; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A of this Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.
REGIS CORPORATION |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Dollars in thousands, except per share data) |
||||||||
|
|
June 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
10,066 |
|
|
$ |
9,508 |
|
Receivables, net |
|
|
9,434 |
|
|
|
10,885 |
|
Other current assets |
|
|
22,550 |
|
|
|
16,845 |
|
Total current assets |
|
|
42,050 |
|
|
|
37,238 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
|
3,664 |
|
|
|
6,422 |
|
Goodwill |
|
|
173,146 |
|
|
|
173,791 |
|
Other intangibles, net |
|
|
2,427 |
|
|
|
2,783 |
|
Right of use asset |
|
|
287,912 |
|
|
|
360,836 |
|
Other assets |
|
|
21,297 |
|
|
|
26,307 |
|
Total assets |
|
$ |
530,496 |
|
|
$ |
607,377 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
12,747 |
|
|
$ |
14,309 |
|
Accrued expenses |
|
|
21,644 |
|
|
|
30,109 |
|
Short-term lease liability |
|
|
69,127 |
|
|
|
81,917 |
|
Total current liabilities |
|
|
103,518 |
|
|
|
126,335 |
|
|
|
|
|
|
||||
Long-term debt, net |
|
|
99,545 |
|
|
|
176,830 |
|
Long-term lease liability |
|
|
230,607 |
|
|
|
291,901 |
|
Other non-current liabilities |
|
|
40,039 |
|
|
|
49,041 |
|
Total liabilities |
|
|
473,709 |
|
|
|
644,107 |
|
Commitments and contingencies |
|
|
|
|
||||
Shareholders' equity (deficit): |
|
|
|
|
||||
Common stock, |
|
|
114 |
|
|
|
114 |
|
Additional paid-in capital |
|
|
69,660 |
|
|
|
66,764 |
|
Accumulated other comprehensive income |
|
|
8,584 |
|
|
|
9,023 |
|
Accumulated deficit |
|
|
(21,571 |
) |
|
|
(112,631 |
) |
Total shareholders' equity (deficit) |
|
|
56,787 |
|
|
|
(36,730 |
) |
Total liabilities and shareholders' equity (deficit) |
|
$ |
530,496 |
|
|
$ |
607,377 |
|
REGIS CORPORATION |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Dollars and shares in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Royalties |
|
$ |
16,063 |
|
|
$ |
16,607 |
|
|
$ |
64,098 |
|
|
$ |
65,981 |
|
Fees |
|
|
2,449 |
|
|
|
2,965 |
|
|
|
10,189 |
|
|
|
11,266 |
|
Product sales to franchisees |
|
|
— |
|
|
|
608 |
|
|
|
451 |
|
|
|
2,802 |
|
Advertising fund contributions |
|
|
5,856 |
|
|
|
7,744 |
|
|
|
25,663 |
|
|
|
31,747 |
|
Franchise rental income |
|
|
22,724 |
|
|
|
25,596 |
|
|
|
95,258 |
|
|
|
111,441 |
|
Company-owned salon revenue |
|
|
2,284 |
|
|
|
2,195 |
|
|
|
7,323 |
|
|
|
10,089 |
|
Total revenue |
|
|
49,376 |
|
|
|
55,715 |
|
|
|
202,982 |
|
|
|
233,326 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of product sales to franchisees |
|
|
— |
|
|
|
715 |
|
|
|
436 |
|
|
|
3,540 |
|
Inventory reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,228 |
|
General and administrative |
|
|
11,639 |
|
|
|
11,544 |
|
|
|
45,387 |
|
|
|
50,751 |
|
Rent |
|
|
1,268 |
|
|
|
3,276 |
|
|
|
5,525 |
|
|
|
9,196 |
|
Advertising fund expense |
|
|
5,856 |
|
|
|
7,744 |
|
|
|
25,663 |
|
|
|
31,747 |
|
Franchise rent expense |
|
|
22,724 |
|
|
|
25,596 |
|
|
|
95,258 |
|
|
|
111,441 |
|
Company-owned salon expense (1) |
|
|
779 |
|
|
|
1,536 |
|
|
|
5,080 |
|
|
|
8,827 |
|
Depreciation and amortization |
|
|
1,888 |
|
|
|
1,664 |
|
|
|
3,945 |
|
|
|
7,716 |
|
Long-lived asset impairment |
|
|
629 |
|
|
|
65 |
|
|
|
798 |
|
|
|
101 |
|
Total operating expenses |
|
|
44,783 |
|
|
|
52,140 |
|
|
|
182,092 |
|
|
|
224,547 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
|
4,593 |
|
|
|
3,575 |
|
|
|
20,890 |
|
|
|
8,779 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other (expense) income: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
(6,864 |
) |
|
|
(9,018 |
) |
|
|
(25,393 |
) |
|
|
(22,141 |
) |
Gain on extinguishment of long-term debt, net |
|
|
94,611 |
|
|
|
— |
|
|
|
94,611 |
|
|
|
— |
|
Other, net |
|
|
27 |
|
|
|
198 |
|
|
|
(172 |
) |
|
|
1,364 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations before income taxes |
|
|
92,367 |
|
|
|
(5,245 |
) |
|
|
89,936 |
|
|
|
(11,998 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Income tax (expense) benefit |
|
|
(1,070 |
) |
|
|
442 |
|
|
|
(869 |
) |
|
|
655 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
|
|
91,297 |
|
|
|
(4,803 |
) |
|
|
89,067 |
|
|
|
(11,343 |
) |
|
|
|
|
|
|
|
|
|
||||||||
(Loss) income from discontinued operations, net of income taxes |
|
|
(96 |
) |
|
|
— |
|
|
|
1,993 |
|
|
|
3,958 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
91,201 |
|
|
$ |
(4,803 |
) |
|
$ |
91,060 |
|
|
$ |
(7,385 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic: |
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
|
$ |
38.98 |
|
|
$ |
(2.07 |
) |
|
$ |
38.08 |
|
|
$ |
(4.88 |
) |
Income (loss) from discontinued operations |
|
|
(0.04 |
) |
|
$ |
— |
|
|
|
0.85 |
|
|
|
1.70 |
|
Net income (loss) per share, basic (2) |
|
$ |
38.94 |
|
|
$ |
(2.07 |
) |
|
$ |
38.93 |
|
|
$ |
(3.18 |
) |
Diluted: |
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
|
$ |
38.14 |
|
|
$ |
(2.07 |
) |
|
$ |
37.50 |
|
|
$ |
(4.88 |
) |
Income (loss) from discontinued operations |
|
|
(0.04 |
) |
|
$ |
— |
|
|
|
0.84 |
|
|
|
1.70 |
|
Net income (loss) per share, diluted (2) |
|
$ |
38.10 |
|
|
$ |
(2.07 |
) |
|
$ |
38.34 |
|
|
$ |
(3.18 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common and common equivalent shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
2,342 |
|
|
|
2,323 |
|
|
|
2,339 |
|
|
|
2,312 |
|
Diluted |
|
|
2,394 |
|
|
|
2,323 |
|
|
|
2,375 |
|
|
|
2,312 |
|
_______________________________________________________________________________ |
|
(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. |
REGIS CORPORATION |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Dollars in thousands) |
||||||||
|
|
Twelve Months Ended June 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
91,060 |
|
|
$ |
(7,385 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities |
|
|
|
|
||||
Gain from sale of OSP |
|
|
(2,000 |
) |
|
|
(4,562 |
) |
Depreciation and amortization |
|
|
3,403 |
|
|
|
7,189 |
|
Long-lived asset impairment |
|
|
798 |
|
|
|
101 |
|
Deferred income taxes |
|
|
519 |
|
|
|
(8 |
) |
Inventory reserve |
|
|
— |
|
|
|
1,228 |
|
Non-cash interest |
|
|
3,418 |
|
|
|
3,790 |
|
Gain on extinguishment of long-term debt, net |
|
|
(94,611 |
) |
|
|
— |
|
Stock-based compensation |
|
|
1,558 |
|
|
|
2,316 |
|
Amortization of debt discount and financing costs |
|
|
2,987 |
|
|
|
2,891 |
|
Other non-cash items affecting earnings |
|
|
432 |
|
|
|
155 |
|
Changes in operating assets and liabilities (1): |
|
|
|
|
||||
Receivables |
|
|
848 |
|
|
|
943 |
|
Income tax receivable |
|
|
1,230 |
|
|
|
(577 |
) |
Other current assets |
|
|
385 |
|
|
|
668 |
|
Other assets |
|
|
5,829 |
|
|
|
6,818 |
|
Accounts payable |
|
|
(1,604 |
) |
|
|
(497 |
) |
Accrued expenses |
|
|
(4,812 |
) |
|
|
(6,151 |
) |
Net lease liabilities |
|
|
(1,942 |
) |
|
|
(4,991 |
) |
Other non-current liabilities |
|
|
(9,538 |
) |
|
|
(9,817 |
) |
Net cash used in operating activities: |
|
|
(2,040 |
) |
|
|
(7,889 |
) |
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(376 |
) |
|
|
(481 |
) |
Net proceeds from sale of OSP |
|
|
2,000 |
|
|
|
4,500 |
|
Net cash provided by investing activities: |
|
|
1,624 |
|
|
|
4,019 |
|
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from issuance of long-term debt |
|
|
105,000 |
|
|
|
— |
|
Borrowings on revolving credit facility |
|
|
14,238 |
|
|
|
13,357 |
|
Debt refinancing fees |
|
|
(14,360 |
) |
|
|
(4,383 |
) |
Repayments of long-term debt |
|
|
(96,499 |
) |
|
|
(11,083 |
) |
Taxes paid for shares withheld |
|
|
(16 |
) |
|
|
(36 |
) |
Net cash provided by (used in) financing activities: |
|
|
8,363 |
|
|
|
(2,145 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(31 |
) |
|
|
(53 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
|
7,916 |
|
|
|
(6,068 |
) |
Cash, cash equivalents and restricted cash: |
|
|
|
|
||||
Beginning of year |
|
|
21,396 |
|
|
|
27,464 |
|
End of year |
|
$ |
29,312 |
|
|
$ |
21,396 |
|
_______________________________________________________________________________ |
|
(1) |
Changes in operating assets and liabilities exclude assets and liabilities sold or acquired. |
SYSTEM-WIDE SAME-STORE SALES (1): |
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||||||
|
|
Service |
|
Retail |
|
Total |
|
Service |
|
Retail |
|
Total |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Supercuts |
|
0.4 |
% |
|
(10.7 |
)% |
|
— |
% |
|
4.5 |
% |
|
(2.4 |
)% |
|
4.2 |
% |
SmartStyle |
|
(3.5 |
) |
|
(15.2 |
) |
|
(5.5 |
) |
|
(1.9 |
) |
|
(9.7 |
) |
|
(3.4 |
) |
Portfolio Brands |
|
(0.1 |
) |
|
(12.6 |
) |
|
(0.8 |
) |
|
4.2 |
|
|
(0.4 |
) |
|
3.8 |
|
Total |
|
(0.4 |
)% |
|
(13.3 |
)% |
|
(1.3 |
)% |
|
3.2 |
% |
|
(5.3 |
)% |
|
2.5 |
% |
|
|
Twelve Months Ended |
||||||||||||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||||||
|
|
Service |
|
Retail |
|
Total |
|
Service |
|
Retail |
|
Total |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Supercuts |
|
2.0 |
% |
|
(8.0 |
)% |
|
1.6 |
% |
|
7.5 |
% |
|
(5.2 |
)% |
|
6.9 |
% |
SmartStyle |
|
(1.8 |
) |
|
(11.5 |
) |
|
(3.5 |
) |
|
0.1 |
|
|
(12.8 |
) |
|
(2.5 |
) |
Portfolio Brands |
|
2.8 |
|
|
(6.4 |
) |
|
2.0 |
|
|
6.4 |
|
|
(3.7 |
) |
|
5.5 |
|
Total |
|
1.5 |
% |
|
(9.1 |
)% |
|
0.7 |
% |
|
5.7 |
% |
|
(8.5 |
)% |
|
4.4 |
% |
_______________________________________________________________________________ |
|
(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 and year-to-date 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. |
REGIS CORPORATION |
||||||
System-Wide Location Counts |
||||||
|
|
June 30, |
||||
|
|
2024 |
|
2023 |
||
|
|
|
|
|
||
FRANCHISE SALONS: |
|
|
|
|
||
Supercuts |
|
1,946 |
|
|
2,082 |
|
SmartStyle/Cost Cutters in Walmart stores |
|
1,232 |
|
|
1,388 |
|
Portfolio Brands |
|
1,117 |
|
|
1,223 |
|
Total North American salons |
|
4,295 |
|
|
4,693 |
|
Total International salons (1) |
|
96 |
|
|
102 |
|
Total Franchise salons |
|
4,391 |
|
|
4,795 |
|
as a percent of total franchise and company-owned salons |
|
99.6 |
% |
|
98.6 |
% |
|
|
|
|
|
||
COMPANY-OWNED SALONS: |
|
|
|
|
||
Supercuts |
|
3 |
|
|
7 |
|
SmartStyle/Cost Cutters in Walmart stores |
|
8 |
|
|
48 |
|
Portfolio Brands |
|
6 |
|
|
13 |
|
Total Company-owned salons |
|
17 |
|
|
68 |
|
as a percent of total Franchise and Company-owned salons |
|
0.4 |
% |
|
1.4 |
% |
|
|
|
|
|
||
Total franchise and company-owned salons |
|
4,408 |
|
|
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 operating income excluding certain non-cash charges, 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 reconciliation of
The following items have been excluded from our non-GAAP adjusted EBITDA results: discontinued operations, inventory reserve, one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees, asset retirement obligation costs, and the benefit from the Company's debt refinancing.
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
REGIS CORPORATION |
||||||||||||||||
Reconciliation of |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Twelve Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated reported net income (loss), as reported ( |
|
$ |
91,201 |
|
|
$ |
(4,803 |
) |
|
$ |
91,060 |
|
|
$ |
(7,385 |
) |
Interest expense, as reported |
|
|
6,864 |
|
|
|
9,018 |
|
|
|
25,393 |
|
|
|
22,141 |
|
Income taxes, as reported |
|
|
1,070 |
|
|
|
(442 |
) |
|
|
869 |
|
|
|
(655 |
) |
Depreciation and amortization, as reported |
|
|
1,888 |
|
|
|
1,664 |
|
|
|
3,945 |
|
|
|
7,716 |
|
Long-lived asset impairment, as reported |
|
|
629 |
|
|
|
65 |
|
|
|
798 |
|
|
|
101 |
|
EBITDA |
|
$ |
101,652 |
|
|
$ |
5,502 |
|
|
$ |
122,065 |
|
|
$ |
21,918 |
|
|
|
|
|
|
|
|
|
|
||||||||
Inventory reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,228 |
|
Professional fees and legal settlements |
|
|
6 |
|
|
|
— |
|
|
|
68 |
|
|
|
1,248 |
|
Severance |
|
|
— |
|
|
|
(132 |
) |
|
|
230 |
|
|
|
720 |
|
Lease liability benefit |
|
|
(45 |
) |
|
|
(258 |
) |
|
|
(326 |
) |
|
|
(1,773 |
) |
Lease termination fees |
|
|
297 |
|
|
|
56 |
|
|
|
501 |
|
|
|
1,627 |
|
Gain on extinguishment of long-term debt, net |
|
|
(94,611 |
) |
|
|
— |
|
|
|
(94,611 |
) |
|
|
— |
|
Discontinued operations |
|
|
96 |
|
|
|
— |
|
|
|
(1,993 |
) |
|
|
(3,958 |
) |
Adjusted EBITDA, non-GAAP financial measure |
|
$ |
7,395 |
|
|
$ |
5,168 |
|
|
$ |
25,934 |
|
|
$ |
21,010 |
|
REGIS CORPORATION |
||||||||||||||||
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 June 30, |
|
Twelve Months Ended June 30, |
|||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Franchise adjusted EBITDA |
|
$ |
6,111 |
|
|
$ |
5,460 |
|
|
$ |
26,257 |
|
|
$ |
22,799 |
|
GAAP franchise revenue |
|
|
47,092 |
|
|
|
53,520 |
|
|
|
195,659 |
|
|
|
223,237 |
|
Franchise adjusted EBITDA as a percent of GAAP franchise revenue |
|
|
13.0 |
% |
|
|
10.2 |
% |
|
|
13.4 |
% |
|
|
10.2 |
% |
Non-margin revenue adjustments: |
|
|
|
|
|
|
|
|
||||||||
Franchise rental income |
|
$ |
(22,724 |
) |
|
$ |
(25,596 |
) |
|
$ |
(95,258 |
) |
|
$ |
(111,441 |
) |
Advertising fund contributions |
|
|
(5,856 |
) |
|
|
(7,744 |
) |
|
|
(25,663 |
) |
|
|
(31,747 |
) |
Adjusted franchise revenue |
|
$ |
18,512 |
|
|
$ |
20,180 |
|
|
$ |
74,738 |
|
|
$ |
80,049 |
|
Franchise adjusted EBITDA as a percent of adjusted franchise revenue |
|
|
33.0 |
% |
|
|
27.1 |
% |
|
|
35.1 |
% |
|
|
28.5 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240828028762/en/
REGIS CORPORATION:
Kersten Zupfer
investorrelations@regiscorp.com
Source: Regis Corporation
FAQ
What was Regis 's net income for Q4 2024?
How much did Regis 's diluted EPS improve in Q4 2024?
What was the system-wide revenue for Regis in FY 2024?
How much debt did Regis reduce in June 2024?
What savings did Regis achieve from the new credit facility?
