Regis® Reports Improved First Quarter 2022 Results and Enhanced Liquidity Position
Regis Corporation (NYSE: RGS) reported a Q1 2022 net loss of $10.4 million, or $0.28 per diluted share, an improvement from a $35.3 million loss in Q1 2021. System-wide same-store sales increased by 23.2% year-over-year. Total revenue fell by 30.2% to $77.8 million, mainly due to exiting underperforming company-owned salons. Adjusted EBITDA loss was reduced to $5.6 million from $18.6 million. The company raised $37 million in liquidity and reduced annual G&A expenses by approximately $5 million, focusing on supporting franchisee recruitment efforts.
- System-wide same-store sales increased by 23.2% year-over-year.
- Net loss improved to $10.4 million from $35.3 million in Q1 2021.
- Adjusted EBITDA loss decreased to $5.6 million from $18.6 million year-over-year.
- Raised $37 million in liquidity through an ATM offering.
- Reduced annual G&A expenses by approximately $5 million.
- Total revenue decreased by 30.2% to $77.8 million year-over-year.
- Company-owned salon revenue dropped by 83.1% to $8.0 million due to salon closures.
Nominal Sales Continue To Improve; Q1 2022 System-Wide Same-Store Sales Up
Proactively Bolstered Liquidity By Raising
Continued Rollout Of Proprietary Technology Platform Opensalon® Pro;
Took Action To Further Reduce Annual G&A Spend By Approximately
|
|
Three Months Ended |
||||||
(Dollars in thousands) |
|
2021 |
|
2020 |
||||
|
|
|
|
|
||||
Consolidated revenue |
|
$ |
77,756 |
|
|
$ |
111,396 |
|
System-wide revenue (1) |
|
316,285 |
|
|
262,322 |
|
||
|
|
|
|
|
||||
System-wide same-store sales comps |
|
23.2 |
% |
|
(32.6 |
)% |
||
Two-year system-wide same-store sales comps |
|
(17.1 |
)% |
|
N/A |
|
||
|
|
|
|
|
||||
Operating loss |
|
$ |
(5,801 |
) |
|
$ |
(31,591 |
) |
Net loss |
|
(10,378 |
) |
|
(35,266 |
) |
||
Diluted net loss per share |
|
(0.28 |
) |
|
(0.98 |
) |
||
EBITDA (2) |
|
(5,088 |
) |
|
(18,939 |
) |
||
as a percent of revenue |
|
(6.5 |
)% |
|
(17.0 |
)% |
||
|
|
|
|
|
||||
As adjusted (2) |
|
|
|
|
||||
Net loss, as adjusted |
|
$ |
(10,474 |
) |
|
$ |
(27,932 |
) |
Diluted net loss per share, as adjusted |
|
(0.28 |
) |
|
(0.78 |
) |
||
EBITDA, as adjusted |
|
(5,635 |
) |
|
(18,644 |
) |
||
as a percent of revenue |
|
(7.2 |
)% |
|
(16.7 |
)% |
||
_______________________________________________________________________________
| (1) | Represents total sales within the system. |
|
| (2) | See GAAP to non-GAAP reconciliations, within the attached section titled "Non-GAAP Reconciliations". |
Total revenue in the quarter of
First quarter adjusted EBITDA loss of
First Quarter Segment Results
Franchise
|
|
Three Months Ended |
|
Increase
|
||||||||
(Dollars in millions) (1) |
|
2021 |
|
2020 |
|
|||||||
|
|
|
|
|
|
|
||||||
Revenue |
|
|
|
|
|
|
||||||
Royalties |
|
$ |
16.6 |
|
|
$ |
11.4 |
|
|
$ |
5.2 |
|
Fees |
|
3.3 |
|
|
2.0 |
|
|
1.3 |
|
|||
Product sales to franchisees |
|
8.0 |
|
|
13.7 |
|
|
(5.7 |
) |
|||
Advertising fund contributions |
|
8.1 |
|
|
4.5 |
|
|
3.6 |
|
|||
Franchise rental income |
|
33.8 |
|
|
32.3 |
|
|
1.5 |
|
|||
Total Franchise revenue |
|
$ |
69.8 |
|
|
$ |
64.0 |
|
|
$ |
5.8 |
|
|
|
|
|
|
|
|
||||||
Franchise same-store sales comps |
|
23.7 |
% |
|
(31.9 |
)% |
|
|
||||
Franchise two-year same-store sales comps |
|
(16.8 |
)% |
|
N/A |
|
|
|
||||
|
|
|
|
|
|
|
||||||
EBITDA, as adjusted |
|
$ |
(4.1 |
) |
|
$ |
(8.0 |
) |
|
$ |
3.9 |
|
as a percent of revenue |
|
(5.8 |
)% |
|
(12.4 |
)% |
|
|
||||
as a percent of adjusted revenue (2) |
|
(14.6 |
)% |
|
(29.3 |
)% |
|
|
||||
|
|
|
|
|
|
|
||||||
Total Franchise salons |
|
5,587 |
|
|
5,226 |
|
|
361 |
|
|||
as a percent of total |
|
96.9 |
% |
|
80.0 |
% |
|
|
||||
_______________________________________________________________________________
| (1) | Variances calculated on amounts shown in millions may result in rounding differences. |
|
| (2) | Adjusted revenue excludes non-margin revenue. See Non-GAAP reconciliation. |
First quarter Franchise revenue was
Company-Owned Salons
|
|
Three Months Ended |
|
(Decrease)
|
||||||||
(Dollars in millions) (1) |
|
2021 |
|
2020 |
|
|||||||
|
|
|
|
|
|
|
||||||
|
|
$ |
8.0 |
|
|
$ |
47.4 |
|
|
$ |
(39.4 |
) |
Company-owned same-store sales comps |
|
6.5 |
% |
|
(34.8 |
)% |
|
|
||||
Company-owned two-year same-store sales comps |
|
(32.1 |
)% |
|
N/A |
|
|
|
||||
|
|
|
|
|
|
|
||||||
EBITDA, as adjusted |
|
$ |
(1.6 |
) |
|
$ |
(10.7 |
) |
|
$ |
9.1 |
|
as a percent of revenue |
|
(19.4 |
)% |
|
(22.6 |
)% |
|
|
||||
|
|
|
|
|
|
|
||||||
|
|
179 |
|
|
1,308 |
|
|
(1,129 |
) |
|||
as a percent of total |
|
3.1 |
% |
|
20.0 |
% |
|
|
||||
_______________________________________________________________________________
| (1) | Variances calculated on amounts shown in millions may result in rounding differences. |
First quarter revenue for the Company-owned salon segment decreased
First quarter adjusted EBITDA loss improved
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,” “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 the uncertain duration and severity of the COVID-19 pandemic, including any adverse impact from the Delta variant; the impact of the COVID-19 pandemic on our key suppliers; consumer shopping trends and changes in manufacturer distribution channels; changes in regulatory and statutory laws including increases in minimum wages; laws and regulations could require us to modify current business practices and incur increased costs; changes in economic conditions; changes in consumer tastes and fashion trends; the continued ability of the Company to implement its strategy, priorities and initiatives including the re-engineering of our corporate and field infrastructure; new merchandising strategy; our franchisees' ability to attract, train and retain talented stylists; financial performance of our franchisees; the ability to operate or sell the salons transferred back from TBG; our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, 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; failure to standardize operating processes across brands; exposure to uninsured or unidentified risks; Opensalon® Pro may not yield the intended results; compliance with credit facility covenants and access to the existing revolving credit facility; ability to re-finance our existing credit facility or the ability to re-finance at a similar rate; our capital investments in technology may not achieve appropriate returns; premature termination of agreements with our franchisees; financial performance of
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) |
||||||||
(Dollars in thousands, except per share data) |
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
45,508 |
|
|
$ |
19,191 |
|
Receivables, net |
|
21,833 |
|
|
27,372 |
|
||
Inventories |
|
16,774 |
|
|
22,993 |
|
||
Other current assets |
|
16,049 |
|
|
17,103 |
|
||
Total current assets |
|
100,164 |
|
|
86,659 |
|
||
|
|
|
|
|
||||
Property and equipment, net |
|
22,588 |
|
|
23,113 |
|
||
|
|
229,007 |
|
|
229,582 |
|
||
Other intangibles, net |
|
3,604 |
|
|
3,761 |
|
||
Right of use asset |
|
573,475 |
|
|
611,880 |
|
||
Other assets |
|
40,013 |
|
|
41,388 |
|
||
Total assets |
|
$ |
968,851 |
|
|
$ |
996,383 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
20,784 |
|
|
$ |
27,157 |
|
Accrued expenses |
|
48,099 |
|
|
54,857 |
|
||
Short-term lease liability |
|
113,585 |
|
|
116,471 |
|
||
Total current liabilities |
|
182,468 |
|
|
198,485 |
|
||
|
|
|
|
|
||||
Long-term debt, net |
|
195,805 |
|
|
186,911 |
|
||
Long-term lease liability |
|
480,769 |
|
|
518,866 |
|
||
Other non-current liabilities |
|
69,999 |
|
|
75,075 |
|
||
Total liabilities |
|
929,041 |
|
|
979,337 |
|
||
Commitments and contingencies |
|
|
|
|
||||
Shareholders' equity: |
|
|
|
|
||||
Common stock, |
|
2,198 |
|
|
1,790 |
|
||
Additional paid-in capital |
|
58,310 |
|
|
25,102 |
|
||
Accumulated other comprehensive income |
|
9,069 |
|
|
9,543 |
|
||
Accumulated deficit |
|
(29,767 |
) |
|
(19,389 |
) |
||
Total shareholders' equity |
|
39,810 |
|
|
17,046 |
|
||
Total liabilities and shareholders' equity |
|
$ |
968,851 |
|
|
$ |
996,383 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) |
||||||||
For The Three Months Ended |
||||||||
(Dollars and shares in thousands, except per share data amounts) |
||||||||
|
|
Three Months Ended |
||||||
|
|
2021 |
|
2020 |
||||
|
|
|
|
|
||||
Revenues: |
|
|
|
|
||||
Royalties |
|
$ |
16,602 |
|
|
$ |
11,405 |
|
Fees |
|
3,265 |
|
|
2,042 |
|
||
Product sales to franchisees |
|
8,008 |
|
|
13,742 |
|
||
Advertising fund contributions |
|
8,114 |
|
|
4,509 |
|
||
Franchise rental income |
|
33,762 |
|
|
32,283 |
|
||
Company-owned salon revenue |
|
8,005 |
|
|
47,415 |
|
||
Total revenue |
|
77,756 |
|
|
111,396 |
|
||
Operating expenses: |
|
|
|
|
||||
Cost of product sales to franchisees |
|
8,112 |
|
|
10,678 |
|
||
General and administrative |
|
21,789 |
|
|
26,148 |
|
||
Rent |
|
1,803 |
|
|
13,225 |
|
||
Advertising fund expense |
|
8,114 |
|
|
4,510 |
|
||
Franchise rent expense |
|
33,762 |
|
|
32,283 |
|
||
Company-owned salon expense (1) |
|
7,945 |
|
|
42,943 |
|
||
Depreciation and amortization |
|
1,869 |
|
|
7,376 |
|
||
Long-lived asset impairment |
|
163 |
|
|
5,824 |
|
||
Total operating expenses |
|
83,557 |
|
|
142,987 |
|
||
|
|
|
|
|
||||
Operating loss |
|
(5,801 |
) |
|
(31,591 |
) |
||
|
|
|
|
|
||||
Other (expense) income: |
|
|
|
|
||||
Interest expense |
|
(3,306 |
) |
|
(3,762 |
) |
||
Loss from sale of salon assets to franchisees, net |
|
(1,080 |
) |
|
(662 |
) |
||
Interest income and other, net |
|
(239 |
) |
|
114 |
|
||
|
|
|
|
|
||||
Loss from continuing operations before income taxes |
|
(10,426 |
) |
|
(35,901 |
) |
||
|
|
|
|
|
||||
Income tax benefit |
|
48 |
|
|
635 |
|
||
|
|
|
|
|
||||
Net loss |
|
$ |
(10,378 |
) |
|
$ |
(35,266 |
) |
|
|
|
|
|
||||
Net loss per share: |
|
|
|
|
||||
Basic and diluted: |
|
|
|
|
||||
Net loss per share, basic and diluted (2) |
|
$ |
(0.28 |
) |
|
$ |
(0.98 |
) |
|
|
|
|
|
||||
Weighted average common and common equivalent shares outstanding: |
|
|
|
|
||||
Basic and diluted |
|
36,850 |
|
|
35,908 |
|
||
_______________________________________________________________________________
| (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 STATEMENT OF CASH FLOWS (Unaudited) |
||||||||
For The Three Months Ended |
||||||||
(Dollars in thousands) |
||||||||
|
|
Three months ended |
||||||
|
|
2021 |
|
2020 |
||||
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(10,378 |
) |
|
$ |
(35,266 |
) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
1,574 |
|
|
6,087 |
|
||
Long-lived asset impairment |
|
163 |
|
|
5,824 |
|
||
Deferred income taxes |
|
(258 |
) |
|
(384 |
) |
||
Loss from sale of salon assets to franchisees, net |
|
1,080 |
|
|
662 |
|
||
Stock-based compensation |
|
1,678 |
|
|
(1,225 |
) |
||
Amortization of debt discount and financing costs |
|
460 |
|
|
438 |
|
||
Other non-cash items affecting earnings |
|
232 |
|
|
4 |
|
||
Changes in operating assets and liabilities, excluding the effects of asset sales |
|
(6,805 |
) |
|
(5,006 |
) |
||
Net cash used in operating activities |
|
(12,254 |
) |
|
(28,866 |
) |
||
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
(1,524 |
) |
|
(3,811 |
) |
||
Proceeds from sale of assets to franchisees |
|
— |
|
|
3,735 |
|
||
Costs associated with sale of salon assets to franchisees |
|
— |
|
|
(125 |
) |
||
Net cash used in investing activities |
|
(1,524 |
) |
|
(201 |
) |
||
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings on revolving credit facility |
|
10,000 |
|
|
— |
|
||
Repayments of revolving credit facility |
|
(1,106 |
) |
|
— |
|
||
Proceeds from issuance of common stock, net of offering costs |
|
32,193 |
|
|
— |
|
||
Taxes paid for shares withheld |
|
(255 |
) |
|
(187 |
) |
||
Distribution center lease payments |
|
— |
|
|
(238 |
) |
||
Net cash provided by (used in) financing activities |
|
40,832 |
|
|
(425 |
) |
||
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
(148 |
) |
|
88 |
|
||
|
|
|
|
|
||||
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
26,906 |
|
|
(29,404 |
) |
||
|
|
|
|
|
||||
Cash, cash equivalents and restricted cash: |
|
|
|
|
||||
Beginning of period |
|
29,152 |
|
|
122,880 |
|
||
End of period |
|
$ |
56,058 |
|
|
$ |
93,476 |
|
|
||||||||||||||||||
Same-Store Sales |
||||||||||||||||||
SYSTEM-WIDE SAME-STORE SALES (1): |
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
|
|
|
|
|
||||||||||||||
|
|
Service |
|
Retail |
|
Total |
|
Service |
|
Retail |
|
Total |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
SmartStyle |
|
22.6 |
% |
|
0.2 |
% |
|
17.0 |
% |
|
(35.2 |
)% |
|
(30.7 |
)% |
|
(33.9 |
)% |
Supercuts |
|
32.6 |
|
|
(1.5 |
) |
|
30.5 |
|
|
(33.9 |
) |
|
(26.1 |
) |
|
(33.4 |
) |
Portfolio Brands |
|
20.9 |
|
|
0.9 |
|
|
18.5 |
|
|
(31.5 |
) |
|
(19.4 |
) |
|
(30.2 |
) |
Total |
|
26.7 |
% |
|
— |
% |
|
23.2 |
% |
|
(33.4 |
)% |
|
(26.2 |
)% |
|
(32.6 |
)% |
_______________________________________________________________________________
| (1) | System-wide same-store sales in fiscal year 2022 are calculated as the change in sales for locations that were open on a specific day of the week during the current period and the corresponding prior period. System-wide same-store sales in fiscal year 2021 are calculated as the total change in sales for system-wide franchise and company-owned locations for more than one year 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. |
|
||||||
System-Wide Location Counts |
||||||
|
|
|
|
|
||
|
|
|
|
|
||
FRANCHISE SALONS: |
|
|
|
|
||
SmartStyle/Cost Cutters in |
|
1,676 |
|
|
1,666 |
|
Supercuts |
|
2,369 |
|
|
2,386 |
|
Portfolio Brands |
|
1,391 |
|
|
1,357 |
|
Total North American salons |
|
5,436 |
|
|
5,409 |
|
Total International Salons (1) |
|
151 |
|
|
154 |
|
Total Franchise Salons |
|
5,587 |
|
|
5,563 |
|
as a percent of total |
|
96.9 |
% |
|
95.3 |
% |
|
|
|
|
|
||
COMPANY-OWNED SALONS: |
|
|
|
|
||
SmartStyle/Cost Cutters in |
|
67 |
|
|
91 |
|
Supercuts |
|
24 |
|
|
35 |
|
Portfolio Brands |
|
88 |
|
|
150 |
|
|
|
179 |
|
|
276 |
|
as a percent of total |
|
3.1 |
% |
|
4.7 |
% |
|
|
|
|
|
||
OWNERSHIP INTEREST LOCATIONS: |
|
|
|
|
||
Equity ownership interest locations |
|
77 |
|
|
78 |
|
|
|
|
|
|
||
Grand Total, System-wide |
|
5,843 |
|
|
5,917 |
|
_______________________________________________________________________________
| (1) | Canadian and Puerto Rican salons are included in the North American salon totals. |
Non-GAAP Reconciliations:
We believe our presentation of non-GAAP operating loss, net loss, net loss per diluted share, and other non-GAAP financial measures provides meaningful insight into our ongoing operating performance and an alternative 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.
The method we use to produce non-GAAP results is not in accordance with
Non-GAAP reconciling items for the three months ended
The following information is provided to give qualitative and quantitative information related to items impacting comparability. Items impacting comparability are not defined terms within
- CEO transition
- Distribution center wind down fees ("Distribution center fees")
- Professional fees
- Severance
- Benefit from lease liability decrease in excess of previously impaired ROUA ("Lease liability benefit")
- Lease termination fees
- Real estate fees
- Asset retirement obligation
- Long-lived asset impairment
|
||||||||||
Reconciliation Of Selected |
||||||||||
(Dollars in thousands, except per share data) |
||||||||||
(Unaudited) |
||||||||||
Reconciliation of |
||||||||||
|
|
|
|
Three Months Ended |
||||||
|
|
|
|
2021 |
|
2020 |
||||
|
|
|
|
|
|
|
||||
|
|
|
|
$ |
77,756 |
|
|
$ |
111,396 |
|
|
|
|
|
|
|
|
||||
|
|
|
|
$ |
(5,801 |
) |
|
$ |
(31,591 |
) |
|
|
|
|
|
|
|
||||
Non-GAAP operating expense adjustments (1) |
|
|
|
|
|
|
||||
CEO transition |
|
General and administrative |
|
— |
|
|
(1,294 |
) |
||
Distribution center fees |
|
General and administrative |
|
229 |
|
|
— |
|
||
Professional fees |
|
General and administrative |
|
99 |
|
|
1,727 |
|
||
Severance |
|
General and administrative |
|
176 |
|
|
369 |
|
||
Lease liability benefit |
|
Rent |
|
(2,431 |
) |
|
(6,061 |
) |
||
Lease termination fees |
|
Rent |
|
1,340 |
|
|
5,554 |
|
||
Real estate fees |
|
Rent |
|
40 |
|
|
— |
|
||
Asset retirement obligation |
|
Depreciation and amortization |
|
287 |
|
|
1,289 |
|
||
Long-lived asset impairment |
|
Long-lived asset impairment |
|
163 |
|
|
5,824 |
|
||
Total non-GAAP operating expense adjustments |
|
|
|
(97 |
) |
|
7,408 |
|
||
|
|
|
|
|
|
|
||||
Non-GAAP operating loss (1) |
|
|
|
$ |
(5,898 |
) |
|
$ |
(24,183 |
) |
|
|
|
|
|
|
|
||||
|
|
|
|
$ |
(10,378 |
) |
|
$ |
(35,266 |
) |
|
|
|
|
|
|
|
||||
Non-GAAP net income adjustments: |
|
|
|
|
|
|
||||
Non-GAAP operating expense adjustments |
|
|
|
(97 |
) |
|
7,408 |
|
||
Income tax impact on Non-GAAP adjustments (2) |
|
Income taxes |
|
1 |
|
|
(74 |
) |
||
Total non-GAAP net income adjustments |
|
|
|
(96 |
) |
|
7,334 |
|
||
Non-GAAP net loss |
|
|
|
$ |
(10,474 |
) |
|
$ |
(27,932 |
) |
_______________________________________________________________________________
| (1) |
Adjusted operating margins for the three months ended |
|
| (2) |
Based on projected statutory effective tax rate analyses, the non-GAAP tax provision was calculated to be approximately |
|
||||||||
Reconciliation Of Selected |
||||||||
(Dollars in thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
Reconciliation of |
||||||||
|
Three Months Ended |
|||||||
|
2021 |
|
2020 |
|||||
|
|
|
|
|
||||
|
|
$ |
(0.282 |
) |
|
$ |
(0.982 |
) |
CEO Transition (1) |
|
— |
|
|
(0.036 |
) |
||
Distribution center fees (1) |
|
0.006 |
|
|
— |
|
||
Professional fees (1) |
|
0.003 |
|
|
0.048 |
|
||
Severance (1) |
|
0.005 |
|
|
0.010 |
|
||
Lease liability benefit (1) |
|
(0.065 |
) |
|
(0.167 |
) |
||
Lease termination fees (1) |
|
0.036 |
|
|
0.153 |
|
||
Real estate fees (1) |
|
0.001 |
|
|
— |
|
||
Asset retirement obligation (1) |
|
0.008 |
|
|
0.035 |
|
||
Long-lived asset impairment (1) |
|
0.004 |
|
|
0.161 |
|
||
Non-GAAP net loss per diluted share (2) |
|
$ |
(0.284 |
) |
|
$ |
(0.778 |
) |
|
|
|
|
|
||||
|
|
36,850 |
|
|
35,908 |
|
||
Non-GAAP Weighted average shares - diluted |
|
36,850 |
|
|
35,908 |
|
||
_______________________________________________________________________________
| (1) |
Based on projected statutory effective tax rate analyses, the non-GAAP tax provision was calculated to be approximately |
|
| (2) | Total is a recalculation; line items calculated individually may not sum to total due to rounding. |
Reconciliation Of Reported
(Dollars in thousands)
(Unaudited)
Adjusted EBITDA
EBITDA represents
|
|
Three Months Ended |
||||||||||
|
|
Franchise |
|
Company-owned |
|
Consolidated (1) |
||||||
|
|
|
|
|
|
|
||||||
Consolidated reported net loss, as reported ( |
|
$ |
(9,357 |
) |
|
$ |
(1,021 |
) |
|
$ |
(10,378 |
) |
Interest expense, as reported |
|
3,306 |
|
|
— |
|
|
3,306 |
|
|||
Income taxes, as reported |
|
(48 |
) |
|
— |
|
|
(48 |
) |
|||
Depreciation and amortization, as reported |
|
1,623 |
|
|
246 |
|
|
1,869 |
|
|||
Long-lived asset impairment, as reported |
|
— |
|
|
163 |
|
|
163 |
|
|||
EBITDA (as defined above) |
|
$ |
(4,476 |
) |
|
$ |
(612 |
) |
|
$ |
(5,088 |
) |
|
|
|
|
|
|
|
||||||
Distribution center fees |
|
229 |
|
|
— |
|
|
229 |
|
|||
Professional fees |
|
99 |
|
|
— |
|
|
99 |
|
|||
Severance |
|
176 |
|
|
— |
|
|
176 |
|
|||
Lease liability benefit |
|
(86 |
) |
|
(2,345 |
) |
|
(2,431 |
) |
|||
Lease termination fees |
|
(21 |
) |
|
1,361 |
|
|
1,340 |
|
|||
Real estate fees |
|
— |
|
|
40 |
|
|
40 |
|
|||
Adjusted EBITDA, non-GAAP financial measure |
|
$ |
(4,079 |
) |
|
$ |
(1,556 |
) |
|
$ |
(5,635 |
) |
|
|
Three Months Ended |
||||||||||
|
|
Franchise |
|
Company-owned |
|
Consolidated (1) |
||||||
|
|
|
|
|
|
|
||||||
Consolidated reported net loss, as reported ( |
|
$ |
(14,519 |
) |
|
$ |
(20,747 |
) |
|
$ |
(35,266 |
) |
Interest expense, as reported |
|
3,762 |
|
|
— |
|
|
3,762 |
|
|||
Income taxes, as reported |
|
(635 |
) |
|
— |
|
|
(635 |
) |
|||
Depreciation and amortization, as reported |
|
2,294 |
|
|
5,082 |
|
|
7,376 |
|
|||
Long-lived asset impairment, as reported |
|
610 |
|
|
5,214 |
|
|
5,824 |
|
|||
EBITDA (as defined above) |
|
$ |
(8,488 |
) |
|
$ |
(10,451 |
) |
|
$ |
(18,939 |
) |
|
|
|
|
|
|
|
||||||
CEO transition |
|
(1,294 |
) |
|
— |
|
|
(1,294 |
) |
|||
Professional fees |
|
1,727 |
|
|
— |
|
|
1,727 |
|
|||
Severance |
|
369 |
|
|
— |
|
|
369 |
|
|||
Lease liability benefit |
|
(267 |
) |
|
(5,794 |
) |
|
(6,061 |
) |
|||
Lease termination fees |
|
— |
|
|
5,554 |
|
|
5,554 |
|
|||
Adjusted EBITDA, non-GAAP financial measure |
|
$ |
(7,953 |
) |
|
$ |
(10,691 |
) |
|
$ |
(18,644 |
) |
_______________________________________________________________________________
| (1) |
Consolidated EBITDA margins for the three months ended |
|
||||||||
Reconciliation Of Reported Franchise EBITDA As A Percent Of |
||||||||
To EBITDA As A Percent Of Adjusted Revenue |
||||||||
(Dollars in thousands) |
||||||||
(Unaudited) |
||||||||
|
Three Months Ended |
|||||||
|
|
2021 |
|
2020 |
||||
|
|
|
|
|
||||
As adjusted EBITDA |
|
$ |
(4,079 |
) |
|
$ |
(7,953 |
) |
|
|
69,751 |
|
|
63,981 |
|
||
As adjusted EBITDA as a % of |
|
(5.8 |
)% |
|
(12.4 |
)% |
||
Non-margin revenue adjustments: |
|
|
|
|
||||
Franchise rental income |
|
(33,762 |
) |
|
(32,283 |
) |
||
Advertising fund contributions |
|
(8,114 |
) |
|
(4,509 |
) |
||
Adjusted revenue |
|
$ |
27,875 |
|
|
$ |
27,189 |
|
As adjusted EBITDA as a percent of adjusted revenue (1) |
|
(14.6 |
)% |
|
(29.3 |
)% |
||
_______________________________________________________________________________
| (1) | Total is a recalculation; line items calculated individually may not sum to total due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006286/en/
investorrelations@regiscorp.com
Source:
FAQ
What were Regis Corporation's Q1 2022 financial results?
How did same-store sales perform for Regis Corporation in Q1 2022?
What liquidity measures did Regis Corporation take in Q1 2022?
What actions did Regis Corporation take to reduce expenses?
What was the adjusted EBITDA for Regis Corporation in Q1 2022?
