Minnesota | 1-12725 | 41-0749934 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No) |
EXHIBIT NUMBER | ||
99 | Regis Corporation News Release dated August 23, 2017. |
REGIS CORPORATION | |||
Dated: August 23, 2017 | By: | /s/ Eric Bakken | |
Name: Eric Bakken, Title: Secretary |
EXHIBIT NUMBER | ||
99 | Regis Corporation News Release dated August 23, 2017. |
Exhibit No. 99 | |
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Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||
Consolidated Revenue | $424,200 | $447,707 | $1,691,888 | $1,790,869 | ||||||||
Consolidated Same-Store Sales Comps | 0.4 | % | (1.4 | )% | (1.8 | )% | 0.2 | % | ||||
Net Income/(Loss) | $1,253 | $5,562 | $(16,140) | $(11,316) | ||||||||
Earnings/(Loss) per Share | $0.03 | $0.12 | $(0.35) | $(0.23) | ||||||||
EBITDA | $22,691 | $27,454 | $68,114 | $74,520 | ||||||||
As Adjusted(1) | ||||||||||||
Net Income/(Loss), as Adjusted | $9,183 | $5,541 | $2,659 | $3,089 | ||||||||
Earnings/(Loss) per Share, as adjusted | $0.20 | $0.12 | $0.06 | $0.06 | ||||||||
EBITDA, as adjusted | $30,652 | $27,433 | $86,994 | $90,590 |
Three Months Ended June 30, | Increase (Decrease) | |||||||||
(Dollars in millions) | 2017 | 2016 | ||||||||
Total Revenue | $ | 320.3 | $ | 328.9 | (2.6 | )% | ||||
Same-Store Sales Comps | 1.6 | % | (0.4 | )% | 200 bps | |||||
Year-over-Year Ticket change | 4.4 | % | ||||||||
Year-over-Year Traffic change | (2.8 | )% | ||||||||
Gross Profit, as Adjusted(1) | 134.2 | 136.6 | (1.8 | )% | ||||||
as a percent of revenue | 41.9 | % | 41.5 | % | 40 bps | |||||
EBITDA, as Adjusted | 41.0 | 37.7 | 8.6 | % | ||||||
as a percent of revenue | 12.8 | % | 11.5 | % | 130 bps | |||||
Salon counts | 5,439 | 5,770 | (331 | ) |
Three Months Ended June 30, | Increase (Decrease) | |||||||||
(Dollars in millions) | 2017 | 2016 | ||||||||
Total Revenue | $ | 21.2 | $ | 20.2 | 4.7 | % | ||||
EBITDA, as Adjusted | 9.3 | 9.2 | 2.1 | % | ||||||
as a percent of revenue | 44.1 | % | 45.2 | % | (110 bps) | |||||
Salon counts | 2,633 | 2,496 | 137 |
Three Months Ended June 30, | Increase (Decrease) | |||||||||
(Dollars in millions) | 2017 | 2016 | ||||||||
Total Revenue | $ | 56.8 | $ | 67.8 | (16.3 | )% | ||||
Same-Store Sales Comps | (4.1 | )% | (5.3 | )% | 120 bps | |||||
Year-over-Year Ticket change | 3.8 | % | ||||||||
Year-over-Year Traffic change | (7.9 | )% | ||||||||
Gross Profit, as Adjusted(1) | 19.0 | 23.3 | (18.4 | )% | ||||||
as a percent of revenue | 33.5 | % | 34.3 | % | (80 bps) | |||||
EBITDA, as Adjusted | (1.7 | ) | (0.7 | ) | nm | |||||
as a percent of revenue | (2.9 | )% | (1.0 | )% | (190 bps) | |||||
Salon counts | 559 | 694 | (135 | ) |
Three Months Ended June 30, | Increase (Decrease) | |||||||||
(Dollars in millions) | 2017 | 2016 | ||||||||
Total Revenue | $ | 25.9 | $ | 30.8 | (15.8 | )% | ||||
Same-Store Sales Comps | (5.1 | )% | (3.8 | )% | (130 bps) | |||||
Year-over-Year Ticket change | 2.1 | % | ||||||||
Year-over-Year Traffic change | (7.2 | )% | ||||||||
Gross Profit, as Adjusted(1) | 11.2 | 13.8 | (18.7 | )% | ||||||
as a percent of service and product revenue | 43.5 | % | 44.9 | % | (140 bps) | |||||
EBITDA, as Adjusted | 0.4 | 0.1 | nm | |||||||
as a percent of revenue | 1.7 | % | 0.3 | % | 140 bps | |||||
Salon counts | 288 | 328 | (40 | ) |
• | Net income for the quarter of $1.3 million benefited by $0.8 million due to the deferred tax valuation allowance on income tax expense. |
• | Fourth quarter earnings per share of $0.03 benefited by $0.02 per share due to the deferred tax valuation allowance on income tax expense. |
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues: | ||||||||||||||||
Service | $ | 329,510 | $ | 348,912 | $ | 1,307,732 | $ | 1,383,663 | ||||||||
Product | 81,470 | 86,706 | 335,865 | 359,683 | ||||||||||||
Royalties and fees | 13,220 | 12,089 | 48,291 | 47,523 | ||||||||||||
424,200 | 447,707 | 1,691,888 | 1,790,869 | |||||||||||||
Operating expenses: | ||||||||||||||||
Cost of service | 211,502 | 216,702 | 838,192 | 868,188 | ||||||||||||
Cost of product | 38,442 | 42,921 | 166,344 | 179,341 | ||||||||||||
Site operating expenses | 41,458 | 44,807 | 168,439 | 182,952 | ||||||||||||
General and administrative | 43,722 | 43,479 | 174,502 | 178,033 | ||||||||||||
Rent | 67,010 | 73,605 | 279,288 | 297,271 | ||||||||||||
Depreciation and amortization | 17,354 | 15,593 | 66,327 | 67,470 | ||||||||||||
Total operating expenses | 419,488 | 437,107 | 1,693,092 | 1,773,255 | ||||||||||||
Operating income (loss) | 4,712 | 10,600 | (1,204 | ) | 17,614 | |||||||||||
Other (expense) income: | ||||||||||||||||
Interest expense | (2,177 | ) | (2,176 | ) | (8,703 | ) | (9,317 | ) | ||||||||
Interest income and other, net | 656 | 1,261 | 3,072 | 4,219 | ||||||||||||
Income (loss) before income taxes and equity in loss of affiliated companies | 3,191 | 9,685 | (6,835 | ) | 12,516 | |||||||||||
Income taxes | (1,907 | ) | (4,123 | ) | (9,224 | ) | (9,049 | ) | ||||||||
Equity in loss of affiliated companies, net of income taxes | (31 | ) | — | (81 | ) | (14,783 | ) | |||||||||
Net income (loss) | $ | 1,253 | $ | 5,562 | $ | (16,140 | ) | $ | (11,316 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic and diluted | $ | 0.03 | $ | 0.12 | $ | (0.35 | ) | $ | (0.23 | ) | ||||||
Weighted average common and common equivalent shares outstanding: | ||||||||||||||||
Basic | 46,527 | 46,289 | 46,359 | 48,542 | ||||||||||||
Diluted | 46,762 | 46,706 | 46,359 | 48,542 |
June 30, 2017 | June 30, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 172,396 | $ | 147,346 | ||||
Receivables, net | 23,475 | 24,691 | ||||||
Inventories | 122,104 | 134,212 | ||||||
Other current assets | 52,172 | 51,765 | ||||||
Total current assets | 370,147 | 358,014 | ||||||
Property and equipment, net | 146,994 | 183,321 | ||||||
Goodwill | 416,987 | 417,393 | ||||||
Other intangibles, net | 13,634 | 15,185 | ||||||
Other assets | 63,726 | 62,019 | ||||||
Total assets | $ | 1,011,488 | $ | 1,035,932 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 56,049 | $ | 59,884 | ||||
Accrued expenses | 122,013 | 135,431 | ||||||
Total current liabilities | 178,062 | 195,315 | ||||||
Long-term debt | 120,599 | 119,606 | ||||||
Other noncurrent liabilities | 204,606 | 201,610 | ||||||
Total liabilities | 503,267 | 516,531 | ||||||
Shareholders’ equity: | ||||||||
Common stock, $0.05 par value; issued and outstanding, 46,400,367 and 46,154,410 common shares at June 30, 2017 and 2016, respectively | 2,320 | 2,308 | ||||||
Additional paid-in capital | 214,109 | 207,475 | ||||||
Accumulated other comprehensive income | 3,336 | 5,068 | ||||||
Retained earnings | 288,456 | 304,550 | ||||||
Total shareholders’ equity | 508,221 | 519,401 | ||||||
Total liabilities and shareholders’ equity | $ | 1,011,488 | $ | 1,035,932 |
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income (loss) | $ | 1,253 | $ | 5,562 | $ | (16,140 | ) | $ | (11,316 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments during the period | 2,701 | 525 | (1,889 | ) | (4,276 | ) | ||||||||||
Recognition of deferred compensation | 179 | (162 | ) | 157 | (162 | ) | ||||||||||
Other comprehensive income (loss) | 2,880 | 363 | (1,732 | ) | (4,438 | ) | ||||||||||
Comprehensive income (loss) | $ | 4,133 | $ | 5,925 | $ | (17,872 | ) | $ | (15,754 | ) |
Twelve Months Ended June 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (16,140 | ) | $ | (11,316 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 54,961 | 56,992 | ||||||
Equity in loss of affiliated companies | 81 | 14,783 | ||||||
Deferred income taxes | 7,962 | 7,023 | ||||||
Gain from sale of salon assets, net | (492 | ) | (1,000 | ) | ||||
Loss on write down of inventories | 5,905 | — | ||||||
Salon asset impairments | 11,366 | 10,478 | ||||||
Stock-based compensation | 13,142 | 9,797 | ||||||
Amortization of debt discount and financing costs | 1,403 | 1,514 | ||||||
Other non-cash items affecting earnings | 935 | 310 | ||||||
Changes in operating assets and liabilities(1): | ||||||||
Receivables | 724 | (577 | ) | |||||
Inventories | 4,010 | (7,109 | ) | |||||
Income tax receivable | (535 | ) | 501 | |||||
Other current assets | 820 | (460 | ) | |||||
Other assets | (2,586 | ) | (1,133 | ) | ||||
Accounts payable | (684 | ) | (4,624 | ) | ||||
Accrued expenses | (13,667 | ) | (14,280 | ) | ||||
Other noncurrent liabilities | (7,150 | ) | (5,113 | ) | ||||
Net cash provided by operating activities | 60,055 | 55,786 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (33,843 | ) | (31,117 | ) | ||||
Proceeds from sale of salon assets | 2,253 | 1,740 | ||||||
Change in restricted cash | 1,123 | 9,042 | ||||||
Proceeds from company-owned life insurance policies | 876 | 2,948 | ||||||
Proceeds from sale of investment | 500 | — | ||||||
Net cash used in investing activities | (29,091 | ) | (17,387 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayments of long-term debt and capital lease obligations | — | (2 | ) | |||||
Repurchase of common stock | — | (101,035 | ) | |||||
Purchase of noncontrolling interest | — | (760 | ) | |||||
Employee taxes paid for shares withheld | (3,698 | ) | (754 | ) | ||||
Settlement of equity awards | (3,151 | ) | — | |||||
Net cash used in financing activities | (6,849 | ) | (102,551 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 935 | (781 | ) | |||||
Increase (decrease) in cash and cash equivalents | 25,050 | (64,933 | ) | |||||
Cash and cash equivalents: | ||||||||
Beginning of period | 147,346 | 212,279 | ||||||
End of period | $ | 172,396 | $ | 147,346 |
(1) | Changes in operating assets and liabilities exclude assets and liabilities sold or acquired. |
For the Three Months Ended | ||||||||||||||||||
June 30, 2017 | June 30, 2016 | |||||||||||||||||
Service | Retail | Total | Service | Retail | Total | |||||||||||||
SmartStyle | 2.8 | % | 0.7 | % | 2.1 | % | 0.8 | % | 3.8 | % | 1.7 | % | ||||||
Supercuts | 3.2 | (2.3 | ) | 2.7 | 0.0 | (0.9 | ) | (0.1 | ) | |||||||||
MasterCuts | (0.3 | ) | (2.5 | ) | (0.7 | ) | (5.6 | ) | (8.9 | ) | (6.2 | ) | ||||||
Other Value | 0.7 | 1.0 | 0.7 | (1.6 | ) | (3.5 | ) | (1.8 | ) | |||||||||
North American Value | 2.0 | % | 0.2 | % | 1.6 | % | (0.7 | )% | 1.0 | % | (0.4 | )% | ||||||
North American Premium | (3.7 | )% | (6.1 | )% | (4.1 | )% | (4.9 | )% | (7.5 | )% | (5.3 | )% | ||||||
International | (3.6 | )% | (9.9 | )% | (5.1 | )% | (3.3 | )% | (5.4 | )% | (3.8 | )% | ||||||
Consolidated | 0.8 | % | (1.3 | )% | 0.4 | % | (1.6 | )% | (0.8 | )% | (1.4 | )% |
For the Twelve Months Ended | ||||||||||||||||||
June 30, 2017 | June 30, 2016 | |||||||||||||||||
Service | Retail | Total | Service | Retail | Total | |||||||||||||
SmartStyle | (0.1 | )% | (1.2 | )% | (0.4 | )% | 3.0 | % | 4.4 | % | 3.4 | % | ||||||
Supercuts | 0.9 | (4.3 | ) | 0.4 | 1.6 | 5.7 | 2.0 | |||||||||||
MasterCuts | (3.4 | ) | (4.5 | ) | (3.6 | ) | (4.5 | ) | (3.7 | ) | (4.4 | ) | ||||||
Other Value | (1.4 | ) | (1.1 | ) | (1.4 | ) | (0.4 | ) | 1.8 | (0.2 | ) | |||||||
North American Value | (0.5 | )% | (1.7 | )% | (0.8 | )% | 0.8 | % | 3.4 | % | 1.3 | % | ||||||
North American Premium | (5.2 | )% | (9.3 | )% | (5.9 | )% | (3.5 | )% | (5.4 | )% | (3.8 | )% | ||||||
International | (3.8 | )% | (10.7 | )% | (5.7 | )% | (1.3 | )% | (4.7 | )% | (2.3 | )% | ||||||
Consolidated | (1.4 | )% | (3.4 | )% | (1.8 | )% | — | % | 1.3 | % | 0.2 | % |
June 30, 2017 | June 30, 2016 | |||||
COMPANY-OWNED SALONS: | ||||||
SmartStyle in Walmart Stores | 2,652 | 2,683 | ||||
Supercuts | 980 | 1,053 | ||||
MasterCuts | 339 | 430 | ||||
Other Value | 1,468 | 1,604 | ||||
Regis salons | 559 | 694 | ||||
Total North American Salons (1) | 5,998 | 6,464 | ||||
Total International Salons (2) | 275 | 328 | ||||
Total Company-owned Salons | 6,273 | 6,792 | ||||
FRANCHISE SALONS: | ||||||
SmartStyle in Walmart Stores (3) | 62 | 11 | ||||
Cost Cutters in Walmart Stores | 114 | 114 | ||||
Supercuts | 1,687 | 1,579 | ||||
Other Value | 770 | 792 | ||||
Total North American Salons | 2,633 | 2,496 | ||||
Total International Salons (2) | 13 | — | ||||
Total Franchise Salons | 2,646 | 2,496 | ||||
OWNERSHIP INTEREST LOCATIONS: | ||||||
Equity ownership interest locations | 89 | 195 | ||||
Grand Total, System-wide | 9,008 | 9,483 |
• | Salon tools write-off. |
• | Professional fees. |
• | Severance expense. |
• | CEO transition costs. |
• | Expense associated with legal settlements. |
• | Gain on life insurance proceeds. |
• | Expense associated with legal cases. |
• | Expenses associated with financing arrangements. |
• | Other than temporary impairment associated with our investment in Empire Education Group (EEG). |
Reconciliation of U.S. GAAP operating income (loss) and net income (loss) to equivalent non-GAAP measures | ||||||||||||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||
U.S. GAAP financial line item | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
U.S. GAAP revenue | $ | 424,200 | $ | 447,707 | $ | 1,691,888 | $ | 1,790,869 | ||||||||||
U.S. GAAP operating income (loss) | $ | 4,712 | $ | 10,600 | $ | (1,204 | ) | $ | 17,614 | |||||||||
Non-GAAP operating expense adjustments (1): | ||||||||||||||||||
Salon tools write-off | Cost of service | 5,527 | — | 5,527 | — | |||||||||||||
Salon tools write-off | Site operating expenses | 378 | — | 378 | — | |||||||||||||
Professional fees | General and administrative | 1,121 | — | 2,831 | 145 | |||||||||||||
Severance | General and administrative | 583 | — | 8,437 | — | |||||||||||||
CEO transition costs | General and administrative | 321 | — | 321 | — | |||||||||||||
Legal settlements | General and administrative | — | — | 1,405 | — | |||||||||||||
Gain on life insurance proceeds | General and administrative | — | — | (100 | ) | (1,220 | ) | |||||||||||
Legal fees | General and administrative | — | (21 | ) | — | 1,561 | ||||||||||||
Financing arrangements expense | General and administrative | — | — | — | 801 | |||||||||||||
Non-GAAP operating adjustments | 7,930 | (21 | ) | 18,799 | 1,287 | |||||||||||||
Non-GAAP operating income (2) | $ | 12,642 | $ | 10,579 | $ | 17,595 | $ | 18,901 | ||||||||||
U.S. GAAP net income (loss) | $ | 1,253 | $ | 5,562 | $ | (16,140 | ) | $ | (11,316 | ) | ||||||||
Non-GAAP net income (loss) adjustments: | ||||||||||||||||||
Non-GAAP operating expense adjustments | 7,930 | (21 | ) | 18,799 | 1,287 | |||||||||||||
Financing arrangements expense | Interest expense | — | — | — | 164 | |||||||||||||
EEG impairment | Equity in loss of affiliated companies, net of income taxes | — | — | — | 12,954 | |||||||||||||
Total non-GAAP net income (loss) adjustments | 7,930 | (21 | ) | 18,799 | 14,405 | |||||||||||||
Non-GAAP net income (2) | $ | 9,183 | $ | 5,541 | $ | 2,659 | $ | 3,089 |
(1) | As a result of the valuation allowance, non-GAAP adjustments are not tax effected. |
(2) | Adjusted operating margins for the three months ended June 30, 2017, and 2016, were 3.0% and 2.4%, respectively, and were 1.0% and 1.1% for the twelve months ended June 30, 2017 and 2016, respectively, and are calculated as non-GAAP operating income divided by U.S. GAAP revenue for each respective period. |
Reconciliation of U.S. GAAP net income (loss) per diluted share to non-GAAP net income per diluted share | ||||||||||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
U.S. GAAP net income (loss) per diluted share (1) | $ | 0.027 | $ | 0.119 | $ | (0.348 | ) | $ | (0.233 | ) | ||||||
Salon tools write-off | 0.126 | — | 0.125 | — | ||||||||||||
Professional fees | 0.024 | — | 0.060 | 0.003 | ||||||||||||
Severance | 0.012 | — | 0.179 | — | ||||||||||||
CEO transition costs | 0.007 | — | 0.007 | — | ||||||||||||
Legal settlements | — | — | 0.030 | — | ||||||||||||
Gain on life insurance proceeds | — | — | (0.002 | ) | (0.025 | ) | ||||||||||
Legal fees | — | — | — | 0.032 | ||||||||||||
Financing arrangements expense | — | — | — | 0.020 | ||||||||||||
EEG impairment and deferred tax asset valuation allowance | — | — | — | 0.264 | ||||||||||||
Impact of change in weighted average shares | — | — | 0.005 | 0.002 | ||||||||||||
Non-GAAP net income per diluted share (2) | $ | 0.196 | $ | 0.119 | $ | 0.056 | $ | 0.063 | ||||||||
U.S. GAAP Weighted average shares - basic | 46,527 | 46,289 | 46,359 | 48,542 | ||||||||||||
U.S. GAAP Weighted average shares - diluted | 46,762 | 46,706 | 46,359 | 48,542 | ||||||||||||
Non-GAAP Weighted average shares - diluted (3) | 46,762 | 46,706 | 47,088 | 48,989 |
(1) | For the three months ended June 30, 2017, the $1.9 million income tax expense includes $1.3 million of non-cash tax benefits on certain indefinite-lived assets that the Company cannot recognize for reporting purposes. For the twelve months ended June 30, 2017, the $9.2 million of income tax expense includes $7.7 million of non-cash tax benefits on certain indefinite-lived assets. The presence of a valuation allowance, including the non-cash tax expense on certain indefinite-lived assets, affects comparability of income tax expense, as adjusted and will cause our effective tax rate to fluctuate from quarter to quarter. For the three months ended June 30, 2017, the Company evaluated GAAP diluted EPS with and without the presence of the valuation allowance and calculated an impact of $(0.02) per share. Diluted EPS, as adjusted, without the presence of the valuation allowance, was $0.12 and $0.18 for the three months ended June 30, 2017 and 2016, respectively, representing a decrease of $0.06 per diluted share. As a result of the valuation allowance, non-GAAP adjustments are not tax effected. |
(2) | Total is a recalculation; line items calculated individually may not sum to total due to rounding. |
(3) | Non-GAAP net income (loss) per share reflects the weighted average shares associated with non-GAAP net income (loss), which may include the dilutive effect of common stock and convertible share equivalents. |
Three Months Ended June 30, 2017 | ||||||||||||||||||||||||
North American Value | North American Franchise | North American Premium | International | Corporate | Consolidated | |||||||||||||||||||
Consolidated reported net income (loss), as reported (U.S. GAAP) | $ | 23,418 | $ | 9,252 | $ | (4,168 | ) | $ | (272 | ) | $ | (26,977 | ) | $ | 1,253 | |||||||||
Interest expense, as reported | — | — | — | — | 2,177 | 2,177 | ||||||||||||||||||
Income taxes, as reported | — | — | — | — | 1,907 | 1,907 | ||||||||||||||||||
Depreciation and amortization, as reported | 12,012 | 89 | 2,153 | 712 | 2,388 | 17,354 | ||||||||||||||||||
EBITDA (as defined above) | $ | 35,430 | $ | 9,341 | $ | (2,015 | ) | $ | 440 | $ | (20,505 | ) | $ | 22,691 | ||||||||||
Equity in loss of affiliated companies, net of income taxes, as reported | — | — | — | — | 31 | 31 | ||||||||||||||||||
Salon tools write-off | 5,563 | — | 342 | — | — | 5,905 | ||||||||||||||||||
Professional fees | — | — | — | — | 1,121 | 1,121 | ||||||||||||||||||
Severance | — | — | — | — | 583 | 583 | ||||||||||||||||||
CEO transition costs | — | — | — | — | 321 | 321 | ||||||||||||||||||
Adjusted EBITDA, non-GAAP financial measure | $ | 40,993 | $ | 9,341 | $ | (1,673 | ) | $ | 440 | $ | (18,449 | ) | $ | 30,652 | ||||||||||
Three Months Ended June 30, 2016 | ||||||||||||||||||||||||
North American Value | North American Franchise | North American Premium | International | Corporate | Consolidated | |||||||||||||||||||
Consolidated reported net income (loss), as reported (U.S. GAAP) | $ | 26,641 | $ | 9,059 | $ | (1,893 | ) | $ | (752 | ) | $ | (27,493 | ) | $ | 5,562 | |||||||||
Interest expense, as reported | — | — | — | — | 2,176 | 2,176 | ||||||||||||||||||
Income taxes, as reported | — | — | — | — | 4,123 | 4,123 | ||||||||||||||||||
Depreciation and amortization, as reported | 11,098 | 92 | 1,198 | 830 | 2,375 | 15,593 | ||||||||||||||||||
EBITDA (as defined above) | $ | 37,739 | $ | 9,151 | $ | (695 | ) | $ | 78 | $ | (18,819 | ) | $ | 27,454 | ||||||||||
Equity in loss of affiliated companies, net of income taxes, as reported | — | — | — | — | — | — | ||||||||||||||||||
Legal fees | — | — | — | — | (21 | ) | (21 | ) | ||||||||||||||||
Adjusted EBITDA, non-GAAP financial measure | $ | 37,739 | $ | 9,151 | $ | (695 | ) | $ | 78 | $ | (18,840 | ) | $ | 27,433 | ||||||||||
Twelve Months Ended June 30, 2017 | ||||||||||||||||||||||||
North American Value | North American Franchise | North American Premium | International | Corporate | Consolidated | |||||||||||||||||||
Consolidated reported net income (loss), as reported (U.S. GAAP) | $ | 83,557 | $ | 34,159 | $ | (18,341 | ) | $ | (1,922 | ) | $ | (113,593 | ) | $ | (16,140 | ) | ||||||||
Interest expense, as reported | — | — | — | — | 8,703 | 8,703 | ||||||||||||||||||
Income taxes, as reported | — | — | — | — | 9,224 | 9,224 | ||||||||||||||||||
Depreciation and amortization, as reported | 45,737 | 357 | 8,260 | 2,515 | 9,458 | 66,327 | ||||||||||||||||||
EBITDA (as defined above) | $ | 129,294 | $ | 34,516 | $ | (10,081 | ) | $ | 593 | $ | (86,208 | ) | $ | 68,114 | ||||||||||
Equity in loss of affiliated companies, net of income taxes, as reported | — | — | — | — | 81 | 81 | ||||||||||||||||||
Salon tools write-off | 5,563 | — | 342 | — | — | 5,905 | ||||||||||||||||||
Professional fees | — | — | — | — | 2,831 | 2,831 | ||||||||||||||||||
Severance | — | — | — | — | 8,437 | 8,437 | ||||||||||||||||||
CEO transition costs | — | — | — | — | 321 | 321 | ||||||||||||||||||
Legal settlements | — | — | — | — | 1,405 | 1,405 | ||||||||||||||||||
Gain on life insurance proceeds | — | — | — | — | (100 | ) | (100 | ) | ||||||||||||||||
Adjusted EBITDA, non-GAAP financial measure | $ | 134,857 | $ | 34,516 | $ | (9,739 | ) | $ | 593 | $ | (73,233 | ) | $ | 86,994 | ||||||||||
Twelve Months Ended June 30, 2016 | ||||||||||||||||||||||||
North American Value | North American Franchise | North American Premium | International | Corporate | Consolidated | |||||||||||||||||||
Consolidated reported net income (loss), as reported (U.S. GAAP) | $ | 96,170 | $ | 33,846 | $ | (12,796 | ) | $ | (1,882 | ) | $ | (126,654 | ) | $ | (11,316 | ) | ||||||||
Interest expense, as reported | — | — | — | — | 9,317 | 9,317 | ||||||||||||||||||
Income taxes, as reported | — | — | — | — | 9,049 | 9,049 | ||||||||||||||||||
Depreciation and amortization, as reported | 46,313 | 363 | 7,892 | 2,843 | 10,059 | 67,470 | ||||||||||||||||||
EBITDA (as defined above) | $ | 142,483 | $ | 34,209 | $ | (4,904 | ) | $ | 961 | $ | (98,229 | ) | $ | 74,520 | ||||||||||
Equity in loss of affiliated companies, net of income taxes, as reported | — | — | — | — | 14,783 | 14,783 | ||||||||||||||||||
Professional fees | — | — | — | — | 145 | 145 | ||||||||||||||||||
Gain on life insurance proceeds | — | — | — | — | (1,220 | ) | (1,220 | ) | ||||||||||||||||
Legal fees | — | — | 31 | — | 1,530 | 1,561 | ||||||||||||||||||
Financing arrangements expense | — | — | — | — | 801 | 801 | ||||||||||||||||||
Adjusted EBITDA, non-GAAP financial measure | $ | 142,483 | $ | 34,209 | $ | (4,873 | ) | $ | 961 | $ | (82,190 | ) | $ | 90,590 | ||||||||||
Three Months Ended June 30, 2017 | ||||||||||||||||||||||||
North American Value | North American Franchise | North American Premium | International | Corporate | Consolidated | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service | $ | 261,228 | $ | — | $ | 47,638 | $ | 20,644 | $ | — | $ | 329,510 | ||||||||||||
Product | 59,107 | 8,069 | 9,122 | 5,172 | — | 81,470 | ||||||||||||||||||
320,335 | 8,069 | 56,760 | 25,816 | — | 410,980 | |||||||||||||||||||
Cost of service | 165,635 | — | 33,946 | 11,921 | — | 211,502 | ||||||||||||||||||
Cost of product | 25,729 | 5,909 | 4,135 | 2,669 | — | 38,442 | ||||||||||||||||||
191,364 | 5,909 | 38,081 | 14,590 | — | 249,944 | |||||||||||||||||||
U.S. GAAP gross profit(1) | $ | 128,971 | $ | 2,160 | $ | 18,679 | $ | 11,226 | $ | — | $ | 161,036 | ||||||||||||
Non-GAAP gross profit adjustments: | ||||||||||||||||||||||||
Salon tools write-off | 5,207 | — | 320 | — | — | 5,527 | ||||||||||||||||||
Non-GAAP gross profit(1) | $ | 134,178 | $ | 2,160 | $ | 18,999 | $ | 11,226 | $ | — | $ | 166,563 |
Three Months Ended June 30, 2016 | ||||||||||||||||||||||||
North American Value | North American Franchise | North American Premium | International | Corporate | Consolidated | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service | $ | 267,888 | $ | — | $ | 56,713 | $ | 24,311 | $ | — | $ | 348,912 | ||||||||||||
Product | 61,012 | 8,152 | 11,097 | 6,445 | — | 86,706 | ||||||||||||||||||
328,900 | 8,152 | 67,810 | 30,756 | — | 435,618 | |||||||||||||||||||
Cost of service | 164,227 | — | 39,110 | 13,365 | — | 216,702 | ||||||||||||||||||
Cost of product | 28,049 | 5,865 | 5,423 | 3,584 | — | 42,921 | ||||||||||||||||||
192,276 | 5,865 | 44,533 | 16,949 | — | 259,623 | |||||||||||||||||||
U.S. GAAP and Non-GAAP gross profit(1) | $ | 136,624 | $ | 2,287 | $ | 23,277 | $ | 13,807 | $ | — | $ | 175,995 |
Twelve Months Ended June 30, 2017 | ||||||||||||||||||||||||
North American Value | North American Franchise | North American Premium | International | Corporate | Consolidated | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service | $ | 1,035,900 | $ | — | $ | 200,732 | $ | 71,100 | $ | — | $ | 1,307,732 | ||||||||||||
Product | 244,500 | 30,548 | 40,769 | 20,048 | — | 335,865 | ||||||||||||||||||
1,280,400 | 30,548 | 241,501 | 91,148 | — | 1,643,597 | |||||||||||||||||||
Cost of service | 657,013 | — | 140,743 | 40,436 | — | 838,192 | ||||||||||||||||||
Cost of product | 112,156 | 22,640 | 20,571 | 10,977 | — | 166,344 | ||||||||||||||||||
769,169 | 22,640 | 161,314 | 51,413 | — | 1,004,536 | |||||||||||||||||||
U.S. GAAP gross profit | $ | 511,231 | $ | 7,908 | $ | 80,187 | $ | 39,735 | $ | — | $ | 639,061 | ||||||||||||
Non-GAAP gross profit adjustments: | ||||||||||||||||||||||||
Salon tools write-off | 5,207 | — | 320 | — | — | 5,527 | ||||||||||||||||||
Non-GAAP gross profit | $ | 516,438 | $ | 7,908 | $ | 80,507 | $ | 39,735 | $ | — | $ | 644,588 |
Twelve Months Ended June 30, 2016 | ||||||||||||||||||||||||
North American Value | North American Franchise | North American Premium | International | Corporate | Consolidated | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service | $ | 1,064,109 | $ | — | $ | 233,520 | $ | 86,034 | $ | — | $ | 1,383,663 | ||||||||||||
Product | 252,301 | 31,406 | 49,918 | 26,058 | — | 359,683 | ||||||||||||||||||
1,316,410 | 31,406 | 283,438 | 112,092 | — | 1,743,346 | |||||||||||||||||||
Cost of service | 659,140 | — | 161,466 | 47,582 | — | 868,188 | ||||||||||||||||||
Cost of product | 117,464 | 23,086 | 24,573 | 14,218 | — | 179,341 | ||||||||||||||||||
776,604 | 23,086 | 186,039 | 61,800 | — | 1,047,529 | |||||||||||||||||||
U.S. GAAP and Non-GAAP gross profit | $ | 539,806 | $ | 8,320 | $ | 97,399 | $ | 50,292 | $ | — | $ | 695,817 |
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Revenue decline, as reported (U.S. GAAP) | (5.3 | )% | (3.3 | )% | (5.5 | )% | (2.5 | )% | ||||
Effect of new stores and conversions | (0.4 | ) | (0.5 | ) | (0.4 | ) | (0.5 | ) | ||||
Effect of closed salons | 4.8 | 2.6 | 3.5 | 2.7 | ||||||||
Foreign currency | 1.0 | 0.7 | 0.8 | 1.2 | ||||||||
Other | 0.3 | (0.9 | ) | (0.2 | ) | (0.7 | ) | |||||
Same-store sales, non-GAAP | 0.4 | % | (1.4 | )% | (1.8 | )% | 0.2 | % |
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