XML 46 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Jun. 30, 2018
Quarterly Financial Information Disclosure [Abstract]  
QUARTERLY FINANCIAL DATA (UNAUDITED)
QUARTERLY FINANCIAL DATA (UNAUDITED)
Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 in this Form 10-K for explanations of items which impacted fiscal years 2018 and 2017 revenues, operating and net income (loss).
Summarized quarterly data for fiscal years 2018 and 2017 follows:
 
 
Quarter Ended
 
 
 
 
September 30(a)
 
December 31(b)
 
March 31
 
June 30 (c)
 
Year Ended
 
 
(Dollars in thousands, except per share amounts)
2018
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
309,873

 
$
308,515

 
$
300,801

 
$
294,885

 
$
1,214,074

Cost of service and product revenues, excluding depreciation and amortization
 
169,998

 
174,714

 
169,220

 
157,273

 
671,205

Operating income (loss)
 
16,736

 
(37,334
)
 
5,884

 
14,988

 
274

Income from continuing operations
 
10,793

 
39,321

 
4,799

 
6,973

 
61,886

Loss from discontinued operations(d)
 
(33,768
)
 
(6,601
)
 
(10,605
)
 
(2,211
)
 
(53,185
)
Net (loss) income
 
(22,975
)
 
32,720

 
(5,806
)
 
4,762

 
8,701

Income from continuing operations per share, basic(g)
 
0.23

 
0.84

 
0.10

 
0.15

 
1.33

Loss from discontinued operations per share, basic
 
(0.72
)
 
(0.14
)
 
(0.23
)
 
(0.05
)
 
(1.14
)
Net (loss) income per share, basic(g)
 
(0.49
)
 
0.70

 
(0.12
)
 
0.10

 
0.19

Income from continuing operations per share, diluted(g)
 
0.23

 
0.83

 
0.10

 
0.15

 
1.32

Loss from discontinued operations per share, diluted
 
(0.72
)
 
(0.14
)
 
(0.22
)
 
(0.05
)
 
(1.13
)
Net (loss) income per share, diluted(g)
 
(0.49
)
 
0.69

 
(0.12
)
 
0.10

 
0.18

 
 
Quarter Ended
 
 
 
 
September 30
 
December 31
 
March 31(e)
 
June 30(f)
 
Year Ended
 
 
(Dollars in thousands, except per share amounts)
2017
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
318,831

 
$
315,249

 
$
313,478

 
$
320,902

 
$
1,268,460

Cost of service and product revenues, excluding depreciation and amortization
 
181,612

 
185,777

 
183,997

 
185,295

 
736,681

Operating income (loss)
 
10,316

 
2,402

 
(6,214
)
 
7,577

 
14,081

Income (loss) from continuing operations
 
5,740

 
982

 
(11,840
)
 
4,222

 
(896
)
Loss from discontinued operations(d)
 
(2,459
)
 
(3,201
)
 
(6,615
)
 
(2,969
)
 
(15,244
)
Net income (loss)
 
3,281

 
(2,219
)
 
(18,455
)
 
1,253

 
(16,140
)
Loss from continuing operations per share, basic and diluted(g)
 
0.12

 
0.02

 
(0.26
)
 
0.09

 
(0.02
)
Loss from discontinued operations per share, basic and diluted(g)
 
(0.05
)
 
(0.07
)
 
(0.14
)
 
(0.06
)
 
(0.33
)
Net income (loss) per share, basic and diluted
 
0.07

 
(0.05
)
 
(0.40
)
 
0.03

 
(0.35
)
_______________________________________________________________________________
(a)
During the first quarter of fiscal year 2018, the Company recorded $33.8 million of one-time asset impairments and other non-recurring costs associated with the October 2017 sale of substantially all of its North American mall-based salons and its UK business. These impairments and costs and the result of operations for the salons sold, were classified in discontinued operations. Results of operations for the North American mall-based business and the UK have been classified as a discontinued operation for all periods presented.
(b)
During the second quarter of fiscal year 2018, the Company recorded $68.9 million of non-cash, one-time, tax benefits related to the enactment of the Tax Cuts and Jobs Act ("Tax Reform"), partially offset by $37.6 million of one-time lease termination and other non-recurring costs associated with the recently announced restructuring of the Company's SmartStyle® salon portfolio, and $3.5 million of other one-time costs.
(c)
During the fourth quarter of fiscal year 2018, the Company identified and recorded $2.0 million in non-cash fixed asset impairment charges within discontinued operations. These fixed asset impairment charges should have been recorded in the first quarter of fiscal year 2018. Because this error was not material to the period in which it originated or the fourth quarter, the Company corrected it in the fourth quarter of fiscal year 2018.
(d)
In October 2017, the Company sold substantially all of its mall-based salon business in North America and International segment to The Beautiful Group ("TBG"). The Company classified the results of its mall-based business and its International segment as a discontinued operation for all periods presented in the Condensed Consolidated Statement of Operations.
(e)
During the third quarter of fiscal year 2017, the Company recorded $7.9 million of severance expense related to the termination of former executive officers including the Company's Chief Executive Officer.
(f)
During the fourth quarter of fiscal year 2017, the Company recorded $5.3 million for a one-time inventory expense related to salon tools.
(g)
Total is an annual recalculation; line items calculated quarterly may not sum to total.