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SEGMENT INFORMATION:
9 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION:
 
Segment information is prepared on the same basis that the chief operating decision maker reviews financial information for operational decision-making purposes.

The Company’s reportable operating segments consisted of the following salons:
 
 
March 31, 2019
 
June 30, 2018
COMPANY-OWNED SALONS:
 
 
 
 
 
 
 
 
 
SmartStyle/Cost Cutters in Walmart Stores
 
1,591

 
1,660

Supercuts
 
568

 
928

Signature Style
 
1,217

 
1,378

Total Company-owned Salons
 
3,376

 
3,966

as a percent of total Company-owned and Franchise salons
 
43.6
%
 
49.1
%
 
 
 
 
 
FRANCHISE SALONS:
 
 
 
 
 
 
 
 
 
SmartStyle/Cost Cutters in Walmart Stores
 
591

 
561

Supercuts
 
2,164

 
1,739

Signature Style
 
740

 
745

Total franchise locations, excluding TBG mall locations
 
3,495

 
3,045

as a percent of total Company-owned and Franchise salons
 
45.1
%
 
37.7
%
 
 
 
 
 
Total North America TBG mall locations (1)
 
617

 
807

as a percent of total Company-owned and Franchise salons
 
8.0
%
 
10.0
%
 
 
 
 
 
Total North American Salons
 
4,112

 
3,852

 
 
 
 
 
Total International TBG Salons (1)
 
263

 
262

as a percent of total Company-owned and Franchise salons
 
3.4
%
 
3.2
%
 
 
 
 
 
Total Franchise Salons
 
4,375

 
4,114

as a percent of total Company-owned and Franchise salons
 
56.4
%
 
50.9
%
 
 
 
 
 
OWNERSHIP INTEREST LOCATIONS:
 
 
 
 
 
 
 
 
 
Equity ownership interest locations
 
87

 
88

 
 
 
 
 
Grand Total, System-wide
 
7,838

 
8,168

____________________________________
(1)
Canadian and Puerto Rican salons are included in the North American salon totals.

As of March 31, 2019, the Company-owned operating segment is comprised primarily of SmartStyle®, Supercuts®, Cost Cutters®, and other regional trade names and the Franchise operating segment is comprised primarily of Supercuts®, Regis®, MasterCuts®, SmartStyle®, Cost Cutters®, First Choice Haircutters®, Roosters® and Magicuts® concepts.
Financial information concerning the Company's reportable operating segments is shown in the following table:
 
 
For the Three Months Ended March 31, 2019
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
 
 
(Dollars in thousands)
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
181,809

 
$
—

 
$
—

 
$
181,809

Product
 
39,427

 
14,339

 
—

 
53,766

Royalties and fees
 
—

 
22,768

 
—

 
22,768

 
 
221,236

 
37,107

 
—

 
258,343

Operating expenses:
 
 
 
 
 
 
 
 
Cost of service
 
111,632

 
—

 
—

 
111,632

Cost of product
 
19,992

 
11,175

 
—

 
31,167

Site operating expenses
 
25,894

 
8,445

 
—

 
34,339

General and administrative
 
14,505

 
7,526

 
19,663

 
41,694

Rent
 
31,964

 
190

 
178

 
32,332

Depreciation and amortization
 
6,519

 
240

 
1,871

 
8,630

TBG mall location restructuring
 
—

 
20,711

 
—

 
20,711

Total operating expenses
 
210,506

 
48,287

 
21,712

 
280,505

Operating income (loss)
 
10,730

 
(11,180
)
 
(21,712
)
 
(22,162
)
Other (expense) income:
 
 
 
 
 
 
 
 
Interest expense
 
—

 
—

 
(1,354
)
 
(1,354
)
Gain from sale of salon assets to franchisees, net
 
—

 
—

 
11,489

 
11,489

Interest income and other, net
 
—

 
—

 
464

 
464

Income (loss) from continuing operations before income taxes
 
$
10,730

 
$
(11,180
)
 
$
(11,113
)
 
$
(11,563
)
 
 
For the Three Months Ended March 31, 2018
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
 
 
(Dollars in thousands)
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
222,022

 
$
—

 
$
—

 
$
222,022

Product
 
49,980

 
14,931

 
—

 
64,911

Royalties and fees
 
—

 
18,850

 
—

 
18,850

 
 
272,002

 
33,781

 
—

 
305,783

Operating expenses:
 
 
 
 
 
 
 
 
Cost of service
 
132,081

 
—

 
—

 
132,081

Cost of product
 
25,137

 
12,002

 
—

 
37,139

Site operating expenses
 
31,022

 
6,526

 
—

 
37,548

General and administrative
 
18,051

 
6,590

 
21,086

 
45,727

Rent
 
39,094

 
51

 
246

 
39,391

Depreciation and amortization
 
7,276

 
92

 
2,190

 
9,558

TBG mall location restructuring
 
—

 
—

 
—

 
—

Total operating expenses
 
252,661

 
25,261

 
23,522

 
301,444

Operating income (loss)
 
19,341

 
8,520

 
(23,522
)
 
4,339

Other (expense) income:
 
 
 
 
 
 
 
 
Interest expense
 
—

 
—

 
(5,095
)
 
(5,095
)
Gain from sale of salon assets to franchisees, net
 
—

 
—

 
237

 
237

Interest income and other, net
 
—

 
—

 
1,495

 
1,495

Income (loss) from continuing operations before income taxes
 
$
19,341

 
$
8,520

 
$
(26,885
)
 
$
976


 
 
For the Nine Months Ended March 31, 2019
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
 
 
(Dollars in thousands)
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
580,076

 
$
—

 
$
—

 
$
580,076

Product
 
125,220

 
47,786

 
—

 
173,006

Royalties and fees
 
—

 
67,767

 
—

 
67,767

 
 
705,296

 
115,553

 
—

 
820,849

Operating expenses:
 
 
 
 
 
 
 
 
Cost of service
 
348,060

 
—

 
—

 
348,060

Cost of product
 
61,661

 
38,037

 
—

 
99,698

Site operating expenses
 
82,435

 
24,288

 
—

 
106,723

General and administrative
 
45,084

 
24,656

 
65,517

 
135,257

Rent
 
101,908

 
468

 
576

 
102,952

Depreciation and amortization
 
21,304

 
613

 
5,815

 
27,732

TBG mall location restructuring
 
—

 
20,711

 
—

 
20,711

Total operating expenses
 
660,452

 
108,773

 
71,908

 
841,133

Operating income (loss)
 
44,844

 
6,780

 
(71,908
)
 
(20,284
)
Other (expense) income:
 
 
 
 
 
 
 
 
Interest expense
 
—

 
—

 
(3,432
)
 
(3,432
)
Gain from sale of salon assets to franchisees, net
 
—

 
—

 
10,394

 
10,394

Interest income and other, net
 
—

 
—

 
1,453

 
1,453

Income (loss) from continuing operations before income taxes
 
$
44,844

 
$
6,780

 
$
(63,493
)
 
$
(11,869
)
 
 
For the Nine Months Ended March 31, 2018
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
 
 
(Dollars in thousands)
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
680,930

 
$
—

 
$
—

 
$
680,930

Product
 
159,980

 
37,721

 
—

 
197,701

Royalties and fees
 
—

 
56,465

 
—

 
56,465

 
 
840,910

 
94,186

 
—

 
935,096

Operating expenses:
 
 
 
 
 
 
 
 
Cost of service
 
406,767

 
—

 
—

 
406,767

Cost of product
 
77,628

 
29,537

 
—

 
107,165

Site operating expenses
 
96,443

 
19,732

 
—

 
116,175

General and administrative
 
51,822

 
19,005

 
58,658

 
129,485

Rent
 
146,376

 
168

 
736

 
147,280

Depreciation and amortization
 
39,224

 
275

 
7,265

 
46,764

TBG mall location restructuring
 
—

 
—

 
—

 
—

Total operating expenses
 
818,260

 
68,717

 
66,659

 
953,636

Operating income (loss)
 
22,650

 
25,469

 
(66,659
)
 
(18,540
)
Other (expense) income:
 
 
 
 
 
 
 
 
Interest expense
 
—

 
—

 
(9,402
)
 
(9,402
)
Gain from sale of salon assets to franchisees, net
 
—

 
—

 
255

 
255

Interest income and other, net
 
—

 
—

 
3,934

 
3,934

Income (loss) from continuing operations before income taxes
 
$
22,650

 
$
25,469

 
$
(71,872
)
 
$
(23,753
)