SEGMENT INFORMATION (Tables)

3 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of reportable operating segment salons

The Company’s reportable operating segments consisted of the following salons:

	September 30, 2020		June 30, 2020
FRANCHISE SALONS:
SmartStyle/Cost Cutters in Walmart Stores	1,428		1,317
Supercuts	2,423		2,508
Signature Style	1,212		1,217
Total North American salons	5,063		5,042
Total International salons (1)	163		167
Total Franchise salons	5,226		5,209
as a percent of total Franchise and Company-owned salons	80.0	%	76.1	%
COMPANY-OWNED SALONS:
SmartStyle/Cost Cutters in Walmart Stores	629		751
Supercuts	170		210
Signature Style	405		505
Mall-based (2)	104		166
Total Company-owned salons	1,308		1,632
as a percent of total Franchise and Company-owned salons	20.0	%	23.9	%
OWNERSHIP INTEREST LOCATIONS:
Equity ownership interest locations	80		82
Grand Total, System-wide	6,614		6,923

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

(2)The mall-based salons were acquired from TBG on December 31, 2019. They are included in continuing operations under the Company-owned operating segment from January 1, 2020.

Schedule of summarized financial information of reportable operating segments

Financial information concerning the Company's reportable operating segments is shown in the following tables:

	For the Three Months Ended September 30, 2020
	Franchise		Company-owned		Corporate		Consolidated
	(Dollars in thousands)
Revenues:
Service	$	—	$	36,408	$	—	$	36,408
Product	13,742		11,007		—		24,749
Royalties and fees	17,956		—		—		17,956
Franchise rental income	32,283		—		—		32,283
Total revenue	63,981		47,415		—		111,396
Operating expenses:
Cost of service	—		28,523		—		28,523
Cost of product	10,678		5,691		—		16,369
Site operating expenses	4,510		8,729		—		13,239
General and administrative	8,724		2,977		14,447		26,148
Rent	557		11,946		722		13,225
Franchise rent expense	32,283		—		—		32,283
Depreciation and amortization	274		5,082		2,020		7,376
Long-lived asset impairment	610		5,214		—		5,824
Total operating expenses	57,636		68,162		17,189		142,987
Operating income (loss)	6,345		(20,747)		(17,189)		(31,591)
Other (expense) income:
Interest expense	—		—		(3,762)		(3,762)
Loss from sale of salon assets to franchisees, net	—		—		(662)		(662)
Interest income and other, net	—		—		114		114
Income (loss) from continuing operations before income taxes	$	6,345	$	(20,747)	$	(21,499)	$	(35,901)

	For the Three Months Ended September 30, 2019
	Franchise		Company-owned		Corporate		Consolidated
	(Dollars in thousands)
Revenues:
Service	$	—	$	141,941	$	—	$	141,941
Product	13,105		32,551		—		45,656
Royalties and fees	28,017		—		—		28,017
Franchise rental income	31,424		—		—		31,424
Total revenue	72,546		174,492		—		247,038
Operating expenses:
Cost of service	—		90,482		—		90,482
Cost of product	10,280		16,047		—		26,327
Site operating expenses	10,426		22,516		—		32,942
General and administrative	8,357		10,150		22,118		40,625
Rent	190		23,789		285		24,264
Franchise rent expense	31,424		—		—		31,424
Depreciation and amortization	160		6,107		3,113		9,380
TBG mall location restructuring	1,500		—		—		1,500
Total operating expenses	62,337		169,091		25,516		256,944
Operating income (loss)	10,209		5,401		(25,516)		(9,906)
Other (expense) income:
Interest expense	—		—		(1,439)		(1,439)
Gain from sale of salon assets to franchisees, net	—		—		(5,860)		(5,860)
Interest income and other, net	—		—		171		171
Income (loss) from continuing operations before income taxes	$	10,209	$	5,401	$	(32,644)	$	(17,034)