SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION:

Segment information is prepared on the same basis that the chief operating decision maker (CODM) reviews financial information for operational decision-making purposes. The Company's reportable operating segments consisted of the following salons:

	September 30, 2023		June 30, 2023
FRANCHISE SALONS:
Supercuts	2,060		2,082
SmartStyle/Cost Cutters in Walmart Stores	1,373		1,388
Portfolio Brands	1,210		1,223
Total North American salons	4,643		4,693
Total International salons (1)	102		102
Total Franchise salons	4,745		4,795
as a percent of total Franchise and Company-owned salons	98.6	%	98.6	%
COMPANY-OWNED SALONS:
Supercuts	7		7
SmartStyle/Cost Cutters in Walmart Stores	48		48
Portfolio Brands	11		13
Total Company-owned salons	66		68
as a percent of total Franchise and Company-owned salons	1.4	%	1.4	%
Total Franchise and Company-owned salons	4,811		4,863

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

Financial information concerning the Company's reportable operating segments is shown in the table below. Segment information is presented in the same way that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. In the second quarter of fiscal year 2023, the Company revised its internal reporting such the CODM’s primary measures of segment performance are revenue and segment adjusted EBITDA. Revenue and segment adjusted EBITDA are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance and forecast future performance. Asset information by segment is not provided to the CODM. Segment adjusted EBITDA is defined as income from continuing operations before interest, income taxes, depreciation, amortization and impairment. Consistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within U.S. GAAP. They are based on how management views the business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance and are not attributable to either segment. Unallocated fees include one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROUA, lease termination fees and asset retirement obligation costs.

	Three Months Ended September 30,
	2023		2022
	(Dollars in thousands)
Revenues:
Franchise	$	51,436	$	58,757
Company-owned	1,936		3,114
Total revenue	53,372		61,871
Segment adjusted EBITDA:
Franchise	7,960		4,993
Company-owned	(497)		(1,169)
Total	7,463		3,824
Unallocated expenses	141		(566)
Depreciation and amortization	(370)		(1,251)
Interest expense	(6,188)		(3,817)
Income tax benefit (expense)	148		(28)
Income from discontinued operations	—		3,306
Total net income	$	1,194	$	1,468