SEGMENT INFORMATION

6 Months Ended

Dec. 31, 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:

	December 31, 2023		June 30, 2023
FRANCHISE SALONS:
Supercuts	2,022		2,082
SmartStyle/Cost Cutters in Walmart Stores	1,351		1,388
Portfolio Brands	1,178		1,223
Total North American salons	4,551		4,693
Total International salons (1)	100		102
Total Franchise salons	4,651		4,795
as a percent of total Franchise and Company-owned salons	98.8	%	98.6	%
COMPANY-OWNED SALONS:
Supercuts	6		7
SmartStyle/Cost Cutters in Walmart Stores	44		48
Portfolio Brands	8		13
Total Company-owned salons	58		68
as a percent of total Franchise and Company-owned salons	1.2	%	1.4	%
Total Franchise and Company-owned salons	4,709		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 that 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 December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
	(Dollars in thousands)
Revenues:
Franchise	$	49,274	$	57,354	$	100,710	$	116,111
Company-owned	1,779		2,613		3,715		5,727
Total revenue	51,053		59,967		104,425		121,838
Segment adjusted EBITDA:
Franchise	6,371		7,532		14,331		12,523
Company-owned	(338)		303		(835)		(863)
Total	6,033		7,835		13,496		11,660
Unallocated expenses	(108)		(2,064)		33		(2,631)
Depreciation and amortization	(677)		(3,793)		(1,047)		(5,044)
Long-lived asset impairment	(170)		—		(170)		—
Interest expense	(6,188)		(4,519)		(12,376)		(8,336)
Income tax benefit (expense)	107		—		255		(28)
Income from discontinued operations	2,000		134		2,000		3,440
Total net income (loss)	$	997	$	(2,407)	$	2,191	$	(939)