SEGMENT INFORMATION (Tables)

12 Months Ended

Jun. 30, 2024

Schedule of Financial Information of Reportable Operating Segments

Financial information concerning the Company's reportable operating segments is shown in the table below. Segment information is presented on the same basis 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 Chief Operating Decision Maker's (CODM) 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. The Company's CODM does not evaluate reportable segments using assets and capital expenditure information. Segment adjusted EBITDA is defined as income (loss) 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 distribution center wind down fees, inventory reserve, one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROU assets, lease termination fees, asset retirement obligation costs, goodwill and long-lived asset impairment charges, and the benefit from the Company's debt refinancing. Figures for prior reporting periods have been restated to conform to the current period.

The Franchise reportable operating segment is comprised of 4,391 franchise salons located mainly in strip center locations and Walmart. Franchise salons offer high quality, convenient and value priced hair care and beauty services and retail products. This segment operates primarily in the U.S., Puerto Rico, and Canada and primarily includes the Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, Roosters, and Magicuts concepts.

The company-owned salons reportable operating segment is comprised of 17 company-owned salons located mainly in strip center locations and Walmart. Company-owned salons offer high quality, convenient and value priced hair care and beauty services and retail products. SmartStyle, Supercuts, Cost Cutters and other regional trade names operating in the U.S. and Canada are generally within the company-owned salons segment.


	Fiscal Years
	2024		2023		2022

	(Dollars in thousands)

Revenues:
Franchise	$	195,659	$	223,237	$	255,762
Company-owned	7,323		10,089		20,205
Total revenue	202,982		233,326		275,967

Segment adjusted EBITDA:
Franchise	26,257		22,799		7,730
Company-owned	(323)		(1,789)		(9,529)
Total	25,934		21,010		(1,799)
Unallocated benefits (expenses)	94,138		(3,050)		(9,843)
Depreciation and amortization	(3,945)		(7,716)		(6,224)
Long-lived asset impairment	(798)		(101)		(542)
Goodwill impairment	—		—		(13,120)
Interest expense	(25,393)		(22,141)		(12,914)
Income tax (expense) benefit	(869)		655		(2,017)
Income (loss) from discontinued operations	1,993		3,958		(39,398)
Total net income (loss)	$	91,060	$	(7,385)	$	(85,857)

Schedule of Total Revenues and Property and Equipment, Net

Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows:


	June 30,
	2024				2023				2022
	Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net

	(Dollars in thousands)
U.S.	$	183,465	$	3,663	$	211,429	$	6,410	$	249,285	$	12,808
Other countries	19,517		1		21,897		12		26,682		27
Total	$	202,982	$	3,664	$	233,326	$	6,422	$	275,967	$	12,835