Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Oct. 24, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'REGIS CORP | ' |
Entity Central Index Key | '0000716643 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 55,251,656 |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | 'Q1 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $186,257 | $378,627 |
Receivables, net | 22,085 | 25,808 |
Inventories | 143,328 | 137,151 |
Other current assets | 69,990 | 71,680 |
Total current assets | 421,660 | 613,266 |
Property and equipment, net | 253,072 | 266,538 |
Goodwill | 423,278 | 425,264 |
Other intangibles, net | 19,004 | 19,812 |
Investment in affiliates | 29,339 | 28,611 |
Other assets | 63,575 | 62,458 |
Total assets | 1,209,928 | 1,415,949 |
Current liabilities: | ' | ' |
Long-term debt, current portion | 14 | 173,501 |
Accounts payable | 71,280 | 68,491 |
Accrued expenses | 137,497 | 142,720 |
Total current liabilities | 208,791 | 384,712 |
Long-term debt and capital lease obligations | 120,000 | 120,002 |
Other noncurrent liabilities | 194,292 | 190,454 |
Total liabilities | 523,083 | 695,168 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, $0.05 par value; issued and outstanding 55,250,514 and 56,651,166 common shares at September 30, 2014 and June 30, 2014, respectively | 2,763 | 2,833 |
Additional paid-in capital | 317,633 | 337,837 |
Accumulated other comprehensive income | 18,029 | 22,651 |
Retained earnings | 348,420 | 357,460 |
Total shareholders’ equity | 686,845 | 720,781 |
Total liabilities and shareholders’ equity | $1,209,928 | $1,415,949 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.05 | $0.05 |
Common stock, shares issued | 55,250,514 | 56,651,166 |
Common stock, shares outstanding | 55,250,514 | 56,651,166 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' |
Service | $364,742 | $371,727 |
Product | 88,762 | 86,743 |
Royalties and fees | 11,047 | 10,113 |
Total revenues | 464,551 | 468,583 |
Operating expenses: | ' | ' |
Cost of service | 223,687 | 225,015 |
Cost of product | 44,977 | 44,024 |
Site operating expenses | 51,652 | 50,841 |
General and administrative | 45,185 | 44,433 |
Rent | 77,469 | 79,010 |
Depreciation and amortization | 22,188 | 23,831 |
Total operating expenses | 465,158 | 467,154 |
Operating (expense) income | -607 | 1,429 |
Other income (expense): | ' | ' |
Interest expense | -3,098 | -4,491 |
Interest income and other, net | -127 | 544 |
Loss before income taxes and equity in income of affiliated companies | -3,832 | -2,518 |
Income taxes | -5,612 | 383 |
Income (Loss) from Equity Method Investments | 392 | 1,999 |
Net Income (Loss) Attributable to Parent | ($9,052) | ($136) |
Earnings Per Share, Basic and Diluted | ($0.16) | $0 |
Weighted average common and common equivalent shares outstanding: | ' | ' |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 55,743 | 56,393 |
Cash dividends declared per common share | $0 | $0.06 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net Income (Loss) Attributable to Parent | ($9,052) | ($136) |
Other comprehensive (loss) income, net of tax: | ' | ' |
Foreign currency translation adjustments during the period | -4,622 | 3,035 |
Other comprehensive (loss) income | -4,622 | 3,035 |
Comprehensive (loss) income | ($13,674) | $2,899 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($9,052) | ($136) |
Adjustments to reconcile net loss to net cash provided by: | ' | ' |
Depreciation and amortization | 18,122 | 22,157 |
Equity in income of affiliated companies | -392 | -1,999 |
Deferred income taxes | 4,059 | -250 |
Salon asset impairment | 4,066 | 1,674 |
Loss on write down of inventories | 0 | 854 |
Stock-based compensation | 1,781 | 1,811 |
Amortization of debt discount and financing costs | 618 | 1,843 |
Other non-cash items affecting earnings | 343 | -34 |
Changes in operating assets and liabilities, excluding the effects of acquisitions | -3,512 | -10,164 |
Net cash provided by operating activities | 16,033 | 15,756 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -11,629 | -11,444 |
Asset acquisitions, net of cash acquired and proceeds from sale of assets | 4 | -12 |
Proceeds from loans and investments | 0 | 2,968 |
Net cash used in investing activities | -11,625 | -8,488 |
Cash flows from financing activities: | ' | ' |
Repayments of long-term debt and capital lease obligations | -173,740 | -1,706 |
Repurchase of common stock | -21,529 | 0 |
Dividends paid | 0 | -3,397 |
Net cash used in financing activities | -195,269 | -5,103 |
Effect of exchange rate changes on cash and cash equivalents | -1,509 | 1,033 |
(Decrease) increase in cash and cash equivalents | -192,370 | 3,198 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 378,627 | 200,488 |
End of period | $186,257 | $203,686 |
BASIS_OF_PRESENTATION_OF_UNAUD
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | 3 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |||
The unaudited interim Condensed Consolidated Financial Statements of Regis Corporation (the Company) as of September 30, 2014 and for the three months ended September 30, 2014 and 2013, reflect, in the opinion of management, all adjustments necessary to fairly state the consolidated financial position of the Company as of September 30, 2014 and the consolidated results of its operations and its cash flows for the interim periods. Adjustments consist only of normal recurring items, except for any discussed in the notes below. The results of operations and cash flows for any interim period are not necessarily indicative of results of operations and cash flows for the full year. | |||
The Condensed Consolidated Balance Sheet data for June 30, 2014 was derived from audited Consolidated Financial Statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). The unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2014 and other documents filed or furnished with the Securities and Exchange Commission (SEC) during the current fiscal year. | |||
Stock-Based Employee Compensation: | |||
During the three months ended September 30, 2014, the Company granted various equity awards including restricted stock units (RSUs), equity-based stock appreciation rights (SARs), and performance share units (PSUs). During the three months ended September 30, 2014, the dividend yield assumption was updated to 0%. Otherwise there were no significant changes to the assumptions used in calculating the fair value of SARs. All grants relate to stock incentive plans approved by the shareholders of the Company. | |||
A summary of equity awards granted is as follows: | |||
Three Months Ended September 30, 2014 | |||
Restricted stock units | 253,283 | ||
Equity-based stock appreciation rights | 436,465 | ||
Performance share units | 193,240 | ||
Total compensation cost for stock-based payment arrangements totaled $1.8 million for each of the three months ended September 30, 2014 and 2013, respectively, recorded within general and administrative expense on the unaudited Condensed Consolidated Statement of Operations. | |||
During fiscal year 2014, the Company granted 0.1 million PSUs with a performance metric based upon achieving a three-year cumulative adjusted earnings before interest, income taxes and depreciation and amortization balance. As of September 30, 2014, the Company does not expect any of these units to be earned and has not recorded any net expense associated with these awards. However, future compensation expense for the unvested awards could reach a maximum of $1.9 million if the maximum performance metric is earned. | |||
Long-Lived Asset Impairment Assessments, Excluding Goodwill: | |||
The Company assesses impairment of long-lived assets at the individual salon level, as this is the lowest level for which identifiable cash flows are largely independent of other groups of assets and liabilities, when events or changes in circumstances indicate the carrying value of the assets or the asset grouping may not be recoverable. Factors considered in deciding when to perform an impairment review include significant under-performance of an individual salon in relation to expectations, significant economic or geographic trends, and significant changes or planned changes in our use of the assets. Impairment is evaluated based on the sum of undiscounted estimated future cash flows expected to result from use of the long-lived assets. If the undiscounted estimated cash flows are less than the carrying value of the assets, the Company calculates an impairment charge based on the assets' estimated fair value. The fair value of the long-lived assets is estimated using a discounted cash flow model based on the best information available, including market data and salon level revenues and expenses. Long-lived asset impairment charges are recorded within depreciation and amortization in the Consolidated Statement of Operations for the three months ended September 30, 2014 and 2013. | |||
Recent Accounting Standards Adopted by the Company: | |||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |||
In April 2014, the Financial Accounting Standards Board ("FASB") updated the accounting guidance related to the definition of a discontinued operation and the related disclosures. The updated accounting guidance defines a discontinued operation as a disposal of a component or a group of components that is to be disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The Company adopted this guidance in the first quarter of fiscal year 2015; its adoption did not have a material impact on the Company’s consolidated financial statements. | |||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |||
In July 2013, the FASB issued new accounting requirements which provide guidance on the financial statement presentation of unrecognized tax benefits when a net operating loss, a similar tax loss, or a tax credit carryforward exists. The requirements are effective for the Company beginning in the first quarter of fiscal year 2015 with early adoption permitted. The Company adopted this guidance in the first quarter of fiscal year 2015; its adoption did not have a material impact on the Company’s consolidated financial statements. | |||
Accounting Standards Recently Issued But Not Yet Adopted by the Company: | |||
Revenue from Contracts with Customers | |||
In May 2014, the FASB issued updated guidance for revenue recognition. The updated accounting guidance provides a comprehensive new revenue recognition model that requires a Company to recognize revenue to depict the exchange for goods or services to a customer at an amount that reflects the consideration it expects to receive for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This guidance will be effective in the first quarter of fiscal year 2018. This update permits the use of either the retrospective or simplified transition method. The Company does not expect the adoption of this update to have a material impact on the Company's consolidated financial statements and is evaluating the impact this guidance will have on its related disclosures. |
INVESTMENT_IN_AFFILIATES
INVESTMENT IN AFFILIATES: | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' | ||||||||
INVESTMENT IN AFFILIATES | ' | ||||||||
INVESTMENT IN AFFILIATES: | |||||||||
EEG, Inc. | |||||||||
As of September 30, 2014, the Company's ownership interest in EEG, Inc. (EEG) was 54.6% and the carrying amount of the Company's investment in EEG was $28.8 million. During the three months ended September 30, 2014 and 2013, the Company recorded $0.4 and $1.0 million, respectively, of equity earnings related to its investment in EEG. The exposure to loss related to the Company’s involvement with EEG is the carrying value of the investment. | |||||||||
The Company utilized consolidation of variable interest entities guidance to determine whether or not its investment in EEG was a variable interest entity (VIE), and if so, whether the Company was the primary beneficiary of the VIE. The Company concluded that EEG was not a VIE based on the fact that EEG had sufficient equity at risk. The Company accounts for EEG as an equity investment under the voting interest model, as the Company has granted the other shareholder of EEG an irrevocable proxy to vote a certain number of the Company’s shares such that the other shareholder of EEG has voting control of 51.0% of EEG’s common stock, as well as the right to appoint four of the five members of EEG’s Board of Directors. | |||||||||
Based on EEG's annual goodwill impairment assessment performed during the fourth quarter of fiscal year 2014, the Company's portion of EEG's estimated fair value exceeds carrying value of its investment by approximately 10%. Any meaningful underperformance against plan or reduced outlook by EEG, changes to the carrying value of EEG or erosion in valuations of the for-profit secondary educational market could lead to other than temporary impairments of the Company's investment in EEG. In addition, EEG may be required to record non-cash impairment charges related to long-lived assets or establish valuation allowances against certain of its deferred tax assets and our share of such non-cash impairment charges or valuation allowances could be material to the Company's consolidated balance sheet and results of operations. If EEG records a full valuation allowance on its deferred tax assets, our share of the expense would be $7.6 million. | |||||||||
The table below presents the summarized Statement of Operations information for EEG: | |||||||||
For the Three Months Ended September 30, | |||||||||
2014 | 2013 | ||||||||
(Unaudited) | (Dollars in thousands) | ||||||||
Gross revenues | $ | 40,593 | $ | 43,965 | |||||
Gross profit | 11,370 | 14,912 | |||||||
Operating income | 479 | 2,904 | |||||||
Net income | 442 | 1,938 | |||||||
MY Style | |||||||||
During the three months ended September 30, 2013, MY Style’s parent company, Yamano Holding Corporation (Yamano), redeemed its Class A Preferred Stock for $1.0 million. During fiscal year 2011, the Company had estimated the fair value of the Yamano Class A Preferred Stock to be negligible and recorded an other than temporary non-cash impairment. The Company reported the gain associated with Yamano's redemption within equity in income of affiliated companies, net of income taxes, on the unaudited Condensed Consolidated Statement of Operations. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE: | 3 Months Ended |
Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ' |
EARNINGS PER SHARE | ' |
EARNINGS PER SHARE: | |
The Company’s basic earnings per share is calculated as net loss divided by weighted average common shares outstanding, excluding unvested outstanding restricted stock awards, RSUs and PSUs. The Company’s diluted earnings per share is calculated as net loss divided by weighted average common shares and common share equivalents outstanding, which includes shares issued under the Company’s stock-based compensation plans. Stock-based awards with exercise prices greater than the average market value of the Company’s common stock are excluded from the computation of diluted earnings per share. The Company’s diluted earnings per share also reflect the assumed conversion under the Company’s convertible debt, if the impact is dilutive, along with the exclusion of interest expense, net of taxes. The impact of the convertible debt is excluded from the computation of diluted earnings per share when interest expense per common share obtainable upon conversion is greater than basic earnings per share. | |
Net loss available to common shareholders and net loss for diluted earnings per share under the if-converted method were the same for all periods presented. | |
For the three months ended September 30, 2014 and 2013, 143,749 and 132,392 common stock equivalents of potentially dilutive common stock, respectively, were excluded from the diluted earnings per share calculation due to the net loss. | |
The computation of weighted average shares outstanding, assuming dilution, excluded 1,681,508 and 1,409,169 of stock-based awards during the three months ended September 30, 2014 and 2013, respectively, as they were not dilutive under the treasury stock method. The computation of weighted average shares outstanding, assuming dilution, also excluded 1,845,053 and 11,289,545 of shares from convertible debt as they were not dilutive for the three months ended September 30, 2014 and 2013, respectively. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY: | 3 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
SHAREHOLDERS' EQUITY | ' |
SHAREHOLDERS’ EQUITY: | |
Additional Paid-In Capital: | |
The $20.2 million decrease in additional paid-in capital during the three months ended September 30, 2014 was primarily due to $21.5 million of common stock repurchases, partly offset by $1.8 million of stock-based compensation. | |
During the three months ended September 30, 2014, the Company repurchased 1,455,587 shares for $21.5 million under a previously approved stock repurchase program. At September 30, 2014, $37.2 million remains outstanding under the approved stock repurchase program. |
INCOME_TAXES
INCOME TAXES: | 3 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES: | |
During the three months ended September 30, 2014 and 2013, the Company recognized tax expense (benefit) of $5.6 and $(0.4) million, respectively, with corresponding effective tax rates of (146.5)% and 15.2%. | |
The recorded tax expense and effective tax rate for the three months ended September 30, 2014 were different than what would normally be expected primarily due to non-cash tax expense relating to tax benefits on certain indefinite-lived assets that the Company cannot recognize for reporting purposes and the valuation allowance associated with the U.S. and U.K. deferred tax assets. | |
The recorded tax benefit and the effective tax rate for the three months ended September 30, 2013 were lower than would be expected due to unique items of tax expense reducing the tax benefit, with a resulting greater impact on the tax rate due to the relatively small amount of pretax loss reported for the quarter. | |
The Company’s U.S. federal income tax returns for the fiscal years 2010 and 2011 are currently under audit. All earlier tax years are closed to examination. The Internal Revenue Service (IRS) identified certain issues that resulted in audit adjustments. In anticipation of these adjustments, the Company made a payment to the IRS during the fourth quarter ended June 30, 2014. The majority of the amount paid relates to timing differences and will be recovered by claiming tax deductions in subsequent years. While the IRS has proposed additional adjustments in these audits, the Company believes its income tax position and deductions will be sustained and intends to vigorously defend its position on the issues and accordingly will initially appeal to the IRS Appeals Division. Final resolution of these issues is not expected to have a material impact on the Company’s financial position. For state tax audits, the statute of limitations generally runs three to four years resulting in a number of returns being open for tax audits dating back to fiscal year 2010. The Company is currently under audit in a number of states in which the statute of limitations has been extended for fiscal years 2007 and forward. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES: | 3 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES: | |
The Company is a defendant in various lawsuits and claims arising out of the normal course of business. Like certain other large retail employers, the Company has been faced with allegations of purported class-wide consumer and wage and hour violations. Litigation is inherently unpredictable and the outcome of these matters cannot presently be determined. Although the actions are being vigorously defended, the Company could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period. | |
The Company was a nominal defendant, and nine current and former directors and officers of the Company were named defendants, in a shareholder derivative action in Minnesota state court. The derivative shareholder action alleged that the individual defendants breached their fiduciary duties to the Company in connection with their approval of certain executive compensation arrangements and certain related party transactions. The Board of Directors appointed a Special Litigation Committee to investigate the claims and allegations made in the derivative action, and to decide on behalf of the Company whether the claims and allegations should be pursued. In April 2014, the Special Litigation Committee issued a report and concluded the claims and allegations should not be pursued, and in September 2014 the case was dismissed by court order. | |
The exposure to loss related to the Company’s discontinued Trade Secret salon concept is the guarantee of certain operating leases that have future minimum rents. The Company has determined the exposure to the risk of loss on the guarantee of the operating leases to be immaterial to the financial statements. | |
See Note 5 to the unaudited Condensed Consolidated Financial Statements for discussion regarding certain issues that have resulted from the IRS' audit of fiscal 2010 and 2011. |
GOODWILL_AND_OTHER_INTANGIBLES
GOODWILL AND OTHER INTANGIBLES: | 3 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLES | ' | ||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLES: | |||||||||||||||||||||||||
The table below contains details related to the Company’s recorded goodwill: | |||||||||||||||||||||||||
30-Sep-14 | 30-Jun-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net (2) | Gross | Accumulated | Net (2) | ||||||||||||||||||||
Carrying | Impairment (1) | Carrying | Impairment (1) | ||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Goodwill | $ | 676,939 | $ | (253,661 | ) | $ | 423,278 | $ | 678,925 | $ | (253,661 | ) | $ | 425,264 | |||||||||||
_____________________________ | |||||||||||||||||||||||||
-1 | The table below contains additional information regarding accumulated impairment losses: | ||||||||||||||||||||||||
Fiscal Year | Impairment Charge | Reporting Unit (3) | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2009 | $ | (41,661 | ) | International | |||||||||||||||||||||
2010 | (35,277 | ) | North American Premium | ||||||||||||||||||||||
2011 | (74,100 | ) | North American Value | ||||||||||||||||||||||
2012 | (67,684 | ) | North American Premium | ||||||||||||||||||||||
2014 | (34,939 | ) | North American Premium | ||||||||||||||||||||||
Total | $ | (253,661 | ) | ||||||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||
(2) | Remaining net goodwill relates to the Company’s North American Value reporting unit. | ||||||||||||||||||||||||
-3 | See Note 10 to the unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||
The table below presents other intangible assets: | |||||||||||||||||||||||||
30-Sep-14 | 30-Jun-14 | ||||||||||||||||||||||||
Cost | Accumulated | Net | Cost | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||
Brand assets and trade names | $ | 8,937 | $ | (3,492 | ) | $ | 5,445 | $ | 9,203 | $ | (3,510 | ) | $ | 5,693 | |||||||||||
Franchise agreements | 10,758 | (7,076 | ) | 3,682 | 11,063 | (7,163 | ) | 3,900 | |||||||||||||||||
Lease intangibles | 14,715 | (7,477 | ) | 7,238 | 14,775 | (7,326 | ) | 7,449 | |||||||||||||||||
Other | 4,943 | (2,304 | ) | 2,639 | 5,074 | (2,304 | ) | 2,770 | |||||||||||||||||
$ | 39,353 | $ | (20,349 | ) | $ | 19,004 | $ | 40,115 | $ | (20,303 | ) | $ | 19,812 | ||||||||||||
FINANCING_ARRANGEMENTS
FINANCING ARRANGEMENTS: | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
FINANCING ARRANGEMENTS | ' | ||||||||||||
FINANCING ARRANGEMENTS: | |||||||||||||
The Company’s long-term debt consisted of the following: | |||||||||||||
Amounts Outstanding | |||||||||||||
Maturity Dates | Interest Rate | September 30, | June 30, | ||||||||||
2014 | 2014 | ||||||||||||
(fiscal year) | (Dollars in thousands) | ||||||||||||
Convertible senior notes | 2015 | 5.00% | $ | — | $ | 172,246 | |||||||
Senior term notes | 2018 | 5.75 | 120,000 | 120,000 | |||||||||
Revolving credit facility | 2018 | — | — | — | |||||||||
Equipment and leasehold notes payable | 2015 - 2016 | 4.90 - 8.75 | 14 | 1,257 | |||||||||
120,014 | 293,503 | ||||||||||||
Less current portion | (14 | ) | (173,501 | ) | |||||||||
Long-term portion | $ | 120,000 | $ | 120,002 | |||||||||
Convertible Senior Notes | |||||||||||||
In July 2009, the Company issued $172.5 million aggregate principal amount of 5.0% convertible senior notes due July 2014. In July 2014, the Company settled the convertible senior notes with $172.5 million in cash. The notes were unsecured, senior obligations of the Company and interest was payable semi-annually in arrears on January 15 and July 15 of each year at a rate of 5.0% per year. Interest expense related to the 5.0% contractual interest coupon was $0.4 and $2.2 million for the three months ended September 30, 2014 and 2013, respectively. Interest expense related to the amortization of the debt discount was $0.3 and $1.4 million for the three months ended September 30, 2014 and 2013, respectively. | |||||||||||||
Senior Term Notes | |||||||||||||
In November 2013, the Company issued $120.0 million aggregate principal amount of 5.75% senior notes due December 2017 (Senior Term Notes). Net proceeds from the issuance of the Senior Term Notes were $118.1 million. Interest on the Senior Term Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2014, at a rate of 5.75% per year. The Senior Term Notes are unsecured and not guaranteed by any of the Company's subsidiaries or any third parties. | |||||||||||||
Revolving Credit Facility | |||||||||||||
As of September 30, 2014 and June 30, 2014, the Company had no outstanding borrowings under this facility. Additionally, the Company had outstanding standby letters of credit under the facility of $2.0 million and $2.2 million at September 30, 2014 and June 30, 2014, respectively, primarily related to the Company's self-insurance program. Unused available credit under the facility at September 30, 2014 and June 30, 2014 was $398.0 million and $397.8 million, respectively. | |||||||||||||
The Company was in compliance with all covenants and requirements of its financing arrangements as of and during the three months ended September 30, 2014. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS: | 3 Months Ended |
Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
FAIR VALUE MEASUREMENTS | ' |
FAIR VALUE MEASUREMENTS: | |
Fair value measurements are categorized into one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs available at the measurement date, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). | |
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis (Level 1) | |
As of September 30, 2014, the Company’s financial instruments included cash, cash equivalents, receivables and accounts payable. The fair value of these instruments approximated their carrying values as of September 30, 2014 and June 30, 2014. As of September 30, 2014 and June 30, 2014, the estimated fair value of the Company's debt was $118.5 million and $292.5 million, respectively, and the carrying value was $120.0 million and $293.5 million, respectively. | |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Level 3) | |
We measure certain assets, including the Company’s equity method investments, tangible fixed and other assets and goodwill, at fair value on a nonrecurring basis when they are deemed to be other than temporarily impaired. The fair values of the Company’s investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. During the three months ended September 30, 2014, the Company recorded $4.1 million of long-lived asset impairment charges. See Note 1 to the unaudited Condensed Consolidated Financial Statements. There were no other assets measured at fair value on a nonrecurring basis during the three months ended September 30, 2014. |
SEGMENT_INFORMATION
SEGMENT INFORMATION: | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||
SEGMENT INFORMATION: | ||||||||||
Segment information is prepared on the same basis the chief operating decision maker reviews financial information for operational decision-making purposes. During the second quarter of fiscal year 2014, the Company redefined its operating segments to reflect how the chief operating decision maker evaluates the business as a result of the restructuring of the Company's North American field organization. The field reorganization, which impacted all North American salons except for salons in the mass premium category, was announced in the fourth quarter of fiscal year 2013 and completed in the second quarter of fiscal year 2014. | ||||||||||
As of September 30, 2014, the Company’s reportable operating segments consisted of the following salons: | ||||||||||
Company-owned | Franchised | Total | ||||||||
North American Value | 6,063 | 2,214 | 8,277 | |||||||
North American Premium | 793 | — | 793 | |||||||
International | 362 | — | 362 | |||||||
The North American Value operating segment is comprised primarily of SmartStyle, Supercuts, MasterCuts, Cost Cutters, and other regional trade names. The North American Premium operating segment is comprised primarily of the Regis salon concept and the International operating segment includes Supercuts, Regis and Sassoon salon concepts. | ||||||||||
Concurrent with the change in reportable operating segments, the Company revised its prior period financial information to reflect comparable financial information for the new segment structure. Historical financial information shown in the following table and elsewhere in this filing reflects this change. | ||||||||||
For the Three Months Ended September 30, | ||||||||||
2014 | 2013 | |||||||||
(Dollars in thousands) | ||||||||||
Revenues: | ||||||||||
North American Value | $ | 354,376 | $ | 355,341 | ||||||
North American Premium | 79,035 | 84,190 | ||||||||
International | 31,140 | 29,052 | ||||||||
$ | 464,551 | $ | 468,583 | |||||||
Operating (expense) income: | ||||||||||
North American Value | $ | 29,287 | $ | 30,047 | ||||||
North American Premium (1) | (4,544 | ) | (1,239 | ) | ||||||
International | 630 | (257 | ) | |||||||
Total segment operating income | 25,373 | 28,551 | ||||||||
Unallocated Corporate | (25,980 | ) | (27,122 | ) | ||||||
Operating (expense) income | $ | (607 | ) | $ | 1,429 | |||||
_____________________________ | ||||||||||
-1 | Increases in operating loss primarily driven by long-lived asset impairment charges recorded within depreciation and amortization in the Consolidated Statement of Operations. See Note 1 to the unaudited Condensed Consolidated Financial Statements. |
BASIS_OF_PRESENTATION_OF_UNAUD1
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 3 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Stock-Based Employee Compensation | ' | ||
Stock-Based Employee Compensation: | |||
During the three months ended September 30, 2014, the Company granted various equity awards including restricted stock units (RSUs), equity-based stock appreciation rights (SARs), and performance share units (PSUs). During the three months ended September 30, 2014, the dividend yield assumption was updated to 0%. Otherwise there were no significant changes to the assumptions used in calculating the fair value of SARs. All grants relate to stock incentive plans approved by the shareholders of the Company. | |||
A summary of equity awards granted is as follows: | |||
Three Months Ended September 30, 2014 | |||
Restricted stock units | 253,283 | ||
Equity-based stock appreciation rights | 436,465 | ||
Performance share units | 193,240 | ||
Total compensation cost for stock-based payment arrangements totaled $1.8 million for each of the three months ended September 30, 2014 and 2013, respectively, recorded within general and administrative expense on the unaudited Condensed Consolidated Statement of Operations. | |||
During fiscal year 2014, the Company granted 0.1 million PSUs with a performance metric based upon achieving a three-year cumulative adjusted earnings before interest, income taxes and depreciation and amortization balance. As of September 30, 2014, the Company does not expect any of these units to be earned and has not recorded any net expense associated with these awards. However, future compensation expense for the unvested awards could reach a maximum of $1.9 million if the maximum performance metric is earned. | |||
Long-Lived Asset Impairment Assessments, Excluding Goodwill | ' | ||
Long-Lived Asset Impairment Assessments, Excluding Goodwill: | |||
The Company assesses impairment of long-lived assets at the individual salon level, as this is the lowest level for which identifiable cash flows are largely independent of other groups of assets and liabilities, when events or changes in circumstances indicate the carrying value of the assets or the asset grouping may not be recoverable. Factors considered in deciding when to perform an impairment review include significant under-performance of an individual salon in relation to expectations, significant economic or geographic trends, and significant changes or planned changes in our use of the assets. Impairment is evaluated based on the sum of undiscounted estimated future cash flows expected to result from use of the long-lived assets. If the undiscounted estimated cash flows are less than the carrying value of the assets, the Company calculates an impairment charge based on the assets' estimated fair value. The fair value of the long-lived assets is estimated using a discounted cash flow model based on the best information available, including market data and salon level revenues and expenses. Long-lived asset impairment charges are recorded within depreciation and amortization in the Consolidated Statement of Operations for the three months ended September 30, 2014 and 2013 | |||
Recent Accounting Standards Adopted by the Company | ' | ||
Recent Accounting Standards Adopted by the Company: | |||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |||
In April 2014, the Financial Accounting Standards Board ("FASB") updated the accounting guidance related to the definition of a discontinued operation and the related disclosures. The updated accounting guidance defines a discontinued operation as a disposal of a component or a group of components that is to be disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The Company adopted this guidance in the first quarter of fiscal year 2015; its adoption did not have a material impact on the Company’s consolidated financial statements. | |||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |||
In July 2013, the FASB issued new accounting requirements which provide guidance on the financial statement presentation of unrecognized tax benefits when a net operating loss, a similar tax loss, or a tax credit carryforward exists. The requirements are effective for the Company beginning in the first quarter of fiscal year 2015 with early adoption permitted. The Company adopted this guidance in the first quarter of fiscal year 2015; its adoption did not have a material impact on the Company’s consolidated financial statements. | |||
Accounting Standards Recently Issued But Not Yet Adopted by the Company | ' | ||
Accounting Standards Recently Issued But Not Yet Adopted by the Company: | |||
Revenue from Contracts with Customers | |||
In May 2014, the FASB issued updated guidance for revenue recognition. The updated accounting guidance provides a comprehensive new revenue recognition model that requires a Company to recognize revenue to depict the exchange for goods or services to a customer at an amount that reflects the consideration it expects to receive for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This guidance will be effective in the first quarter of fiscal year 2018. This update permits the use of either the retrospective or simplified transition method. The Company does not expect the adoption of this update to have a material impact on the Company's consolidated financial statements and is evaluating the impact this guidance will have on its related disclosures. |
BASIS_OF_PRESENTATION_OF_UNAUD2
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Tables) | 3 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Schedule stock-based employee compensation | ' | ||
A summary of equity awards granted is as follows: | |||
Three Months Ended September 30, 2014 | |||
Restricted stock units | 253,283 | ||
Equity-based stock appreciation rights | 436,465 | ||
Performance share units | 193,240 | ||
INVESTMENT_IN_AFFILIATES_Table
INVESTMENT IN AFFILIATES: (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' | ||||||||
Schedule Of Equity Method Investments Summarized Financial Information | ' | ||||||||
The table below presents the summarized Statement of Operations information for EEG: | |||||||||
For the Three Months Ended September 30, | |||||||||
2014 | 2013 | ||||||||
(Unaudited) | (Dollars in thousands) | ||||||||
Gross revenues | $ | 40,593 | $ | 43,965 | |||||
Gross profit | 11,370 | 14,912 | |||||||
Operating income | 479 | 2,904 | |||||||
Net income | 442 | 1,938 | |||||||
GOODWILL_AND_OTHER_INTANGIBLES1
GOODWILL AND OTHER INTANGIBLES: (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of the Company's recorded goodwill | ' | ||||||||||||||||||||||||
The table below contains details related to the Company’s recorded goodwill: | |||||||||||||||||||||||||
30-Sep-14 | 30-Jun-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net (2) | Gross | Accumulated | Net (2) | ||||||||||||||||||||
Carrying | Impairment (1) | Carrying | Impairment (1) | ||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Goodwill | $ | 676,939 | $ | (253,661 | ) | $ | 423,278 | $ | 678,925 | $ | (253,661 | ) | $ | 425,264 | |||||||||||
_____________________________ | |||||||||||||||||||||||||
-1 | The table below contains additional information regarding accumulated impairment losses: | ||||||||||||||||||||||||
Fiscal Year | Impairment Charge | Reporting Unit (3) | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2009 | $ | (41,661 | ) | International | |||||||||||||||||||||
2010 | (35,277 | ) | North American Premium | ||||||||||||||||||||||
2011 | (74,100 | ) | North American Value | ||||||||||||||||||||||
2012 | (67,684 | ) | North American Premium | ||||||||||||||||||||||
2014 | (34,939 | ) | North American Premium | ||||||||||||||||||||||
Total | $ | (253,661 | ) | ||||||||||||||||||||||
_____________________________ | |||||||||||||||||||||||||
(2) | Remaining net goodwill relates to the Company’s North American Value reporting unit. | ||||||||||||||||||||||||
-3 | See Note 10 to the unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||
Schedule of other intangible assets | ' | ||||||||||||||||||||||||
The table below presents other intangible assets: | |||||||||||||||||||||||||
30-Sep-14 | 30-Jun-14 | ||||||||||||||||||||||||
Cost | Accumulated | Net | Cost | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||
Brand assets and trade names | $ | 8,937 | $ | (3,492 | ) | $ | 5,445 | $ | 9,203 | $ | (3,510 | ) | $ | 5,693 | |||||||||||
Franchise agreements | 10,758 | (7,076 | ) | 3,682 | 11,063 | (7,163 | ) | 3,900 | |||||||||||||||||
Lease intangibles | 14,715 | (7,477 | ) | 7,238 | 14,775 | (7,326 | ) | 7,449 | |||||||||||||||||
Other | 4,943 | (2,304 | ) | 2,639 | 5,074 | (2,304 | ) | 2,770 | |||||||||||||||||
$ | 39,353 | $ | (20,349 | ) | $ | 19,004 | $ | 40,115 | $ | (20,303 | ) | $ | 19,812 | ||||||||||||
FINANCING_ARRANGEMENTS_Tables
FINANCING ARRANGEMENTS: (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Schedule of long-term debt | ' | ||||||||||||
The Company’s long-term debt consisted of the following: | |||||||||||||
Amounts Outstanding | |||||||||||||
Maturity Dates | Interest Rate | September 30, | June 30, | ||||||||||
2014 | 2014 | ||||||||||||
(fiscal year) | (Dollars in thousands) | ||||||||||||
Convertible senior notes | 2015 | 5.00% | $ | — | $ | 172,246 | |||||||
Senior term notes | 2018 | 5.75 | 120,000 | 120,000 | |||||||||
Revolving credit facility | 2018 | — | — | — | |||||||||
Equipment and leasehold notes payable | 2015 - 2016 | 4.90 - 8.75 | 14 | 1,257 | |||||||||
120,014 | 293,503 | ||||||||||||
Less current portion | (14 | ) | (173,501 | ) | |||||||||
Long-term portion | $ | 120,000 | $ | 120,002 | |||||||||
SEGMENT_INFORMATION_Schedule_o
SEGMENT INFORMATION: Schedule of Franchisor Disclosure (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Schedule of Franchisor Disclosure | ' | |||||||||
Company-owned | Franchised | Total | ||||||||
North American Value | 6,063 | 2,214 | 8,277 | |||||||
North American Premium | 793 | — | 793 | |||||||
International | 362 | — | 362 | |||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||
For the Three Months Ended September 30, | ||||||||||
2014 | 2013 | |||||||||
(Dollars in thousands) | ||||||||||
Revenues: | ||||||||||
North American Value | $ | 354,376 | $ | 355,341 | ||||||
North American Premium | 79,035 | 84,190 | ||||||||
International | 31,140 | 29,052 | ||||||||
$ | 464,551 | $ | 468,583 | |||||||
Operating (expense) income: | ||||||||||
North American Value | $ | 29,287 | $ | 30,047 | ||||||
North American Premium (1) | (4,544 | ) | (1,239 | ) | ||||||
International | 630 | (257 | ) | |||||||
Total segment operating income | 25,373 | 28,551 | ||||||||
Unallocated Corporate | (25,980 | ) | (27,122 | ) | ||||||
Operating (expense) income | $ | (607 | ) | $ | 1,429 | |||||
_____________________________ | ||||||||||
-1 | Increases in operating loss primarily driven by long-lived asset impairment charges recorded within depreciation and amortization in the Consolidated Statement of Operations. See Note 1 to the unaudited Condensed Consolidated Financial Statements. |
BASIS_OF_PRESENTATION_OF_UNAUD3
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | |
Restricted stock units | Equity-based stock appreciation rights | Performance share units | Long term incentive plan 2004 | Long term incentive plan 2004 | |||
Performance share units | Performance share units | ||||||
Stock-based employees compensation | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | ' | ' | ' | ' | ' |
Stock granted (in shares) | ' | ' | 253,283 | 436,465 | 193,240 | 100,000 | ' |
Stock-based compensation | $1,781,000 | $1,811,000 | ' | ' | ' | ' | ' |
Future compensation expense | ' | ' | ' | ' | ' | ' | $1,900,000 |
INVESTMENT_IN_AFFILIATES_Detai
INVESTMENT IN AFFILIATES: (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Investment in affiliates | ' | ' | ' |
Investment in affiliates | $29,339,000 | ' | 28,611,000 |
Equity in income (loss), net of income taxes | 392,000 | 1,999,000 | ' |
Empire Education Group Inc | ' | ' | ' |
Investment in affiliates | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 54.60% | ' | ' |
Investment in affiliates | 28,800,000 | ' | ' |
Equity in income (loss), net of income taxes | 400,000 | 1,000,000 | ' |
Equity Method Investment Voting Control Held by Investee | 51.00% | ' | ' |
Percentage that fair value exceeded carrying value | ' | ' | 10.00% |
Deferred Tax Assets, Net | 7,600,000 | ' | ' |
Gross revenues | 40,593,000 | 43,965,000 | ' |
Gross profit | 11,370,000 | 14,912,000 | ' |
Operating income | 479,000 | 2,904,000 | ' |
Net income | 442,000 | 1,938,000 | ' |
Yamano Holding Corporation | MY Style | ' | ' | ' |
Investment in affiliates | ' | ' | ' |
Equity in income (loss), net of income taxes | $1,000,000 | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE: (Details) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Awards excluded from earnings per share calculations | ' | ' |
Awards excluded from diluted earnings per share computation (in shares) | 143,749 | 132,392 |
Equity-based compensation awards | ' | ' |
Awards excluded from earnings per share calculations | ' | ' |
Awards excluded from diluted earnings per share computation (in shares) | 1,681,508 | 1,409,169 |
Shares issuable upon conversion of debt | ' | ' |
Awards excluded from earnings per share calculations | ' | ' |
Awards excluded from diluted earnings per share computation (in shares) | 1,845,053 | 11,289,545 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY: (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Equity [Abstract] | ' | ' |
Increase in additional paid-in capital | ($20,200,000) | ' |
Stock-based compensation | 1,781,000 | 1,811,000 |
Stock Repurchased During Period, Shares | 1,455,587 | ' |
Payments for Repurchase of Common Stock | ($21,529,000) | $0 |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 37,200,000 | ' |
INCOME_TAXES_Details
INCOME TAXES: (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Income tax (benefit) expense | $5,612 | ($383) |
Effective tax rate (as a percent) | 146.50% | -15.20% |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: (Details) | 12 Months Ended |
Jun. 30, 2014 | |
director | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Number of current and former directors and officers who are named defendants | 9 |
GOODWILL_AND_OTHER_INTANGIBLES2
GOODWILL AND OTHER INTANGIBLES: (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2009 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2010 | Jun. 30, 2011 |
In Thousands, unless otherwise specified | International | North American Premium | North American Premium | North American Premium | North American Value | ||
Goodwill | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Gross | $676,939 | $678,925 | ' | ' | ' | ' | ' |
Accumulated Impairment | -253,661 | -253,661 | -41,661 | -34,939 | -67,684 | -35,277 | -74,100 |
Goodwill | $423,278 | $425,264 | ' | ' | ' | ' | ' |
GOODWILL_AND_OTHER_INTANGIBLES3
GOODWILL AND OTHER INTANGIBLES: (Details 2) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Amortized intangible assets: | ' | ' |
Other intangibles, cost | $39,353 | $40,115 |
Other intangibles, accumulated amortization | -20,349 | -20,303 |
Other intangibles, net | 19,004 | 19,812 |
Brand assets and trade names | ' | ' |
Amortized intangible assets: | ' | ' |
Other intangibles, cost | 8,937 | 9,203 |
Other intangibles, accumulated amortization | -3,492 | -3,510 |
Other intangibles, net | 5,445 | 5,693 |
Franchise agreements | ' | ' |
Amortized intangible assets: | ' | ' |
Other intangibles, cost | 10,758 | 11,063 |
Other intangibles, accumulated amortization | -7,076 | -7,163 |
Other intangibles, net | 3,682 | 3,900 |
Lease intangibles | ' | ' |
Amortized intangible assets: | ' | ' |
Other intangibles, cost | 14,715 | 14,775 |
Other intangibles, accumulated amortization | -7,477 | -7,326 |
Other intangibles, net | 7,238 | 7,449 |
Other | ' | ' |
Amortized intangible assets: | ' | ' |
Other intangibles, cost | 4,943 | 5,074 |
Other intangibles, accumulated amortization | -2,304 | -2,304 |
Other intangibles, net | $2,639 | $2,770 |
FINANCING_ARRANGEMENTS_Details
FINANCING ARRANGEMENTS: (Details) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Nov. 30, 2013 | Jul. 31, 2009 | Nov. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | |
Convertible senior notes | Convertible senior notes | Convertible senior notes | Convertible senior notes | Convertible senior notes | Senior term notes | Senior term notes | Senior term notes | Revolving credit facility | Revolving credit facility | Equipment and leasehold notes payable | Equipment and leasehold notes payable | ||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net carrying amount of long-term debt | $120,014,000 | ' | $293,503,000 | $0 | ' | $172,246,000 | ' | ' | ' | $120,000,000 | $120,000,000 | $0 | $0 | $14,000 | $1,257,000 |
Less current portion | -14,000 | ' | -173,501,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt and capital lease obligations | 120,000,000 | ' | 120,002,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate percentage | ' | ' | ' | 5.00% | ' | ' | 5.75% | 5.00% | 5.75% | 5.75% | ' | ' | ' | ' | ' |
Interest rate percentage, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.90% | ' |
Interest rate percentage, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.75% | ' |
Convertible Senior Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | 172,500,000 | 120,000,000 | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | 173,740,000 | 1,706,000 | ' | 172,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense related to contractual interest coupon | ' | ' | ' | 400,000 | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest cost related to amortization of the discount | ' | ' | ' | 300,000 | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Term Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | 118,100,000 | ' | ' | ' | ' | ' | ' |
Revolving Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' |
Outstanding standby letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 2,200,000 | ' | ' |
Revolving credit facility remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $398,000,000 | $397,800,000 | ' | ' |
FAIR_VALUE_MEASUREMENTS_FAIR_V
FAIR VALUE MEASUREMENTS: FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Long-term Debt, Fair Value | $118.50 | $292.50 |
Long-term Debt | $120 | $293.50 |
SEGMENT_INFORMATION_SEGMENT_IN
SEGMENT INFORMATION: SEGMENT INFORMATION: Franchisor Disclosures (Details) | Sep. 30, 2014 |
salon | |
North American Value | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 8,277 |
North American Value | Company-owned | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 6,063 |
North American Value | Franchised | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 2,214 |
North American Premium | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 793 |
North American Premium | Company-owned | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 793 |
North American Premium | Franchised | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 0 |
International | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 362 |
International | Company-owned | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 362 |
International | Franchised | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Stores | 0 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION: (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | $464,551 | $468,583 |
Operating (loss) income | -607 | 1,429 |
North American Value | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 354,376 | 355,341 |
Operating (loss) income | 29,287 | 30,047 |
North American Premium | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 79,035 | 84,190 |
Operating (loss) income | -4,544 | -1,239 |
International | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 31,140 | 29,052 |
Operating (loss) income | 630 | -257 |
Total segment operating income | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Operating (loss) income | 25,373 | 28,551 |
Unallocated Corporate | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Operating (loss) income | ($25,980) | ($27,122) |