Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2015 | Oct. 22, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | REGIS CORP | |
Entity Central Index Key | 716,643 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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 | 48,022,686 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 176,780 | $ 212,279 |
Receivables, net | 24,247 | 24,631 |
Inventories | 140,333 | 128,610 |
Other current assets | 62,496 | 62,762 |
Total current assets | 403,856 | 428,282 |
Property and equipment, net | 206,261 | 218,157 |
Goodwill | 416,057 | 418,953 |
Other intangibles, net | 16,240 | 17,069 |
Investment in affiliates | 14,453 | 15,321 |
Other assets | 63,506 | 64,233 |
Total assets | 1,120,373 | 1,162,015 |
Current liabilities: | ||
Long-term debt and capital lease obligations, current | 0 | 2 |
Accounts payable | 74,125 | 63,302 |
Accrued expenses | 146,803 | 153,362 |
Total current liabilities | 220,928 | 216,666 |
Long-term debt | 120,000 | 120,000 |
Other noncurrent liabilities | 198,906 | 197,905 |
Total liabilities | $ 539,834 | $ 534,571 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, $0.05 par value; issued and outstanding 50,338,680 and 53,664,366 common shares at September 30, 2015 and June 30, 2015, respectively | $ 2,517 | $ 2,683 |
Additional paid-in capital | 256,660 | 298,396 |
Accumulated other comprehensive income | 5,234 | 9,506 |
Retained earnings | 316,128 | 316,859 |
Total shareholders’ equity | 580,539 | 627,444 |
Total liabilities and shareholders’ equity | $ 1,120,373 | $ 1,162,015 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, shares issued | 50,338,680 | 53,664,366 |
Common stock, shares outstanding | 50,338,680 | 53,664,366 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||
Service | $ 350,161 | $ 364,742 |
Product | 87,976 | 88,762 |
Royalties and fees | 11,993 | 11,047 |
Total revenues | 450,130 | 464,551 |
Operating expenses: | ||
Cost of service | 217,768 | 223,687 |
Cost of product | 43,036 | 44,977 |
Site operating expenses | 47,828 | 51,572 |
General and administrative | 44,548 | 45,185 |
Rent | 74,819 | 77,696 |
Depreciation and amortization | 17,855 | 22,188 |
Total operating expenses | 445,854 | 465,305 |
Operating income (loss) | 4,276 | (754) |
Other (expense) income: | ||
Interest expense | (2,354) | (3,098) |
Interest income and other, net | 944 | (127) |
Income (loss) before income taxes and equity in (loss) income of affiliated companies | 2,866 | (3,979) |
Income taxes | (2,816) | (6,256) |
Equity in (loss) income of affiliated companies, net of income taxes | (858) | 392 |
Net loss | $ (808) | $ (9,843) |
Net loss per share: | ||
Basic and diluted (in dollars per share) | $ (0.02) | $ (0.18) |
Weighted average common and common equivalent shares outstanding: | ||
Basic and diluted (in shares) | 52,793 | 55,743 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (808) | $ (9,843) |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustments during the period | (4,272) | (4,622) |
Other comprehensive loss | (4,272) | (4,622) |
Comprehensive loss | $ (5,080) | $ (14,465) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Cash flows from operating activities: | |||
Net loss | $ (808) | $ (9,843) | |
Adjustments to reconcile net loss to net cash provided by: | |||
Depreciation and amortization | 15,205 | 18,122 | |
Equity in loss (income) of affiliated companies | 858 | (392) | |
Deferred income taxes | 1,727 | 4,619 | |
Gain on sale of salon assets | (407) | 0 | |
Salon asset impairment | 2,650 | 4,066 | |
Stock-based compensation | 2,508 | 1,781 | |
Amortization of debt discount and financing costs | 337 | 618 | |
Other non-cash items affecting earnings | 8 | 343 | |
Changes in operating assets and liabilities, excluding the effects of asset sales | (10,224) | (3,281) | |
Net cash provided by operating activities | 11,854 | 16,033 | |
Cash flows from investing activities: | |||
Capital expenditures | (8,611) | (11,629) | |
Proceeds from sale of assets | 684 | 4 | |
Change in restricted cash | (682) | 0 | |
Net cash used in investing activities | (8,609) | (11,625) | |
Cash flows from financing activities: | |||
Repayments of long-term debt and capital lease obligations | (2) | (173,740) | |
Repurchase of common stock | [1] | (38,418) | (21,529) |
Net cash used in financing activities | (38,420) | (195,269) | |
Effect of exchange rate changes on cash and cash equivalents | (324) | (1,509) | |
Decrease in cash and cash equivalents | (35,499) | (192,370) | |
Cash and cash equivalents: | |||
Beginning of period | 212,279 | 378,627 | |
End of period | $ 176,780 | $ 186,257 | |
[1] | During the three months ended September 30, 2015, the Company repurchased approximately 3.4 million shares of common stock for $43.7 million, of which $5.3 million had not been paid for as of September 30, 2015. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Parentheticals) $ in Millions | 3 Months Ended |
Sep. 30, 2015USD ($)shares | |
Statement of Cash Flows [Abstract] | |
Common stock repurchase (in shares) | shares | 3,419,057 |
Common stock repurchase amount | $ 43.7 |
Stock repurchase amount payable | $ 5.3 |
BASIS OF PRESENTATION OF UNAUDI
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | 3 Months Ended |
Sep. 30, 2015 | |
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, 2015 and for the three months ended September 30, 2015 and 2014 , reflect, in the opinion of management, all adjustments necessary to fairly state the consolidated financial position of the Company as of September 30, 2015 and its consolidated results of operations, comprehensive loss and 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, 2015 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, 2015 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, 2015 , 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, 2015, the volatility assumption was updated from 38% to 30% . Otherwise there were no significant changes to the assumptions or methodology 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, 2015 Restricted stock units 260,090 Equity-based stock appreciation rights 690,461 Performance share units (1) 410,153 _______________________________________________________________________________ (1) Includes 118,967 incremental performance share units earned in connection with the achievement of fiscal year 2015 performance metrics. Total compensation cost for stock-based payment arrangements totaled $2.5 and $1.8 million of the three months ended September 30, 2015 and 2014 , respectively, recorded within general and administrative expense on the unaudited Condensed Consolidated Statement of Operations. 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, whenever 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 salon level revenues and expenses. Long-lived asset impairment charges of $2.7 and $4.1 million have been recorded within depreciation and amortization in the Consolidated Statement of Operations for the three months ended September 30, 2015 and 2014 , respectively. Revisions: Following is a summary of the impact the revisions had on net loss: Three Months Ended September 30, 2014 (Dollars in thousands) Net loss, as reported $ (9,052 ) Revisions: Deferred rent, pre-tax (1) (227 ) Previous out of period items, pre-tax (2) 80 Tax impact (644 ) Total revision impact (791 ) Net loss, as revised $ (9,843 ) _______________________________________________________________________________ (1) The Company recognizes rental expense on a straight-line basis at the time the leased space becomes available to the Company. As disclosed in Note 1 of the Form 10-K for the fiscal year ended June 30, 2015, during the fourth quarter of fiscal year 2015, the Company determined its deferred rent balance was understated. Accordingly, the unaudited Condensed Consolidated Financial Statements have been revised to correctly state its deferred rent balances and rent expense. This revision had no impact on cash provided by operations or cash and cash equivalents for the quarter. (2) Also, in the fourth quarter of fiscal year 2015, the Company revised certain prior year amounts to correctly recognize understatements of self-insurance accruals. This revision had no impact on cash provided by operations or cash and cash equivalents for the quarter. The Company assessed the materiality of these misstatements on prior periods' financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250 ("ASC 250"), Presentation of Financial Statements, and concluded these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the unaudited Condensed Consolidated Financial Statements as of September 30, 2014, which are presented herein, have been revised. The following are selected line items from the Company's unaudited Condensed Consolidated Financial Statements illustrating the effect of these revisions: CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (Dollars in thousands, except per share data) Three Months Ended September 30, 2014 As Previously Reported Revision As Revised Site operating expenses $ 51,652 $ (80 ) $ 51,572 Rent 77,469 227 77,696 Loss before income taxes and equity in income of affiliated companies (3,832 ) (147 ) (3,979 ) Income taxes (5,612 ) (644 ) (6,256 ) Net loss $ (9,052 ) $ (791 ) $ (9,843 ) Net loss per share: Basic and diluted earnings per share(1) $ (0.16 ) $ (0.01 ) $ (0.18 ) _______________________________________________________________________________ (1) Total is a recalculation; line items calculated individually may not sum to total due to rounding. CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Dollars in thousands) Three Months Ended September 30, 2014 As Previously Reported Revision As Revised Net loss $ (9,052 ) $ (791 ) $ (9,843 ) Comprehensive loss $ (13,674 ) $ (791 ) $ (14,465 ) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands) Three Months Ended September 30, 2014 As Previously Reported Revision As Revised Cash flows from operating activities: Net loss $ (9,052 ) $ (791 ) $ (9,843 ) Deferred income taxes 4,059 560 4,619 Changes in operating assets and liabilities, excluding the effects of acquisitions (3,512 ) 231 (3,281 ) Accounting Standards Recently Issued But Not Yet Adopted by the Company: Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("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. The guidance was effective for the Company beginning in the first quarter of fiscal year 2018. In July 2015, the FASB deferred the effective date one year and is now effective for the Company in the first quarter of fiscal year 2019. Early adoption as of the original effective date will be permitted. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. 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 effect this guidance will have on its related disclosures. In April 2015, the FASB issued updated guidance requiring debt issuance costs related to a recognized debt liability be presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability. The guidance is effective for the Company in the first quarter of fiscal year 2017. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. |
INVESTMENT IN AFFILIATES_
INVESTMENT IN AFFILIATES: | 3 Months Ended |
Sep. 30, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
INVESTMENT IN AFFILIATES | INVESTMENT IN AFFILIATES: Empire Education Group, Inc. (EEG) As of September 30, 2015 , the Company's ownership interest in EEG was 54.6% and the carrying amount of the Company's investment in EEG was $13.9 million . During the three months ended September 30, 2015 and 2014 , the Company recorded $(0.9) and $0.4 million , respectively, of equity (loss) earnings related to its investment in EEG. 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 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. Due to economic, regulatory and other factors, including declines in enrollment, revenue and profitability in the for-profit secondary educational market, the Company may be required to record additional non-cash impairment charges related to its investment in EEG and such non-cash impairments could be material to the Company's consolidated balance sheet and results of operations. The exposure to loss related to the Company's involvement with EEG is the carrying value of this investment. The table below presents the summarized Statement of Operations information for EEG: For the Three Months Ended September 30, 2015 2014 (Unaudited) (Dollars in thousands) Gross revenues $ 35,941 $ 40,593 Gross profit 8,437 11,370 Operating (loss) income (1,471 ) 479 Net (loss) income (1,553 ) 442 |
EARNINGS PER SHARE_
EARNINGS PER SHARE: | 3 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The Company’s basic earnings per share is calculated as net income (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 income 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 price of the Company’s common stock are excluded from the computation of diluted earnings per share. In fiscal year 2015, the Company’s diluted earnings per share would have reflected the assumed conversion under the Company’s convertible debt, if the impact was dilutive, along with the exclusion of interest expense, net of taxes. For the three months ended September 30, 2015 and 2014 , 217,501 and 143,749 , respectively, of common stock equivalents of potentially dilutive common stock were excluded from the diluted earnings per share calculation due to the net loss from continuing operations. The computation of weighted average shares outstanding, assuming dilution, excluded 835,822 and 1,681,508 of stock-based awards during the three months ended September 30, 2015 and 2014 , respectively, as they were not dilutive under the treasury stock method. The computation of weighted average shares outstanding for the three months ended September 30, 2014 also excluded 1,845,053 shares from convertible debt as they were not dilutive. |
SHAREHOLDERS' EQUITY_
SHAREHOLDERS' EQUITY: | 3 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY: Additional Paid-In Capital: The $41.7 million decrease in additional paid-in capital during the three months ended September 30, 2015 was primarily due to $43.7 million of common stock repurchases, partly offset by $2.5 million of stock-based compensation. During the three months ended September 30, 2015 , the Company repurchased 3,419,057 shares for $43.7 million under a previously approved stock repurchase program. At September 30, 2015 , $67.3 million remains outstanding under the approved stock repurchase program, which includes an additional $50.0 million authorized by the Board of Directors in September 2015. |
INCOME TAXES_
INCOME TAXES: | 3 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: During the three months ended September 30, 2015 and 2014 , the Company recognized tax expense of $2.8 and $6.3 million , respectively, with corresponding effective tax rates of 98.3% and (157.2)% . The recorded tax expense and effective tax rate for the three months ended September 30, 2015 and 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 the Company cannot recognize for reporting purposes. This non-cash tax expense will continue as long as we have a valuation allowance in place and will cause our effective tax rate to fluctuate from quarter to quarter. The Company’s U.S. federal income tax returns for the fiscal years 2010 through 2014 are currently under audit by the Internal Revenue Service (IRS). All earlier tax years are closed to examination. The Company has outstanding audit issues with the IRS for fiscal years 2010 and 2011 for which the IRS has proposed adjustments. The Company believes its income tax positions will be sustained and intends to vigorously defend the positions that are currently with the IRS Appeals Division. With limited exceptions, the Company is no longer subject to state and international income tax examinations by tax authorities for years before 2011. |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: | 3 Months Ended |
Sep. 30, 2015 | |
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. In addition, 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. In a collateral proceeding, the plaintiff filed a motion for an award of fees in November 2014. In September 2015, the court denied the plaintiff's motion for an award of fees. The plaintiff has 60 days to appeal the court's decision. 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. In addition, the Company is currently under payroll tax examination by the IRS for calendar years 2012 and 2013. |
GOODWILL AND OTHER INTANGIBLES_
GOODWILL AND OTHER INTANGIBLES: | 3 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 June 30, 2015 Gross Carrying Value (3) Accumulated Impairment (1) Net Gross Carrying Value Accumulated Net (Dollars in thousands) Goodwill $ 669,718 $ (253,661 ) $ 416,057 $ 672,614 $ (253,661 ) $ 418,953 _____________________________ (1) The table below contains additional information regarding accumulated impairment losses: Fiscal Year Impairment Charge Reporting Unit (2) (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) See Note 10 to the unaudited Condensed Consolidated Financial Statements. (3) The change in the gross carrying value of goodwill relates to foreign currency. The table below presents other intangible assets: September 30, 2015 June 30, 2015 Cost (1) Accumulated Amortization (1) Net Cost (1) Accumulated Amortization (1) Net (Dollars in thousands) Amortized intangible assets: Brand assets and trade names $ 8,027 $ (3,468 ) $ 4,559 $ 8,415 $ (3,551 ) $ 4,864 Franchise agreements 9,648 (6,732 ) 2,916 10,093 (6,934 ) 3,159 Lease intangibles 14,529 (8,097 ) 6,432 14,601 (7,960 ) 6,641 Other 5,961 (3,628 ) 2,333 6,115 (3,710 ) 2,405 $ 38,165 $ (21,925 ) $ 16,240 $ 39,224 $ (22,155 ) $ 17,069 _____________________________ (1) The change in the gross carrying value and accumulated amortization of other intangible assets relates to foreign currency. |
FINANCING ARRANGEMENTS_
FINANCING ARRANGEMENTS: | 3 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS: The Company’s long-term debt consists of the following: Amounts Outstanding Maturity Dates Interest Rate September 30, June 30, (fiscal year) (Dollars in thousands) Convertible senior notes 2015 5.00% $ — $ — 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 — 2 120,000 120,002 Less current portion — (2 ) Long-term portion $ 120,000 $ 120,000 Convertible Senior Notes In July 2014, the Company settled its $172.5 million 5.0% convertible senior notes 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. Interest expense related to the 5.0% contractual interest coupon and amortization of the debt discount was $0.4 and $0.3 million for the three months ended September 30, 2014 , 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). Interest on the Senior Term Notes is payable semi-annually in arrears on June 1 and December 1 of each 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, 2015 and June 30, 2015 , the Company had no outstanding borrowings under this facility. Additionally, the Company had outstanding standby letters of credit under the facility of $2.1 million at September 30, 2015 and June 30, 2015 , primarily related to the Company's self-insurance program. Unused available credit under the facility at September 30, 2015 and June 30, 2015 was $397.9 million . The Company was in compliance with all covenants and requirements of its financing arrangements as of and during the three months ended September 30, 2015 . |
FAIR VALUE MEASUREMENTS_
FAIR VALUE MEASUREMENTS: | 3 Months Ended |
Sep. 30, 2015 | |
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 As of September 30, 2015 and June 30, 2015 , the Company’s cash, cash equivalents, receivables, accounts payable and debt approximated their carrying values. The estimated fair value of the Company's debt is based on Level 2 inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis 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, 2015 , the Company recorded $2.7 million of long-lived asset impairment charges. See Note 1 to the unaudited Condensed Consolidated Financial Statements. This impairment charge is based on fair values using Level 3 inputs. |
SEGMENT INFORMATION_
SEGMENT INFORMATION: | 3 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION: Segment information is prepared on the same basis the chief operating decision maker reviews financial information for operational decision-making purposes. As of September 30, 2015 , the Company’s reportable operating segments consisted of the following salons: Company-owned Franchised Total North American Value 5,899 2,374 8,273 North American Premium 735 — 735 International 349 — 349 Total 6,983 2,374 9,357 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. The Company's operating segment results were as follows: For the Three Months Ended September 30, 2015 2014 (Dollars in thousands) Revenues : North American Value $ 348,971 $ 354,376 North American Premium 73,155 79,035 International 28,004 31,140 $ 450,130 $ 464,551 Operating income (loss) (1): North American Value $ 30,549 $ 29,156 North American Premium (2,423 ) (4,560 ) International 106 630 Total segment operating income 28,232 25,226 Unallocated Corporate (23,956 ) (25,980 ) Operating income (loss) $ 4,276 $ (754 ) _____________________________ (1) Amounts for fiscal year 2015 have been revised. See Note 1 to the unaudited Condensed Consolidated Financial Statements. |
BASIS OF PRESENTATION OF UNAU18
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
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, whenever 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 salon level revenues and expenses. |
Accounting Standards Recently Issued But Not Yet Adopted by the Company | Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("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. The guidance was effective for the Company beginning in the first quarter of fiscal year 2018. In July 2015, the FASB deferred the effective date one year and is now effective for the Company in the first quarter of fiscal year 2019. Early adoption as of the original effective date will be permitted. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. 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 effect this guidance will have on its related disclosures. In April 2015, the FASB issued updated guidance requiring debt issuance costs related to a recognized debt liability be presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability. The guidance is effective for the Company in the first quarter of fiscal year 2017. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. |
BASIS OF PRESENTATION OF UNAU19
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Stock-Based Employee Compensation | A summary of equity awards granted is as follows: Three Months Ended September 30, 2015 Restricted stock units 260,090 Equity-based stock appreciation rights 690,461 Performance share units (1) 410,153 _______________________________________________________________________________ (1) Includes 118,967 incremental performance share units earned in connection with the achievement of fiscal year 2015 performance metrics. |
Schedule of Error Corrections and Prior Period Adjustments | Following is a summary of the impact the revisions had on net loss: Three Months Ended September 30, 2014 (Dollars in thousands) Net loss, as reported $ (9,052 ) Revisions: Deferred rent, pre-tax (1) (227 ) Previous out of period items, pre-tax (2) 80 Tax impact (644 ) Total revision impact (791 ) Net loss, as revised $ (9,843 ) _______________________________________________________________________________ (1) The Company recognizes rental expense on a straight-line basis at the time the leased space becomes available to the Company. As disclosed in Note 1 of the Form 10-K for the fiscal year ended June 30, 2015, during the fourth quarter of fiscal year 2015, the Company determined its deferred rent balance was understated. Accordingly, the unaudited Condensed Consolidated Financial Statements have been revised to correctly state its deferred rent balances and rent expense. This revision had no impact on cash provided by operations or cash and cash equivalents for the quarter. (2) Also, in the fourth quarter of fiscal year 2015, the Company revised certain prior year amounts to correctly recognize understatements of self-insurance accruals. This revision had no impact on cash provided by operations or cash and cash equivalents for the quarter. The Company assessed the materiality of these misstatements on prior periods' financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250 ("ASC 250"), Presentation of Financial Statements, and concluded these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the unaudited Condensed Consolidated Financial Statements as of September 30, 2014, which are presented herein, have been revised. The following are selected line items from the Company's unaudited Condensed Consolidated Financial Statements illustrating the effect of these revisions: CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (Dollars in thousands, except per share data) Three Months Ended September 30, 2014 As Previously Reported Revision As Revised Site operating expenses $ 51,652 $ (80 ) $ 51,572 Rent 77,469 227 77,696 Loss before income taxes and equity in income of affiliated companies (3,832 ) (147 ) (3,979 ) Income taxes (5,612 ) (644 ) (6,256 ) Net loss $ (9,052 ) $ (791 ) $ (9,843 ) Net loss per share: Basic and diluted earnings per share(1) $ (0.16 ) $ (0.01 ) $ (0.18 ) _______________________________________________________________________________ (1) Total is a recalculation; line items calculated individually may not sum to total due to rounding. CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Dollars in thousands) Three Months Ended September 30, 2014 As Previously Reported Revision As Revised Net loss $ (9,052 ) $ (791 ) $ (9,843 ) Comprehensive loss $ (13,674 ) $ (791 ) $ (14,465 ) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands) Three Months Ended September 30, 2014 As Previously Reported Revision As Revised Cash flows from operating activities: Net loss $ (9,052 ) $ (791 ) $ (9,843 ) Deferred income taxes 4,059 560 4,619 Changes in operating assets and liabilities, excluding the effects of acquisitions (3,512 ) 231 (3,281 ) |
INVESTMENT IN AFFILIATES_ (Tabl
INVESTMENT IN AFFILIATES: (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 (Unaudited) (Dollars in thousands) Gross revenues $ 35,941 $ 40,593 Gross profit 8,437 11,370 Operating (loss) income (1,471 ) 479 Net (loss) income (1,553 ) 442 |
GOODWILL AND OTHER INTANGIBLE21
GOODWILL AND OTHER INTANGIBLES: (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 June 30, 2015 Gross Carrying Value (3) Accumulated Impairment (1) Net Gross Carrying Value Accumulated Net (Dollars in thousands) Goodwill $ 669,718 $ (253,661 ) $ 416,057 $ 672,614 $ (253,661 ) $ 418,953 _____________________________ (1) The table below contains additional information regarding accumulated impairment losses: Fiscal Year Impairment Charge Reporting Unit (2) (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) See Note 10 to the unaudited Condensed Consolidated Financial Statements. (3) The change in the gross carrying value of goodwill relates to foreign currency. |
Schedule of other intangible assets | The table below presents other intangible assets: September 30, 2015 June 30, 2015 Cost (1) Accumulated Amortization (1) Net Cost (1) Accumulated Amortization (1) Net (Dollars in thousands) Amortized intangible assets: Brand assets and trade names $ 8,027 $ (3,468 ) $ 4,559 $ 8,415 $ (3,551 ) $ 4,864 Franchise agreements 9,648 (6,732 ) 2,916 10,093 (6,934 ) 3,159 Lease intangibles 14,529 (8,097 ) 6,432 14,601 (7,960 ) 6,641 Other 5,961 (3,628 ) 2,333 6,115 (3,710 ) 2,405 $ 38,165 $ (21,925 ) $ 16,240 $ 39,224 $ (22,155 ) $ 17,069 _____________________________ (1) The change in the gross carrying value and accumulated amortization of other intangible assets relates to foreign currency. |
FINANCING ARRANGEMENTS_ (Tables
FINANCING ARRANGEMENTS: (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The Company’s long-term debt consists of the following: Amounts Outstanding Maturity Dates Interest Rate September 30, June 30, (fiscal year) (Dollars in thousands) Convertible senior notes 2015 5.00% $ — $ — 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 — 2 120,000 120,002 Less current portion — (2 ) Long-term portion $ 120,000 $ 120,000 |
SEGMENT INFORMATION_ (Tables)
SEGMENT INFORMATION: (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Franchisor Disclosure | As of September 30, 2015 , the Company’s reportable operating segments consisted of the following salons: Company-owned Franchised Total North American Value 5,899 2,374 8,273 North American Premium 735 — 735 International 349 — 349 Total 6,983 2,374 9,357 |
Schedule of Segment Reporting Information, by Segment | The Company's operating segment results were as follows: For the Three Months Ended September 30, 2015 2014 (Dollars in thousands) Revenues : North American Value $ 348,971 $ 354,376 North American Premium 73,155 79,035 International 28,004 31,140 $ 450,130 $ 464,551 Operating income (loss) (1): North American Value $ 30,549 $ 29,156 North American Premium (2,423 ) (4,560 ) International 106 630 Total segment operating income 28,232 25,226 Unallocated Corporate (23,956 ) (25,980 ) Operating income (loss) $ 4,276 $ (754 ) _____________________________ (1) Amounts for fiscal year 2015 have been revised. See Note 1 to the unaudited Condensed Consolidated Financial Statements. |
BASIS OF PRESENTATION OF UNAU24
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | |
Stock-based employees compensation | |||
Expected volatility rate | 30.00% | 38.00% | |
Stock-based compensation | $ 2,508 | $ 1,781 | |
Tangible Asset Impairment Charges [Abstract] | |||
Salon asset impairment | $ 2,650 | $ 4,066 | |
Restricted stock units | |||
Stock-based employees compensation | |||
Stock granted (in shares) | 260,090 | ||
Equity-based stock appreciation rights | |||
Stock-based employees compensation | |||
Stock granted (in shares) | 690,461 | ||
Performance share units | |||
Stock-based employees compensation | |||
Stock granted (in shares) | 410,153 | ||
Performance share units | 2015 Performance Metrics | |||
Stock-based employees compensation | |||
Stock granted (in shares) | 118,967 |
BASIS OF PRESENTATION OF UNAU25
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Impact of Revisions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net loss | $ (808) | $ (9,843) |
Revisions: | ||
Deferred rent, pre-tax | (74,819) | (77,696) |
Previous out of period items, pre-tax | (47,828) | (51,572) |
Tax impact | $ (2,816) | (6,256) |
Prior Period Adjustment | As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net loss | (9,052) | |
Revisions: | ||
Deferred rent, pre-tax | (77,469) | |
Previous out of period items, pre-tax | (51,652) | |
Tax impact | (5,612) | |
Prior Period Adjustment | Revision | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net loss | (791) | |
Revisions: | ||
Deferred rent, pre-tax | (227) | |
Previous out of period items, pre-tax | 80 | |
Tax impact | $ (644) |
BASIS OF PRESENTATION OF UNAU26
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Financial Statements Effect of Revisions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) | ||
Site operating expenses | $ 47,828 | $ 51,572 |
Rent | 74,819 | 77,696 |
Loss before income taxes and equity in income of affiliated companies | 2,866 | (3,979) |
Income taxes | (2,816) | (6,256) |
Net loss | $ (808) | $ (9,843) |
Net loss per share: | ||
Basic and diluted earnings per share (in dollars per share) | $ (0.02) | $ (0.18) |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | ||
Net loss | $ (808) | $ (9,843) |
Comprehensive loss | (5,080) | (14,465) |
Cash flows from operating activities: | ||
Net loss | (808) | (9,843) |
Deferred income taxes | 1,727 | 4,619 |
Changes in operating assets and liabilities, excluding the effects of acquisitions | $ (10,224) | (3,281) |
Prior Period Adjustment | As Previously Reported | ||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) | ||
Site operating expenses | 51,652 | |
Rent | 77,469 | |
Loss before income taxes and equity in income of affiliated companies | (3,832) | |
Income taxes | (5,612) | |
Net loss | $ (9,052) | |
Net loss per share: | ||
Basic and diluted earnings per share (in dollars per share) | $ (0.16) | |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | ||
Net loss | $ (9,052) | |
Comprehensive loss | (13,674) | |
Cash flows from operating activities: | ||
Net loss | (9,052) | |
Deferred income taxes | 4,059 | |
Changes in operating assets and liabilities, excluding the effects of acquisitions | (3,512) | |
Prior Period Adjustment | Revision | ||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) | ||
Site operating expenses | (80) | |
Rent | 227 | |
Loss before income taxes and equity in income of affiliated companies | (147) | |
Income taxes | (644) | |
Net loss | $ (791) | |
Net loss per share: | ||
Basic and diluted earnings per share (in dollars per share) | $ (0.01) | |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | ||
Net loss | $ (791) | |
Comprehensive loss | (791) | |
Cash flows from operating activities: | ||
Net loss | (791) | |
Deferred income taxes | 560 | |
Changes in operating assets and liabilities, excluding the effects of acquisitions | $ 231 |
INVESTMENT IN AFFILIATES_ (Deta
INVESTMENT IN AFFILIATES: (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2015USD ($)director | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) | |
Investment in affiliates | |||
Investment in affiliates | $ 14,453 | $ 15,321 | |
Equity in (loss) earnings | $ (858) | $ 392 | |
Empire Education Group Inc | |||
Investment in affiliates | |||
Ownership percentage | 54.60% | ||
Investment in affiliates | $ 13,900 | ||
Equity in (loss) earnings | $ (900) | 400 | |
Voting control percentage | 51.00% | ||
Number of members appointed to board of directors by investee | director | 4 | ||
Number of members on board of directors | director | 5 | ||
Summarized Statement of Operations (Unaudited) | |||
Gross revenues | $ 35,941 | 40,593 | |
Gross profit | 8,437 | 11,370 | |
Operating (loss) income | (1,471) | 479 | |
Net (loss) income | $ (1,553) | $ 442 |
EARNINGS PER SHARE_ (Details)
EARNINGS PER SHARE: (Details) - shares | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Awards excluded from earnings per share calculations | ||
Awards excluded from diluted earnings per share computation (in shares) | 217,501 | 143,749 |
Equity-based compensation awards | ||
Awards excluded from earnings per share calculations | ||
Awards excluded from diluted earnings per share computation (in shares) | 835,822 | 1,681,508 |
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 |
SHAREHOLDERS' EQUITY_ (Details)
SHAREHOLDERS' EQUITY: (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||
Increase (decrease) in additional paid-in capital | $ (41,700,000) | |
Common stock repurchase amount | 43,700,000 | |
Stock-based compensation | $ 2,508,000 | $ 1,781,000 |
Common stock repurchase (in shares) | 3,419,057 | |
Remaining amount outstanding under approved stock repurchase program | $ 67,300,000 | |
Additional amount authorized for repurchase | $ 50,000,000 |
INCOME TAXES_ (Details)
INCOME TAXES: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Tax expense | $ 2,816 | $ 6,256 |
Effective tax rate (as a percent) | 98.30% | (157.20%) |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: (Details) | 3 Months Ended |
Sep. 30, 2015director | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of current and former directors and officers who are named defendants | 9 |
Plaintiff's period of appeal | 60 days |
GOODWILL AND OTHER INTANGIBLE32
GOODWILL AND OTHER INTANGIBLES: Recorded Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2010 | Jun. 30, 2009 |
Goodwill | |||||||
Gross Carrying Value | $ 669,718 | $ 672,614 | |||||
Accumulated Impairment | (253,661) | (253,661) | |||||
Net | $ 416,057 | $ 418,953 | |||||
International | |||||||
Goodwill | |||||||
Accumulated Impairment | $ (41,661) | ||||||
North American Premium | |||||||
Goodwill | |||||||
Accumulated Impairment | $ (34,939) | $ (67,684) | $ (35,277) | ||||
North American Value | |||||||
Goodwill | |||||||
Accumulated Impairment | $ (74,100) |
GOODWILL AND OTHER INTANGIBLE33
GOODWILL AND OTHER INTANGIBLES: Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Amortized intangible assets: | ||
Cost | $ 38,165 | $ 39,224 |
Accumulated Amortization | (21,925) | (22,155) |
Net | 16,240 | 17,069 |
Brand assets and trade names | ||
Amortized intangible assets: | ||
Cost | 8,027 | 8,415 |
Accumulated Amortization | (3,468) | (3,551) |
Net | 4,559 | 4,864 |
Franchise agreements | ||
Amortized intangible assets: | ||
Cost | 9,648 | 10,093 |
Accumulated Amortization | (6,732) | (6,934) |
Net | 2,916 | 3,159 |
Lease intangibles | ||
Amortized intangible assets: | ||
Cost | 14,529 | 14,601 |
Accumulated Amortization | (8,097) | (7,960) |
Net | 6,432 | 6,641 |
Other | ||
Amortized intangible assets: | ||
Cost | 5,961 | 6,115 |
Accumulated Amortization | (3,628) | (3,710) |
Net | $ 2,333 | $ 2,405 |
FINANCING ARRANGEMENTS_ (Detail
FINANCING ARRANGEMENTS: (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Jul. 31, 2014 | Nov. 30, 2013 | |
Long-term debt | |||||
Net carrying amount of long-term debt | $ 120,000,000 | $ 120,002,000 | |||
Less current portion | 0 | (2,000) | |||
Long-term debt | $ 120,000,000 | 120,000,000 | |||
Convertible senior notes | |||||
Long-term debt | |||||
Interest rate percentage | 5.00% | 5.00% | 5.00% | ||
Net carrying amount of long-term debt | $ 0 | 0 | |||
Long-term debt, additional disclosures | |||||
Face amount of debt | $ 172,500,000 | ||||
Interest expense related to contractual interest coupon | $ 400,000 | ||||
Interest cost related to amortization of the discount | $ 300,000 | ||||
Senior term notes | |||||
Long-term debt | |||||
Interest rate percentage | 5.75% | 5.75% | |||
Net carrying amount of long-term debt | $ 120,000,000 | 120,000,000 | |||
Long-term debt, additional disclosures | |||||
Face amount of debt | $ 120,000,000 | ||||
Revolving credit facility | |||||
Long-term debt | |||||
Net carrying amount of long-term debt | 0 | 0 | |||
Revolving Credit Facility | |||||
Line of Credit Facility, Amount Outstanding | 0 | 0 | |||
Outstanding standby letters of credit | 2,100,000 | ||||
Revolving credit facility remaining borrowing capacity | $ 397,900,000 | $ 397,900,000 | |||
Equipment and leasehold notes payable | |||||
Long-term debt | |||||
Interest rate percentage, minimum | 4.90% | 4.90% | |||
Interest rate percentage, maximum | 8.75% | 8.75% | |||
Net carrying amount of long-term debt | $ 0 | $ 2,000 |
FAIR VALUE MEASUREMENTS_ FAIR V
FAIR VALUE MEASUREMENTS: FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ||
Salon asset impairment | $ 2,650 | $ 4,066 |
SEGMENT INFORMATION_ Salon Loca
SEGMENT INFORMATION: Salon Locations (Details) | Sep. 30, 2015salon |
Franchisor Disclosure [Line Items] | |
Number of stores | 9,357 |
Operating Segments | Company-owned | |
Franchisor Disclosure [Line Items] | |
Number of stores | 6,983 |
Operating Segments | Franchised | |
Franchisor Disclosure [Line Items] | |
Number of stores | 2,374 |
North American Value | Operating Segments | |
Franchisor Disclosure [Line Items] | |
Number of stores | 8,273 |
North American Value | Operating Segments | Company-owned | |
Franchisor Disclosure [Line Items] | |
Number of stores | 5,899 |
North American Value | Operating Segments | Franchised | |
Franchisor Disclosure [Line Items] | |
Number of stores | 2,374 |
North American Premium | Operating Segments | |
Franchisor Disclosure [Line Items] | |
Number of stores | 735 |
North American Premium | Operating Segments | Company-owned | |
Franchisor Disclosure [Line Items] | |
Number of stores | 735 |
North American Premium | Operating Segments | Franchised | |
Franchisor Disclosure [Line Items] | |
Number of stores | 0 |
International | Operating Segments | |
Franchisor Disclosure [Line Items] | |
Number of stores | 349 |
International | Operating Segments | Company-owned | |
Franchisor Disclosure [Line Items] | |
Number of stores | 349 |
International | Operating Segments | Franchised | |
Franchisor Disclosure [Line Items] | |
Number of stores | 0 |
SEGMENT INFORMATION_ Operating
SEGMENT INFORMATION: Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 450,130 | $ 464,551 |
Operating income (loss) | 4,276 | (754) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 450,130 | 464,551 |
Operating income (loss) | 28,232 | 25,226 |
Operating Segments | North American Value | ||
Segment Reporting Information [Line Items] | ||
Revenues | 348,971 | 354,376 |
Operating income (loss) | 30,549 | 29,156 |
Operating Segments | North American Premium | ||
Segment Reporting Information [Line Items] | ||
Revenues | 73,155 | 79,035 |
Operating income (loss) | (2,423) | (4,560) |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues | 28,004 | 31,140 |
Operating income (loss) | 106 | 630 |
Unallocated Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ (23,956) | $ (25,980) |