Exhibit 99
CONTACTS: | ||||
Investors: | REGIS CORPORATION: | |||
Jack Nielsen – Director of Finance – Investor Relations | ||||
(952) 947-7000 | ||||
Media: | BERNS COMMUNICATIONS GROUP: | |||
Melissa Jaffin | ||||
(212) 994-4660 |
For Immediate Release
REGIS REPORTS FOURTH QUARTER AND FISCAL YEAR 2005 RESULTS
- -Fourth Quarter Earnings Per Diluted Share Increased 10 Percent to $0.64-
- -Fourth Quarter Earnings Per Diluted Share Increased 10 Percent to $0.64-
MINNEAPOLIS, August 24, 2005 — Regis Corporation (NYSE:RGS), the global leader in the $150 billion hair care industry, today reported financial results for its fiscal fourth quarter and year ended June 30, 2005.
Fiscal Year 2005 Results
Consolidated revenues increased 14 percent to a record $2.19 billion compared to $1.92 billion during fiscal year 2004. Same-store sales increased 0.9 percent. Net income decreased 38 percent to $65 million, or $1.39 per diluted share. Net income results for the year include a $38.3 million, or $0.83 per diluted share, non-cash write-off for goodwill impairment related to our international franchise operations.
During the year, the Company added a net total of 831 locations. Regis constructed 525 salons and franchisees built 285 salons. In fiscal 2005, the Company acquired 444 corporate salons (including 139 franchise buybacks), seven franchised salons, 42 company-owned hair restoration centers, 49 franchised hair restoration centers and 13 beauty schools. Regis closed or relocated 395 corporate and franchised locations. As of June 30, 2005, Regis Corporation owned or franchised 10,993 worldwide locations.
“While we are disappointed that fiscal 2005 results did not meet our long-term earnings objectives, we are heartened by our fourth quarter results, which were in-line with our guidance,” commented Paul D. Finkelstein, chairman and chief executive officer. “Despite the challenging conditions in our core salon business, we accomplished a great deal this year. In addition to expanding our salon base, we more than doubled our beauty school business, acquired Hair Club for Men and Women and invested in an emerging kid’s hair salon concept. These investments, which complement our core salon business, will position Regis to achieve long-term double digit earnings growth.”
Fourth Quarter Results
Consolidated revenues increased 17 percent to a record $593 million compared to $509 million a year ago. Same-store sales increased 0.9 percent. Fourth quarter net income increased 10 percent to $29.5 million, or $0.64 per diluted share. During the quarter, Regis Corporation added a net total of 186 locations. The Company constructed 152 salons and franchisees built 82 salons. In addition, Regis acquired 48 salons (including 17 salon franchise buybacks) and five beauty schools. The Company closed or relocated 84 salons during the quarter.
The Company experienced two discrete matters which influenced fourth quarter operating results.
• | Fourth quarter effective tax rate was lower than anticipated due to the resolution of prior tax filing matters. | ||
• | Regis identified an issue related to the taxability of certain benefits provided to Regis employees. The Company is working with the Internal Revenue Service to resolve this matter. Fourth quarter general and administrative expenses include an accrual to address this issue. |
Absent these two fourth quarter matters, the Company met its operating expectations.
Fiscal Year 2006 Outlook Remains Unchanged
Excluding the benefit from future acquisitions, revenue for fiscal year 2006 is forecasted to increase 10 percent to $2.42 billion, assuming a same-store sales increase of one percent. Fiscal year 2006 earnings per diluted share are forecasted to increase to $2.42 per diluted share.
Regis Corporation will broadcast its year-end conference call live on the internet, Wednesday, August 24, 2005 at 10:00 a.m. Central Time. Interested parties are invited to listen by logging ontowww.regiscorp.com. An archive of the conference call will be available at this website shortly after the conclusion of the live broadcast. Regis Corporation will release First Quarter 2006 revenue results, including same-store sales, on October 12, 2005.
Regis Corporation (RGS) is the beauty industry’s global leader in salons, hair restoration centers and education. As of June 30, 2005, the Company owned or franchised 10,993 worldwide locations; which included 10,879 beauty salons, 90 hair restoration centers and 24 beauty schools operating under concepts such as Supercuts, Jean Louis David, Vidal Sassoon, Regis Salons, MasterCuts, Trade Secret, SmartStyle, Cost Cutters and Hair Club for Men and Women. These and other concepts are located in the US and in ten other countries throughout North America and Europe. For additional information about the Company, including management’s current financial outlook and a reconciliation of non-GAAP financial information, please visit the Investor Information section of the corporate website atwww.regiscorp.com.
This press release contains “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward–looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, “may,” “believe,” “project,” ”forecast,” “expect,” “estimate,” “anticipate,” and “plan.” In addition, the following factors could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include competition within the personal hair care industry, which remains strong, both domestically and internationally, and price sensitivity; changes in economic condition; changes in consumer tastes and fashion trends; labor and benefit costs; legal claims; risk inherent to international development (including currency fluctuations); the continued ability of the Company and its franchisees to obtain suitable locations for new salon development; governmental initiatives such as minimum wage rates, taxes and possible franchise legislation; the ability of the Company to successfully identify and acquire salons and beauty schools that support its growth
objectives; or other factors not listed above. The ability of the Company to meet its expected revenue growth is dependent on salon and beauty school acquisitions, new salon construction and same-store sales increases, all of which are affected by many of the aforementioned risks. Additional information concerning potential factors that could affect future financial results is set forth in the Company’s Annual Report on Form 10-K/A for the year ended June 30, 2004 and included in Form S-3 Registration Statement filed with the Securities and Exchange Commission on June 8, 2005. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.
(TABLES TO FOLLOW)
REGIS CORPORATION (NYSE:RGS)
CONSOLIDATED BALANCE SHEET
as of June 30, 2005 and 2004
(Dollars in thousands, except per share amounts)
as of June 30, 2005 and 2004
(Dollars in thousands, except per share amounts)
June 30, | June 30, | |||||||
2005 | 2004 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 102,718 | $ | 73,567 | ||||
Receivables, net | 47,752 | 35,033 | ||||||
Inventories | 184,609 | 161,304 | ||||||
Deferred income taxes | 17,229 | 15,285 | ||||||
Other current assets | 28,341 | 28,253 | ||||||
Total current assets | 380,649 | 313,442 | ||||||
Property and equipment, net | 435,324 | 381,903 | ||||||
Goodwill | 646,510 | 457,140 | ||||||
Other intangibles, net | 208,800 | 79,174 | ||||||
Other assets | 54,693 | 40,200 | ||||||
Total assets | $ | 1,725,976 | $ | 1,271,859 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Long-term debt, current portion | $ | 19,747 | $ | 19,128 | ||||
Accounts payable | 64,111 | 53,112 | ||||||
Accrued expenses | 178,192 | 129,721 | ||||||
Total current liabilities | 262,050 | 201,961 | ||||||
Long-term debt | 549,029 | 282,015 | ||||||
Other noncurrent liabilities | 160,185 | 105,863 | ||||||
Total liabilities | 971,264 | 589,839 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, authorized 250,000 shares at June 30, 2005 and 2004 | ||||||||
Common stock, $.05 par value; | ||||||||
issued and outstanding, 44,952,002 and 44,283,949 common shares at June 30, 2005 and 2004, respectively | 2,248 | 2,214 | ||||||
Additional paid-in capital | 229,871 | 220,204 | ||||||
Accumulated other comprehensive income | 46,124 | 40,615 | ||||||
Retained earnings | 476,469 | 418,987 | ||||||
Total shareholders’ equity | 754,712 | 682,020 | ||||||
Total liabilities and shareholders’ equity | $ | 1,725,976 | $ | 1,271,859 | ||||
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REGIS CORPORATION (NYSE:RGS)
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Dollars in thousands, except per share amounts)
Three Months Ended | Year Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
(Unaudited) | ||||||||||||||||
Revenues: | ||||||||||||||||
Service | $ | 401,073 | $ | 343,353 | $ | 1,466,336 | $ | 1,271,232 | ||||||||
Product | 171,368 | 146,496 | 648,420 | 578,279 | ||||||||||||
Royalties and fees | 21,035 | 18,748 | 79,538 | 73,632 | ||||||||||||
593,476 | 508,597 | 2,194,294 | 1,923,143 | |||||||||||||
Operating expenses: | ||||||||||||||||
Cost of service | 228,352 | 194,872 | 836,449 | 718,524 | ||||||||||||
Cost of product | 86,544 | 76,807 | 335,636 | 303,484 | ||||||||||||
Site operating expenses | 48,737 | 43,683 | 183,056 | 163,365 | ||||||||||||
General and administrative | 69,574 | 53,558 | 260,207 | 214,610 | ||||||||||||
Rent | 84,781 | 74,033 | 310,984 | 269,429 | ||||||||||||
Depreciation and amortization | 26,289 | 20,120 | 91,753 | 74,983 | ||||||||||||
Goodwill impairment | — | — | 38,319 | — | ||||||||||||
Total operating expenses | 544,277 | 463,073 | 2,056,404 | 1,744,395 | ||||||||||||
Operating income | 49,199 | 45,524 | 137,890 | 178,748 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest | (7,583 | ) | (4,021 | ) | (24,385 | ) | (17,064 | ) | ||||||||
Other, net | 784 | 32 | 2,952 | 1,155 | ||||||||||||
Income before income taxes | 42,400 | 41,535 | 116,457 | 162,839 | ||||||||||||
Income taxes | (12,895 | ) | (14,745 | ) | (51,826 | ) | (58,621 | ) | ||||||||
Net income | $ | 29,505 | $ | 26,790 | $ | 64,631 | $ | 104,218 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.66 | $ | 0.61 | $ | 1.45 | $ | 2.37 | ||||||||
Diluted | $ | 0.64 | $ | 0.58 | $ | 1.39 | $ | 2.26 | ||||||||
Weighted average common and common equivalent shares outstanding: | ||||||||||||||||
Basic | 44,881 | 44,298 | 44,622 | 44,014 | ||||||||||||
Diluted | 46,340 | 46,416 | 46,380 | 46,145 | ||||||||||||
Cash dividends declared per common share | $ | 0.04 | $ | 0.04 | $ | 0.16 | $ | 0.14 | ||||||||
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REGIS CORPORATION (NYSE:RGS)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in thousands)
(Dollars in thousands)
Year Ended June 30, | ||||||||
2005 | 2004 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 64,631 | $ | 104,218 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 83,527 | 72,096 | ||||||
Amortization | 8,226 | 3,451 | ||||||
Deferred income taxes | (9,257 | ) | 15,340 | |||||
Goodwill impairment | 38,319 | — | ||||||
Tax benefit from stock-based employee compensation plans | 9,088 | 8,314 | ||||||
Other noncash items affecting earnings | 1,181 | 1,265 | ||||||
Changes in operating assets and liabilities*: | ||||||||
Receivables | (6,516 | ) | (16 | ) | ||||
Inventories | (17,974 | ) | (462 | ) | ||||
Other current assets | 1,437 | (10,629 | ) | |||||
Other assets | (5,726 | ) | (1,387 | ) | ||||
Accounts payable | 8,288 | (13,305 | ) | |||||
Accrued expenses | 23,338 | 9,461 | ||||||
Other noncurrent liabilities | 17,169 | 17,318 | ||||||
Net cash provided by operating activities | 215,731 | 205,664 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (101,097 | ) | (74,076 | ) | ||||
Proceeds from sale of assets | 846 | 432 | ||||||
Purchases of salon and school net assets, net of cash acquired | (118,915 | ) | (99,734 | ) | ||||
Purchase of hair restoration centers, net of cash acquired | (209,652 | ) | — | |||||
Net cash used in investing activities | (428,818 | ) | (173,378 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings on revolving credit facilities | 2,954,100 | 514,650 | ||||||
Payments on revolving credit facilities | (2,976,750 | ) | (508,025 | ) | ||||
Proceeds from issuance of long-term debt | 301,938 | 11,887 | ||||||
Repayments of long-term debt | (21,313 | ) | (24,111 | ) | ||||
Other, primarily (decrease) increase in negative book cash balances | (2,472 | ) | 118 | |||||
Dividends paid | (7,149 | ) | (6,166 | ) | ||||
Repurchase of common stock | (23,117 | ) | (22,548 | ) | ||||
Proceeds from issuance of common stock | 17,257 | 17,347 | ||||||
Net cash provided by (used in) financing activities | 242,494 | (16,848 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (256 | ) | 2,675 | |||||
Increase in cash and cash equivalents | 29,151 | 18,113 | ||||||
Cash and cash equivalents: | ||||||||
Beginning of year | 73,567 | 55,454 | ||||||
End of year | $ | 102,718 | $ | 73,567 | ||||
* | Changes in operating assets and liabilities do not include assets and liabilities assumed through acquisitions. |
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REGIS CORPORATION (NYSE:RGS)
Salon / School/ Hair Restoration Center Counts and Revenues
June 30, | June 30, | |||||||
2005 | 2004 | |||||||
SYSTEM-WIDE LOCATIONS: | ||||||||
Company-owned salons | 6,977 | 6,227 | ||||||
Franchise salons | 3,902 | 3,924 | ||||||
Beauty schools | 24 | 11 | ||||||
Company-owned hair restoration centers | 41 | — | ||||||
Franchise hair restoration centers | 49 | — | ||||||
10,993 | 10,162 | |||||||
SALON LOCATION SUMMARY
NORTH AMERICAN SALONS: | June 30, | June 30, | ||||||
REGIS SALONS | 2005 | 2004 | ||||||
Open at beginning of period | 1,085 | 1,095 | ||||||
Salons constructed | 39 | 33 | ||||||
Acquired | 13 | 4 | ||||||
Less relocations | 14 | 10 | ||||||
Salon openings | 38 | 27 | ||||||
Conversions | (1 | ) | (2 | ) | ||||
Salons closed | (29 | ) | (35 | ) | ||||
Total, Regis Salons | 1,093 | 1,085 | ||||||
MASTERCUTS | ||||||||
Open at beginning of period | 604 | 590 | ||||||
Salons constructed | 47 | 34 | ||||||
Acquired | 2 | 3 | ||||||
Less relocations | 13 | 9 | ||||||
Salon openings | 36 | 28 | ||||||
Conversions | 1 | 1 | ||||||
Salons closed | (5 | ) | (15 | ) | ||||
Total, Mastercuts | 636 | 604 | ||||||
TRADE SECRET | ||||||||
Company-owned salons: | ||||||||
Open at beginning of period | 549 | 517 | ||||||
Salons constructed | 56 | 26 | ||||||
Acquired | 23 | 12 | ||||||
Franchise buybacks | — | 2 | ||||||
Less relocations | 17 | 5 | ||||||
Salon openings | 62 | 35 | ||||||
Conversions | — | 1 | ||||||
Salons closed | (14 | ) | (4 | ) | ||||
Total company-owned salons | 597 | 549 | ||||||
Franchise salons: | ||||||||
Open at beginning of period | 24 | 25 | ||||||
Salons constructed | — | 1 | ||||||
Salon openings | — | 1 | ||||||
Franchise buybacks | — | (2 | ) | |||||
Total franchise salons | 24 | 24 | ||||||
Total, Trade Secret | 621 | 573 | ||||||
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June 30, | June 30, | |||||||
SMARTSTYLE/COST CUTTERS IN WAL-MART | 2005 | 2004 | ||||||
Company-owned salons: | ||||||||
Open at beginning of period | 1,263 | 1,033 | ||||||
Salons constructed | 194 | 174 | ||||||
Franchise buybacks | 45 | 61 | ||||||
Less relocations | 1 | — | ||||||
Salon openings | 238 | 235 | ||||||
Salons closed | (4 | ) | (5 | ) | ||||
Total company-owned salons | 1,497 | 1,263 | ||||||
Franchise salons: | ||||||||
Open at beginning of period | 201 | 230 | ||||||
Salons constructed | 29 | 33 | ||||||
Salon openings | 29 | 33 | ||||||
Franchise buybacks | (45 | ) | (61 | ) | ||||
Salons closed | (1 | ) | (1 | ) | ||||
Total franchise salons | 184 | 201 | ||||||
Total, SmartStyle/Cost Cutters in Wal-Mart | 1,681 | 1,464 | ||||||
STRIP CENTERS | ||||||||
Company-owned salons: | ||||||||
Open at beginning of period | 2,310 | 1,928 | ||||||
Salons constructed | 167 | 166 | ||||||
Acquired | 248 | 162 | ||||||
Franchise buybacks | 94 | 133 | ||||||
Less relocations | 21 | 8 | ||||||
Salon openings | 488 | 453 | ||||||
Conversions | (3 | ) | (8 | ) | ||||
Salons closed | (67 | ) | (63 | ) | ||||
Total company-owned salons | 2,728 | 2,310 | ||||||
Franchise salons: | ||||||||
Open at beginning of period | 2,105 | 2,172 | ||||||
Salons constructed | 154 | 146 | ||||||
Acquired (2) | 7 | — | ||||||
Less relocations | 13 | 10 | ||||||
Salon openings | 148 | 136 | ||||||
Conversions | 6 | 8 | ||||||
Franchise buybacks | (94 | ) | (133 | ) | ||||
Salons closed | (63 | ) | (78 | ) | ||||
Total franchise salons | 2,102 | 2,105 | ||||||
Total, Strip Centers | 4,830 | 4,415 | ||||||
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June 30, | June 30, | |||||||
INTERNATIONAL SALONS (1) | 2005 | 2004 | ||||||
Company-owned salons: | ||||||||
Open at beginning of period | 416 | 395 | ||||||
Salons constructed | 22 | 19 | ||||||
Acquired | 19 | 18 | ||||||
Franchise buybacks | — | 10 | ||||||
Salon openings | 41 | 47 | ||||||
Conversions | (3 | ) | — | |||||
Salons closed | (28 | ) | (26 | ) | ||||
Total company-owned salons | 426 | 416 | ||||||
Franchise salons: | ||||||||
Open at beginning of period | 1,594 | 1,627 | ||||||
Salons constructed | 102 | 88 | ||||||
Salon openings | 102 | 88 | ||||||
Franchise buybacks | — | (10 | ) | |||||
Salons closed | (104 | ) | (111 | ) | ||||
Total franchise salons | 1,592 | 1,594 | ||||||
Total international salons | 2,018 | 2,010 | ||||||
TOTAL SYSTEM-WIDE LOCATIONS | ||||||||
Company-owned salons: | ||||||||
Open at beginning of period | 6,227 | 5,558 | ||||||
Salons constructed | 525 | 452 | ||||||
Acquired | 305 | 199 | ||||||
Franchise buybacks | 139 | 206 | ||||||
Less relocations | 66 | 32 | ||||||
Salon openings | 903 | 825 | ||||||
Conversions | (6 | ) | (8 | ) | ||||
Salons closed | (147 | ) | (148 | ) | ||||
Total company-owned salons | 6,977 | 6,227 | ||||||
Franchise salons: | ||||||||
Open at beginning of period | 3,924 | 4,054 | ||||||
Salons constructed | 285 | 268 | ||||||
Acquired (2) | 7 | — | ||||||
Less relocations | 13 | 10 | ||||||
Salon openings | 279 | 258 | ||||||
Conversions | 6 | 8 | ||||||
Franchise buybacks | (139 | ) | (206 | ) | ||||
Salons closed | (168 | ) | (190 | ) | ||||
Total franchise salons | 3,902 | 3,924 | ||||||
Beauty schools: | ||||||||
Open at beginning of period | 11 | 5 | ||||||
Acquired | 13 | 6 | ||||||
Site openings | 13 | 6 | ||||||
Total beauty schools | 24 | 11 | ||||||
Company-owned hair restoration centers: | ||||||||
Acquired | 42 | — | ||||||
Site openings | 42 | — | ||||||
Sites closed | (1 | ) | — | |||||
Total company-owned hair restoration centers | 41 | — | ||||||
Franchise hair restoration centers: | ||||||||
Acquired | 49 | — | ||||||
Site openings | 49 | — | ||||||
Total franchise hair restoration centers | 49 | — | ||||||
Grand total, system-wide | 10,993 | 10,162 | ||||||
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(1) | Canadian and Puerto Rican salons are included in the Regis Salons, Strip Center, MasterCuts and Trade Secret concepts and not included in the International salon totals. | |
(2) | Represents primarily the acquisition of franchise networks. |
Relocations represent a transfer of location by the same salon concept.
Conversions represent the transfer of one salon concept to another concept.
Conversions represent the transfer of one salon concept to another concept.
NOTE 1. REVENUES BY CONCEPT:
For the Periods Ended June 30, | |||||||||||||||||
Three Months | Year Ended | ||||||||||||||||
(Dollars in thousands) | 2005 | 2004 | 2005 | 2004 | |||||||||||||
Revenues: | |||||||||||||||||
North American salons: | |||||||||||||||||
Regis Salons | $ | 121,948 | $ | 118,554 | $ | 475,736 | $ | 476,107 | |||||||||
MasterCuts | 43,050 | 42,568 | 172,792 | 173,415 | |||||||||||||
Trade Secret | 62,675 | 59,745 | 252,934 | 242,604 | |||||||||||||
SmartStyle | 94,047 | 78,809 | 351,741 | 294,564 | |||||||||||||
Strip Centers | 170,835 | 142,471 | 621,008 | 518,856 | |||||||||||||
Total North American salons | 492,555 | 442,147 | 1,874,211 | 1,705,546 | |||||||||||||
International salons | 65,192 | 61,921 | 226,784 | 202,454 | |||||||||||||
Beauty schools | 9,665 | 4,529 | 33,911 | 15,143 | |||||||||||||
Hair restoration centers | 26,064 | — | 59,388 | — | |||||||||||||
Consolidated revenues | $ | 593,476 | $ | 508,597 | $ | 2,194,294 | $ | 1,923,143 | |||||||||
Percent change from prior year | 16.7 | % | 13.5 | % | 14.1 | % | 14.2 | % | |||||||||
Same-store sales increase | 0.9 | % | 1.5 | % | 0.9 | % | 2.6 | % | |||||||||
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NOTE 2. FINANCIAL INFORMATION BY SEGMENT:
Financial information concerning the Company’s salon, school and hair restoration businesses is shown in the following tables.
For the Three Months Ended June 30, 2005 | ||||||||||||||||||||||||
Salons | Beauty | Hair Restoration | Unallocated | |||||||||||||||||||||
(Dollars in thousands) | North America | International | Schools | Centers | Corporate | Consolidated | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service | $ | 339,857 | $ | 41,493 | $ | 9,204 | $ | 10,519 | $ | — | $ | 401,073 | ||||||||||||
Product | 142,401 | 14,491 | 461 | 14,015 | — | 171,368 | ||||||||||||||||||
Royalties and fees | 10,297 | 9,208 | — | 1,530 | — | 21,035 | ||||||||||||||||||
492,555 | 65,192 | 9,665 | 26,064 | — | 593,476 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Cost of service | 196,282 | 21,880 | 4,005 | 6,185 | — | 228,352 | ||||||||||||||||||
Cost of product | 74,141 | 7,478 | 183 | 4,742 | — | 86,544 | ||||||||||||||||||
Site operating expenses | 43,875 | 2,856 | 1,615 | 391 | — | 48,737 | ||||||||||||||||||
General and administrative | 24,621 | 12,240 | 1,284 | 5,875 | 25,554 | 69,574 | ||||||||||||||||||
Rent | 68,896 | 13,310 | 1,053 | 1,434 | 88 | 84,781 | ||||||||||||||||||
Depreciation and amortization | 18,539 | 2,319 | 432 | 2,191 | 2,808 | 26,289 | ||||||||||||||||||
Total operating expenses | 426,354 | 60,083 | 8,572 | 20,818 | 28,450 | 544,277 | ||||||||||||||||||
Operating income (loss) | 66,201 | 5,109 | 1,093 | 5,246 | (28,450 | ) | 49,199 | |||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest | — | — | — | — | (7,583 | ) | (7,583 | ) | ||||||||||||||||
Other, net | — | — | — | — | 784 | 784 | ||||||||||||||||||
Income (loss) before income taxes | $ | 66,201 | $ | 5,109 | $ | 1,093 | $ | 5,246 | $ | (35,249 | ) | $ | 42,400 | |||||||||||
For the Three Months Ended June 30, 2004 | ||||||||||||||||||||||||
Salons | Beauty | Hair Restoration | Unallocated | |||||||||||||||||||||
(Dollars in thousands) | North America | International | Schools | Centers | Corporate | Consolidated | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service | $ | 299,208 | $ | 39,788 | $ | 4,357 | $ | — | $ | — | $ | 343,353 | ||||||||||||
Product | 132,621 | 13,703 | 172 | — | — | 146,496 | ||||||||||||||||||
Royalties and fees | 10,318 | 8,430 | — | — | — | 18,748 | ||||||||||||||||||
442,147 | 61,921 | 4,529 | — | — | 508,597 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Cost of service | 173,246 | 19,955 | 1,671 | — | — | 194,872 | ||||||||||||||||||
Cost of product | 67,268 | 9,450 | 89 | — | — | 76,807 | ||||||||||||||||||
Site operating expenses | 40,500 | 2,904 | 279 | — | — | 43,683 | ||||||||||||||||||
General and administrative | 23,112 | 6,973 | 803 | — | 22,670 | 53,558 | ||||||||||||||||||
Rent | 62,087 | 11,458 | 394 | — | 94 | 74,033 | ||||||||||||||||||
Depreciation and amortization | 15,603 | 2,057 | 178 | — | 2,282 | 20,120 | ||||||||||||||||||
Total operating expenses | 381,816 | 52,797 | 3,414 | — | 25,046 | 463,073 | ||||||||||||||||||
Operating income (loss) | 60,331 | 9,124 | 1,115 | — | (25,046 | ) | 45,524 | |||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest | — | — | — | — | (4,021 | ) | (4,021 | ) | ||||||||||||||||
Other, net | — | — | — | — | 32 | 32 | ||||||||||||||||||
Income (loss) before income taxes | $ | 60,331 | $ | 9,124 | $ | 1,115 | $ | — | $ | (29,035 | ) | $ | 41,535 | |||||||||||
-more-
For the Year Ended June 30, 2005 | ||||||||||||||||||||||||
Salons | Beauty | Hair Restoration | Unallocated | |||||||||||||||||||||
(Dollars in thousands) | North America | International | Schools | Centers | Corporate | Consolidated | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service | $ | 1,270,444 | $ | 139,629 | $ | 31,848 | $ | 24,415 | $ | — | $ | 1,466,336 | ||||||||||||
Product | 563,529 | 51,143 | 2,063 | 31,685 | — | 648,420 | ||||||||||||||||||
Royalties and fees | 40,238 | 36,012 | — | 3,288 | — | 79,538 | ||||||||||||||||||
1,874,211 | 226,784 | 33,911 | 59,388 | — | 2,194,294 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Cost of service | 737,045 | 74,344 | 11,535 | 13,525 | — | 836,449 | ||||||||||||||||||
Cost of product | 293,336 | 30,745 | 1,288 | 10,267 | — | 335,636 | ||||||||||||||||||
Site operating expenses | 166,680 | 9,750 | 4,319 | 2,307 | — | 183,056 | ||||||||||||||||||
General and administrative | 99,210 | 42,357 | 5,097 | 12,712 | 100,831 | 260,207 | ||||||||||||||||||
Rent | 262,818 | 41,523 | 2,943 | 3,242 | 458 | 310,984 | ||||||||||||||||||
Depreciation and amortization | 67,042 | 7,879 | 1,263 | 5,071 | 10,498 | 91,753 | ||||||||||||||||||
Goodwill impairment | — | 38,319 | — | — | — | 38,319 | ||||||||||||||||||
Total operating expenses | 1,626,131 | 244,917 | 26,445 | 47,124 | 111,787 | 2,056,404 | ||||||||||||||||||
Operating income (loss) | 248,080 | (18,133 | ) | 7,466 | 12,264 | (111,787 | ) | 137,890 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest | — | — | — | — | (24,385 | ) | (24,385 | ) | ||||||||||||||||
Other, net | — | — | — | — | 2,952 | 2,952 | ||||||||||||||||||
Income (loss) before income taxes | $ | 248,080 | $ | (18,133 | ) | $ | 7,466 | $ | 12,264 | $ | (133,220 | ) | $ | 116,457 | ||||||||||
For the Year Ended June 30, 2004 | ||||||||||||||||||||||||
Salons | Beauty | Hair Restoration | Unallocated | |||||||||||||||||||||
(Dollars in thousands) | North America | International | Schools | Centers | Corporate | Consolidated | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service | $ | 1,131,325 | $ | 125,442 | $ | 14,465 | $ | — | $ | — | $ | 1,271,232 | ||||||||||||
Product | 532,843 | 44,758 | 678 | — | — | 578,279 | ||||||||||||||||||
Royalties and fees | 41,378 | 32,254 | — | — | — | 73,632 | ||||||||||||||||||
1,705,546 | 202,454 | 15,143 | — | — | 1,923,143 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Cost of service | 649,898 | 63,766 | 4,860 | — | — | 718,524 | ||||||||||||||||||
Cost of product | 273,119 | 29,967 | 398 | — | — | 303,484 | ||||||||||||||||||
Site operating expenses | 153,564 | 8,410 | 1,391 | — | — | 163,365 | ||||||||||||||||||
General and administrative | 90,228 | 33,589 | 1,720 | — | 89,073 | 214,610 | ||||||||||||||||||
Rent | 230,726 | 37,081 | 1,174 | — | 448 | 269,429 | ||||||||||||||||||
Depreciation and amortization | 58,601 | 7,162 | 385 | — | 8,835 | 74,983 | ||||||||||||||||||
Total operating expenses | 1,456,136 | 179,975 | 9,928 | — | 98,356 | 1,744,395 | ||||||||||||||||||
Operating income (loss) | 249,410 | 22,479 | 5,215 | — | (98,356 | ) | 178,748 | |||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest | — | — | — | — | (17,064 | ) | (17,064 | ) | ||||||||||||||||
Other, net | — | — | — | — | 1,155 | 1,155 | ||||||||||||||||||
Income (loss) before income taxes | $ | 249,410 | $ | 22,479 | $ | 5,215 | $ | — | $ | (114,265 | ) | $ | 162,839 | |||||||||||
-END-