and good Hugh, morning. Thanks,
we pleased progress fronts. transformational across see our with multiple mentioned, efforts are evidence Hugh of continued to As
the into recognition a release. you this the related getting on you the to changes Before details of in accounting that quarter, show likely to noticed like revenue morning’s overview quick I’d earnings with
the the changes ad in the While of operating that as cash guidelines income. we accounting have regards meaningful to a card new our impact adjustments and fees, the affect recognize to how they nature. new recognition With noncash the revenue operations, franchise fund new to and do gift revenue on company’s the are guidance ad not the impact company’s card franchise not funds guidelines how related position support do reported gift impact all the P&L,
However, the fee treatment does of franchise reported impact income. new operating
release financial on impact The our prior reflect fee fiscal operating a of the Specifically, recognized to franchise year opened the recognized from and recognition initial Under with to results million, related franchise deferred the which and revenue in – from of franchisees, are new on revenue agreement, and statements corresponding franchise we reversal initial to in fees have recorded XX-Q life but income the now $X.X related $X.X as In ad new over no This years year XXXX, new million is fees expense XXXX, contributions recognized be expense franchisee years. to amounts we XXXX, fees to statement operating income. $X.X typically franchisees when recognized been also has expense. a press the recognized requires franchisees and fiscal these fund guidelines, revenue, site provided salon. The over XXXX revenue respectively. guidance be XX from These adjusted million and years. changes. prior treatment will XX of revenue initial
comparable result, with P&L prior adjusted provided will your statements. with statements will we results future quarterly but results, a they not to assist better previously. pro we year have on financial financial the our financial a you As be comparable the be modeling, to forma To historical issue website issued
like salon includes: total recognized to of transactions the the salons. we quarter. franchisees, these proceeds point cost during takes I’d reporting additional provided number revenue gain provided both salons the press transferred the of quarter; noncash and release Additionally, have sold out net additional salons, F&E, to earnings related amount to our requirements, the detail into of the closed that from disclosures XX-Q the account inventory the diversification to during the received other sale recognition response to which and disclosure of quarter; the independent during be portfolio sold of our in and in cash The the increased things; among to goodwill related of new
believe investors impact better franchisees will disclosure to value overall our sold of additional to our understand maximizes we to strategic franchisees it reported to and to help salons sense where the makes As sell continue shareholders, salons we our adds financials. this
you brand reported we to operating comparability like morning. which the In Lastly, to are the results before month expenses for leadership leadership of impacted numbers, cost July. reorganization This took associated the in were field I of August this service X, on our leaders the and year, field change, last that results, with field year’s site these the expense year’s quarter of year-over-year aligned last in turn G&A. by XXXX, costs place I’d remind that
year-over-year impact our P&L change by While to in the G&A there quarter. no $X.X increased this million in is total,
impacted. the fully we will comparability this of last this will reorganization that be accordingly August anticipate year-over-year that and change lapped quarter and have year, of X be As this
conversion quarter decreased prior net XXX to million year-over-year versus X.X% company-owned basis, of Now year revenue offset On increase million. consolidated basis the The was turning in the The a revenue our to results. decline segment sales. total X.X% revenue $XX.X closure was salons year-over-year a ticket, or were and point in decline transactions. locations first reductions by over XXX a and a XX past primarily a driven to franchised months. the $XXX.X which positive the the franchise salons driven growth partially company-owned offset X.X% These as define traffic, in by performance in we sales improvement same-store by same-store by XX of
and minimum past goodwill segment consolidated non-strategic the quarter year-over-year into was results comparing in converted favorable $X.X salon company-owned portfolio partly was from by year. growth increases and commission the benefits consolidated prior costs. wage that and of the franchisees, a million last XXX to were of EBITDA of company-owned non-contributory, account you with franchise and gains, lapping in the continued favorable stylist year. salons excluding that one-time non-cash EBITDA same to when in of to remind period on adjusted derecognition First year-over-year over by I take G&A adjusted million our The or removal I'd sale million $X.X profitable sold you months. our offset XX increase cash associated basis, driven These the $XX.X salons like XX.X% to want the
those to adjusting a on those slightly forma normalized So down was EBITDA related year-over-year. adjusted to roughly for adjusted pro sold, – EBITDA basis, flat salons,
with starting at company-owned Looking and the our salons. performance segment-specific
$XXX.X The year-over-year XX.X% driven First salons approximately quarter million $XX.X decline million. main categories. XX decreased company-owned of bucketed three to past months, versus a over is primarily which X,XXX decrease revenue prior by be can the into or the year
the XXX to second, company-owned past closure the SmartStyle lastly, salons approximately of during of of XX non-performing closure the and of salons sale quarter the First, XXXX; third months; fiscal the franchisees over in impacts. was and XXX impact the foreign the the currency course company-owned last XX increase of sales company-owned unprofitable salons basis same-store the closures XX offsetting point months. of Partially salon a favorable XX over
year-over-year driven $XX.X of by with The franchise initiatives. lapping and prior of the increased positive Beautiful $XX.X EBITDA management to transaction same was our increased million than of I'd currently Ad to investments increases; normal salons wage million increased closure offset line in were driven year-over-year adjusted franchisees like primarily revenue that $X.X revenue salon to commission decline the increased Group. business. period the including out sale are sales and First company-owned $X.X strategic benefits inflationary increases; related XX% by the to the quarter operational These million decreased by savings quarter marketing compared Supercuts our at or which the the increased agreements, the point to company-owned rent are fees to $XX.X partially Royalties million revenue of and from year. sales million of the Product or company-owned In driven and sales and franchisees; segment primarily franchise million realized continued franchise to prior MLB due primarily year-over-year quarter. and the by same-store lower advertising, $X.X Beautiful Royalties declines counts. salons the expense fund franchise salon increased favorable million, XX.X%, product the $XX.X XX.X% million. to year support $X.X $XX sponsorship; in in last unprofitable rates segment, salon the to stylist counts. margin minimum to increased $X.X in Of year. this, million Group, million. versus
$X.X improved driven expenses primarily by or partly million cost $X.X of and offset franchisees, to debt EBITDA adjusted million XX.X% goods franchise revenue expense. increase, sales bad quarter sold First of increased by warehousing the year-over-year, product on and freight
Turning now corporate to overhead.
expenses quarter by year of of of increased million First year-over-year compared $XX.X derecognition million expense. company-owned net decrease adjusted quarter. and franchisees of sale stock-based excluding goodwill million decreased prior $X.X corporate-related other driver The from primary gain, to the non-cash management the actions, or $X.X offset was the to compensation salons XX.X% partially
at total the quarter. reported Looking G&A consolidated company during
the non-contributory, Although it P&L, to at the off progress remove apparent commitment we be on face make our costs. continue may to looking of not the readily non-strategic numbers
a numbers. it year-over-year compare make in particular items difficult Specifically, to few
last during $X the gain life to recorded settlement the year. relates onetime First of on million first quarter a insurance
relates taken the during headcount. by increase to the salon year-over-year $X Second net expenses, support to approximately actions reduce quarter driven restructuring-related in million
lastly had team Third the of discussed net the realignment that year commenced relates is associated earlier. strategic impact to work field of impact the the And leadership's professional a year-over-year. $XXX,XXX with brand this fees I
items is no into this by change by have $X Taking reduced impact basis, total a quarter approximately G&A P&L of we million fiscal While in these pro $X our XXXX. forma about first G&A on reorganization there year-over-year increased during reported million. total, to account the
turning to balance the sheet. Lastly,
transformation work. our balance flexibility overall the maintain company's while position continued strong to continue strategic through optimal providing liquidity We sheet
increased collected On facility. monetization million the completed under primarily insurance and $XX last cash year that July. by we to policies and year-over-year This but front, of the quarter-end the quarter net-net fiscal had company-owned fourth $XXX.X million, we liquidity $X.X by the cash the existing in salons revolving cash million life our sale of company-owned driven was build outstanding during credit of
your for program. the of repurchase quarter during With million approved our or thank And Additionally, $XX.X support Regis, continued and we the shares to stock Jacob? X% call million like to million now approximately used our for that, back questions. of repurchase outstanding. as of under capacity I'd the Jacob we'll quarter, X.X and shares of we the available to first you have roughly in interest $XXX turn end
