everyone. morning, good and Hugh, Thanks,
and result the their XX% unprecedented, government reported pleased Hugh progress salon. in been a few year the May half of of At than committed June. to point began opening June. of our of than transformation. a our the salons pandemic, in as and represents We were this and opened fourth reopening more salons closed. million, closures the As of all revenues with last our April Company-owned this quarter, our quarter from in the months of one And began we mentioned, decrease salons virtually in to ever more prior consequences have strategy. mandated on we are were Franchisees consolidated $XX morning a fourth basis which despite but be unfortunate continue
revenue we estimate pandemic. in the of lost insight, million As the we fourth to COVID quarter roughly additional due $XXX
approximately We as portfolio. of are our XX% of today, are entire across salons the pleased, open but
Excluding are California salons, opened. salons nearly XX% of our
increase mentioned, should number California that the Hugh with in few As next weeks. reopening,
the of pandemic was during operating million our by key We caused this the that loss. also the economic loss driver quarter. reported disruption $XX The was
and Our reductions closures workforce the work. partially majority and react to June lost number to quick of the continued Further, essential our management April employees to and into May of who to for we offset the aggressive the implemented was furlough store in wage revenue. small
to also quarter. the $XX recognized its from company-owned associated $XX non-cash prior elimination period sale the salons of primarily by X,XXX the million long-lived of company-owned Fourth the a period generated impairment adjusted been to gain franchise and company the the year, was same of have that had in been in that the the million impairment, sold EBITDA the and unfavorable loss the decrease driven quarter lease of related pandemic. assets driven over the was past by months. last Additionally, planned asset or million net million year and converted XX the impact the $XX The EBITDA to during $XX the portfolio with was consolidated primarily XXX% of salons
to in resulting As $XX to materially adjusted we cost from offset the company-owned savings. reductions decline executed our in annualized company's structure of We promised, EBITDA in workforce taken salons. the January nearly June align steps management and has million
have We significantly our marketing reduced also spend.
noted, includes The year-to-date COVID-XX derecognition non-cash to year-to-date a the sale in of On unfavorable the already or franchise goodwill the a of EBITDA. $XX decrease I've to same $XXX adjusted portfolio. pandemic gain, As contributed period year. EBITDA excluding the adjusted in change decline and $XX to million the was also X,XXX basis, company-owned salon quarter the last fourth million related versus consolidated conversion XX% million
elimination variance the million the also over a and the year-over-year. $XX to fourth adjusted the And XX the pandemic. and EBITDA Excluding the of company-owned unfavorable quarter which this was loss fourth unfavorable year-to-date past gain, transferred impact was sold COVID-XX of driven difficulty] related quarter largely was the [technical months by of $XX EBITDA million, results, salons
the of event. company-owned was course, as and EBITDA a a associated salon the and Of you our know, elimination strategy planned sold element with of transferred key
now versus to million $X unfavorable pandemic. the Franchise by traffic the year-over-year decline learned were the performance royalties and Franchise decreased with and Both million driven quarter pandemic. last sales customers to segment. primarily segment XX% fees $XX Fourth by quarter million. or specific were as same navigate Turning million -- $X sales COVID-XX year. of our to $X Franchise XX% Product same-store a decreases to franchisees decreased starting due in driven to
represents day As sales same change the a not the are same-store same-store open in included salons were on each that year. total sales Salon the closures for sales. reminder, in
the time previously same-store settle and as to for to some an be discussed metric So, performance. we've reliable for it our with for take you, will entirely dust sales
year, a $X and on we and this and next as $X year-over-year all to comp government declined approximately Fourth key rely due these of of driven million year-over-year hope royalties indicator Let's reduced by that quarter EBITDA time by comparison traffic performance. can franchise decreasing sales product million the was or million to million than EBITDA X% the pandemics $X Year-to-date year-over-year quarters of decline adjusted was G&A. pandemic COVID-XX partially until the in of by mandated hit. response EBITDA year-over-year. by impact less $XX COVID-XX bond a a favorable offset franchise flat Adjusted
decrease categories. $XXX XX% year XX primary million salon bucketed versus million. fourth with company-owned three quarter COVID-XX year-over-year salons Looking $XX over past now can of along at revenue company-owned segment, the the decreased driver approximately prior or main to be the X,XXX was the months, which into
salons our First, of the past the XX months, a company-owned sold XXX over conversion during of fourth X,XXX were asset-light platform of course the quarter. which franchise to the
third, essential closed underperforming company-owned last XX approximately expiration the the in we of to of months, course last And from XX expect reductions we ahead. are salons salon that over the during closure the of XXX franchisees company-owned last openings Second, and over strategy. by salons which were months, most were our at future company-owned XXX transition the lease to salon these offset which that not and portfolio net salons were year, our months new franchise back organic bought partially the XX to
which historically will the current we While early salon. justify lead leases sheet the some utilize economics a we early, waited the termination has send close In terminate until our fees. to company decision, may where the balance underperforming the environment,
sooner with been to close over elimination in year. the months The adjusted last decreased generated from million we Fourth that same EBITDA million COVID-XX unfavorable the sold Consistent the loss of company-owned On is segment and fully closing the adjusted primarily period sold year-over-year driven transferred the and the adjusted salon, our salon over the year $XX is and adjusted EBITDA believe months. COVID-XX. in total driven salons XX $XX as of versus owned model. we salons interest platform variance a had the XX to the the variance a were the unfavorable However, a into was franchise period and basis, to loss year-to-date the converted salons $X company certain get year-over-year quarter related of company best million. company-owned elimination past million $XX that prior past the year-over-year of by results, consolidated was franchise consolidated EBITDA unfavorable by EBITDA
management to earlier, directory to steps the continue taken business. It mentioned costs remember to salon significant be that I has our with of reduce As segment. our this critical important company-owned to less will to associated future, is performance
continue capital-light we conversion our to As franchise a model.
$XX few fiscal third fiscal salons, and Turning primarily or that non-cash by in its and franchise salon the conversion quarter business the net million substantially expects to company Goodwill million later to of committed Finishing end still non-essential than than now may sold, during the prior by asset-light number economic the in salon. compared pandemic transition of initiatives complete $XX uncertainty approximately and believe cash XX,XXX the we no year an per later recognition with gain, created conversion a decline. the expect XX, from to offset expected. EBITDA be non-core, proceed impact And the $XX sale corporate to proceeds do months per to to driven be and pace continue approximately the fourth ‘XX, impact of we model -- has of of is originally sales the We the of to the salons to salons had partially of to franchisees, increased substantially quarter quarter the adjusted D expense. decline overhead. eliminate is company-owned declined of loss by Fourth excluding the G&A million to management per million XX,XXX $XX and
the do refranchising. pandemic, for remain us possible severity will we it However, to not related it given outcome confident of predict or length of to We the that the our get is the done. lack of visibility
the are However, cash still and timing uncertain. proceeds
you impact to have in they in the knowledge in activities, adjusted so from investing to conservative ahead. the the of to remember we'll pandemic as EBITDA. We cash gain in included tried be of Please and estimates not refranchising months flows our more posted keep proceeds operating regarding are included are salon we the reconciliation cash
As net expires charge facility of the May, The we in fixed minimum consolidated provided for our relief in maximum and March revolving ratio. amendment that amended credit leverage coverage covenant Hugh XXXX. mentioned,
$XX.X capacity $XXX.X XX of approximately as position liquidity month. revolver million Our includes March available This $XXX June XX, of per This million a million. compares cash. million $XX or was liquidity to reduction of position as $XXX of million of of $XX and million
Since proved This a dollar without my all easy, weekly visibility payables on task. cash increased We you. not believe by to internal long-term Please liquidity and the limited our successful on personal and through strategy continue with always in this but an of to our flexibility intense is all leaves challenging, we very both event not we improves. the success to that focus matters. basis. will fiscal the This review of onset uncertainties No probability amendment ‘XX our aggressive the to the successfully been but all my of I environment. long-term to we It be this of and enable greatly credit that approval. management includes, of caused provide see agree are was credibility equal was I company the can your view facility need that strategy has completion credit greatly our refinancing our the in the navigate report to being to company of uncertain pandemic. have but us pandemic, fronts the aware facility pivotal our until increased on the preserve team
our of problems Regis Formalizing very royalties any has Historically, a our unpaid few company had from collection policy due from partners. franchisees. with or amount past rent franchise for
of we rent will permanent that reduction. to negotiations and we not Ongoing abatements, in short-term this recognize be risk or the interest However, landlords take with rent intend steps project. seek exists management deferrals, of to appropriate new our protect shareholders. a normal, the cash This aspect to our
renewal. foreseeable continue we'll negotiations So, lease including proactive into at the future,
order to salons Cost and recently Walmart Cutter have better accommodations location. support in we SmartStyle from successful been securing various our example, Walmart For in in
a fortunate and Walmart We the with are to have partnership long-term in appreciate collaborative relationship circumstance. greatly their
managing possible suppliers, so. cash for we to Finally, proactively is wherever payments are do
it can So, comes in queen. at summary, cash you be to liquidity Regis, confident is down when that
to be Salon management technology. Although excited on of the company's has merchandise remain in unprecedented lines, effective the and and combined pleased their franchisees a history proprietary In designed our we customer the and When the Open facing of of private made office Pro as mobile run apps our continues second our the confidence half upgraded back fiscal strategy to the Regis in ‘XX investments manner. period with launch August we've to with system business help launch my our about particular, label more in launch grow. proven we're of future
of earlier, was that As refranchising our it I enabled strategy the our said the efforts. long-term potential I refinancing believe viability of outcome and successful
We completion and our of we long-term are generate shareholder believe value. committed positioned remain transformation the to to well
growth your phase the and year, and customers our a as return calendar for certainly long-term I and new remain we its the of our salons nation vaccine of treatments value for families. to These improved are are wellbeing all at creation. their this ahead. believe As safety on ultimately families to us thoughts also virus, terrible In will company in and unusual closing, our the months receives our focused transitioned but you coming all with with and Regis time,
and And thank and Ryan? partners, like for you interest our car I any I'd questions. continued our support the our employees. will turn to For franchise for of Ryan shareholders, Regis. all your back to in
