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8-K - 8-K - REGIS CORPa10-7824_18k.htm

Exhibit 99

 

 

CONTACT:       REGIS CORPORATION:

 

Mark Fosland — Vice President, Finance

 

952-806-1707

 

Alex Forliti — Director, Finance-Investor Relations

 

952-806-1767

 

For Immediate Release

 

REGIS REPORTS THIRD QUARTER REVENUES OF $588 MILLION

-Third Quarter Total Same-Store Sales Decreased 1.8 Percent-

 

MINNEAPOLIS, April 8, 2010 — Regis Corporation (NYSE:RGS), the global leader in the $150 billion to $170 billion hair care industry, today reported consolidated revenues decreased 2.7 percent in the third fiscal quarter of 2010 to $588 million, compared to $604 million a year ago. Third quarter total same-store sales decreased 1.8 percent.

 

Last year, in the third fiscal quarter of 2009, the Company completed the sale of its Trade Secret retail product division to Premier Salons Beauty, Inc. (Premier).  As part of the sale agreement, the Company agreed to provide certain transitional administrative and other support services to Premier, including the supply of certain retail products.  As a result, reported third quarter 2009 North American product revenues included $13 million of sales to Premier at Regis’ cost.  Absent these sales, third quarter 2010 total revenues declined 0.7 percent.

 

“As we had expected, we are gradually beginning to see improvement in our same-store sales results,” commented Paul D. Finkelstein, Chairman and Chief Executive Officer.  “The month of March was our best month in a long-time with flat North American same-store sales.  The earlier Easter did not impact our March results, as we report same-store sales on a calendar basis.  In the quarter, we experienced thirty-nine days with positive comps, including sixteen days in March, more than three times the number of positive days in the preceding second quarter.  We also had seven poor days in January which accounted for half of the quarterly same-store sales decline.  Our value concepts continued to outperform our higher price point Regis division and we were very pleased with our retail product business.”

 

Third Quarter Revenues:

 

 

 

For the Three Months Ended March 31, 2010

 

 

 

Salons

 

Hair Restoration

 

 

 

(Dollars in thousands)

 

North America

 

International

 

Centers

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

Service

 

$

406,247

 

$

24,794

 

$

16,840

 

$

447,881

 

Product

 

101,688

 

10,665

 

17,635

 

129,988

 

Product sold to Premier

 

 

 

 

 

Royalties and fees

 

9,102

 

 

624

 

9,726

 

Total

 

$

517,037

 

$

35,459

 

$

35,099

 

$

587,595

 

 



 

 

 

For the Three Months Ended March 31, 2009

 

 

 

Salons

 

Hair Restoration

 

 

 

(Dollars in thousands)

 

North America

 

International

 

Centers

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

Service

 

$

412,226

 

$

24,858

 

$

16,217

 

$

453,301

 

Product

 

99,743

 

11,020

 

17,810

 

128,573

 

Product sold to Premier

 

12,596

 

 

 

12,596

 

Royalties and fees

 

8,990

 

 

626

 

9,616

 

Total

 

$

533,555

 

$

35,878

 

$

34,653

 

$

604,086

 

 

Third Quarter Same-Store Sales:

 

 

 

2010

 

2009

 

For the Three Months Ended March 31,

 

Service

 

Retail

 

Total

 

Service

 

Retail

 

Total

 

Regis Salons

 

-5.6

%

-6.5

%

-5.8

%

-10.8

%

-15.3

%

-11.6

%

MasterCuts

 

-0.6

 

3.0

 

0.0

 

-1.4

 

-8.3

 

-2.6

 

Supercuts

 

0.6

 

6.3

 

1.2

 

-0.8

 

-5.7

 

-1.3

 

Promenade

 

-2.2

 

0.7

 

-1.9

 

-2.8

 

-9.0

 

-3.5

 

SmartStyle

 

-1.6

 

2.2

 

-0.4

 

0.7

 

-2.0

 

-0.2

 

Domestic Same-Store Sales

 

-2.3

%

0.5

%

-1.8

%

-3.7

%

-7.0

%

-4.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Same-Store Sales

 

-4.0

%

-6.3

%

-4.8

%

-8.5

%

-7.3

%

-8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hair Restoration Same-Store Sales

 

1.7

%

1.2

%

1.4

%

-2.9

%

-2.9

%

-2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Same-Store Sales

 

-2.2

%

0.0

%

-1.8

%

-3.9

%

-6.5

%

-4.5

%

 

International same-store sales for the quarter represent the 12-week period ended March 6, 2010 versus the 12-week period ended March 7, 2009.

 

Regis Corporation will announce third quarter 2010 earnings results on April 28, 2010. A conference call discussing third quarter results will follow at 10:00 a.m., Central time. Interested parties are invited to listen by logging on to www.regiscorp.com.

 

About Regis Corporation

 

Regis Corporation (NYSE:RGS) is the beauty industry’s global leader in beauty salons, hair restoration centers and cosmetology education. As of December 31, 2009, the Company owned, franchised or held ownership interests in 12,800 worldwide locations.  Regis’ corporate and franchised locations operate under concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle, Cost Cutters, Cool Cuts 4 Kids and Hair Club for Men and Women.  In addition, Regis maintains an ownership interest in Provalliance, which operates salons primarily in Europe, under the brands of Jean Louis David, Franck Provost and Saint Algue.  Regis also maintains ownership interests in Empire Education Group in the U.S. and the MY Style concepts in Japan.  System-wide, these and other concepts are located in the U.S. and in over 30 other countries in North America, South America, Europe, Africa and Asia.  For additional information about the company, including a reconciliation of non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com. To join Regis Corporation’s email alert list, click on this link:

 



 

http://www.b2i.us/irpass.asp?BzID=913&to=ea&Nav=1&S=0&L=1

 

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; price sensitivity; changes in economic conditions, and in particular, continued weakness in the U.S. and global economies; changes in consumer tastes and fashion trends; the ability of the Company to implement its planned spending and cost reduction plan and to continue to maintain compliance with the financial covenants in its credit agreements; 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 and financing for new salon development and to maintain satisfactory relationships with landlords and other licensors with respect to existing locations; governmental initiatives such as minimum wage rates, taxes and possible franchise legislation; the ability of the Company to successfully identify, acquire and integrate salons that support its growth objectives; the ability of the Company to maintain satisfactory relationships with suppliers; the ability of the Company to consummate the planned closure of salons and the related realization of the anticipated costs, benefits and time frame; or other factors not listed above. The ability of the Company to meet its expected revenue target is dependent on salon 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 for the year ended June 30, 2009. 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.

 

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