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8-K - 8-K - REGIS CORPa12-16162_18k.htm

Exhibit 99

 

 

CONTACT: REGIS CORPORATION:

 

Mark Fosland – SVP, Finance and Investor Relations

 

952-806-1707

 

Andy Larew – Director, Finance-Investor Relations

 

952-806-1425

 

For Immediate Release

 

REGIS REPORTS FOURTH QUARTER REVENUES OF $568 MILLION

 

MINNEAPOLIS, July 10, 2012 — Regis Corporation (NYSE:RGS), the global leader in the $160 billion hair care industry, today reported consolidated fourth quarter fiscal 2012 revenues of $568 million, compared to $592 million a year ago.  Fourth quarter total same-store sales decreased 3.0 percent.

 

“Fourth quarter same-store sales trends improved slightly over our third quarter,” said Eric Bakken, EVP, Interim Chief Executive Officer.  “We are pleased with the significant progress made during the quarter as we continue to roll-out our strategy to improve the salon experience.  During the quarter, we realigned our business into four distinct consumer segments and restructured our field organization around these segments.  This reorganization increased focus, freed up resources and allowed us to establish a robust human resource function, which will help us hire and retain the best talent in our salons.  Our new operating structure puts the right people in the right roles and provides us with the foundation to substantially improve the salon experience.  Meaningful change is underway at Regis and, as we look forward to fiscal 2013, we expect these changes will drive improvement in our same-store sales results.”

 

Fourth Quarter Revenues:

 

 

 

For the Three Months Ended June 30, 2012

 

 

 

Salons

 

Hair Restoration

 

 

 

(Dollars in thousands)

 

North America

 

International

 

Centers

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Service

 

$

381,432

 

$

30,444

 

$

17,723

 

$

429,599

 

Product

 

96,692

 

10,529

 

20,967

 

128,188

 

Royalties and fees

 

9,744

 

 

597

 

10,341

 

Total

 

$

487,868

 

$

40,973

 

$

39,287

 

$

568,128

 

 



 

 

 

For the Three Months Ended June 30, 2011

 

 

 

Salons

 

Hair Restoration

 

 

 

(Dollars in thousands)

 

North America

 

International

 

Centers

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Service

 

$

403,982

 

$

31,187

 

$

17,228

 

$

452,397

 

Product

 

98,160

 

11,380

 

19,875

 

129,415

 

Royalties and fees

 

9,581

 

 

592

 

10,173

 

Total

 

$

511,723

 

$

42,567

 

$

37,695

 

$

591,985

 

 

Fourth Quarter Same-Store Sales:

For the Three Months Ended June 30,

 

 

 

2012

 

2011

 

 

 

Service

 

Retail

 

Total

 

Service

 

Retail

 

Total

 

Regis Salons

 

-6.4

%

1.3

%

-5.1

%

-3.1

%

5.1

%

-1.8

%

MasterCuts

 

-4.9

 

2.9

 

-3.5

 

-2.7

 

5.0

 

-1.4

 

Supercuts

 

0.5

 

0.4

 

0.5

 

0.8

 

-4.7

 

0.2

 

Promenade

 

-2.6

 

-3.0

 

-2.7

 

-1.5

 

-0.1

 

-1.3

 

SmartStyle

 

-6.3

 

-1.2

 

-4.6

 

-1.8

 

-4.3

 

-2.6

 

North America Same-Store Sales

 

-4.0

%

-0.5

%

-3.3

%

-1.7

%

-1.3

%

-1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Same-Store Sales

 

-5.2

%

-10.0

%

-6.6

%

-5.8

%

-4.9

%

-5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hair Restoration Same-Store Sales

 

3.7

%

5.0

%

4.4

%

0.4

%

2.2

%

1.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Same-Store Sales

 

-3.7

%

-0.5

%

-3.0

%

-1.8

%

-1.1

%

-1.7

%

 

International same-store sales for the quarter represent the 16-week period ended June 23, 2012 versus the 16-week period ended June 25, 2011.

 

Fiscal Year Revenues:

 

 

 

For the 12 Months Ended June 30, 2012

 

 

 

Salons

 

Hair Restoration

 

 

 

(Dollars in thousands)

 

North America

 

International

 

Centers

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Service

 

$

1,541,491

 

$

102,399

 

$

68,812

 

$

1,712,702

 

Product

 

401,326

 

38,722

 

80,419

 

520,467

 

Royalties and fees

 

38,288

 

 

2,321

 

40,609

 

Total

 

$

1,981,105

 

$

141,121

 

$

151,552

 

$

2,273,778

 

 



 

 

 

For the 12 Months Ended June 30, 2011

 

 

 

Salons

 

Hair Restoration

 

 

 

(Dollars in thousands)

 

North America

 

International

 

Centers

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Service

 

$

1,588,690

 

$

106,734

 

$

67,550

 

$

1,762,974

 

Product

 

403,962

 

43,503

 

75,729

 

523,194

 

Royalties and fees

 

37,292

 

 

2,409

 

39,701

 

Total

 

$

2,029,944

 

$

150,237

 

$

145,688

 

$

2,325,869

 

 

Fiscal Year Same-Store Sales:

For the 12 Months Ended June 30,

 

 

 

2012

 

2011

 

 

 

Service

 

Retail

 

Total

 

Service

 

Retail

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regis Salons

 

-5.4

%

1.8

%

-4.2

%

-3.8

%

4.4

%

-2.5

%

MasterCuts

 

-4.6

 

2.3

 

-3.3

 

-2.2

 

6.1

 

-0.7

 

Supercuts

 

-0.2

 

-1.2

 

-0.3

 

0.4

 

-2.0

 

0.1

 

Promenade

 

-2.7

 

-3.2

 

-2.7

 

-3.0

 

0.8

 

-2.6

 

SmartStyle

 

-5.0

 

-3.1

 

-4.3

 

-1.8

 

-2.1

 

-1.9

 

North America Same-Store Sales

 

-3.6

%

-1.5

%

-3.2

%

-2.3

%

0.3

%

-1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Same-Store Sales

 

-6.7

%

-13.5

%

-9.1

%

-4.6

%

-0.1

%

-3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hair Restoration Same-Store Sales

 

1.3

%

4.5

%

2.9

%

1.3

%

1.2

%

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Same-Store Sales

 

-3.5

%

-1.7

%

-3.1

%

-2.3

%

0.4

%

-1.7

%

 

International same-store sales for the year represent the 52-week period ended June 23, 2012 versus the 52-week period ended June 25, 2011.

 

Regis Corporation will announce fourth quarter 2012 earnings results on August 23, 2012. A conference call discussing fourth 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 March 31, 2012, the Company owned, franchised or held ownership interests in approximately 12,700 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 certain 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

 



 

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This press release may contain “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. 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 the impact of management and organizational changes; competition within the personal hair care industry, which remains strong, both domestically and internationally, price sensitivity; changes in economic conditions; 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 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; 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, 2011. 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.