Regis Corp. (RGS, Financial) filed Quarterly Report for the period ended 2008-12-31.
Regis Corporation is the beauty industry's global leader in beauty salons hair restoration centers and cosmetology education. The Company ownes franchised or held ownership interests in over twelve thousand four hundred worldwide locations. Regis' corporate and franchised locations operate 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. In addition Regis maintains ownership interests in various other salon concepts such as Cool Cuts four Kids and the Beauty Takashi and Beauty Plaza concepts in Japan. System-wide these and other concepts are located in the U.S. and in eleven other countries in North America Europe and Asia. Regis also maintains a fifty percent ownership interest in Intelligent Nutrients a joint venture that provides a wide variety of certified organic products for health and beauty. Regis Corp. has a market cap of $486 million; its shares were traded at around $14.27 with a P/E ratio of 6.1 and P/S ratio of 0.18. The dividend yield of Regis Corp. stocks is 1.42%. Regis Corp. had an annual average earning growth of 10.2% over the past 10 years. GuruFocus rated Regis Corp. the business predictability rank of 4.5-star.
· Lease termination costs of $1.3 million ($0.8 million pre-tax, or $0.5 million net of tax is included in continuing operations, with $0.5 million pre-tax, or $0.3 million net of tax, included in loss from discontinued operations) were incurred as a result of 14 stores that ceased using the right to use the leased property or negotiated a lease termination agreement in connection with the Companys planned closure of up to 160 underperforming company-owned salons .
· The Company recorded a $6.8 million reduction to our self-insurance accruals primarily for workers compensation ($6.7 million included in continuing operations or $4.1 million, net of tax and $0.1 million, included, net of tax, in loss from discontinued operations ).
· A pre-tax, non-cash impairment charge of $7.8 million was related to our equity method investment in and loans to Intelligent Nutrients, LLC (the charge of $4.8 million, net of tax, is included in equity in loss of affiliated companies).
Consolidated revenues primarily include revenues of company-owned salons, product and equipment sales to franchisees, hair restoration center revenues, and franchise royalties and fees. As compared to the respective prior fiscal year, consolidated revenues decreased 4.4 percent to $587.4 million during the three months ended December 31, 2008 and decreased 1.7 percent to $1,201.0 million during the six months ended December 31, 2008. The following table details our consolidated revenues by concept. All service revenues, product revenues (which include product and equipment sales to franchisees), and franchise royalties and fees are included within their respective concept within the table.
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Regis Corporation is the beauty industry's global leader in beauty salons hair restoration centers and cosmetology education. The Company ownes franchised or held ownership interests in over twelve thousand four hundred worldwide locations. Regis' corporate and franchised locations operate 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. In addition Regis maintains ownership interests in various other salon concepts such as Cool Cuts four Kids and the Beauty Takashi and Beauty Plaza concepts in Japan. System-wide these and other concepts are located in the U.S. and in eleven other countries in North America Europe and Asia. Regis also maintains a fifty percent ownership interest in Intelligent Nutrients a joint venture that provides a wide variety of certified organic products for health and beauty. Regis Corp. has a market cap of $486 million; its shares were traded at around $14.27 with a P/E ratio of 6.1 and P/S ratio of 0.18. The dividend yield of Regis Corp. stocks is 1.42%. Regis Corp. had an annual average earning growth of 10.2% over the past 10 years. GuruFocus rated Regis Corp. the business predictability rank of 4.5-star.
Highlight of Business Operations:
· Trade Secret was classified as held for sale and reported as a discontinued operation. Reported as part of the loss on discontinued operations was a pre-tax $171.8 million non-cash write-off of the net assets associated with the sale of Trade Secret ($115.8 million, net of tax). The locations include 659 company-owned salons and 62 franchised salons that are within the Trade Secret concept.· Lease termination costs of $1.3 million ($0.8 million pre-tax, or $0.5 million net of tax is included in continuing operations, with $0.5 million pre-tax, or $0.3 million net of tax, included in loss from discontinued operations) were incurred as a result of 14 stores that ceased using the right to use the leased property or negotiated a lease termination agreement in connection with the Companys planned closure of up to 160 underperforming company-owned salons .
· The Company recorded a $6.8 million reduction to our self-insurance accruals primarily for workers compensation ($6.7 million included in continuing operations or $4.1 million, net of tax and $0.1 million, included, net of tax, in loss from discontinued operations ).
· A pre-tax, non-cash impairment charge of $7.8 million was related to our equity method investment in and loans to Intelligent Nutrients, LLC (the charge of $4.8 million, net of tax, is included in equity in loss of affiliated companies).
Consolidated revenues primarily include revenues of company-owned salons, product and equipment sales to franchisees, hair restoration center revenues, and franchise royalties and fees. As compared to the respective prior fiscal year, consolidated revenues decreased 4.4 percent to $587.4 million during the three months ended December 31, 2008 and decreased 1.7 percent to $1,201.0 million during the six months ended December 31, 2008. The following table details our consolidated revenues by concept. All service revenues, product revenues (which include product and equipment sales to franchisees), and franchise royalties and fees are included within their respective concept within the table.
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