Content Detail

• Content META

  Title	Regis Corporation Reports Improved Profitability for the Second Fiscal Quarter 2025 and Positive Cash from Operations
  ID	6844140
  External ID	7544422247
  Author	Unknown
  Published Date	Feb. 12, 2025, 5:42 a.m.
  Summary	Continues to position Regis for future growth with the integration of the Alline Salon Group acquisition MINNEAPOLIS --(BUSINESS WIRE) Regis Corporation (NasdaqGM: RGS), a leader in the haircare ind
  Tags	press-release
  URL	http://www.wicz.com/story/52363949/regis-corporation-reports-improved-profitability-for-the-second-fiscal-quarter-2025-and-positive-cash-from-operations
  Sentiment	Negative: 0.44603    Neutral: 0.03616    Positive: 0.51780
  Relevance	0.04737

• Content Details

  Content ID	4259390
  Key	8a35006b-6f4c-4a29-a889-dc3613911a7d
  Content	Continues to position Regis for future growth with the integration of the Alline Salon Group acquisition MINNEAPOLIS --(BUSINESS WIRE) Regis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today announced financial results for the second fiscal quarter ended December 31, 2024. Matthew Doctor, Regis Corporation's President and Chief Executive Officer, commented, “Our business has undergone a remarkable transformation over a short period of time. The Alline acquisition that was completed at the end of the fiscal quarter marks yet another step to position Regis to deliver future growth by adding several profitability and cash flow levers that complement our franchise business, creating a well-diversified model and an optimal mix of franchised and company owned locations. From a results standpoint, with growth across key profitability metrics, our fiscal second quarter results reflect strong operational execution and business traction, despite challenging sales conditions. We are excited to continue executing against our priorities, that now include the Alline portfolio, to drive growth and financial performance across our entire system of branded salons." Financial Highlights: Second quarter fiscal 2025 compared to second quarter fiscal 2024: Consolidated revenue of $46.7 million versus $51.1 million; driven by lower non-margin franchise rental income and lower advertising fund contributions, partially offset by company-owned salon revenue Same-store sales decreased 1.6% versus second quarter 2024 Net income of $7.6 million, inclusive of income from discontinued operations of $7.4 million, versus $1.0 million, inclusive of income from discontinued operations of $2.0 million in prior year second quarter; Diluted EPS of $2.71 versus $0.43 in second quarter 2024 Adjusted net income of $1.7 million versus an adjusted net loss of $0.4 million in prior year second quarter; Adjusted EPS of $0.61 versus $(0.18) in second quarter 2024 Adjusted EBITDA of $7.1 million versus $6.3 million in prior year second quarter First half fiscal 2025 compared to first half fiscal 2024: Consolidated revenue of $92.8 million versus $104.4 million; driven by lower non-margin franchise rental income and lower advertising fund contributions Same-store sales decreased 1.4% versus the prior year Net income of $6.8 million, inclusive of income from discontinued operations of $8.4 million, versus $2.2 million, inclusive of income from discontinued operations of $2.0 million in prior year; Diluted EPS of $2.90 versus $0.93 in the prior year Adjusted net income of $4.3 million versus $1.3 million in prior year; Adjusted EPS of $1.51 versus $0.53 in prior year Adjusted EBITDA of $14.8 million versus $14.4 million in prior year Second Quarter Fiscal Year 2025 Consolidated Results Three Months Ended December 31, Six Months Ended December 31,(Dollars in millions, except per share data) 2024 2023 2024 2023 Consolidated revenue $46.7 $51.1 $92.8 $104.4 System-wide revenue (1) 274.1 292.4 559.7 599.0 System-wide same-store sales comps (1.6)% 1.9% (1.4)% 1.8% Operating income $5.5 $4.8 $7.6 $12.2 Income (loss) from continuing operations 0.2 (1.0) (1.6) 0.2 Diluted income (loss) per share from continuing operations 0.07 (0.43) (0.68) 0.08 Income from discontinued operations 7.4 2.0 8.4 2.0 Net income 7.6 1.0 6.8 2.2 Diluted earnings per share 2.71 0.43 2.90 0.93 Adjusted operating income 7.0 5.4 13.6 13.3 Adjusted EBITDA (2) 7.1 6.3 14.8 14.4 Adjusted net income (loss) 1.7 (0.4) 4.3 1.3 Adjusted diluted earnings per share 0.61 (0.18) 1.51 0.53 _______________________________________________________________________________(1)Represents total sales within the system.(2)See GAAP to non-GAAP reconciliations within the attached section titled "Non-GAAP Reconciliations." Consolidated Revenue Total consolidated revenue of $46.7 million in the second quarter 2025 and $92.8 million in the first half 2025, declined $4.3 million and $11.6 million, respectively. The decline was driven primarily by a reduction in non-margin franchise rental income and advertising fund contributions, which was partially offset by an increase in company-owned salon revenue resulting from the acquisition of Alline on December 19, 2024. Operating Income Regis reported second quarter 2025 operating income of $5.5 million, an improvement of $0.7 million compared to $4.8 million in the second quarter 2024. The year-over-year improvement in operating income was driven primarily by operating income from the Alline salons. Regis reported first half 2025 operating income of $7.6 million, a decline of $4.6 million compared to $12.2 million in the first half 2024. The year-over-year decline in operating income was driven primarily non-recurring severance costs. Income (Loss) from Continuing Operations Regis reported second quarter 2025 income from continuing operations of $0.2 million, or $0.07 per diluted share, compared to a loss from continuing operations of $1.0 million, or $(0.43) per diluted share, in the second quarter 2024. The improvement was driven primarily by improvements to the Company's cost structure and income generated by the Alline salons. Regis reported first half 2025 loss from continuing operations of $1.6 million, or $(0.68) per diluted share, compared to income from continuing operations of $0.2 million, or $0.08 per share, in the second half 2024. The year-over-year decline was driven primarily by lower operating income in the first quarter of fiscal 2025 as a result of non-recurring severance costs, partially offset by a decrease in interest expense. Net Income The company reported second quarter 2025 net income of $7.6 million, or $2.71 per diluted share, compared to net income of $1.0 million, or $0.43 income per diluted share, for the same period last year. The company reported first half 2025 net income of $6.8 million, or $2.90 diluted income per share, compared to $2.2 million and $0.93 for the second half 2024. The year-over-year increases for the two periods were driven primarily by a gain related to discontinued operations. Adjusted EBITDA Second quarter and first half 2025 adjusted EBITDA of $7.1 million and $14.8 million, improved $0.8 million and $0.4 million, respectively, compared to $6.3 million and $14.4 million in the same periods last year. The improvement in both periods was primarily related to the Alline salons and improved cost structure. Second Quarter Fiscal Year 2025 Segment Results Franchise Three Months EndedDecember 31, Increase Six Months EndedDecember 31, Increase (Dollars in millions) (1) 2024 2023 2024 2023 Royalties $14.8 $15.8 $(1.0) $30.5 $32.3 $(1.8)Fees 2.9 2.5 0.4 5.3 5.1 0.2 Product sales to franchisees — 0.1 (0.1) — 0.5 (0.5)Advertising fund contributions 5.5 6.8 (1.3) 11.1 14.0 (2.9)Franchise rental income 20.0 24.1 (4.1) 41.7 48.8 (7.1)Total franchise revenue $43.3 $49.3 $(6.0) $88.5 $100.7 $(12.2) Franchise same-store sales comps (1.5)% 1.9% (1.3)% 1.8% Franchise adjusted EBITDA $6.4 $6.6 $(0.2) $14.4 $15.2 $(0.8)as a percent of revenue 14.8% 13.5% 16.3% 15.1% as a percent of adjusted revenue (2) 36.1% 36.1% 40.3% 40.1% Total franchise salons 3,925 4,651 (726) as a percent of total franchise and company-owned salons 92.4% 98.8% _______________________________________________________________________________(1)Total is a recalculation; line items calculated individually may not recalculate due to rounding.(2)Adjusted revenue excludes non-margin revenue. See GAAP to non-GAAP reconciliations within the attached section titled "Non-GAAP Reconciliations." Franchise Revenue Second quarter franchise revenue was $43.3 million, a $6.0 million, or 12.2% decrease compared to the prior year quarter. First half 2025 franchise revenue was $88.5 million, a 12.1% decline compared to the first half of the prior year. Decreases in franchise salon count and same-store sales were the primary drivers of the declines. Royalties were $14.8 million and $30.5 million, a $1.0 million and $1.8 million, or 6.3% and 5.6% decrease for the second quarter and first half 2025, compared to the same period last year. The declines were due to fewer franchise salons and lower same-store sales. Franchise Adjusted EBITDA Second quarter franchise adjusted EBITDA of $6.4 million declined $0.2 million. First half 2025 franchise adjusted EBITDA of $14.4 million declined $0.8 million year-over-year. The declines are primarily due to a decrease in royalties, partially offset by lower general and administrative expenses. Company-Owned Salons Three Months EndedDecember 31, Increase (Decrease) Six Months EndedDecember 31, Increase (Decrease) (Dollars in millions) (1) 2024 2023 2024 2023 Total company-owned salon revenue $3.5 $1.8 $1.7 $4.2 $3.7 $0.5 Company-owned salon adjusted EBITDA $0.7 $(0.3) $1.0 $0.4 $(0.8) $1.2as a percent of revenue 20.0% (16.7)% 9.5% (21.6)% Total company-owned salons 323 58 265 as a percent of total franchise and company-owned salons 7.5% 1.2% _______________________________________________________________________________(1)Variances calculated on amounts shown in millions may result in rounding differences. Company-Owned Salon Revenue Second quarter revenue for the company-owned salon segment increased $1.7 million versus the prior year to $3.5 million. First half 2025 revenue for the company-owned salon segment improved $0.5 million versus the prior year to $4.2 million. The year-over-year increases were primarily driven by the Alline acquisition, partially offset by other company-owned store closures. Company-Owned Salon Adjusted EBITDA Second quarter company-owned salon adjusted EBITDA improved $1.0 million from the same period last year. First half 2025 company-owned salon adjusted EBITDA improved $1.2 million versus the prior year to $0.4 million. The year-over-year improvements were due to the Alline acquisition, partially offset by the wind-down of underperforming company-owned salons. Balance Sheet and Cash Flow The Company ended the second quarter of fiscal year 2025 with $10.2 million in cash and cash equivalents, $126.4 million in outstanding borrowings and available total liquidity of $15.9 million. Net cash provided by operating activities for the six months ended December 31, 2024, totaled $0.8 million, an improvement of $7.6 million from the six months ended December 31, 2023, due to lower operating costs. Cash used in investing activities includes $18.6 million for Alline acquisition. Non-GAAP Reconciliations For GAAP to non-GAAP reconciliations, please refer to the attached section titled "Non-GAAP Reconciliations." A complete reconciliation of reported earnings to adjusted earnings is included in this press release and is available on the Company's website at www.regiscorp.com Earnings Webcast Regis Corporation will host a conference call via webcast discussing second quarter results today, February 12, 2025, at 7:30 a.m. Central time. Interested parties are invited to participate in the live webcast by registering for the event at www.regiscorp.com/investor-relations.html . A replay of the presentation will be available on our website at the same web address. About Regis Corporation Regis Corporation (NasdaqGM:RGS) is a leader in the haircare industry. As of December 31, 2024, the Company franchised or owned 4,248 locations. Regis' franchised and corporate locations operate under concepts such as Supercuts ® , SmartStyle ® , Cost Cutters ® , Roosters ® , and First Choice Haircutters ® . For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Relations section of the corporate website at www.regiscorp.com This press release contains or 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. 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,” “will,” “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 a potential material adverse impact on our business and results of operations as a result of changes in consumer shopping trends and changes in manufacturer distribution channels; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; compliance with Nasdaq listing requirements; our ability to realize the anticipated benefits of the Alline Acquisition; reliance on franchise royalties and overall success of our franchisees' salons; our salons' dependence on a third-party supplier agreement for merchandise; our and our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' salons; our ability to maintain and enhance the value of our brands; reliance on legacy information technology systems; reliance on external vendors; the use of social media; the effectiveness of our enterprise risk management program; our ability to minimize risks associated with owning and operating additional salons; ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreements with our franchisees; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; continued ability to compete in our business markets; potential liabilities related to the employee retention credit received by Alline; changes in trade policies, treaties, tariffs and customs duties and taxes; reliance on our management team and other key personnel; the continued ability to maintain an effective system of internal control over financial reporting; changes in tax exposure; the ability of our Tax Preservation Plan to protect the future availability of the Company's tax assets; potential litigation and other legal or regulatory proceedings; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A on Form 10-K. 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. REGIS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)As of December 31, 2024, and June 30, 2024(Dollars in thousands, except per share data) December 31, 2024 June 30, 2024 ASSETS Current assets: Cash and cash equivalents $10,198 $10,066 Receivables, net 8,313 9,434 Other current assets 24,921 22,550 Total current assets 43,432 42,050 Property and equipment, net 10,699 3,664 Goodwill 188,975 173,146 Other intangibles, net 2,301 2,427 Right of use asset 266,513 287,912 Other assets 18,191 21,297 Total assets $530,111 $530,496 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $16,451 $12,747 Accrued expenses 20,097 21,644 Short-term lease liability 70,971 69,127 Total current liabilities 107,519 103,518 Long-term debt, net 111,532 99,545 Long-term lease liability 206,872 230,607 Other non-current liabilities 37,470 40,039 Total liabilities 463,393 473,709 Commitments and contingencies Shareholders' equity: Common stock, $0.05 par value; issued and outstanding, 2,435,979 and 2,279,948 common shares at December 31, 2024, and June 30, 2024, respectively 122 114 Additional paid-in capital 73,243 69,660 Accumulated other comprehensive income 8,132 8,584 Accumulated deficit (14,779) (21,571)Total shareholders' equity 66,718 56,787 Total liabilities and shareholders' equity $530,111 $530,496 REGIS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)For the Three and Six Months Ended December 31, 2024, and 2023(Dollars and shares in thousands, except per share data) Three Months EndedDecember 31, Six Months EndedDecember 31, 2024 2023 2024 2023 Revenues: Royalties $14,840 $15,820 $30,486 $32,348 Fees 2,917 2,492 5,269 5,123 Product sales to franchisees — 67 — 451 Advertising fund contributions 5,490 6,808 11,131 14,034 Franchise rental income 20,022 24,087 41,658 48,754 Company-owned salon revenue 3,450 1,779 4,235 3,715 Total revenue 46,719 51,053 92,779 104,425 Operating expenses: Cost of product sales to franchisees — 58 — 417 General and administrative 11,155 11,772 25,189 22,501 Rent 2,149 1,394 3,213 2,491 Advertising fund expense 5,490 6,808 11,131 14,034 Franchise rent expense 20,022 24,087 41,658 48,754 Company-owned salon expense (1) 1,946 1,308 2,699 2,798 Depreciation and amortization 460 677 906 1,047 Long-lived asset impairment — 170 352 170 Total operating expenses 41,222 46,274 85,148 92,212 Operating income 5,497 4,779 7,631 12,213 Other (expense) income: Interest expense (4,848) (6,188) (9,694) (12,376)Other, net (307) 299 370 99 Income (loss) from operations before income taxes 342 (1,110) (1,693) (64) Income tax (expense) benefit (136) 107 89 255 Income (loss) from continuing operations 206 (1,003) (1,604) 191 Income from discontinued operations 7,439 2,000 8,396 2,000 Net income $7,645 $997 $6,792 $2,191 Net income per share: Basic: Income (loss) from continuing operations $0.09 $(0.43) $(0.68) $0.08 Income from discontinued operations 3.20 0.85 3.58 0.86 Net income per share (2) $3.29 $0.43 $2.90 $0.94 Diluted: Income (loss) from continuing operations $0.07 $(0.43) $(0.68) $0.08 Income from discontinued operations 2.63 0.85 3.58 0.84 Net income per share, diluted (2) $2.71 $0.43 $2.90 $0.93 Weighted average common and common equivalent shares outstanding: Basic 2,324 2,341 2,346 2,336 Diluted 2,825 2,341 2,346 2,367 _______________________________________________________________________________(1)Includes cost of service and product sold to guests in our company-owned salons. Excludes general and administrative expense, rent, and depreciation and amortization related to company-owned salons.(2)Total is a recalculation; line items calculated individually may not sum to total due to rounding. REGIS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)For the Six Months Ended December 31, 2024, and 2023(Dollars in thousands) Six Months Ended December 31, 2024 2023 Cash flows provided by (used in) operating activities: Net income $6,792 $2,191 Adjustments to reconcile net income to cash provided by (used in) operating activities: Gain from sale of OSP (8,396) (2,000)Depreciation and amortization 853 1,005 Deferred income taxes (197) (29)Non-cash interest 2,513 1,290 Long-lived asset impairment 352 170 Stock-based compensation 1,604 890 Amortization of debt discount and financing costs 1,605 1,493 Other non-cash items affecting earnings 569 (29)Changes in operating assets and liabilities, excluding the effects of asset sales and business acquisitions(1) (4,909) (11,834)Net cash provided by (used in) operating activities 786 (6,853) Cash flows provided by (used in) investing activities: Capital expenditures (444) (323)Business acquisitions, net of cash acquired and certain obligations assumed (18,631) — Proceeds from sale of OSP, net of fees 8,463 — Net cash used in investing activities (10,612) (323) Cash flows provided by (used in) financing activities: Proceeds from issuance of long-term debt 15,000 — Borrowings on revolving credit facility 4,326 4,000 Repayments of long-term debt (526) (455)Repayments of revolving credit facility (10,238) — Debt refinancing fees (814) (1,216)Taxes paid for shares withheld (75) (13)Net cash provided by financing activities 7,673 2,316 Effect of exchange rate changes on cash and cash equivalents (106) 46 Decrease in cash, cash equivalents, and restricted cash (2,259) (4,814) Cash, cash equivalents and restricted cash: Beginning of period 29,313 21,396 End of period $27,054 $16,582 _______________________________________________________________________________(1)Changes in operating assets and liabilities exclude assets and liabilities sold and assets and liabilities acquired through business acquisitions. REGIS CORPORATIONSystem-Wide Same-Store Sales SYSTEM-WIDE SAME-STORE SALES (1): Three Months Ended December 31, 2024 December 31, 2023 Service Retail Total Service Retail Total Supercuts 1.0% (11.2)% 0.5% 3.0% (5.7)% 2.6%SmartStyle (4.0) (18.1) (6.4) (0.5) (10.8) (2.4)Portfolio Brands (1.5) (13.0) (2.4) 4.2 (1.5) 3.7 Total (0.6)% (14.7)% (1.6)% 2.7% (6.7)% 1.9% Six Months Ended December 31, 2024 December 31, 2023 Service Retail Total Service Retail Total Supercuts 1.1% (10.3)% 0.7% 2.8% (5.2)% 2.4%SmartStyle (4.1) (18.2) (6.5) (0.7) (9.0) (2.2)Portfolio Brands (0.9) (11.8) (1.7) 4.2 (1.5) 3.7 Total (0.4)% (14.2)% (1.4)% 2.5% (5.8)% 1.8% _______________________________________________________________________________(1)System-wide same-store sales are calculated as the total change in sales for system-wide franchise and company-owned locations that were open on a specific day of the week during the current period and the corresponding prior period. Quarterly system-wide same-store sales are the sum of the system-wide same-store sales computed on a daily basis. Franchise salons that do not report daily sales are excluded from same-store sales. System-wide same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation. REGIS CORPORATIONSystem-Wide Location Counts December 31, 2024 June 30, 2024 FRANCHISE SALONS: Supercuts 1,772 1,946 SmartStyle/Cost Cutters in Walmart Stores 1,190 1,232 Portfolio Brands 868 1,117 Total North American salons 3,830 4,295 Total International salons (1) 95 96 Total franchise salons 3,925 4,391 as a percent of total franchise and company-owned salons 92.4% 99.6% COMPANY-OWNED SALONS (2): Supercuts 111 3 SmartStyle/Cost Cutters in Walmart Stores 1 8 Portfolio Brands 211 6 Total company-owned salons 323 17 as a percent of total franchise and company-owned salons 7.6% 0.4% Total franchise and company-owned salons 4,248 4,408 _______________________________________________________________________________(1)Canadian and Puerto Rican salons are included in the North American salon totals.(2)Salon counts as of December 31, 2024, include the 314 salons acquired as part of the Alline acquisition. Non-GAAP Reconciliations: This press release includes a presentation of adjusted EBITDA and adjusted franchise revenue, which are non-GAAP measures. The non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). We believe our presentation of the non-GAAP measures provides meaningful insight into our ongoing operating performance and a supplemental perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors' analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information that research analysts frequently use to analyze financial performance. Items impacting comparability are not defined terms within U.S. GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine the items to consider as "items impacting comparability" based on how management views our business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance. The following items have been excluded from our non-GAAP adjusted EBITDA results: stock-based compensation expense, discontinued operations, one-time professional fees and legal settlements, severance expense, excess inventory impairment charges, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs. We present adjusted revenue to provide a meaningful franchise adjusted EBITDA margin, which removes non-margin revenue from total revenue to arrive at an adjusted margin. Margin is a common metric used by investors, however, the majority of our revenue is offset by equal expense, so it does not contribute to our margin. We remove the non-margin revenue from this metric in order to show a meaningful margin rate. The method we use to produce non-GAAP results is not in accordance with U.S. GAAP and may differ from methods used by other companies. These non-GAAP results should not be regarded as a substitute for corresponding U.S. GAAP measures, but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations as they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with our financial statements prepared in accordance with U.S. GAAP. REGIS CORPORATIONReconciliation of U.S. GAAP Net Income to Adjusted EBITDA(Dollars in thousands)(Unaudited) Three Months EndedDecember 31, Six Months EndedDecember 31, 2024 2023 2024 2023 Reported net income $7,645 $997 $6,792 $2,191 Interest expense 4,848 6,188 9,694 12,376 Income tax expense (benefit) 136 (107) (89) (255)Depreciation and amortization 460 677 906 1,047 Long lived asset impairment — 170 352 170 EBITDA $13,089 $7,925 $17,655 $15,529 Stock-based compensation expense (1) 174 261 1,604 890 Gain on discontinued operations (7,439) (2,000) (8,396) (2,000)Discrete items (2) 1,316 109 3,913 (32)Adjusted EBITDA, non-GAAP financial measure $7,140 $6,295 $14,776 $14,387 _______________________________________________________________________________(1)Beginning in first quarter fiscal year 2025, management made the determination to exclude stock-based compensation expenses from the adjusted EBITDA calculation. This change has been retroactively applied to all prior periods presented accordingly.(2)Discrete items include one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs. REGIS CORPORATIONReconciliation of Reported General and Administrative Expenses to General and Administrative Expenses Used to Calculate Adjusted EBITDA(Dollars in thousands)(Unaudited) Three Months EndedDecember 31, Six Months EndedDecember 31, 2024 2023 2024 2023 Reported general and administrative $11,155 $11,772 $25,189 $22,501 Discrete general and administrative (1) (1,354) (29) (3,962) (29)Stock-based compensation (174) (261) (1,604) (890)Adjusted general and administrative$9,627 $11,482 $19,623 $21,582 _______________________________________________________________________________(1)Discrete items include one-time professional fees and legal settlements, severance expense, and asset retirement obligation costs. REGIS CORPORATIONReconciliation of Reported Net Income to Adjusted Net Income(Dollars in thousands)(Unaudited) Three Months EndedDecember 31, Six Months EndedDecember 31, 2024 2023 2024 2023 Net income$7,645 $997 $6,792 $2,191 Stock-based compensation 174 261 1,604 890 Long lived asset impairment — 170 352 170 Discontinued operations (7,439) (2,000) (8,396) (2,000)Discrete items 1,347 155 3,966 10 Adjusted net income (loss)$1,727 $(417) $4,318 $1,261 REGIS CORPORATIONReconciliation of Reported Earnings Per Share to Adjusted Earnings Per Share(Unaudited) Three Months EndedDecember 31, Six Months EndedDecember 31, 2024 2023 2024 2023 Reported earnings per share $2.71 $0.43 $2.90 $0.93 Adjustment to reconcile reported to adjusted earnings per share (2.10) (0.61) (1.90) (0.40)Impact of change in weighted average shares (1) — — 0.51 — Adjusted earnings per share $0.61 $(0.18) $1.51 $0.53 _______________________________________________________________________________(1)Non-GAAP net income per share reflects the weighted average shares associated with non-GAAP net income, which includes the dilutive effect of common stock equivalents. The earnings per share impact of the adjustments for the six months ended December 31, 2024, included additional shares for common stock equivalents of 0.5 million. The impact of the adjustments described above result in the effect of the common stock equivalents to be dilutive to the non-GAAP net income per share. REGIS CORPORATIONReconciliation of Reported Franchise Adjusted EBITDA as a Percent of GAAP Franchise Revenueto Franchise Adjusted EBITDA as a Percent of Adjusted Franchise Revenue(Dollars in thousands)(Unaudited) Three Months EndedDecember 31, Six Months EndedDecember 31, 2024 2023 2024 2023 Franchise adjusted EBITDA $6,414 $6,632 $14,400 $15,222 GAAP franchise revenue 43,269 49,274 88,544 100,710 Franchise adjusted EBITDA as a percent of GAAP franchise revenue 14.8% 13.5% 16.3% 15.1%Non-margin revenue adjustments: Franchise rental income $(20,022) $(24,087) $(41,658) $(48,754)Advertising fund contributions (5,490) (6,808) (11,131) (14,034)Adjusted franchise revenue $17,757 $18,379 $35,755 $37,922 Franchise adjusted EBITDA as a percent of adjusted franchise revenue 36.1% 36.1% 40.3% 40.1% REGIS CORPORATIONReconciliation of Reported Operating Income to Adjusted Operating Income(Dollars in thousands)(Unaudited) Three Months EndedDecember 31, Six Months EndedDecember 31, 2024 2023 2024 2023 Reported operating income $5,497 $4,779 $7,631 $12,213Discrete items 1,347 325 4,318 180Stock-based compensation 174 261 1,604 890Adjusted operating income $7,018 $5,365 $13,553 $13,283 View source version on businesswire.com: https://www.businesswire.com/news/home/20250212744424/en/ REGIS CORPORATION: Kersten Zupfer investorrelations@regiscorp.com HAYDEN IR: James Carbonara James@haydenir.com Brett Maas brett@haydenir.com Copyright Business Wire 2025 Information contained on this page is provided by an independent third-party content provider. XPRMedia and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact pressreleases@xpr.media
  Content Reference URL	None

• Publisher

  Publisher Name	FOX 40 WICZ TV (#2927)
  Publisher URL	http://www.wicz.com
  Description	None
  Trust Flow Score	45
  Citation Flow Score	31

• Data Source

  Data Source Name	Quantexa News (#5)
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
  Description	Welcome to Quantexa News API — the most powerful way to aggregate, filter, and integrate global news data into your apps and models.
  Weight	10