Core Viewpoint - Marriott International is expanding its luxury presence in Latin America by introducing the St. Regis Hotels & Resorts brand in Costa Rica, marking the brand's debut in the country and enhancing the Gulf of Papagayo as a luxury destination [1][5][6] Group 1: Project Details - The new resort will span 20 hectares, begin construction in July 2025, and welcome guests by early 2027, located 25 minutes from Liberia International Airport [2] - The design will reflect Costa Rica's culture and oceanic scenery, featuring six dining options, a St. Regis Bar & Speakeasy, an exclusive beach club, a large spa, and multiple pools [3] - The resort will offer over 10,000 square feet of meeting and event space, catering to high-end corporate and social events, while emphasizing local craftsmanship and sustainability [4] Group 2: Market Positioning - Costa Rica's increasing appeal to affluent travelers makes it a strategic choice for Marriott, which currently operates six St. Regis properties in the Caribbean and Latin America [5] - This expansion aligns with Marriott's strategy to grow in upscale markets and leverage its global brand power, positioning the company to capture long-term value amid rising luxury travel demand in Central America [6] Group 3: Stock Performance - Marriott's stock has increased by 10.3% in the past month, outperforming the Zacks Hotels and Motels industry's growth of 10% [7] - The company has delivered a trailing four-quarter earnings surprise of 30.9% on average, with a year-to-date stock gain of 10.4% [9]

Core Insights - Marriott International has signed an agreement with Solana PA, S.R.L. to introduce the St. Regis Hotels & Resorts brand in Costa Rica, with development expected to start in July 2025 and a planned opening in early 2027 [1][2][6] Company Expansion - The St. Regis Papagayo will be the first St. Regis hotel and residences in Costa Rica, reflecting Marriott's commitment to expanding its luxury portfolio in key destinations across the Caribbean and Central America [2][6] - The project is strategically located between Panama Bay and Culebra Bay, just 25 minutes from Liberia International Airport, enhancing the luxury offerings in the Papagayo region [3] Project Details - The new St. Regis Papagayo will feature 120 hotel rooms and 143 residential units, along with six distinct culinary venues and various luxury amenities including multiple swimming pools, a spa, and extensive meeting spaces [2][3][5] - The design will be led by the esteemed Mexican architecture firm Sordo Madaleno, with Gensler Mexico City as the principal interior design firm [4][5] Market Potential - The project arrives at a time of increasing demand for high-end travel and residential offerings in Costa Rica, indicating a significant potential for luxury experiences in the region [4][6]

Group 1 - Regis Corporation (symbol RGS) reported strong revenue growth of over 15% in the third quarter of fiscal 2025 [1] - EBITDA increased by 42% year over year, reaching $7.1 million despite the seasonally challenging nature of the third quarter [1]

Financial Data and Key Metrics Changes - For the third quarter, total revenue was $57 million, an increase of 15.9% or $7.8 million compared to the prior year, primarily driven by revenue from company-owned salons due to the Align acquisition [25][24] - Adjusted EBITDA grew 33% year-over-year to $7.1 million, while operating income increased by 23% to $5 million [5][28] - Cash from operations improved by $14 million year-to-date, generating $6.2 million in the third quarter, marking positive cash flow for the second consecutive quarter [6][32] Business Line Data and Key Metrics Changes - The Align Salon Group acquisition contributed positively to results, although its impact was modest in the quarter as the focus was on integration and planning [7][25] - Same store sales for the consolidated company saw a decline of 1.1%, with Supercuts reporting a 1.1% increase, while SmartStyle experienced a 7.4% decline [9][11] - The company-owned salons segment's adjusted EBITDA improved by $1.6 million year-over-year to $843,000, primarily due to the Align acquisition [31] Market Data and Key Metrics Changes - The timing of Easter negatively impacted sales by an estimated 1.1%, but April showed stronger same store sales with Supercuts increasing by 4.5% [10][11] - The company reported 49 net closures of underperforming stores, with a performance gap of approximately $350,000 between closed stores and top-performing locations [27] Company Strategy and Development Direction - The company is focused on a comprehensive transformation aimed at building a sustainable business model that prioritizes operational stability and profitability [3][4] - Key strategic priorities include optimizing the company-owned salon portfolio and executing a holistic transformation agenda for the Supercuts brand [16][18] - The company aims to enhance brand perception, unlock omnichannel growth, and scale operational excellence as part of its strategic roadmap [22][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the strategic initiatives and the positive momentum observed in early results [9][24] - The company acknowledged the need to increase traffic to salons and improve franchisee profitability to achieve growth [12][18] - Management highlighted the importance of disciplined cost management and capital allocation in navigating current challenges [12][36] Other Important Information - The company expects fiscal year 2025 to be the last year of significant closures, with a shift of approximately 300 locations from franchise to corporate salon counts due to the Align acquisition [27][28] - The company reported a decrease in general and administrative expenses as a percentage of revenue, from 22.8% to 19.6% [28] Q&A Session Summary Question: Understanding the accounting for Align - Management confirmed that while royalty fees in the franchise segment decreased, EBITDA in the company-owned segment increased [39] Question: Updates on store closings for this year - Management indicated that the anticipated closures are occurring as expected and that future closures will be at a significantly lower rate [46][48] Question: Impact of remodeled stores on same store sales - Management noted that remodeled stores have seen a modest lift of about 5% in sales, with some locations achieving over 20% sustained price increases [53][55] Question: Plans for cash allocation - Management stated that the priority is to pay down debt, maintain liquidity, and evaluate opportunities for capital deployment based on business needs [56][60]

Financial Data and Key Metrics Changes - For the third fiscal quarter, total revenue was $57 million, an increase of 15.9% or $7.8 million compared to the prior year, primarily driven by revenue from company-owned salons due to the Align acquisition [26][29] - Adjusted EBITDA grew 33% year-over-year to $7.1 million, while operating income increased by 23% to $5 million [5][29] - Cash from operations improved by $6.5 million year-over-year, totaling $6.2 million for the quarter, marking the second consecutive quarter of positive cash flow [6][33] Business Line Data and Key Metrics Changes - The Align Salon Group acquisition contributed positively to results, although its impact was modest in the quarter as the focus was on integration and planning [7][26] - Same store sales for the consolidated company saw a decline of 1.1%, with Supercuts reporting a 1.1% increase, while SmartStyle experienced a 7.4% decline [10][12] - The company-owned salons segment's adjusted EBITDA improved by $1.6 million year-over-year to $843,000, primarily due to the Align acquisition [31] Market Data and Key Metrics Changes - The company noted that the timing of Easter negatively impacted sales by approximately 1.1%, suggesting that without this effect, sales would have been roughly flat for the quarter [11] - April same store sales showed improvement, with Supercuts delivering a 4.5% increase and the entire consolidated system demonstrating a 2.8% increase compared to the previous year [11] Company Strategy and Development Direction - The company is focused on a comprehensive transformation aimed at building a more resilient and efficient business model, prioritizing operational stability and profitability [3][4] - Key strategic priorities include optimizing the sales and profitability of company-owned salons and executing a holistic transformation agenda for the Supercuts brand [17][19] - The company aims to enhance brand perception and operational excellence through a structured roadmap that includes evolving brand strategy, unlocking omnichannel growth, and scaling operational excellence [19][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the strategic initiatives being implemented, despite acknowledging the challenges of declining salon traffic and new guest visits [13][25] - The company anticipates that calendar year 2025 will be the last year of significant closures, with a focus on stabilizing and growing the business moving forward [27][29] - Management highlighted the importance of disciplined cost management and capital allocation to navigate current challenges and support future growth [14][36] Other Important Information - The company reported a net closure of 49 salons during the quarter, primarily related to underperforming locations, while also shifting approximately 300 locations from franchise to corporate salon counts due to the Align acquisition [27][28] - The company expects adjusted G&A expenses to be approximately $40.5 million for fiscal year 2025, with a run rate projected between $43 million to $45 million [32] Q&A Session Summary Question: Understanding the accounting for Align - Management confirmed that while royalty fees in the franchise segment decreased, EBITDA in the company-owned segment increased, reflecting the impact of the Align acquisition [39][40] Question: Updates on store closings for this year - Management indicated that the pace of anticipated closures is in line with previous guidance, with expectations for fewer closures in the future [46][47] Question: Impact of remodeled stores on same store sales - Management noted that remodeled stores have seen a modest lift of about 5% in same store sales, with some locations achieving over 20% sustained price increases post-remodel [53][55] Question: Plans for cash allocation - Management stated that the priority is to pay down debt, maintain liquidity, and evaluate opportunities for capital deployment based on business needs [57][63]

Company Operations - As of March 31, 2025, Regis Corporation operated 4,087 locations, including 3,776 franchised salons and 311 company-owned salons[96]. - Regis Corporation had 1,860 employees as of March 31, 2025, with 1,666 acquired through the Alline Acquisition[96]. Financial Performance - System-wide revenue for the three months ended March 31, 2025, was $266.9 million, a decrease of 6.9% from $286.8 million in the same period of 2024[102]. - Total system-wide same-store sales decreased by 1.1% for the three months ended March 31, 2025, compared to an increase of 0.5% in the same period of 2024[102]. - Franchise revenue decreased by $9.9 million and $22.1 million during the three and nine months ended March 31, 2025, respectively, attributed to a decline in franchise salon count and negative same-store sales[128]. - Company-owned salon revenue increased by $17.7 million and $18.2 million during the three and nine months ended March 31, 2025, primarily driven by the Alline Acquisition[132]. - Company-owned salon adjusted EBITDA improved by $1.6 million and $2.8 million during the three and nine months ended March 31, 2025, respectively, mainly due to the Alline Acquisition[133]. Revenue Sources - Royalties decreased by $2.2 million, or 14.0%, during the three months ended March 31, 2025, primarily due to a decrease in franchise salon count and negative same-store sales[108]. - Franchise rental income decreased by $6.9 million, or 29.0%, during the three months ended March 31, 2025, primarily due to a decrease in franchise salon count[111]. - Advertising fund contributions decreased by $0.6 million, or 10.3%, during the three months ended March 31, 2025, primarily due to the decrease in franchise salon count[110]. Acquisitions and Impact - The Alline Acquisition resulted in the closure of 301 franchise salons, while 314 salons were acquired, impacting future royalty income[101]. - Company-owned salon revenue increased by $17.7 million, or 1,361.5%, during the three months ended March 31, 2025, primarily due to the Alline Acquisition[112]. Expenses and Costs - General and administrative expenses increased by $2.7 million, or 8.0%, for the nine months ended March 31, 2025, primarily due to severance costs and acquisition costs related to the Alline Acquisition[113][114]. - Rent expense rose by $3.0 million, or 69.8%, during the nine months ended March 31, 2025, mainly due to salon rent expenses from the Alline Acquisition[114]. Cash and Liquidity - Cash provided by operating activities was $7.0 million for the nine months ended March 31, 2025, compared to cash used of $7.1 million in the prior year, reflecting a lower cost structure and reduced working capital needs[143]. - As of March 31, 2025, cash and cash equivalents totaled $13.3 million, with $12.1 million in the United States and $1.2 million in Canada[138]. - The Company has a credit agreement with a minimum liquidity covenant of $10.0 million, with total available liquidity of $19.0 million as of March 31, 2025[139]. Debt and Interest - The debt to capitalization ratio was 64.8% as of March 31, 2025, down from 67.0% on June 30, 2024[147]. - Interest expense decreased by $3.7 million for the nine months ended March 31, 2025, primarily due to less debt outstanding compared to the prior year[120]. Stock Repurchase Program - The Board has authorized $650.0 million for the stock repurchase program since May 2000, with $54.6 million remaining outstanding as of March 31, 2025[148]. - Approximately 1.5 million shares have been repurchased for a total of $595.4 million by March 31, 2025[148]. - The company did not repurchase any shares during the nine months ended March 31, 2025, and does not anticipate future repurchases[148]. Risks and Market Conditions - The company faces numerous risks and uncertainties that could materially affect future results, including changes in consumer shopping trends and economic conditions[150]. - Market risks include changes in interest rates and foreign currency exchange rates, with no material changes reported since the last annual report[152].

Financial Performance - Consolidated revenue for Q3 2025 was $57.0 million, a 15.9% increase from $49.2 million in Q3 2024[10] - Operating income improved to $5.0 million, a 22.9% increase compared to $4.1 million in Q3 2024[14] - Adjusted EBITDA for Q3 2025 was $7.1 million, up 31.5% from $5.4 million in the same quarter last year[20] - Net income for Q3 2025 was $0.3 million, a significant improvement from a net loss of $2.3 million in Q3 2024[18] - Adjusted net income for Q3 2025 was $1.3 million, compared to an adjusted net loss of $1.4 million in the same period last year[6] - Total revenue for Q3 2025 was $56.96 million, compared to $49.18 million in Q3 2024, reflecting a year-over-year increase of approximately 15.5%[37] - The company reported a net income of $250,000 for Q3 2025, compared to a net loss of $2.33 million in Q3 2024[37] - Net income for the nine months ended March 31, 2025, was $7,042,000, a significant improvement from a net loss of $141,000 in the same period of 2024[40] Cash Flow and Liquidity - Cash from operations reached $6.2 million, an increase of $6.5 million from $(0.3) million in Q3 2024, marking the second consecutive quarter of positive cash flow[6] - The company ended Q3 2025 with $13.3 million in cash and cash equivalents, and $127.4 million in outstanding borrowings[29] - Net cash provided by operating activities for the nine months ended March 31, 2025, totaled $7.0 million, an improvement of $14.1 million from the prior year[29] - Cash provided by operating activities for the nine months ended March 31, 2025, was $6,986,000, compared to cash used of $7,130,000 in the same period of 2024[40] - The company reported a total cash balance of $32,508,000 at the end of the period, up from $14,816,000 at the end of the same period in 2024[40] - Net cash provided by operating activities for Q3 2025 was $6,198,000, a significant improvement from a cash outflow of $280,000 in Q3 2024[70] - The net cash provided by operating activities excluding Ad Fund for Q3 2025 was $3,829,000, compared to $411,000 in Q3 2024[70] Revenue Breakdown - Franchise revenue for Q3 2025 was $38.0 million, a decrease of 20.7% compared to the prior-year quarter[22] - The company-owned salon revenue for Q3 2025 was $19.0 million, a substantial increase from $1.3 million in Q3 2024[26] - Company-owned salon revenue for Q3 2025 was $19.0 million, an increase of $17.7 million year-over-year[27] - Year-to-date revenue for the company-owned salon segment reached $23.2 million, up $18.2 million compared to the previous year[27] - Adjusted franchise revenue for Q3 2025 was $15,935,000, with franchise adjusted EBITDA as a percent of adjusted franchise revenue at 39.4%, up from 33.5% in Q3 2024[66] Operational Metrics - Same-store sales for Supercuts increased by 4.5% in April 2025, following a 1.1% increase in Q3 2025 compared to the previous year[3] - Year-to-date consolidated revenue declined by 2.5% to $149.7 million, primarily due to lower non-margin franchise rental income[11] - System-wide same-store sales for the total portfolio decreased by 1.3% for the nine months ended March 31, 2025, compared to an increase of 1.4% in the same period of 2024[43] - Total North American salons decreased from 4,295 as of June 30, 2024, to 3,681 as of March 31, 2025, reflecting a decline of approximately 14.3%[45] - The total number of franchise salons decreased from 4,391 as of June 30, 2024, to 3,776 as of March 31, 2025, a decline of approximately 14%[45] - The company-owned salons increased from 17 as of June 30, 2024, to 311 as of March 31, 2025, indicating a significant expansion in company-owned locations[45] Adjusted Metrics - Adjusted EBITDA for company-owned salons improved by $1.6 million year-over-year to $843,000 in Q3 2025[28] - Year-to-date adjusted EBITDA for company-owned salons increased by $2.8 million year-over-year to $1.2 million[28] - Adjusted EBITDA for the nine months ended March 31, 2025, was $21,902,000, compared to $19,740,000 for the same period in 2024, representing an increase of 10.9%[54] - Adjusted operating income for the nine months ended March 31, 2025, was $19,621,000, an increase from $18,364,000 in the same period of 2024[68] - Franchise adjusted EBITDA for Q3 2025 was $6,282,000, representing 16.5% of GAAP franchise revenue, compared to 12.8% in Q3 2024[66] - Franchise adjusted EBITDA for the nine months ended March 31, 2025, was $20,683,000, down from $21,346,000 in the same period of 2024[66] Capital Expenditures and Liabilities - The company incurred capital expenditures of $769,000 for the nine months ended March 31, 2025, compared to $372,000 in the same period of 2024[40] - Total assets as of March 31, 2025, were $511.25 million, down from $530.50 million as of June 30, 2024[36] - The company’s total liabilities decreased to $442.60 million as of March 31, 2025, from $473.71 million as of June 30, 2024[36] Stock-Based Compensation - Stock-based compensation for the nine months ended March 31, 2025, was $2,043,000, compared to $1,201,000 in the same period of 2024[68] Other Financial Adjustments - The change in Ad Fund Cash for Q3 2025 was a negative $2,369,000, contrasting with a positive $691,000 in Q3 2024[70] - Franchise rental income adjustments for the nine months ended March 31, 2025, totaled $(58,524,000), down from $(72,534,000) in the same period of 2024[66]

Financial Data and Key Metrics Changes - The company reported total second quarter revenues of $46.7 million, a decline of $4.3 million or 8.5% compared to the prior year, primarily due to a reduction in no-margin franchise rental income and advertising fund revenue [51][52] - Adjusted EBITDA for the second quarter was up 12.7% year-over-year to $7.1 million versus $6.3 million a year ago [25][59] - Earnings per diluted share was $2.63, compared to $0.43 in the prior year quarter, including income from discontinued operations of $7.4 million [26][56] Business Line Data and Key Metrics Changes - The company-owned segment adjusted EBITDA was $725,000 for the quarter, an improvement of $1.1 million from the same quarter last year, primarily related to the addition of salons from the Alline acquisition [61] - The core franchise business adjusted EBITDA was $6.4 million in the quarter, a $218,000 decrease compared to $6.6 million in the prior year quarter, primarily due to lower franchise revenue and franchise bad debt [60] Market Data and Key Metrics Changes - Same-store sales declined 1.6% in the second quarter, with Supercuts showing a positive 0.5% growth while SmartStyle experienced a 6.4% decline [19][22] - The salons that closed during the second quarter and those projected to close had a roughly 130 basis points drag on overall comps for the second quarter [24] Company Strategy and Development Direction - The acquisition of the Alline Salon Group is seen as a strategic move to stabilize and grow the company, with a focus on integrating company-owned salons to complement the franchise business [3][10] - The company aims to enhance brand positioning and identity, particularly for the Supercuts brand, to attract a younger demographic and improve stylist recruitment and retention [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the sales environment but expressed optimism about the potential for growth and profitability through strategic initiatives and operational improvements [25][46] - The company is focused on driving traffic to salons and increasing frequency of visits, recognizing the need for continued efforts to unlock growth [25][42] Other Important Information - The Alline acquisition was completed for an initial consideration of $22 million, which included $19 million in cash and approximately 140,000 shares of common stock valued at $3 million [13][14] - The acquired salons contributed $2.7 million in revenue and $0.5 million in EBITDA in the less than two weeks post-acquisition [49] Q&A Session Summary Question: What are the expectations for same-store sales moving forward? - Management indicated that while same-store sales have faced challenges, they are focused on driving traffic and improving performance through various initiatives [25] Question: How does the company plan to integrate the Alline salons? - The integration of Alline salons is progressing well, with a strong emphasis on systems, people, and culture integration as critical for long-term success [44] Question: What are the key initiatives to improve brand performance? - The company is working on refreshing and modernizing the Supercuts brand, alongside implementing brand excellence standards across all brands to enhance the guest experience [30][36]

Company Operations - As of December 31, 2024, Regis Corporation operated 4,248 locations, including 3,925 franchised salons and 323 company-owned salons[92]. - A net 152 franchise salons closed in the six months ended December 31, 2024, in addition to the 314 salons acquired as part of the Alline acquisition[97]. Financial Performance - System-wide revenue for the three months ended December 31, 2024, was $274.1 million, a decrease of 6.3% compared to $292.4 million in the same period of 2023[98]. - Total system-wide same-store sales decreased by 1.6% for the three months ended December 31, 2024, compared to an increase of 1.9% in the same period of 2023[98]. - Franchise revenue decreased by $6.0 million, or 12.2%, during the three months ended December 31, 2024, primarily due to a decrease in franchise salon count and negative same-store sales[124]. - Franchise same-store sales declined by 1.5% for the three months ended December 31, 2024, compared to an increase of 1.9% in the same period of 2023[122]. - Company-owned salon revenue increased by $1.7 million, or 95.6%, during the three months ended December 31, 2024, primarily due to the acquisition of Alline[107]. - Company-owned salon revenue increased by $1.7 million, or 94.4%, during the three months ended December 31, 2024, primarily driven by the Alline acquisition[129]. - Cash provided by operating activities was $0.8 million during the six months ended December 31, 2024, compared to a cash use of $6.9 million in the same period of 2023[140]. Revenue and Expenses - Royalties decreased by $1.0 million, or 6.3%, during the three months ended December 31, 2024, primarily due to a decrease in franchise salon count[103]. - Franchise rental income decreased by $4.1 million, or 17.0%, during the three months ended December 31, 2024, due to a decrease in franchise salon count[106]. - Advertising fund contributions decreased by $1.3 million, or 19.1%, during the three months ended December 31, 2024, primarily due to lower contribution rates[105]. - Fees increased by $0.4 million, or 16.1%, during the three months ended December 31, 2024, primarily due to terminated franchise fees related to Alline salons[104]. - General and administrative expenses decreased by $0.6 million, or 5.1%, for the three months ended December 31, 2024, primarily due to lower headcount[108]. - Rent expense increased by $0.8 million, or 57.4%, during the three months ended December 31, 2024, primarily due to the lapping of prior year franchisee rent benefits[109]. - Interest expense decreased by $1.3 million, or 21.3%, for the three months ended December 31, 2024, primarily due to less debt outstanding compared to the same period in 2023[116]. Assets and Liabilities - The franchise reporting unit had goodwill of $172.4 million as of December 31, 2024, compared to $173.1 million as of June 30, 2024[95]. - The Company recorded long-lived asset impairment charges of $0.4 million during the six months ended December 31, 2024, compared to $0.2 million in the same period of 2023[115]. - As of December 31, 2024, cash and cash equivalents were $10.2 million, with $9.4 million in the United States and $0.8 million in Canada[134]. - The debt to capitalization ratio was 65.5% as of December 31, 2024, down from 67.0% as of June 30, 2024[144]. Stock Repurchase Program - The Board has authorized a total of $650.0 million for the stock repurchase program since May 2000, with $595.4 million spent to repurchase approximately 1.5 million shares by December 31, 2024[145]. - As of December 31, 2024, there is $54.6 million remaining under the approved stock repurchase program, but the Company does not anticipate repurchasing shares in the foreseeable future[145]. Risks and Uncertainties - The Company faces numerous risks and uncertainties that could materially affect future results, including changes in consumer shopping trends and economic conditions[147]. - Market risks include exposure to changes in interest rates and foreign currency exchange rates, with no material changes reported since the last annual report[149].

Financial Performance - Consolidated revenue for Q2 fiscal 2025 was $46.7 million, a decrease of $4.3 million or 8.4% compared to Q2 fiscal 2024[4] - Same-store sales decreased by 1.6% in Q2 fiscal 2025 compared to the same period last year[4] - Net income for Q2 fiscal 2025 was $7.6 million, or $2.71 per diluted share, compared to $1.0 million, or $0.43 per diluted share in Q2 fiscal 2024[12] - Adjusted EBITDA for Q2 fiscal 2025 was $7.1 million, an increase of $0.8 million or 12.7% compared to $6.3 million in Q2 fiscal 2024[13] - Franchise revenue in Q2 fiscal 2025 was $43.3 million, a decrease of $6.0 million or 12.2% compared to the prior year quarter[15] - Company-owned salon revenue increased to $3.5 million in Q2 fiscal 2025, up $1.7 million from the prior year[19] - Adjusted net income for Q2 fiscal 2025 was $1.7 million, compared to an adjusted net loss of $0.4 million in the prior year[4] - Total revenue for the three months ended December 31, 2024, was $46.719 million, a decrease of 8.6% compared to $51.053 million for the same period in 2023[29] - Net income for the six months ended December 31, 2024, was $6.792 million, compared to $2.191 million for the same period in 2023, representing a significant increase[32] - The company reported operating income of $5.497 million for the three months ended December 31, 2024, up from $4.779 million in the same period of 2023[29] - Reported net income for the three months ended December 31, 2024, was $7,645, compared to $997 for the same period in 2023, representing a significant increase[49] - Adjusted EBITDA for the three months ended December 31, 2024, was $7,140, up from $6,295 in the same period of 2023, indicating a growth of 13.5%[49] - Adjusted earnings per share for the three months ended December 31, 2024, was $0.61, compared to a loss of $0.18 in the same period of 2023[56] Cash Flow and Debt - Cash provided by operating activities for the first half of fiscal 2025 totaled $0.8 million, an improvement of $7.6 million from the same period last year[21] - The company ended Q2 fiscal 2025 with $10.2 million in cash and cash equivalents and $126.4 million in outstanding borrowings[21] - Long-term debt increased to $111.532 million as of December 31, 2024, from $99.545 million as of June 30, 2024[28] - Cash and cash equivalents at the end of the period were $27.054 million, down from $29.313 million at the beginning of the period[32] - The company reported a net cash provided by financing activities of $7.673 million for the six months ended December 31, 2024[32] Operational Changes - The Alline acquisition, completed on December 19, 2024, is expected to enhance profitability and cash flow for Regis[1] - As of December 31, 2024, Regis Corporation operated 4,248 locations, including franchised and corporate salons[25] - Total North American salons decreased from 4,295 as of June 30, 2024, to 3,830 as of December 31, 2024, reflecting a decline of 10.8%[38] - The company-owned salons increased from 17 as of June 30, 2024, to 323 as of December 31, 2024, following the acquisition of 314 salons[38][39] - Total franchise and company-owned salons decreased from 4,408 as of June 30, 2024, to 4,248 as of December 31, 2024, a decline of 3.6%[38] Expenses and Income - General and administrative expenses for the three months ended December 31, 2024, were $11.155 million, slightly down from $11.772 million in the same period of 2023[29] - Reported general and administrative expenses for the three months ended December 31, 2024, were $11,155, down from $11,772 in the same period of 2023[52] - The company experienced a decrease in franchise rental income to $20.022 million for the three months ended December 31, 2024, compared to $24.087 million in the same period of 2023[29] Strategic Focus - The company plans to continue focusing on enhancing operational performance through non-GAAP measures to provide better insights into ongoing performance[42] - Franchise adjusted EBITDA as a percentage of GAAP franchise revenue increased to 14.8% for the three months ended December 31, 2024, compared to 13.5% in the same period of 2023[60] - System-wide same-store sales decreased by 1.6% for the three months ended December 31, 2024, compared to an increase of 1.9% in the same period of 2023[35]