Regis (RGS)

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Regis (RGS) - 2024 Q1 - Earnings Call Transcript
2023-11-01 18:43
Financial Data and Key Metrics - Q1 revenues were $53 4 million, a decline of $8 5 million from the prior year, primarily due to reduced franchise rental income and transitioning out of company-owned salons [22] - GAAP operating profit increased by $5 million to $7 4 million, driven by controlled G&A and the wind down of company-owned salons [24] - Positive net income of $1 2 million from continuing operations and earnings per share of $0 03, compared to a loss of $1 8 million in Q1 2023 [25] - Adjusted EBITDA improved to $7 5 million from $3 8 million in the prior year, driven by fewer loss-generating company-owned salons [26] - Liquidity stood at $42 4 million, including $33 1 million of available revolver capacity and $9 3 million of cash [28] - Debt outstanding was $186 1 million, excluding deferred financing fees, with $9 8 million of letters of credit outstanding [29] Business Line Data and Key Metrics - Core Franchise Business achieved adjusted EBITDA of $8 million, a $3 million improvement compared to the prior year [8] - Company-owned segment lost just under $0 5 million, improving $700,000 from the same quarter last year [8] - Royalty and fee revenue, representing core business revenue, was $19 2 million, down $700,000 due to salon closures [23] - System-wide same-store sales grew 1 8% in the quarter [23] Market Data and Key Metrics - Franchise salon count decreased by 52 to 4,745, with 24 Supercuts, 15 SmartStyle, and 13 from portfolio brands closing [73] - Average volumes for closed salons were $122,000, reflecting the challenging operating environment [73] - The company announced a Supercuts brand entry into India through a master franchise partnership, aiming for 100 locations over five years [87][89] Company Strategy and Industry Competition - The company is evaluating strategic alternatives to strengthen the balance sheet and position for growth [46][47] - Zenoti platform, now active in 1,140 locations, is foundational for personalized marketing and operational initiatives [76][83] - Focus on high-volume salons to drive returns for both franchisees and the company [86] - Testing promotions and transformational marketing ideas to differentiate brands [84] Management Commentary on Operating Environment and Future Outlook - Management remains committed to cash management and returning to cash generation [9] - The company expects annual G&A run rate to be in the range of $47 million to $50 million [7] - Two-thirds of remaining company-owned salons will come to lease-end by February next year, reducing their impact [27] - The company is focused on increasing profitability and addressing challenges related to labor and customer behavior [58][60] Other Important Information - The company is in compliance with debt covenants and does not expect to violate any during the term of the credit facility [29] - Legacy insurance claims and rental payments on dark salons continue to impact cash flow, though amounts are decreasing [35] - The company is prioritizing the conversion of salons running on SuperSalon to Zenoti, with many franchisees already signed up [79][82] Q&A Session Question: Impact of Zenoti on CRM and customer outreach - Zenoti enables personalized marketing, better customer data collection, and streamlined customer interaction, driving frequency and loyalty [12][13][14] - The platform also provides operational insights and customer feedback, helping franchisees improve salon operations [15][16] Question: Remaining potential for Zenoti progress fees - $2 million remains from the original $20 million upfront purchase price, with additional proceeds based on salon migration [17][18] - Remaining proceeds will go towards debt [20] Question: Impact of in-store marketing and teaching - In-store marketing is foundational but hard to track directly, though it is considered table stakes for the business [21] Question: Inflation and price raising as a driver - Inflation and price raising have driven comps, but the company is testing initiatives to optimize customer counts and traffic [39][94][95]
Regis (RGS) - 2024 Q1 - Quarterly Report
2023-11-01 10:13
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12725 Regis Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation o ...
Regis (RGS) - 2023 Q4 - Earnings Call Transcript
2023-08-23 15:02
Regis Corporation (NASDAQ:RGS) Q4 2023 Earnings Conference Call August 23, 2023 8:30 AM ET Corporate Participants Biz McShane - Vice President, Corporate Controller Matthew Doctor - President and Chief Executive Officer Kersten Zupfer - Executive Vice President and Chief Financial Officer Conference Call Participants Eric Beder - Small Cap Consumer Research Biz McShane Good morning and thank you for joining the Regis Fourth Quarter 2023 Earnings Release Conference Call. All participants are in a listen-only ...
Regis (RGS) - 2023 Q4 - Annual Report
2023-08-23 10:18
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12725 Regis Corporation | (Exact name of registrant as specified in its charter) | | | | | --- | --- | --- | --- | | Minnesota | | | 41-074 ...
Regis (RGS) - 2023 Q3 - Earnings Call Transcript
2023-05-06 10:05
Financial Data and Key Metrics - The company reported positive adjusted EBITDA of $15.8 million for the first 9 months of fiscal 2023, an $80 million improvement compared to the $66.2 million loss in the previous year [12] - Q3 2023 adjusted EBITDA was $4.2 million, a $4.5 million improvement from the $0.3 million loss in the prior year's quarter [23] - Operating income for Q3 was $2 million, a significant improvement from the $22.2 million loss in Q3 of fiscal 2022 [24] - Cash used in operations improved by $26 million year-over-year, with $8 million used in the first 9 months and $1.6 million in Q3 [9] - Total liquidity remained stable at $43 million, consistent with the previous quarter [13] Business Line Data and Key Metrics - Same-store sales increased by 6.0% in Q3 compared to the prior year [23] - The franchise segment EBITDA was $4.8 million in Q3, a $1.9 million increase from the previous year [64] - The company-owned segment lost $0.5 million in Q3, a $3 million improvement from the same quarter last year [73] - The company closed underperforming salons with an average sales volume of $100,000, optimizing resources for more viable locations [25] Market Data and Key Metrics - The company has seen steady customer traffic despite price increases of 20%-25% since COVID, indicating low price elasticity [17] - The company's brands cater to a wide range of customers, from those seeking quality haircuts to those looking for quick and convenient services [74] Company Strategy and Industry Competition - The company is focused on streamlining G&A, winding down corporate salons, and rolling out the Zenoti Salon Management platform [22] - The company is investing in stylist recruitment, retention, and training, with initiatives like in-salon design teams and stylist events [10][40] - The company is launching a pilot loyalty program across two major brands, aiming to drive customer retention and repeat behavior [66] - The company is exploring new geographies, brands, and concepts for future growth [58] Management Commentary on Operating Environment and Future Outlook - Management highlighted the stabilization of the business and the potential for future growth, with fiscal 2023 on track to be the best in years [12][33] - The company expects to continue rationalizing its salon portfolio while growing top and bottom-line performance [25] - Management remains committed to smart cash management and returning to cash generation [60] Other Important Information - The company announced the addition of Nancy Benacci to the Board of Directors, bringing capital markets and strategic expertise [41] - The company remains in the care period regarding the NYSE market cap requirement, having briefly fallen below the $50 million threshold [55] Q&A Session Question: Status of the company's continued listing with the NYSE - The company briefly fell below the $50 million market cap requirement but has since recovered and remains in the care period [55] Question: Impact of price increases on customer traffic - Customer traffic has remained steady despite price increases of 20%-25% since COVID, indicating low price elasticity [17] Question: Stylist retention and recruitment efforts - Stylist retention and recruitment have stabilized, with efforts focused on keeping stylists busy and engaged [10][18] Question: Zenoti's impact on franchisees and marketing efforts - Zenoti will enable lifecycle marketing and loyalty programs by consolidating customer profiles and automating messaging [52][62] Question: In-store styling and training initiatives - Salons with dedicated in-salon design teams have seen sales improvements of up to 10%, and the company continues to invest in these programs [54][76] Question: Economic outlook and customer profile - The company's brands are well-positioned to attract customers seeking value, regardless of macroeconomic changes [49]
Regis (RGS) - 2023 Q3 - Quarterly Report
2023-05-03 18:52
WASHINGTON, D.C. 20549 UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12725 Regis Corporation (Exact name of registrant as specified in its charter) Minnesota 41-0749934 (State or other jurisdiction o ...
Regis (RGS) - 2023 Q2 - Earnings Call Transcript
2023-02-01 15:57
Regis Corporation (NASDAQ:RGS) Q2 2023 Earnings Conference Call February 1, 2023 8:30 AM ET Company Participants Biz McShane - VP-Corporate Controller Matthew Doctor - President and CEO Kersten Zupfer - EVP and CFO Conference Call Participants Eric Beder - Small Cap Consumer Research Sydney Wagner - Jefferies Biz McShane Good morning, and thank you for joining the Regus Second Quarter 2023 Earnings Release Conference Call. I'm your host, Biz McShane, Vice President and Corporate Controller. All participants ...
Regis (RGS) - 2023 Q2 - Quarterly Report
2023-02-01 11:13
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12725 Regis Corporation (Exact name of registrant as specified in its charter) Minnesota 41-0749934 (State or other jurisdictio ...
Regis (RGS) Presents at ICR Conference 2023
2023-01-19 19:59
Regis Corporation Presentation at ICR Conference January 9th and 10th, 2023 • Largest network and franchisor of hair care salons with approximately 5,400 locations worldwide, the majority of which are represented by five brands –1– REGIS IS A MARKET LEADER IN HAIR SERVICES Over 98% Of Salons Are Franchised(1) $1.2 billion System-wide Revenue (Fiscal Year 2022) 100+ Years of Company Heritage Regis is the largest global salon network in the hair services industry Regis Cautionary Statement Regarding Forward-L ...
Regis (RGS) - 2023 Q1 - Earnings Call Transcript
2022-11-01 17:33
Regis Corporation (NASDAQ:RGS) Q1 2023 Earnings Conference Call November 1, 2022 8:30 AM ET Company Participants Biz McShane - Vice President-Corporate Controller Matthew Doctor - President & Chief Executive Officer Kersten Zupfer - Executive Vice President & Chief Financial Officer Conference Call Participants Biz McShane Good morning and thank you for joining the Regis First Quarter 2023 Earnings Release Conference Call. All participants are in a listen-only mode. The prepared remarks by our President and ...