Call Start: 08:30 January 1, 0000 8:53 AM ET Regis Corporation (NASDAQ:RGS) Q3 2024 Earnings Conference Call May 01, 2024, 08:30 AM ET Company Participants Biz McShane - VP, Corporate Controller Matthew Doctor - President and CEO Kersten Zupfer - EVP and CFO Conference Call Participants Biz McShane Good morning, and thank you for joining the Regis Third Quarter Fiscal 2024 Earnings Conference Call. I'm your host Biz McShane, Vice President, Corporate Controller. All participants are in listen-only mode and ...

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 March 31, 2024 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 or or ...

Regis Corporation Reports Continued Profitability for the Third Fiscal Quarter 2024 MINNEAPOLIS, May 1, 2024 -- Regis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today announced financial results for the third fiscal quarter ended March 31, 2024. Matthew Doctor, Regis Corporation's President and Chief Executive Officer, commented: "In the third quarter, we continued to grow the year-over-year profitability of the Company. We delivered another quarter of growth in same-store-sales, operat ...

Regis Corporation (NASDAQ:RGS) Q2 2024 Earnings Conference Call January 31, 2024 8:30 AM ET Company Participants Biz McShane - VP, Corporate Controller Matthew Doctor - President and CEO Kersten Zupfer - EVP and CFO Conference Call Participants Biz McShane Good morning, and thank you for joining the Regis Second Quarter Fiscal 2024 Earnings Conference Call. I'm your host Biz McShane, Vice President, Corporate Controller. All participants are in listen-only mode. The prepared remarks by our President and Chi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) Regis Corporation (Exact name of registrant as specified in its charter) Minnesota 41-0749934 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3701 Wayzata Boulevard, Minneapolis Minnesota 55416 (Address of principal executive offices) (Zip Code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended ...

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]

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 ...

Financial Data and Key Metrics Changes - In Q4 2023, same-store sales increased by 2.5% compared to Q4 2022, while for the full year, same-store sales rose by 4.4% compared to fiscal 2022 [7][50] - Adjusted Q4 EBITDA was $5.2 million, a significant improvement from $1 million in the prior year's quarter, leading to a full-year adjusted EBITDA of $21 million, up from a loss of $1.8 million in fiscal 2022 [8][52] - Operating income for the full year improved by $37.7 million to $8.8 million, compared to a loss of $28.9 million in fiscal 2022, marking the strongest operating income result in six years [9][51] - Positive operating cash flow of $0.5 million was achieved for the first time since Q4 2019, although caution was advised regarding future cash flow stability [9][57] Business Line Data and Key Metrics Changes - The company closed 264 salons in Q4 and 616 salons for the full year, resulting in a year-end franchise salon count of 4,795 [10][19] - Corporate-owned salon losses decreased to $1.8 million from $9.5 million in fiscal 2022, indicating improved performance in this segment [23] Market Data and Key Metrics Changes - System-wide same-store sales comps were positive 2.5% in Q4 and 4.4% for the full year, although system-wide sales were unchanged for the year and down slightly in Q4 due to salon closures [50] - The closures primarily affected underperforming salons, with an average volume of approximately $110,000 for the closed locations [19] Company Strategy and Development Direction - The company is focused on financial stability and growing profitability through managing G&A expenses, exiting corporate-owned locations, and mitigating bad debt exposure [35] - Key strategic pillars include enhancing support for stylists, driving customer traffic, and improving the salon experience through technology [36][39] - The integration of the Zenoti platform is expected to enhance marketing capabilities, guest experience, and franchisee operations [30][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced by the industry but expressed confidence in the company's progress and stability [6][34] - The focus for fiscal 2024 will be on stabilizing the business while exploring opportunities for salon count growth in a meaningful manner [68] - Management emphasized the importance of driving customer traffic while ensuring a quality salon experience to foster customer loyalty [72] Other Important Information - The company ended the fiscal year with total liquidity of $43 million, maintaining a stable liquidity position [18][59] - Adjusted G&A expenses were reduced by $12.5 million year-over-year, contributing to improved financial health [14][53] Q&A Session Summary Question: What do you foresee coming forward now that you've closed a lot of the very low productivity stores? - Management indicated that closures in 2024 will likely be less than in 2023, with a focus on optimizing stylists in more productive locations [68] Question: Could you remind us what Zenoti enables you to do? - Zenoti allows for improved marketing, guest experience, and franchisee operations, including customizable guest targeting and better operational management [70] Question: Is there an opportunity to increase the amount of visits to drive traffic? - Management acknowledged the need to drive traffic into salons and emphasized testing various marketing strategies to optimize customer visits [71][72] Question: Will Zenoti payments be used to pay down debt or generate free cash flow? - Management suggested that while Zenoti payments will contribute to debt reduction, expectations for significant free cash flow should be tempered [73]

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 ...

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]