Regis (US:RGS)2024-11-06 11:08Financial Performance - Consolidated revenue for Q1 fiscal 2025 was $46.1 million, a decrease of $7.3 million or 13.7% compared to $53.4 million in Q1 fiscal 2024[2] - Net loss for Q1 fiscal 2025 was $0.9 million, or a loss of $0.36 per diluted share, compared to a net income of $1.2 million, or $0.51 per diluted share in the same period last year[7] - Adjusted net income for Q1 fiscal 2025 was $2.6 million, an increase of $0.9 million or 52.9% from $1.7 million in the prior year[2] - Adjusted EBITDA for Q1 fiscal 2025 was $7.6 million, a decline of $0.5 million or 6.2% from $8.1 million in Q1 fiscal 2024[8] - Operating income for the three months ended September 30, 2024, was $2,134,000, down from $7,434,000 in the prior year, representing a decline of 71.3%[21] - Reported net loss for the three months ended September 30, 2024, was $(853) thousand, compared to a net income of $1,194 thousand for the same period in 2023[30] Sales and Revenue Trends - Same-store sales decreased by 1.1% year-over-year, compared to an increase of 1.8% in the prior year[3] - System-wide same-store sales decreased by 1.1% for the three months ended September 30, 2024, compared to an increase of 2.4% in the same period of the previous year[23] - Franchise revenue decreased by $6.1 million, or 11.9%, to $45.3 million in Q1 fiscal 2025 compared to $51.4 million in the prior year[10] - GAAP franchise revenue for the three months ended September 30, 2024, was $45,275 thousand, down from $51,436 thousand in the same period of 2023[35] - Adjusted franchise revenue for the three months ended September 30, 2024, was $17,998 thousand, compared to $19,543 thousand in the prior year[35] Salon Operations - Company-owned salon revenue declined by $1.1 million to $0.8 million, driven by the closure of 47 loss-generating salons[13] - Total franchise salons decreased to 4,350 from 4,745, a reduction of 395 salons year-over-year[9] - The number of total franchise salons decreased to 4,350 as of September 30, 2024, from 4,391 as of June 30, 2024, a decrease of 0.9%[24] - The company-owned salons decreased to 9 as of September 30, 2024, down from 17 as of June 30, 2024, a reduction of 47.1%[24] Cash and Liabilities - The company ended Q1 fiscal 2025 with $6.3 million in cash and cash equivalents and $110.4 million in outstanding borrowings[15] - Total current assets decreased to $35,426,000 as of September 30, 2024, down from $42,050,000 as of June 30, 2024, reflecting a decline of 15.7%[20] - Total liabilities decreased to $452,533,000 as of September 30, 2024, from $473,709,000 as of June 30, 2024, a reduction of 4.5%[20] - Cash and cash equivalents decreased to $6,259,000 as of September 30, 2024, down from $10,066,000 as of June 30, 2024, a decline of 37.7%[20] Adjusted Metrics - Adjusted EBITDA margin improved to 40% in Q1 fiscal 2025 from 38% in the prior year, reflecting better cost management[2] - Adjusted EBITDA for the three months ended September 30, 2024, was $7,636 thousand, down from $8,093 thousand in the prior year[30] - Adjusted net income for the three months ended September 30, 2024, was $2,591 thousand, compared to $1,679 thousand for the same period in 2023[32] - Adjusted earnings per share for the three months ended September 30, 2024, was $0.93, an increase from $0.71 in the prior year[33] - Franchise adjusted EBITDA as a percent of adjusted franchise revenue was 44.4% for the three months ended September 30, 2024, compared to 44.0% in the prior year[35] Other Financial Details - Stock-based compensation expense included in adjusted EBITDA was $1,430 thousand for the three months ended September 30, 2024, up from $630 thousand in the prior year[30] - Discrete items impacting adjusted EBITDA included one-time professional fees and legal settlements, totaling $2,597 thousand for the three months ended September 30, 2024[30] - The company plans to exclude stock-based compensation expenses from adjusted EBITDA calculations starting in fiscal year 2025, retroactively applied to prior periods[30]