Regis (US:RGS)2025-02-12 11:00Financial 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]