Regis (US:RGS)2025-11-12 11:18Company Operations - As of September 30, 2025, Regis Corporation operated 3,879 locations, including 3,593 franchised salons and 286 company-owned salons[107]. Financial Performance - System-wide revenue for the three months ended September 30, 2025, was $273.7 million, a decrease from $285.6 million in the same period of 2024, representing a decline of 4.6%[112]. - Total system-wide same-store sales increased by 0.9% for the three months ended September 30, 2025, compared to a decrease of 1.1% in the prior year[112]. - Franchise revenue decreased by $6.6 million during the three months ended September 30, 2025, mainly due to the decline in franchise salon count[140]. - Franchise adjusted EBITDA for the three months ended September 30, 2025, was $6.4 million, a decrease of $1.6 million compared to the same period in 2024[141]. - Company-owned salon revenue increased significantly by $19.4 million, from $0.8 million to $20.2 million, due to the increase in company-owned salons from the Alline Acquisition[123]. - Company-owned salon adjusted EBITDA improved by $1.9 million to $1.6 million in the three months ended September 30, 2025, driven by increased revenues from a greater salon count[145]. Expenses - General and administrative expenses decreased by $2.6 million, or 18.6%, mainly due to lower severance and stock-based compensation expenses[124]. - Rent expense surged by $2.1 million, or 190.9%, attributed to the rent associated with the acquired Alline salons[125]. - Franchise rental income fell by $4.2 million, or 19.4%, primarily due to the decrease in franchise salon count[122]. Tax and Liquidity - The effective tax rate for the three months ended September 30, 2025, was 28.3%, compared to 11.1% in the same period of 2024[135]. - As of September 30, 2025, cash and cash equivalents were $16.6 million, with $15.9 million in the United States and $0.7 million in Canada[150]. - The company's total available liquidity, net of the $10.0 million minimum liquidity covenant, was $25.5 million as of September 30, 2025[151]. Cash Flow - Cash provided by operating activities was $2.3 million for the three months ended September 30, 2025, compared to cash used of $1.3 million in the same period in 2024[154]. - Cash used in investing activities was $0.4 million for the three months ended September 30, 2025, primarily due to capital expenditures[155]. - Cash used in financing activities was $1.3 million for the three months ended September 30, 2025, mainly due to long-term debt repayment of $1.8 million[156]. Share Repurchase and Debt - As of September 30, 2025, the company had repurchased a total of 1.5 million shares for $595.4 million under its stock repurchase program, with $54.6 million remaining authorized for future repurchases[159]. - The debt to capitalization ratio as of September 30, 2025, was 40.3%, unchanged from June 30, 2025[158].