LAS VEGAS, Aug. 14, 2025 (GLOBE NEWSWIRE) -- All American Gold Corp. (OTC: AAGC) is delighted to update the public about the Company’s exciting new concept in the Beauty industry. Hollywood Star Cuts (A Family Salon) and All American Gold Corp. (AAGC) have finalized an agreement with a Franchise group based in San Diego, CA, to launch a concept that will complement the proven Hollywood Star Cuts model in exclusive areas. Hollywood Star Salons is an exciting new platform set to debut in October 2025 in Encin ...

Financial Data and Key Metrics Changes - For the third quarter, total revenue was $57 million, an increase of 15.9% or $7.8 million compared to the prior year, primarily driven by revenue from company-owned salons due to the Align acquisition [25][24] - Adjusted EBITDA grew 33% year-over-year to $7.1 million, while operating income increased by 23% to $5 million [5][28] - Cash from operations improved by $14 million year-to-date, generating $6.2 million in the third quarter, marking positive cash flow for the second consecutive quarter [6][32] Business Line Data and Key Metrics Changes - The Align Salon Group acquisition contributed positively to results, although its impact was modest in the quarter as the focus was on integration and planning [7][25] - Same store sales for the consolidated company saw a decline of 1.1%, with Supercuts reporting a 1.1% increase, while SmartStyle experienced a 7.4% decline [9][11] - The company-owned salons segment's adjusted EBITDA improved by $1.6 million year-over-year to $843,000, primarily due to the Align acquisition [31] Market Data and Key Metrics Changes - The timing of Easter negatively impacted sales by an estimated 1.1%, but April showed stronger same store sales with Supercuts increasing by 4.5% [10][11] - The company reported 49 net closures of underperforming stores, with a performance gap of approximately $350,000 between closed stores and top-performing locations [27] Company Strategy and Development Direction - The company is focused on a comprehensive transformation aimed at building a sustainable business model that prioritizes operational stability and profitability [3][4] - Key strategic priorities include optimizing the company-owned salon portfolio and executing a holistic transformation agenda for the Supercuts brand [16][18] - The company aims to enhance brand perception, unlock omnichannel growth, and scale operational excellence as part of its strategic roadmap [22][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the strategic initiatives and the positive momentum observed in early results [9][24] - The company acknowledged the need to increase traffic to salons and improve franchisee profitability to achieve growth [12][18] - Management highlighted the importance of disciplined cost management and capital allocation in navigating current challenges [12][36] Other Important Information - The company expects fiscal year 2025 to be the last year of significant closures, with a shift of approximately 300 locations from franchise to corporate salon counts due to the Align acquisition [27][28] - The company reported a decrease in general and administrative expenses as a percentage of revenue, from 22.8% to 19.6% [28] Q&A Session Summary Question: Understanding the accounting for Align - Management confirmed that while royalty fees in the franchise segment decreased, EBITDA in the company-owned segment increased [39] Question: Updates on store closings for this year - Management indicated that the anticipated closures are occurring as expected and that future closures will be at a significantly lower rate [46][48] Question: Impact of remodeled stores on same store sales - Management noted that remodeled stores have seen a modest lift of about 5% in sales, with some locations achieving over 20% sustained price increases [53][55] Question: Plans for cash allocation - Management stated that the priority is to pay down debt, maintain liquidity, and evaluate opportunities for capital deployment based on business needs [56][60]

Financial Data and Key Metrics Changes - For the third fiscal quarter, total revenue was $57 million, an increase of 15.9% or $7.8 million compared to the prior year, primarily driven by revenue from company-owned salons due to the Align acquisition [26][29] - Adjusted EBITDA grew 33% year-over-year to $7.1 million, while operating income increased by 23% to $5 million [5][29] - Cash from operations improved by $6.5 million year-over-year, totaling $6.2 million for the quarter, marking the second consecutive quarter of positive cash flow [6][33] Business Line Data and Key Metrics Changes - The Align Salon Group acquisition contributed positively to results, although its impact was modest in the quarter as the focus was on integration and planning [7][26] - Same store sales for the consolidated company saw a decline of 1.1%, with Supercuts reporting a 1.1% increase, while SmartStyle experienced a 7.4% decline [10][12] - The company-owned salons segment's adjusted EBITDA improved by $1.6 million year-over-year to $843,000, primarily due to the Align acquisition [31] Market Data and Key Metrics Changes - The company noted that the timing of Easter negatively impacted sales by approximately 1.1%, suggesting that without this effect, sales would have been roughly flat for the quarter [11] - April same store sales showed improvement, with Supercuts delivering a 4.5% increase and the entire consolidated system demonstrating a 2.8% increase compared to the previous year [11] Company Strategy and Development Direction - The company is focused on a comprehensive transformation aimed at building a more resilient and efficient business model, prioritizing operational stability and profitability [3][4] - Key strategic priorities include optimizing the sales and profitability of company-owned salons and executing a holistic transformation agenda for the Supercuts brand [17][19] - The company aims to enhance brand perception and operational excellence through a structured roadmap that includes evolving brand strategy, unlocking omnichannel growth, and scaling operational excellence [19][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the strategic initiatives being implemented, despite acknowledging the challenges of declining salon traffic and new guest visits [13][25] - The company anticipates that calendar year 2025 will be the last year of significant closures, with a focus on stabilizing and growing the business moving forward [27][29] - Management highlighted the importance of disciplined cost management and capital allocation to navigate current challenges and support future growth [14][36] Other Important Information - The company reported a net closure of 49 salons during the quarter, primarily related to underperforming locations, while also shifting approximately 300 locations from franchise to corporate salon counts due to the Align acquisition [27][28] - The company expects adjusted G&A expenses to be approximately $40.5 million for fiscal year 2025, with a run rate projected between $43 million to $45 million [32] Q&A Session Summary Question: Understanding the accounting for Align - Management confirmed that while royalty fees in the franchise segment decreased, EBITDA in the company-owned segment increased, reflecting the impact of the Align acquisition [39][40] Question: Updates on store closings for this year - Management indicated that the pace of anticipated closures is in line with previous guidance, with expectations for fewer closures in the future [46][47] Question: Impact of remodeled stores on same store sales - Management noted that remodeled stores have seen a modest lift of about 5% in same store sales, with some locations achieving over 20% sustained price increases post-remodel [53][55] Question: Plans for cash allocation - Management stated that the priority is to pay down debt, maintain liquidity, and evaluate opportunities for capital deployment based on business needs [57][63]