Regis (US:RGS)2024-11-06 18:36Financial Data and Key Metrics Changes - Total first quarter revenues were $46.1 million, a decline of $7.3 million from the prior year, primarily due to a reduction in franchise rental income and advertising fund revenue [30] - Same-store sales in Q1 decreased by 1.1% compared to the prior year's quarter [5][31] - Adjusted EBITDA for the quarter was $7.6 million, down from $8.1 million a year ago, with adjusted EBITDA margins expanding by two percentage points to 40% [5][37] - Adjusted earnings per share for the quarter was $0.93, compared to $0.71 in the prior year, while reported GAAP earnings per share was a loss of $0.36, down from earnings of $0.51 in the prior year [6] Business Line Data and Key Metrics Changes - Core franchise business achieved adjusted EBITDA of $8 million, a decrease of $600,000 compared to the prior year [39] - Company-owned segment reported a loss of $300,000 for the quarter, an improvement of $200,000 from the same quarter last year [39] Market Data and Key Metrics Changes - The company closed a net 41 franchise locations and eight company-owned locations in the first quarter [31] - The average trailing 12-month sales volume of closed franchise locations was $140,000, compared to a top quartile salon average of $460,000, indicating significant performance gaps [31] Company Strategy and Development Direction - The company is focused on increasing operational rigor and optimizing its digital platform to drive traffic back to salons and improve franchisee sales and profitability [9][18] - A brand excellence standards initiative has been launched to enhance the guest experience across salons, with a focus on uniformity in service and salon upkeep [10][12] - The company is implementing a loyalty program and has completed the rollout of the Zenoti point-of-sale system to enhance digital engagement with guests [19][24] Management's Comments on Operating Environment and Future Outlook - Management believes the current initiatives are critical for long-term success and is optimistic about the potential for adjusted EBITDA growth in fiscal 2025 despite ongoing challenges [29] - The company anticipates that the pace of salon closures will slow in the coming years, with 2025 expected to be the last year of significant closures [33] Other Important Information - The company reported a GAAP operating income of $2.1 million in the first quarter, down from $7.4 million in the prior year, driven by lower core business revenue and increased G&A expenses [34] - As of September 30, the company had $21.9 million of available liquidity, including $15.7 million of revolver capacity and $6.3 million of cash [42] Q&A Session Summary - No specific questions or answers were provided in the transcript regarding the Q&A session [45]