-Additionally, Company Acquired 115 Salons During Fiscal Third Quarter-
MINNEAPOLIS, April 16 /PRNewswire-FirstCall/ -- Regis Corporation (NYSE: RGS), the global leader in the $140 billion hair care industry, today announced the pending acquisition of Holiday Hair, a well-established chain of 153 salons located primarily in Pennsylvania. This transaction is scheduled to close April 18, 2004 and is expected to add $45 million in annualized revenue. Details regarding the anticipated earnings accretion from this acquisition will be provided in the Company's third quarter press release on Tuesday, April 20, 2004.
In addition, during the recently-completed third quarter, Regis Corporation acquired 115 salons in fourteen separate transactions representing $25 million in annualized revenue. Eighty-six of these purchased salons were franchise buybacks.
"We are proud to announce the acquisition of Holiday Hair. I know the seller, Ray Holland, and have admired his operation for over 35 years. As the leading provider of hair care services in Pennsylvania, Holiday Hair is one of the finest salon chains we have purchased," commented Paul D. Finkelstein, president and chief executive officer. "The pending acquisition of Holiday Hair combined with our acquisition activity during the third quarter provides momentum heading into fiscal year 2005."
Including the anticipated Holiday Hair acquisition, Regis Corporation completed 290 acquisitions in the past ten years adding over 7,400 salons and generating annualized revenue of nearly $1.0 billion.
On April 20, 2004, the Company will release its third quarter results and will provide an initial outlook for fiscal year 2005. A conference call discussing third quarter results will follow at 10:00 a.m., Central Time. Interested parties are invited to listen by logging on to www.regiscorp.com .
Regis Corporation, a Fortune 1000 company, is the largest owner, operator and franchisor of hair and retail product salons in the world. As of March 31, 2004, the Company operated and franchised 9,886 salons utilizing several concepts including: Supercuts, Jean Louis David, Vidal Sassoon, Regis Salons, MasterCuts, Trade Secret, SmartStyle and Cost Cutters. These salons are located in the United States, Canada, France, Italy, United Kingdom, Spain, Germany, Belgium, Switzerland, Poland and Puerto Rico.
Regis Corporation is headquartered in Minneapolis, Minnesota. The Company's common stock is traded on the New York Stock Exchange under the symbol RGS. For additional information about the Company, including a reconciliation of non-GAAP financial information and our current financial outlook, please visit the Investor Information section of the corporate website at www.regiscorp.com .
This press release contains "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include competition within the personal hair care industry, which remains strong, both domestically and internationally, and price sensitivity; changes in economic condition; changes in consumer tastes and fashion trends; labor and benefit costs; legal claims; risk inherent to international development (including currency fluctuations); the continued ability of the Company and its franchisees to obtain suitable locations and financing for new salon development; governmental initiatives such as minimum wage rates, taxes and possible franchise legislation; the ability of the Company to successfully identify and acquire salons that support its growth objectives; or other factors not listed above. The ability of the Company to meet its expected revenue growth is dependent on salon acquisitions, new salon construction and same-store sales increases, all of which are affected by many of the aforementioned risks. Additional information concerning potential factors that could affect future financial results is set forth in the Company's Annual Report on Form 10-K for the year ended June 30, 2003 and included in Form S-3 Registration Statement filed with the Securities and Exchange Commission on January 31, 2003. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.
SOURCE Regis Corporation
/CONTACT: Investors, Paul D. Finkelstein, President, CEO, or Randy L.
Pearce, Executive Vice President, CFO, or Kyle P. Didier, Vice President,
Finance, all of Regis Corporation, +1-952-947-7000; or Media, Melissa Jaffin
or Michael McMullan, both of Berns Communications Group, +1-212-994-4660/
