Regis Corporation Reports Record First Quarter Results |
- First Quarter Diluted Earnings Per Share Increases 16 Percent to $0.36 Meeting Expectations -Same-Store Sales Grow 3.2 Percent for First Quarter Fiscal 2002
MINNEAPOLIS, MN, October 22, 2001 -- Regis Corporation (Nasdaq:RGIS) the global leader in the $90 billion hair care industry, today reported record financial results for its fiscal first quarter ended September 30, 2001. Quarterly Highlights
The following are highlights for the fiscal first quarter ended September 30, 2001:
- Net income increases 21 percent to $15.4 million, or $0.36 per diluted share – meeting expectations
- System-wide sales and revenues grow 13 percent
- Same-store sales increase 3.2 percent for the quarter
- Operating income grows 17 percent to $30.2 million
- EBITDA increases 7 percent to $44 million
- Regis acquires and builds nearly 700 salons, bringing total system-wide salons to 7,284 worldwide
- Regis expands international presence through acquisition of French franchisor
Financial Summary (In thousands, except per share amounts)
|
|
|
|
|
Three Months ended September 30 |
|
2001 |
2000 |
% Change |
System-wide sales |
$513,186 |
$445,521 |
12.7% |
Total revenues |
349,668 |
310,754 |
12.5 |
Operating income |
30,152 |
25,761 |
17.0 |
Net income |
15,356 |
12,715 |
20.8 |
EPS |
0.36 |
0.31 |
16.1 |
EBITDA |
43,964 |
41,008 |
7.2 |
"In light of recent tragic events and a challenging retail environment, we are extremely pleased to report record first quarter results. Revenue and earnings growth of 13 and 16 percent, respectively, met expectations. In addition, the first quarter and September same-store sales increases continue to reflect the replenishment nature of our business," commented Paul D. Finkelstein, President and Chief Executive Officer. "EBITDA growth also met our expectations for the quarter increasing to $44 million. We continue to expect EBITDA for all of fiscal year 2002 to increase to nearly $190 million."
"Our first quarter expansion plans were also on target. We opened 141 newly constructed corporate and franchised salons while adding another 553 salons through acquisitions, bringing our total worldwide salon count to nearly 7,300. We should finish the year with over 7,700 salons," continued Mr. Finkelstein. "We continue to remain comfortable with current fiscal year earnings expectations of $1.53 per share, which includes the recent change in accounting for goodwill as discussed in our June 4, 2001 press release."
"Finally, we are extremely pleased to announce the acquisition of 523 franchised salons operating in France," continued Mr. Finkelstein. "This acquisition provides us with the platform to expand our presence internationally through franchising, which is a low risk, higher margin growth strategy that requires little capital. While our near-term strategy is to continue to focus on domestic expansion, our long-term strategy has always included international growth. We feel that this was the right opportunity for us to obtain the critical mass and experienced senior management team necessary to successfully franchise internationally. In addition to providing us with significant long-term expansion opportunities abroad, the acquisition is immediately accretive to earnings by $0.01 per share on an annual basis."
Regis Corporation will broadcast its conference call live over the Internet on Monday, October 22, 2001 at 11:00 a.m., Eastern Daylight Time. Interested parties are invited to listen by logging on to www.regiscorp.com.
Regis Corporation, based in Minneapolis, is the largest owner, operator, franchisor and acquirer of hair and retail product salons in the world. Regis operates and franchises 7,284 salons (4,546 company-owned and 2,738 franchise) in six divisions: Regis Salons, Strip Center Salons (primarily Supercuts and Cost Cutters), MasterCuts, Trade Secret, SmartStyle Family Hair Salons, and International, and has 41,000 employees worldwide.
Headquartered in Minneapolis, Minnesota, Regis Corporation's common stock is traded on NASDAQ under the symbol RGIS. For more information about the company, visit our 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 press release reflect management's best judgement 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. Additional information concerning potential factors that could affect future financial results is included in the Company's Form S-3 Registration Statement filed with the Securities and Exchange Commission on March 15, 2001.
REGIS CORPORATION (Nasdaq: RGIS) Divisional Salon Counts and Revenues
|
|
|
|
September 30, 2001 |
June 30, 2001 |
SYSTEM-WIDE SALONS: |
|
Company-owned Salons |
4,546 |
4,451 |
Franchise Salons |
2,738 |
2,230 |
Total Salons |
7,284 |
6,681 |
|
Divisional Salons |
|
Regis Salons |
988 |
981 |
Mastercuts |
533 |
523 |
Trade Secret |
Company Owned |
484 |
478 |
Franchise |
25 |
25 |
SmartStyle |
Company Owned |
772 |
722 |
Franchise |
190 |
194 |
Strip Center (primarily Supercuts/Cost Cutters) |
Company Owned |
1,400 |
1,383 |
Franchise |
2,006 |
2,011 |
International |
Company Owned |
369 |
364 |
Franchise |
517 |
|
|
|
|
|
3 Months ended 9/30 |
|
2001 |
2000 |
Company-owned Divisional Revenue: |
|
|
Regis Salons |
$102,852 |
$96,327 |
Mastercuts |
40,895 |
38,398 |
Trade Secret |
47,072 |
44,948 |
SmartStyle/Wal-Mart |
40,175 |
28,162 |
Strip Center (primarily Supercuts/Cost Cutters |
79,591 |
65,917 |
International |
23,606 |
23,552 |
Franchise Revenue |
15,477 |
13,450 |
|
$349,668 |
$310,754 |
REGIS CORPORATION (Nasdaq:RGIS) Consolidated Balance Sheet (In thousands, except per share amounts)
|
|
|
|
(Unaudited) |
ASSETS: |
September 30, 2001 |
June 30, 2001 |
Current assets |
|
|
Cash |
$34,257 |
$24,658 |
Receivables, net |
20,888 |
18,861 |
Inventories |
111,554 |
110,247 |
Deferred income taxes |
9,419 |
10,087 |
Other current assets |
4,491 |
8,794 |
|
Total current assets |
180,609 |
172,647 |
|
Property and equipment, net |
308,990 |
300,990 |
Goodwill |
253,445 |
246,144 |
Other assets |
30,622 |
16,724 |
|
Total assets |
$773,666 |
$736,505 | LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
Current liabilities: |
Long-term debt, current portion |
$6,047 |
$5,438 |
Accounts payable |
43,126 |
37,689 |
Accrued expenses |
67,614 |
68,788 |
Total current liabilities |
116,787 |
111,915 |
Long-term debt |
267,226 |
256,120 |
Other noncurrent liabilities |
33,998 |
28,969 |
Shareholders' equity: |
|
|
Common stock, $.05 par value; |
|
|
issued & outstanding, 42,379,601 and 41,726,787 common shares at 3/31/2002 and 6/30/2002, respectively |
2,096 |
2,087 |
Additional paid-in capital |
169,602 |
165,489 |
Accumulated other comprehensive loss |
(6,891) |
(4,815) |
Retained earnings |
190,848 |
176,740 |
Total shareholders' equity |
355,655 |
339,501 |
Total liabilities and shareholders' equity |
$773,666 |
$736,505 |
REGIS CORPORATION (Nasdaq:RGIS) Consolidated Statement of Operations (In thousands, except per share amounts and salon data)
|
|
|
|
Unaudited |
|
3 Months ended 9/30 |
|
2001 |
2000 |
SYSTEM-WIDE SALES |
$513,186 |
$455,521 |
Renevues: |
Company-owned salons: |
Service |
$233,619 |
$209,896 |
Product |
100,572 |
87,408 |
|
334,191 |
297,304 |
Franchise Revenue: |
Royalties and fees |
10,177 |
9,478 |
Product sales |
5,300 |
3,972 |
|
15,477 |
13,450 |
|
Total revenues |
349,668 |
310,754 |
|
Operating expenses: |
Company-owned |
Cost of service |
132,592 |
120,163 |
Cost of product |
53,260 |
47,309 |
Direct salon |
31,186 |
26,072 |
Rent |
47,180 |
41,337 |
Depreciation |
11,307 |
9,834 |
|
275,525 |
244,715 |
|
Selling, general and administrative |
37,641 |
32,280 |
Depreciation and amortization |
2,429 |
5,063 |
Other (primarily franchise product costs) |
3,921 |
2,935 |
|
Total operating expenses |
319,516 |
284,993 |
|
Operating income |
30,152 |
25,761 |
|
Other income (expense): |
Interest |
(4,782) |
(5,095) |
Other, net |
75 |
350 |
|
Income before income taxes |
25,445 |
21,016 |
|
Income Taxes |
(10,089) |
(8,301) |
|
Net income |
$15,356 |
$12,715 |
|
Net income per share: |
Basic |
$.37 |
$.31 |
Diluted |
$.36 |
$.31 |
|
Weighted average common & common equivalent shares outstanding: |
Basic |
41,741 |
40,721 |
Diluted |
42,906 |
41,465 |
|
Contact: Regis Corporation Paul D. Finkelstein – President, CEO Randy L. Pearce – Executive Vice President, CFO Kyle P. Didier – Vice President, Finance (952) 947-7000
Morgen-Walke Associates: Investors: Theresa Vogt/Priya Akhoury Contact: Laura Novak (212) 850-5600 | Regis Corporation Reports Record First Quarter Results
- First Quarter Diluted Earnings Per Share Increases 16 Percent to $0.36 Meeting Expectations -Same-Store Sales Grow 3.2 Percent for First Quarter Fiscal 2002
MINNEAPOLIS, MN, October 22, 2001 -- Regis Corporation (Nasdaq:RGIS) the global leader in the $90 billion hair care industry, today reported record financial results for its fiscal first quarter ended September 30, 2001. Quarterly Highlights
The following are highlights for the fiscal first quarter ended September 30, 2001:
- Net income increases 21 percent to $15.4 million, or $0.36 per diluted share – meeting expectations
- System-wide sales and revenues grow 13 percent
- Same-store sales increase 3.2 percent for the quarter
- Operating income grows 17 percent to $30.2 million
- EBITDA increases 7 percent to $44 million
- Regis acquires and builds nearly 700 salons, bringing total system-wide salons to 7,284 worldwide
- Regis expands international presence through acquisition of French franchisor
Financial Summary (In thousands, except per share amounts)
|
|
|
|
|
Three Months ended September 30 |
|
2001 |
2000 |
% Change |
System-wide sales |
$513,186 |
$445,521 |
12.7% |
Total revenues |
349,668 |
310,754 |
12.5 |
Operating income |
30,152 |
25,761 |
17.0 |
Net income |
15,356 |
12,715 |
20.8 |
EPS |
0.36 |
0.31 |
16.1 |
EBITDA |
43,964 |
41,008 |
7.2 |
"In light of recent tragic events and a challenging retail environment, we are extremely pleased to report record first quarter results. Revenue and earnings growth of 13 and 16 percent, respectively, met expectations. In addition, the first quarter and September same-store sales increases continue to reflect the replenishment nature of our business," commented Paul D. Finkelstein, President and Chief Executive Officer. "EBITDA growth also met our expectations for the quarter increasing to $44 million. We continue to expect EBITDA for all of fiscal year 2002 to increase to nearly $190 million."
"Our first quarter expansion plans were also on target. We opened 141 newly constructed corporate and franchised salons while adding another 553 salons through acquisitions, bringing our total worldwide salon count to nearly 7,300. We should finish the year with over 7,700 salons," continued Mr. Finkelstein. "We continue to remain comfortable with current fiscal year earnings expectations of $1.53 per share, which includes the recent change in accounting for goodwill as discussed in our June 4, 2001 press release."
"Finally, we are extremely pleased to announce the acquisition of 523 franchised salons operating in France," continued Mr. Finkelstein. "This acquisition provides us with the platform to expand our presence internationally through franchising, which is a low risk, higher margin growth strategy that requires little capital. While our near-term strategy is to continue to focus on domestic expansion, our long-term strategy has always included international growth. We feel that this was the right opportunity for us to obtain the critical mass and experienced senior management team necessary to successfully franchise internationally. In addition to providing us with significant long-term expansion opportunities abroad, the acquisition is immediately accretive to earnings by $0.01 per share on an annual basis."
Regis Corporation will broadcast its conference call live over the Internet on Monday, October 22, 2001 at 11:00 a.m., Eastern Daylight Time. Interested parties are invited to listen by logging on to www.regiscorp.com.
Regis Corporation, based in Minneapolis, is the largest owner, operator, franchisor and acquirer of hair and retail product salons in the world. Regis operates and franchises 7,284 salons (4,546 company-owned and 2,738 franchise) in six divisions: Regis Salons, Strip Center Salons (primarily Supercuts and Cost Cutters), MasterCuts, Trade Secret, SmartStyle Family Hair Salons, and International, and has 41,000 employees worldwide.
Headquartered in Minneapolis, Minnesota, Regis Corporation's common stock is traded on NASDAQ under the symbol RGIS. For more information about the company, visit our 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 press release reflect management's best judgement 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. Additional information concerning potential factors that could affect future financial results is included in the Company's Form S-3 Registration Statement filed with the Securities and Exchange Commission on March 15, 2001.
REGIS CORPORATION (Nasdaq: RGIS) Divisional Salon Counts and Revenues
|
|
|
|
September 30, 2001 |
June 30, 2001 |
SYSTEM-WIDE SALONS: |
|
Company-owned Salons |
4,546 |
4,451 |
Franchise Salons |
2,738 |
2,230 |
Total Salons |
7,284 |
6,681 |
|
Divisional Salons |
|
Regis Salons |
988 |
981 |
Mastercuts |
533 |
523 |
Trade Secret |
Company Owned |
484 |
478 |
Franchise |
25 |
25 |
SmartStyle |
Company Owned |
772 |
722 |
Franchise |
190 |
194 |
Strip Center (primarily Supercuts/Cost Cutters) |
Company Owned |
1,400 |
1,383 |
Franchise |
2,006 |
2,011 |
International |
Company Owned |
369 |
364 |
Franchise |
517 |
|
|
|
|
|
3 Months ended 9/30 |
|
2001 |
2000 |
Company-owned Divisional Revenue: |
|
|
Regis Salons |
$102,852 |
$96,327 |
Mastercuts |
40,895 |
38,398 |
Trade Secret |
47,072 |
44,948 |
SmartStyle/Wal-Mart |
40,175 |
28,162 |
Strip Center (primarily Supercuts/Cost Cutters |
79,591 |
65,917 |
International |
23,606 |
23,552 |
Franchise Revenue |
15,477 |
13,450 |
|
$349,668 |
$310,754 |
REGIS CORPORATION (Nasdaq:RGIS) Consolidated Balance Sheet (In thousands, except per share amounts)
|
|
|
|
(Unaudited) |
ASSETS: |
September 30, 2001 |
June 30, 2001 |
Current assets |
|
|
Cash |
$34,257 |
$24,658 |
Receivables, net |
20,888 |
18,861 |
Inventories |
111,554 |
110,247 |
Deferred income taxes |
9,419 |
10,087 |
Other current assets |
4,491 |
8,794 |
|
Total current assets |
180,609 |
172,647 |
|
Property and equipment, net |
308,990 |
300,990 |
Goodwill |
253,445 |
246,144 |
Other assets |
30,622 |
16,724 |
|
Total assets |
$773,666 |
$736,505 | LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
Current liabilities: |
Long-term debt, current portion |
$6,047 |
$5,438 |
Accounts payable |
43,126 |
37,689 |
Accrued expenses |
67,614 |
68,788 |
Total current liabilities |
116,787 |
111,915 |
Long-term debt |
267,226 |
256,120 |
Other noncurrent liabilities |
33,998 |
28,969 |
Shareholders' equity: |
|
|
Common stock, $.05 par value; |
|
|
issued & outstanding, 42,379,601 and 41,726,787 common shares at 3/31/2002 and 6/30/2002, respectively |
2,096 |
2,087 |
Additional paid-in capital |
169,602 |
165,489 |
Accumulated other comprehensive loss |
(6,891) |
(4,815) |
Retained earnings |
190,848 |
176,740 |
Total shareholders' equity |
355,655 |
339,501 |
Total liabilities and shareholders' equity |
$773,666 |
$736,505 |
REGIS CORPORATION (Nasdaq:RGIS) Consolidated Statement of Operations (In thousands, except per share amounts and salon data)
|
|
|
|
Unaudited |
|
3 Months ended 9/30 |
|
2001 |
2000 |
SYSTEM-WIDE SALES |
$513,186 |
$455,521 |
Renevues: |
Company-owned salons: |
Service |
$233,619 |
$209,896 |
Product |
100,572 |
87,408 |
|
334,191 |
297,304 |
Franchise Revenue: |
Royalties and fees |
10,177 |
9,478 |
Product sales |
5,300 |
3,972 |
|
15,477 |
13,450 |
|
Total revenues |
349,668 |
310,754 |
|
Operating expenses: |
Company-owned |
Cost of service |
132,592 |
120,163 |
Cost of product |
53,260 |
47,309 |
Direct salon |
31,186 |
26,072 |
Rent |
47,180 |
41,337 |
Depreciation |
11,307 |
9,834 |
|
275,525 |
244,715 |
|
Selling, general and administrative |
37,641 |
32,280 |
Depreciation and amortization |
2,429 |
5,063 |
Other (primarily franchise product costs) |
3,921 |
2,935 |
|
Total operating expenses |
319,516 |
284,993 |
|
Operating income |
30,152 |
25,761 |
|
Other income (expense): |
Interest |
(4,782) |
(5,095) |
Other, net |
75 |
350 |
|
Income before income taxes |
25,445 |
21,016 |
|
Income Taxes |
(10,089) |
(8,301) |
|
Net income |
$15,356 |
$12,715 |
|
Net income per share: |
Basic |
$.37 |
$.31 |
Diluted |
$.36 |
$.31 |
|
Weighted average common & common equivalent shares outstanding: |
Basic |
41,741 |
40,721 |
Diluted |
42,906 |
41,465 |
|
Contact: Regis Corporation Paul D. Finkelstein – President, CEO Randy L. Pearce – Executive Vice President, CFO Kyle P. Didier – Vice President, Finance (952) 947-7000
Morgen-Walke Associates: Investors: Theresa Vogt/Priya Akhoury Contact: Laura Novak (212) 850-5600 | |
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