Regis Reports First Quarter 2010 Results
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http://www.businesswire.com/news/home/20091029005262/en
-First Quarter Operational Earnings of $0.30 per Share-
MINNEAPOLIS--(Business Wire)--
Regis Corporation (NYSE:RGS), the global leader in the $170 billion hair care
industry, today reported financial results for its first fiscal quarter ended
September 30, 2009. First quarter reported earnings of $0.14 per diluted share
included three non-operational items which, as discussed immediately below,
reduced reported earnings per diluted share by $0.16 on a net overall basis.
Absent these non-operational items, the Company`s first quarter operational
earnings were $0.30 per diluted share.
The Company previously announced on August 20, 2009, that it would incur
non-operational charges in the first quarter related to the pre-payment of debt
and the undertaking of a store closing initiative in the U.K. The total pre-tax
expense for these two non-operational items was $21.6 million. In addition, the
Company recorded within discontinued operations after-tax income of $3.2 million
primarily related to additional tax benefit from the sale of the Trade Secret
business. The reconciliation of reported earnings to operational earnings is
included in today`s press release, and a more comprehensive reconciliation is
available on the Company`s website at www.regiscorp.com.
On October 8, 2009, the Company reported first quarter consolidated total
same-store sales declined 4.5 percent. Reported revenues for the first quarter
ended September 30, 2009 decreased 1.3 percent to $606 million compared to $614
million in the first quarter of fiscal 2009.
"First quarter same-store sales were slightly ahead of plan but remained
challenging due to overall macro level economic conditions which have impacted
our customer visitation patterns. However, we are very pleased with our first
quarter operating results due to our continued focus on expense control. In
fact, if you adjust last year`s results for the impact of our recent equity and
convertible note issuance, our operational earnings per share in the quarter
were flat compared to last year," commented Paul D. Finkelstein, Chairman and
Chief Executive Officer. "Additionally, our operational earnings included $0.03
per share related to the pending settlement of two legal claims. Although the
cost of these settlements is appropriately included in our operational earnings
of $0.30 per share, one could certainly add these back when looking at our first
quarter operating performance."
Mr. Finkelstein concluded, "Our first quarter results demonstrate the strength
of our business model. We are in the quintessential replenishment business
offering an affordable necessity, and even in these tough economic times our
operations are extremely profitable. With greater consumer frugality, our focus
on value based concepts is the appropriate strategy. We continue to be bullish
about the long range prospects of our Company."
Regis Corporation will host a conference call discussing first quarter results
today, October 29, 2009 at 3 p.m., Central time. Interested parties are invited
to listen by logging on to www.regiscorp.com or dialing 877-941-2333. A replay
of the call will be available later that day. The replay phone number is
800-406-7325, access code 4162580#.
About Regis Corporation
Regis Corporation (NYSE:RGS) is the beauty industry`s global leader in beauty
salons, hair restoration centers and cosmetology education. As of September 30,
2009, the Company owned, franchised or held ownership interests in 12,900
worldwide locations. Regis` corporate and franchised locations operate under
concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle,
Cost Cutters, Cool Cuts 4 Kids and Hair Club for Men and Women. In addition,
Regis maintains an ownership interest in Provalliance, which operates salons
primarily in Europe, under the brands of Jean Louis David, Franck Provost and
Saint Algue. Regis also maintains ownership interests in Empire Education Group
in the U.S. and the MY Style concepts in Japan. System-wide, these and other
concepts are located in the U.S. and in over 30 other countries in North
America, South America, Europe, Africa and Asia. Regis also maintains a 49
percent ownership interest in Intelligent Nutrients, a business that provides a
wide variety of certified organic products for health and beauty. For additional
information about the company, including a reconciliation of non-GAAP financial
information and certain supplemental financial information, please visit the
Investor Information section of the corporate website at www.regiscorp.com. To
join Regis Corporation`s email alert list, click on this link:
http://www.b2i.us/irpass.asp?BzID=913&to=ea&Nav=1&S=0&L=1
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; price
sensitivity; changes in economic conditions, and in particular, continued
weakness in the U.S. and global economies; changes in consumer tastes and
fashion trends; the ability of the Company to implement its planned spending and
cost reduction plan and to continue to maintain compliance with the financial
covenants in its credit agreements; 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 and to maintain satisfactory
relationships with landlords and other licensors with respect to existing
locations; governmental initiatives such as minimum wage rates, taxes and
possible franchise legislation; the ability of the Company to successfully
identify, acquire and integrate salons that support its growth objectives; the
ability of the Company to maintain satisfactory relationships with suppliers;
the ability of the Company to consummate the planned closure of salons and the
related realization of the anticipated costs, benefits and time frame; or other
factors not listed above.The ability of the Company to meet its expected revenue
target 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, 2009. 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.
REGIS CORPORATION (NYSE: RGS)
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
as of September 30, 2009 and June 30, 2009
(In thousands, except per share data)
September 30, 2009 June 30, 2009
ASSETS
Current assets:
Cash and cash equivalents $ 100,629 $ 42,538
Receivables, net 60,107 44,935
Inventories 163,146 158,570
Deferred income taxes 24,888 22,086
Income tax receivable 38,427 47,164
Other current assets 36,106 37,693
Total current assets 423,303 352,986
Property and equipment, net 382,664 391,538
Goodwill 768,511 764,422
Other intangibles, net 125,250 126,961
Investment in and loans to affiliates 202,868 211,400
Other assets 52,877 45,179
Total assets $ 1,955,473 $ 1,892,486
LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities:
Long-term debt, current portion $ 50,017 $ 55,454
Accounts payable 79,808 62,394
Accrued expenses 154,116 156,638
Total current liabilities 283,941 274,486
Commitments and contingencies
Long-term debt and capital lease obligations 427,529 578,853
Other noncurrent liabilities 246,134 236,287
Total liabilities 957,604 1,089,626
Shareholders` equity:
Common stock, $0.05 par value; issued and outstanding 57,105,604 and 43,881,364 common shares at September 30, 2009 and June 30, 2009, respectively 2,855 2,194
Additional paid-in capital 324,872 151,394
Accumulated other comprehensive income 67,242 51,855
Retained earnings 602,900 597,417
Total shareholders` equity 997,869 802,860
Total liabilities and shareholders` equity $ 1,955,473 $ 1,892,486
REGIS CORPORATION (NYSE: RGS)
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended
September 30,
2009 2008
Revenues:
Service $ 449,278 $ 469,035
Product 126,191 134,183
Product sold to Premier (1) 19,962 -
Royalties and fees 10,119 10,311
605,550 613,529
Operating expenses:
Cost of service 255,969 267,077
Cost of product 59,533 65,619
Cost of product sold to Premier (1) 19,962 -
Site operating expenses 52,676 48,402
General and administrative 72,560 77,764
Rent 85,825 92,211
Depreciation and amortization 27,191 27,268
Lease termination costs 3,577 1,151
Total operating expenses 577,293 579,492
Operating income 28,257 34,037
Other income (expense):
Interest expense (27,316 ) (10,220 )
Interest income and other, net 2,232 1,735
Income from continuing operations before income taxes and equity in
income of affiliated companies 3,173 25,552
Income taxes (1,619 ) (9,958 )
Equity in income of affiliated companies, net of income taxes 3,057 492
Income from continuing operations 4,611 16,086
Income (loss) from discontinued operations, net of taxes 3,161 (1,600 )
Net income $ 7,772 $ 14,486
Net income (loss) per share:
Basic:
Income from continuing operations 0.09 0.38
Income (loss) from discontinued operations 0.06 (0.04 )
Net income per share, basic $ 0.14 (2 ) $ 0.34
Diluted:
Income from continuing operations 0.09 0.37
Income (loss) from discontinued operations 0.06 (0.04 )
Net income per share, diluted $ 0.14 (2 ) $ 0.34 (2 )
Weighted average common and common equivalent shares outstanding:
Basic 54,143 42,787
Diluted 54,184 43,107
Cash dividends declared per common share $ 0.04 $ 0.04
(1) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from
Regis Corporation on February 16, 2009. The agreement included a provision that
Regis Corporation will supply product to Premier at cost for a transition period
of approximately six months following the date of the sale, with possible
extension to not more than eleven months.
(2) Total is a recalculation; line items calculated individually do not sum to
total.
REGIS CORPORATION (NYSE: RGS)
SELECTED CASH FLOW DATA
(In thousands)
Three Months Ended
September 30,
2009 2008
Net cash provided by operating activities $ 38,524 $ 27,803
Net cash provided by (used in) investing activities 2,007 (60,923 )
Net cash provided by financing activities 12,593 35,072
Effect of exchange rate changes on cash and cash equivalents 4,967 (4,313 )
Increase (decrease) in cash and cash equivalents 58,091 (2,361 )
Cash and cash equivalents:
Beginning of year 42,538 127,627
End of year $ 100,629 $ ,8 125,266
REGIS CORPORATION (NYSE: RGS)
Salon / Hair Restoration Center Counts and Revenues
SYSTEM-WIDE LOCATIONS: September 30, June 30,
2009
2009
Company-owned salons 7,982 7,981
Franchise salons 2,050 2,045
Company-owned hair restoration centers 62 62
Franchise hair restoration centers 33 33
Ownership interest locations 2,730 2,804
Total, system-wide 12,857 12,925
SALON LOCATION SUMMARY
NORTH AMERICAN SALONS: September 30, June 30,
2009
2009
REGIS SALONS
Open at beginning of period 1,071 1,078
Salons constructed 5 20
Acquired 2 23
Less relocations (5 ) (14 )
Salon openings 2 29
Conversions - -
Salons closed (7 ) (36 )
Total, Regis Salons 1,066 1,071
MASTERCUTS
Open at beginning of period 602 615
Salons constructed 6 14
Acquired - -
Less relocations (2 ) (10 )
Salon openings 4 4
Conversions - -
Salons closed - (17 )
Total, MasterCuts Salons 606 602
TRADE SECRET
Company-owned salons:
Open at beginning of period - 674
Salons constructed - 10
Acquired - -
Franchise buybacks - -
Less relocations - (4 )
Salon openings - 6
Conversions - -
Salons sold - (655 )
Salons closed - (25 )
Total company-owned salons - -
September 30, June 30,
2009
2009
Franchise salons:
Open at beginning of period - 106
Salons constructed - 1
Acquired - -
Less relocations - -
Salon openings - 1
Franchise buybacks - -
Interdivisional reclassification (3) - (43 )
Salons sold - (57 )
Salons closed - (7 )
Total franchise salons - -
Total, Trade Secret Salons - -
SMARTSTYLE/COST CUTTERS IN WAL-MART
Company-owned salons:
Open at beginning of period 2,300 2,212
Salons constructed 38 71
Acquired - -
Franchise buybacks - 24
Less relocations (3 ) (2 )
Salon openings 35 93
Conversions - -
Salons closed (3 ) (5 )
Total company-owned salons 2,332 2,300
Franchise salons:
Open at beginning of period 122 146
Salons constructed 2 1
Acquired - -
Less relocations - -
Salon openings 2 1
Conversions - -
Franchise buybacks - (24 )
Salons closed - (1 )
Total franchise salons 124 122
Total, SmartStyle/Cost Cutters in Wal-Mart Salons 2,456 2,422
SUPERCUTS
Company-owned salons:
Open at beginning of period 1,114 1,132
Salons constructed 2 27
Acquired - -
Franchise buybacks 1 6
Less relocations - (2 )
Salon openings 3 31
Conversions - (2 )
Salons closed (7 ) (47 )
Total company-owned salons 1,110 1,114
September 30, June 30,
2009
2009
Franchise salons:
Open at beginning of period 1,022 997
Salons constructed 13 51
Acquired (2) - -
Less relocations (1 ) (7 )
Salon openings 12 44
Conversions 1 1
Franchise buybacks (1 ) (6 )
Salons closed (5 ) (14 )
Total franchise salons 1,029 1,022
Total, Supercuts Salons 2,139 2,136
PROMENADE
Company-owned salons:
Open at beginning of period 2,450 2,399
Salons constructed 6 36
Acquired - 71
Franchise buybacks 3 53
Less relocations (4 ) (16 )
Salon openings 5 144
Conversions - 1
Salons closed (18 ) (94 )
Total company-owned salons 2,437 2,450
Franchise salons:
Open at beginning of period 901 914
Salons constructed 10 40
Acquired - -
Less relocations (2 ) (7 )
Salon openings 8 33
Conversions (1 ) -
Franchise buybacks (3 ) (53 )
Interdivisional reclassification (3) - 43
Salons closed (8 ) (36 )
Total franchise salons 897 901
Total, Promenade 3,334 3,351
INTERNATIONAL SALONS (1)
Company-owned salons:
Open at beginning of period 444 472
Salons constructed - 4
Acquired - -
Franchise buybacks - -
Less relocations - (1 )
Salon openings - 3
Conversions - -
Salons closed (13 ) (31 )
Total, International salons 431 444
TOTAL SYSTEM-WIDE SALONS: September 30, June 30,
2009
2009
Company-owned salons:
Open at beginning of period 7,981 8,582
Salons constructed 57 182
Acquired 2 94
Franchise buybacks 4 83
Less relocations (14 ) (49 )
Salon openings 49 310
Conversions - (1 )
Salons sold - (655 )
Salons closed (48 ) (255 )
Total company-owned salons 7,982 7,981
Franchise salons:
Open at beginning of period 2,045 2,163
Salons constructed 25 93
Acquired (2) - -
Less relocations (3 ) (14 )
Salon openings 22 79
Conversions - 1
Franchise buybacks (4 ) (83 )
Salons sold - (57 )
Salons closed (13 ) (58 )
Total franchise salons 2,050 2,045
Total Salons 10,032 10,026
HAIR RESTORATION CENTERS:
Company-owned hair restoration centers:
Open at beginning of period 62 57
Salons constructed 2 8
Acquired - -
Franchise buybacks - 2
Less relocations (2 ) (5 )
Salon openings - 5
Conversions - -
Sites closed - -
Total company-owned hair restoration centers 62 62
September 30, June 30,
2009
2009
Franchise hair restoration centers:
Open at beginning of period 33 35
Salons constructed - -
Acquired - -
Less relocations - -
Salon openings - -
Franchise buybacks - (2 )
Sites closed - -
Total franchise hair restoration centers 33 33
Total Hair Restoration Centers 95 95
Ownership interest locations 2,730 2,804
Grand Total, System-wide 12,857 12,925
(1) Canadian and Puerto Rican salons are included in the Regis Salons, MasterCuts, Supercuts and Promenade concepts and not included in the International salon totals.
(2) Represents primarily the acquisition of franchise networks.
(3) On February 16, 2009 the Company announced the completion of the sale of Trade Secret retail product division to Premier Salons Beauty, Inc. As a result of this transaction, the Company reported the Trade Secret operations as discontinued operations for all periods presented. Forty-three franchise salons were not included in the sale of Trade Secret to Premier Salons Beauty, Inc. and are not reported as discontinued operations. These franchise salons are now included in Promenade.
Relocations represent a transfer of location by the same salon concept.
Conversions represent the transfer of one salon concept to another concept.
REVENUES BY CONCEPT:
Three Months Ended
September 30,
(Dollars in thousands) 2009 2008
North American salons:
Regis $ 110,601 $ 122,322
MasterCuts 41,092 43,431
SmartStyle (1) 131,274 131,256
Supercuts (1) 79,070 78,271
Promenade (1)(4) 169,741 154,654
Total North American salons (3) 531,778 529,934
International salons 38,799 48,448
Hair restoration centers (1) 34,973 35,147
Consolidated revenues $ 605,550 $ 613,529
Percent change from prior year (1.3 )% 1.0 %
Same-store sales decrease (2) (4.5 )% (0.1 )%
(1) Includes aggregate franchise royalties and fees of $10.1 and $10.3 million for the three months ended September 30, 2009 and 2008, respectively. North American salon franchise royalties and fees represented 93.8 percent of total franchise revenues in the three months ended September 30, 2009 and 2008, respectively.
(2) Salon same-store sales are calculated on a daily basis as the total change in sales for company-owned salons which were open on a specific day of the week during the current period and the corresponding prior period. Quarterly and year-to-date salon same-store sales are the sum of the same-store sales computed on a daily basis. Relocated salons are included in same-store sales as they are considered to have been open in the prior period. International same-store sales are calculated in local currencies
so that foreign currency fluctuations do not impact the calculation. Management believes that same-store sales, a component of organic growth, are useful in order to help determine the increase in salon revenues attributable to its organic growth (new salon construction and same-store sales growth) versus growth from acquisitions.
(3) Beginning with the period ended December 31, 2008, the operations of Trade Secret concept within the North American reportable segment were accounted for as a discontinued operation. All periods presented reflect Trade Secret as a discontinued operation. Accordingly, Trade Secret revenues are excluded from this presentation.
(4) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis Corporation on February 16, 2009. The agreement included a provision that Regis Corporation will supply product to Premier at cost for a transition period of approximately six months following the date of the sale, with possible extension to not more than eleven months. For the three ended September 30, 2009, the Company generated revenue of $20.0 million, respectively, in product sold to Premier, which represented 3.3 percent
of consolidated revenues, respectively.
FINANCIAL INFORMATION BY SEGMENT:
Financial information concerning the Company`s salon, school and hair
restoration businesses is shown in the following tables.
For the Three Months Ended September 30, 2009 (1)
Hair
Salons Restoration Unallocated
(Dollars in thousands) North America International Centers Corporate Consolidated
Revenues:
Service $ 405,141 $ 28,193 $ 15,944 $ - $ 449,278
Product 97,188 10,606 18,397 - 126,191
Product sold to Premier (2) 19,962 - - - 19,962
Royalties and fees 9,487 - 632 - 10,119
531,778 38,799 34,973 - 605,550
Operating expenses:
Cost of service 232,452 14,557 8,960 - 255,969
Cost of product 48,670 5,409 5,454 - 59,533
Cost of product sold to Premier 19,962 - - - 19,962
Site operating expenses 48,750 2,671 1,255 - 52,676
General and administrative 27,787 2,835 8,421 33,517 72,560
Rent 73,593 9,404 2,282 546 85,825
Depreciation and amortization 17,920 1,500 3,014 4,757 27,191
Lease termination costs 25 3,552 - - 3,577
Total operating expenses 469,159 39,928 29,386 38,820 577,293
Operating income (loss) 62,619 (1,129 ) 5,587 (38,820 ) 28,257
Other income (expense):
Interest expense - - - (27,316 ) (27,316 )
Interest income and other, net - - - 2,232 2,232
Income (loss) from continuing operations
before income taxes and equity in income
of affiliated companies $ 62,619 $ (1,129 ) $ 5,587 $ (63,904 ) $ 3,173
(1) Beginning with the period ended December 31, 2008, the operations of the Trade Secret concept within the North American reportable segment were accounted for as a discontinued operation. All comparable periods reflect Trade Secret as a discontinued operation.
(2) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis Corporation on February 16, 2009. The agreement included a provision that Regis Corporation will supply product to Premier at cost for a transition period of approximately six months following the date of the sale, with possible extension to not more than eleven months.
For the Three Months Ended September 30, 2008(1)
Hair
Salons Restoration Unallocated
(Dollars in thousands) North America International Centers Corporate Consolidated
Revenues:
Service $ 417,549 $ 35,399 $ 16,087 $ - $ 469,035
Product 102,713 13,049 18,421 - 134,183
Royalties and fees 9,672 - 639 - 10,311
529,934 48,448 35,147 - 613,529
Operating expenses:
Cost of service 239,655 18,750 8,672 - 267,077
Cost of product 52,915 7,025 5,679 - 65,619
Site operating expenses 44,339 2,645 1,418 - 48,402
General and administrative 31,570 4,167 8,704 33,323 77,764
Rent 77,305 12,347 2,052 507 92,211
Depreciation and amortization 18,191 1,816 2,704 4,557 27,268
Lease termination costs 1,151 - - - 1,151
Total operating expenses 465,126 46,750 29,229 38,387 579,492
Operating income (loss) 64,808 1,698 5,918 (38,387 ) 34,037
Other income (expense):
Interest expense - - - (10,220 ) (10,220 )
Interest income and other, net - - - 1,735 1,735
Income (loss) from continuing operations
before income taxes and equity in income
of affiliated companies $ 64,808 $ 1,698 $ 5,918 $ (46,872 ) $ 25,552
(1) Beginning with the period ended December 31, 2008, the operations of the
Trade Secret concept within the North American reportable segment were accounted
for as a discontinued operation. All comparable periods reflect Trade Secret as
a discontinued operation.
REGIS CORPORATION (NYSE: RGS)
NON-GAAP FINANCIAL MEASURES (Unaudited)
The Company`s press release announcing results of operations for the three month
period ended September 30, 2009 includes references to the following "non-GAAP
financial measures" as defined by Regulation G of the Securities and Exchange
Commission:
* First quarter reported earnings of $0.14 per diluted share included three
non-operational items, which on a net overall basis reduced reported earnings
per diluted share by $0.16. Absent these non-operational items, the Company`s
first quarter operational earnings were $0.30 per diluted share.
* The total pre-tax expense for these two non-operational items was $21.6
million. In addition, the Company recorded within discontinued operations
after-tax income of $3.2 million primarily related to additional tax benefit
from the sale of the Trade Secret business.
Non-GAAP Diluted Net Income Per Share
The table below is provided to assist the reader`s understanding of the three month period ending September 30, 2009 earnings. The Company believes that adjusted net income per diluted share from operations, a non-GAAP financial measure, is a useful basis to compare the Company`s results against, because unusual items during the three month period ending September 30, 2009, impacted the Company`s reported net income (see "Adjustments" in table below). The presentation below reconciles as reported net income
per diluted share (U.S. GAAP amounts) to adjusted net income per diluted share from operations. The adjusted net income per diluted share information should not be construed as an alternative to reported results under U.S. GAAP.
Three Months Three Months
Ended Ended
September 30, September 30,
2009 2008
(Dollars) (Dollars)
Diluted net income per share, as reported (U.S. GAAP) (5) $ 0.143 $ 0.336
Adjustments:
Fees on pre-payment of debt (1) (6) $ 0.171 $ -
Lease termination costs (2) (6) 0.034 0.016
Discontinued operations (3) (6) (0.050 ) 0.038
Diluted net income per share from operations, adjusted $ 0.298 $ 0.390
Offering impact (4) $ (0.095 )
Diluted net income per share from operations, pro-forma $ 0.295
(1) The first quarter ending September 30, 2009 included $18.0 million ($10.9 million after-tax) in expenses associated with the prepayment of debt.
(2) The first quarters ending September 30, 2009 and 2008 included $3.6 million ($2.1 million after-tax) and $1.2 million ($0.7 million after-tax), respectively, in expense associated with the lease termination costs as part of the store closing plan of up to 80 and 160 underperforming company-owned salons, respectively.
(3) The first quarters ending September 30, 2009 and 2008 included $3.2 million and ($1.6) million in income (loss), respectively from Trade Secret business, which is reported as discontinued operations.
(4) On a pro-forma basis for the three months ended September 30, 2008, adjustments for the debt and equity offerings that occurred during the three months ending September 30, 2009 would have increased net income through the incremental savings on interest expense by approximately $2.0 million after-tax and increased the number of diluted shares by approximately 20.5 million.
(5) Diluted weighted average common and common equivalent shares outstanding were 54.2 and 43.1 million shares for the three months ended September 30, 2009 and 2008, respectively. The dilutive effect of the convertible debt was not included in the reported diluted earnings per share as the effect was anti-dilutive under the if-converted method.
(6) The earnings per share impact of the adjustments for the three months ended September 30, 2009 includes the convertible share common stock equivalent of 9.5 million additional shares as operational earnings are dilutive under the if-converted method. The impact of the additional 9.5 million shares changed the EPS impact of the discontinued operations adjustment from $0.06 per share to $0.05 per share.
Regis Corporation:
Mark Fosland, 952-806-1707
Vice President, Finance
or
Alex Forliti, 952-806-1767
Director, Finance-Investor Relations
Copyright Business Wire 2009
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