Regis Reports Fourth Quarter Revenues of $568 Million

MINNEAPOLIS--(BUSINESS WIRE)--Regis Corporation (NYSE:RGS), the global leader in the $160 billion hair care industry, today reported consolidated fourth quarter fiscal 2012 revenues of $568 million, compared to $592 million a year ago. Fourth quarter total same-store sales decreased 3.0 percent.

"Fourth quarter same-store sales trends improved slightly over our third quarter," said Eric Bakken, EVP, Interim Chief Executive Officer. "We are pleased with the significant progress made during the quarter as we continue to roll-out our strategy to improve the salon experience. During the quarter, we realigned our business into four distinct consumer segments and restructured our field organization around these segments. This reorganization increased focus, freed up resources and allowed us to establish a robust human resource function, which will help us hire and retain the best talent in our salons. Our new operating structure puts the right people in the right roles and provides us with the foundation to substantially improve the salon experience. Meaningful change is underway at Regis and, as we look forward to fiscal 2013, we expect these changes will drive improvement in our same-store sales results."

Fourth Quarter Revenues:

    For the Three Months Ended June 30, 2012
    Salons   Hair Restoration    
   

North America

 

International

 

Centers

 

Consolidated

(Dollars in thousands)                
Revenues:                
Service   $ 381,432   $ 30,444   $ 17,723   $ 429,599
Product     96,692     10,529     20,967     128,188
Royalties and fees     9,744     -     597     10,341
Total   $ 487,868   $ 40,973   $ 39,287   $ 568,128
     
    For the Three Months Ended June 30, 2011
    Salons   Hair Restoration    
   

North America

 

International

 

Centers

 

Consolidated

(Dollars in thousands)                
Revenues:                
Service   $ 403,982   $ 31,187   $ 17,228   $ 452,397
Product     98,160     11,380     19,875     129,415
Royalties and fees     9,581     -     592     10,173
Total   $ 511,723   $ 42,567   $ 37,695   $ 591,985
                         

Fourth Quarter Same-Store Sales:

For the Three Months Ended June 30,

td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwdoublebottom"> -0.5%

   

2012

   

2011

    Service   Retail   Total     Service   Retail   Total
Regis Salons  

-6.4%

 

1.3%

 

-5.1%

    -3.1%   5.1%   -1.8%
MasterCuts  

-4.9

 

2.9

 

-3.5

    -2.7   5.0   -1.4
Supercuts  

0.5

 

0.4

 

0.5

    0.8   -4.7   0.2
Promenade  

-2.6

 

-3.0

  -2.7     -1.5   -0.1   -1.3
SmartStyle  

-6.3

 

-1.2

 

-4.6

    -1.8   -4.3   -2.6
North America Same-Store Sales   -4.0%   -0.5%   -3.3%     -1.7%   -1.3%   -1.6%
                           
International Same-Store Sales   -5.2%   -10.0%   -6.6%     -5.8%   -4.9%   -5.5%
                           
Hair Restoration Same-Store Sales   3.7%   5.0%   4.4%     0.4%   2.2%   1.3%
                           
Consolidated Same-Store Sales   -3.7%     -3.0%     -1.8%   -1.1%   -1.7%

International same-store sales for the quarter represent the 16-week period ended June 23, 2012 versus the 16-week period ended June 26, 2011.

Fiscal Year Revenues:

    For the 12 Months Ended June 30, 2012
    Salons   Hair Restoration    
   

North America

 

International

 

Centers

 

Consolidated

(Dollars in thousands)                
Revenues:                
Service   $ 1,541,491   $ 102,399   $ 68,812   $ 1,712,702
Product     401,326     38,722     80,419     520,467
Royalties and fees     38,288     -     2,321     40,609
Total   $ 1,981,105   $ 141,121   $ 151,552   $ 2,273,778
         
    For the 12 Months Ended June 30, 2011
    Salons   Hair Restoration    
   

North America

 

International

 

Centers

 

Consolidated

(Dollars in thousands)                
Revenues:                
Service   $ 1,588,690   $ 106,734   $ 67,550   $ 1,762,974
Product     403,962     43,503     75,729     523,194
Royalties and fees     37,292     -     2,409     39,701
Total   $ 2,029,944   $ 150,237   $ 145,688   $ 2,325,869
                 

Fiscal Year Same-Store Sales:

For the 12 Months Ended June 30,

   

2012

 

2011

    Service   Retail   Total   Service   Retail   Total
Regis Salons  

-5.4%

 

1.8%

 

-4.2%

  -3.8%   4.4%   -2.5%
MasterCuts  

-4.6

 

2.3

 

-3.3

  -2.2   6.1   -0.7
Supercuts  

-0.2

 

-1.2

 

-0.3

  0.4   -2.0   0.1
Promenade  

-2.7

 

-3.2

  -2.7   -3.0   0.8   -2.6
SmartStyle   -5.0   -3.1   -4.3   -1.8   -2.1   -1.9
North America Same-Store Sales   -3.6%   -1.5%   -3.2%   -2.3%   0.3%   -1.8%
                         
International Same-Store Sales   -6.7%   -13.5%   -9.1%   -4.6%   -0.1%   -3.1%
                         
Hair Restoration Same-Store Sales   1.3%   4.5%   2.9%   1.3%   1.2%   1.2%
                         
Consolidated Same-Store Sales   -3.5%   -1.7%   -3.1%   -2.3%   0.4%   -1.7%

International same-store sales for the year represent the 52-week period ended June 23, 2011 versus the 52-week period ended June 25, 2010.

Regis Corporation will announce fourth quarter 2012 earnings results on August 23, 2012. A conference call discussing fourth quarter results will follow at 10:00 a.m., Central time. Interested parties are invited to listen by logging on to www.regiscorp.com.

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 March 31, 2012, the Company owned, franchised or held ownership interests in approximately 12,700 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. For additional information about the company, including a reconciliation of certain 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 may contain "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. 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 the impact of management and organizational changes; competition within the personal hair care industry, which remains strong, both domestically and internationally, price sensitivity; changes in economic conditions; 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 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; 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, 2011. 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.

###

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