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Regis Corporation reports $41.5mn net income for Q4

23 Aug '06

3 min read

Regis Corporation, the global leader in the $150 billion hair care industry, reported fourth quarter net income of $41.5 million, or $0.90 per diluted share, a 41 percent increase over $29.5 million, or $0.64 per diluted share reported in the comparable period in fiscal 2005.

Fourth quarter net income benefited from a $50 million termination fee received from Alberto-Culver and was partially offset by certain non-core charges totaling $28.4 million, detailed below.

The fourth quarter net income benefit from non-core benefits and charges was $13.9 million, or $0.30 per diluted share, resulting in core earnings of $0.60 per diluted share, meeting the midpoint of the company's guidance range of $0.58 to $0.62 per diluted share.

Full-Year Results
For the full year, revenues totaled $2.4 billion, up 11 percent compared to $2.2 billion during fiscal year 2005. Same-store sales for the full year increased 0.4 percent.

Net income increased 70 percent to $110 million, or $2.36 per diluted share, including the benefit of a $50 million merger termination fee received from Alberto-Culver with the accompanying offsets totaling $34.1 million, described below.

The company recorded the receipt of a $50 million termination fee and various transaction expenses related to the terminated merger agreement with Alberto-Culver during the fourth quarter.

During the third quarter, the company recorded $5.7 million of transaction costs related to this terminated transaction. During the fourth quarter, the company recorded an additional $10.6 million of transaction expenses, in-line with the company's expectations.

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