Fourth Quarter Results Consolidated revenues increased 17 percent to a record $593 million compared to $509 million a year ago. Same-store sales increased 0.9 percent. Fourth quarter net income increased 10 percent to $29.5 million, or $0.64 per diluted share. During the quarter, Regis Corporation added a net total of 186 locations. The Company constructed 152 salons and franchisees built 82 salons. In addition, Regis acquired 48 salons (including 17 salon franchise buybacks) and five beauty schools. The Company closed or relocated 84 salons during the quarter.
The Company experienced two discrete matters which influenced fourth quarter operating results.
- Fourth quarter effective tax rate was lower than anticipated due to the resolution to prior tax filing matters.
- Regis identified an issue related to the taxability of certain benefits provided to Regis employees. The Company is working with the Internal Revenue Service to resolve this matter. Fourth quarter general and administrative expenses include an accrual to address this issue.
Absent these two fourth quarter matters, the Company met its operating expectations.
Minneapolis, Minnesota based world largest salon industry & beauty products leader Regis Corporation (RGS) is the beauty industry's global leader in salons, hair restoration centers and education. As of June 30, 2005, the Company owned or franchised 10,993 worldwide locations; which included 10,879 beauty salons, 90 hair restoration centers and 24 beauty schools operating under concepts such as Supercuts, Jean Louis David, Vidal Sassoon, Regis Salons, MasterCuts, Trade Secret, SmartStyle, Cost Cutters and Hair Club for Men and Women.
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