Interviews
News Flash
Beauty industry's leader Regis Q4 revenues up 17%
25 Aug '05
3 min read
Hair care leader Regis Corporation (RGS reported financial results for its fiscal fourth quarter and year ended June 30, 2005.
Fiscal Year 2005 Results
Consolidated revenues increased 14 percent to a record $2.19 billion compared to $1.92 billion during fiscal year 2004.
Same-store sales increased 0.9 percent. Net income decreased 38 percent to $65 million, or $1.39 per diluted share. Net income results for the year include a $38.3 million, or $0.83 per diluted share, non-cash write-off for goodwill impairment related to our international franchise operations.
During the year, the Company added a net total of 831 locations. Regis constructed 525 salons and franchisees built 285 salons. In fiscal 2005, the Company acquired 444 corporate salons (including 139 franchise buybacks), seven franchised salons, 42 company-owned hair restoration centers, 49 franchised hair restoration centers and 13 beauty schools. Regis closed or relocated 395 corporate and franchised locations. As of June 30, 2005, Regis Corporation owned or franchised 10,993 worldwide locations.
"While we are disappointed that fiscal 2005 results did not meet our long- term earnings objectives, we are heartened by our fourth quarter results, which were in-line with our guidance," commented Paul D. Finkelstein, chairman and chief executive officer. "Despite the challenging conditions in our core salon business, we accomplished a great deal this year. In addition to expanding our salon base, we more than doubled our beauty school business, acquired Hair Club for Men and Women and invested in an emerging kid's hair salon concept. These investments, which complement our core salon business, will position Regis to achieve long-term double digit earnings growth."
Fiscal Year 2005 Results
Consolidated revenues increased 14 percent to a record $2.19 billion compared to $1.92 billion during fiscal year 2004.
Same-store sales increased 0.9 percent. Net income decreased 38 percent to $65 million, or $1.39 per diluted share. Net income results for the year include a $38.3 million, or $0.83 per diluted share, non-cash write-off for goodwill impairment related to our international franchise operations.
During the year, the Company added a net total of 831 locations. Regis constructed 525 salons and franchisees built 285 salons. In fiscal 2005, the Company acquired 444 corporate salons (including 139 franchise buybacks), seven franchised salons, 42 company-owned hair restoration centers, 49 franchised hair restoration centers and 13 beauty schools. Regis closed or relocated 395 corporate and franchised locations. As of June 30, 2005, Regis Corporation owned or franchised 10,993 worldwide locations.
"While we are disappointed that fiscal 2005 results did not meet our long- term earnings objectives, we are heartened by our fourth quarter results, which were in-line with our guidance," commented Paul D. Finkelstein, chairman and chief executive officer. "Despite the challenging conditions in our core salon business, we accomplished a great deal this year. In addition to expanding our salon base, we more than doubled our beauty school business, acquired Hair Club for Men and Women and invested in an emerging kid's hair salon concept. These investments, which complement our core salon business, will position Regis to achieve long-term double digit earnings growth."
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
