Recent RGS transcripts
Associated RGS filings
Kersten Zupfer | executive |
Matthew Doctor | executive |
Good morning, and thank you for joining the Regis First Quarter 2025 Earnings conference call. I am your host, Kersten Zupfer, Executive Vice President and Chief Financial Officer. I am joined today by our President and Chief Executive Officer, Matthew Doctor. [Operator Instructions] and this conference is being recorded. I would like to remind everyone that the language on forward-looking statements included in our earnings release and 8-K filing also apply to our comments made on the call today. These documents can be found on our website, www.regiscorp.com/investor-relations, along with a reconciliation of any non-GAAP financial measures mentioned on today's call with their corresponding GAAP measures. With that, I will now turn the call over to Matt Doctor.
morning, good and you, everyone. Thank I On highlights initiatives. over financial go the today's quarter key call, for our and the on will provide updates
our required we continue here put the in the I'd effort quarter Regis to of our and for time, investment stabilization as results reflect position Regarding headline business our the first to results, is say growth.
in August down movement was in due quarter. Same-store as in related well compensation the financials by QX results increase the in from X.X% reorganization prior our expenses as versus GAAP the an with largely accrual to over largely driven year. sales lower, line stock-based outsized came a in the are our prior slightly the Our price stock done adjusted quarter. in severance to onetime And recent expense year's
As prior I well. through And trends price addressing focused last has comp few is on driven the we the years, over gains. operations the as decade-plus marketing, traffic but sales most it mentioned largely calls, are just on not
will reverse and back the we traffic much relying profitable salons. of we these our as to work cognizant our be continue solidifying value not further, proposition. franchisee extra drive want to satisfied We price trends not on to We be until
prior and quarter lower The Our occurred year. is timing store dollars million represents prior the reversals $X.X in adjusted a adjusted by margin a expenses percentage versus was the margins decline some EBITDA the $X.X EBITDA X counts for million favorable adjusted year during driven in that versus the quarter of XX% year. ago. The slight expansion and EBITDA accrual point
$X.XX GAAP loss quarter share for was per prior in versus share in versus earnings was of a the Our prior of share the per year. $X.XX adjusted earnings earnings $X.XX $X.XX the per year. Reported
results. And back the quarter As million prior as in as driven from during mentioned the severance both one most we bridge compensation will GAAP to and part added are adjustment, note make $X.X by did adjusted to a our comments, that the the versus of results, a year net adjusted adjusted EBITDA, stock-based add remarks. adjusted my to decline our We income, the perspective on accrual G&A detail in final in earlier get change GAAP our I a backs notably, the to financials that was making well results. her Kersten which
factors habit Regis number brands in our time. to leading in within that path guests and initiatives. the per am and year time to long-term per Turning our have And franchisees strongly franchisee profitability. our to and to taking I have of the well the including occurring right strategies to of which And I while the prospective now sales that the grow ones. of get business our are the and to for a during changes, range setting up is success. track need large-scale really X we pivotal system, XXx putting are management our we're business they we excited change due driving of a right, as I believe believe going manifest and the on cadence this critical work be is work are the streams is roughly to as right
platform. optimizing operational focused we positioned train and and buckets: to on have do well into drive to rigor mentioned retain attract, guest this, main superior tactical initiatives great key traffic a opportunity significant our to X salons digital calls, are our are ensure our that experience. we And to provide stylists franchisees fall on I As back and prior increased into our
expectations and are when rigor. as visiting our back beyond Regarding guest a system, get is to above focus operational main that ensuring we, The any increased basics on and here goal to of warm, brands, and which right time. service. a must a These are our strive course, and, nonnegotiable, this high-quality we hair environment, salon service friendly get welcoming of means delivering every
Our across system pilot fully days of salon X excellence brand as effort proper spent during that X, our launched experience big this of have level. After vehicle the the guest a now excellence visits. brand, and of at Supercuts past quarter define we've the year the the standards, been This planning first quarter. of getting franchisees, brand. represents the guides to we defined project our on our integrated end-to-end into has one standards November visits the almost conducting drive our of launch expectations this a Supercuts now, the launched ago entire to wave example in And fully reference
completed these first wave The as insights deficiencies The operational and while environments of since current have salon XXXX, sure great we'll that twice performing a ongoing data data salon on January of celebrate focused be to have are will in bottom cadence receive tandem. to year, will not to in X us outcomes on we what salons on enable potentially visits and ongoing be some those are and tool year. And detailed for standard salons franchisees, as had franchisor. best per that monitor business act throughout of into be visitation show visibility visits the supporting we'll consistently the be of the both things state type we will provide that may visits environment and additional The will and and our becoming as up standards. of have both monitoring actively performers us will examples and the beyond we our
uniformity more much foremost, and salons. in of upkeep and image, cleanliness First
services that same service versus salons ensuring guests the further build with of trust menus all our today. required hair baseline to are varying consistent offering set the service menus, of Second, exist
I as guests personalized refresher consistent Supercuts Third, be in consultations, access and top-notch able of product prioritize to we that notes, touches these connections addressing the through best the not and a excited In upkeep brand high-value ultimately visit ensuring the the impact like utilizing are the have most matter and to combination most and practices drives our performance and well team metrics top to and calendar full predicting salons share this We an to our needle. towel the across very results with hot to of Again, and that before. be the that a the increased to delivery personalized our start key time as opportunity what of we'll move baseline importantly, can a recommendations, and able have more the satisfaction had data wait establishing chair. The stylist start salon franchisees as before complete adept strengthen beginning gather the further guests between sales. of guest businesses then transparency, correlate performing of and largest data are and organization the at XXXX, leave performance. items more view of insights become
also of here to and we're in I education satisfaction mid-calendar franchisor warm currently with programs, are service efforts at those While in ways go years. the out not here, want the progress of promises the to some brand, and a rolled beyond our these data on XXXX. And implement of with made are salon executing we've powerful the our support this expectation given make service while ecosystem that to Supercuts and for to we visits, we quality. progressing have also launched the being quality. excellence have continue friction to for to guest measurements tools quite more frankly, excellence And monitoring environment actively know and systems been standards our few is ensuring ways By life is our that we're role we brands but large-scale clear looking ensure standards strictly to tools be just last changes in we the over monitor to right other the welcoming also complementing brand have easier we've place. franchisees, minimize a and implementing of superior our will and new
digital Turning our to efforts.
While convenience the our guests guests and salons and right in-salon the to addressing value over providing environment, taking and delivering drive our driving bookend by in-salon through incremental in efforts benefits aimed order to experience the at experience the excellence education visit and enabling by post service frequency. standards quality, digital and are to
to across a final program base an first is our all brands, the current X complement our rollout optimized relationships our and that our app, entire and this combined a loyalty in digital trust milestone across website last went the ingredients effort our guests. cultivate CRM ongoing to marks the major unlocking our Zenoti, the relationships in salons. with And this theme like further program towards and Supercuts up salons point-of-sale I'm driving operating past launch, the total strong quarter loyalty time by uniformity experience weeks our completing with with Rewards are brand member loyalty cultivating We our that Supercuts of Supercuts wave. another sales with salons efforts second pleased of of critical sales And the rollout with October. In will so do active digital we that same network. Zenoti post guests. In achieved regarding is now live have assets to and across XX% of strengthen X,XXX for our milestone just major first our keeping step The across to of and ability system the full
base, XX% above shooting of have benefits, learnings further member we grow, member-only program salons optimize loyalty our grow current And base. a this as current and are pilot we a Supercuts those member salons well and lot goal last through check-ins, of guests as evolve a opportunity the million of a Supercut providing which of at to carrying the just digital little all have well visits take sales, actively sense over to the the alone, app. the steady here, for additional opportunity XX% our taking been and brand program, reference, over visit For from unique as brands. To are that we through give member working to that X launch digital of have XX are over were more the we other them that and the XX% done months. we've significant little had check-ins the holding
a visits. call of app out over So little XXX,XXX check-ins million over it X
Additionally, an XX% can do guests, those engage but were through of point we the on account. going, we the key incentivize transitioned and digital account increase online not. between is active creation all converting our and with, vast we digital opportunity only a in-salon Supercuts. The into end, usable in-app an but have of strong salons with I without October, also To there's support space communications. more which to this the check-ins and keep white achieving across SMS relationship full online data tap now to not And digital majority is to remaining engagement through e-mail, channels, touch guest digital thus in availability online walk-in-only capturing and continue check-in, points made
to through just more and as to and their effectively before to platforms to program words, effort drive and we work an experience another friction us. points effect, more squarely vision finally loyalty create on franchisees, Our guests to to functionality an manage remove opportunity this the platform not call, up. and to we to and taken topic operational to on is attracting forming our mentioned managing to using regarding working wrapping and to support touch the by and stylists standards business. One yet integrating drive on necessary provide managers and a just and encourage and our are do franchisees new a their I business rigor, have run are apps, of CRM we salons have to want to transformation digital the is notion our longer-term work flywheel These we guided be to outstanding into that utilized to programs, continue visits. And is on refinancing action us organization. loyalty have to partners the now do excellence I proper pain incremental take delivering tools to salon continue as continuously systems tool for Zenoti last an our with repeat having them programs, view our ensure a that behind our websites, technology cohesive a digital improve it frequency, but to
gathering great earlier initiatives our another the with adding changes how partner up winning mentioned stakes conversations full our table alongside I as representing align have to Supercuts ladders all phase next to collaboration we outside engaged and we and vision for ensure facilitate the the listening broader been align we of critical and a feedback and planning on further of strategy over this major until initiatives XXX We've over strategy franchisees. proper from the on buy-in month tactical rolling future. We've growing out the it's system ultimately last in most with top to cadence on here. our integrate resource our And the other will the items, that discussed on and of required and create the priorities us our brand into important paused any through to value for priorities sales franchisees aligned franchisees. profitability we to and initiatives these While current system are
let base put our for forward franchisees major in initiatives Before it turning driving dedicated of in business. again Regis me in, teams out to employee our to for entire you passionate, I be and day day and how our field-based work the their and all to the over on Thank renewed offense by am the Kersten, conclude going excited stating capital structure. with
the drive on franchisee We drive environment partners last working and that to macro my our flow. creation. I adjusted our we we fiscal Kersten are to committed financials. to sales will and our forward. And and believe turn slightly over everything required apprised value reiterate well EBITDA our drive continue QX cash net a growth to share benefit are of comments keeping the our the as as you in actively performance detailed per I to softer I with earnings to Kersten? done from due combination are continued to also closures we want move business, initiatives of to set review forward up call look to exploring be that for work a now of and as will number growth it and progress of to a XXXX even in
to which Royalty a $XX.X which of the $X.X million Thanks, expense and business million advertising of revenue the franchise fee gross revenue, was year. last due relates course have to primarily of and over no prior income and revenue million, and number fund first XX of the $XX Matt. $X.X was revenue up in This year's Total core million, from rental a reduction revenues and months. were profitability. closures our down impact the are a revenue, the first expected on quarter versus decline quarter represents of decline salon prior
Another of our the of XX The fiscal company-owned quarter reflection average top of X.X% this salons. first gap period our we closed franchise of average as franchise locations is in and which X as a the net net system-wide demonstrates sales this in possible same-store sales performance the declined is the quartile compares to salon seeing had trailing locations performance XXXX. quartile sales, a how volume over XX sales well revenue with system top of in the underperformance an quarter salons, are $XXX,XXX, for those volume closure in X.Xx quarter. We closures year XX-month closure of $XXX,XXX, same these the large the
and we'll that is seen, we've We calls this to trend continue have that been on our clear a see.
closures; franchising driving XXXX, driving the some and color been slow have this XXXX from franchise. up to increments, the occurring of coming large-scale why those and waves context provide salon leases XXXX in corporate past XXXX, the line which of and to closures, XXXX years driving wanted with over the years. have will transitioned and XXXX what we to to has seeing XXXX those timing I as been Beginning in X-year with experienced The closures. generally shifts with related However, efforts, now XXXX; in the fiscal in largely we're XXXX closures additional
been calendar seeing. the Given of magnitude roughly last in closures timeframe, the the order during we've XXXX of of be transitions completed that to expect year this bulk the we
not is reverse. to will this the say trend suddenly Now
should ahead. the in slow down pace However, years
million the an operating and maintain million Additionally, growth. We unit ability we and on our to in first get $X.X a able to to despite same continue have base, $X.X of by that severance GAAP demonstrated count grow increased we received in driven core $XXX,XXX of reoccur. outcomes and footprint million, the increased year-over-year quarter. decrease high-performing of related of in GAAP $X.X be to prior sales G&A to rent prior a smaller, benefit was year expense $X.X did expense business path we $XXX,XXX expect expense operating to as lower The million stock-based back income of the compared in year quarter with to the posted profitability lower compensation not ultimately the income and year-over-year managing revenue,
net continue. We and first to loss expect GAAP $XXX,XXX share We we continue operating quarter, in profit diluted a of of income reported and $X.XX by to interest produce share partially decreases share trend compared loss to the each above, $X.XX of per per expense. per income offset million ago, diluted and discussed operating share per reduced of income year driven in by quarter $X.X that
Now let's adjusted to results. turn our
last compared press our not with that due in basis, an the to did in prior revenue year year. course corporate of $XXX,XXX offset quarter. prior $X.X a adjusted Matt adjusted compensation how mentioned, year results believe representative expense. make are years calculating a primarily EBITDA change franchise by the can and results Reconciliations The sublease first adjusted been to benefit in over million subleased lower consolidated our results adjusted this the more was we in our the the view stock-based decline Beginning found results was adjusted to to million our of results. space $XXX,XXX, As are year's adjusted prior reflect office $X.X of our reoccur we rent presentation. be results current this that we quarter our We partly have the revenue; to did release. On business. quarter, non-GAAP All associated of adjusted exclude GAAP
continue rate close essentially With the versus million the focus invest closer G&A $XX.X our XXXX million to $XX.X of offset fiscal reorganization our the the savings Our range rate be to $X.X G&A continued year change. year to further extent recent savings we to year million run to represents million. initiatives, our in was expect on $XX The corporate while business range additional opportunity of investments our be the could G&A and period. in in G&A see that represents adjusted we fiscal August, XXXX, our to this to in run and to flat prior $XX million,
is year EBITDA quarter, loss franchise On company-owned the items business adjusted in for last $X.X of improvement Our adjusted same $X same This adjusted consolidated the segment million primarily last quarter. the company-owned an of decline for our decrease core XX the EBITDA. compared of quarter, basis, quarter prior loss-generating an by million explained $XXX,XXX achieved the $XXX,XXX reported to related discussed the EBITDA in closure a a of salons months. $XXX,XXX the the year, from primarily over to
September of we had company-owned As XX, locations. X
from September X used the prior X-month the ended less is XX, primarily During of million which $X.X cash used for $X.X million an months year from cash we operations, capital. working due to period, improvement of
quarter, As get I other insurance incentive mentioned on quarter use first first compensation in like of payments that the the scheduled the paid call to quarter. due in payments expected and we a cash last
Additionally, SmartStyle we replenished our aid that occurring. inventory large-scale of fixtures the in are franchisees to remodels
year believe will the we second for We of remainder fiscal quarter and to cash XXXX. that the continue in generate
approximately second received fiscal migrations, during the to Additionally, quarter, and of in the proceeds continue we related quarter. additional Zenoti $X.X proceeds to million approximately expect of we first $XXX,XXX
to financing arrangement, down business, financing these in stay are as we not under our the pay under As we will were our a required previous debt new arrangement. proceeds reminder, and
to liquidity. Turning
and XX, million September revolver $X.X of million available As $XX.X liquidity, $XX.X of cash. available including of capacity had of million we
deferred the outstanding, of was XX, fees of accrued debt the and our interest, XXXX, warrants As $XXX.X plus million. value September excluding the paid-in-kind financing
the to of are entire balance lease due our by of liabilities not liabilities $XXX our long salons sheet wrap net have as decreased moving well with X obligations reminder, remarks. $X.X free solely and million as thank concludes their million. This reduction in corporate feel interest due into accounting their continued shows related to debt associated These liabilities life responsible support for First the a As Please lease business of Regis million the liabilities company-owned standards, as which reach is Regis space, to total over to XXXX respective franchisees the remaining is I for quarterly subleases to to franchisees been. related continue any out franchisees any and my These your subleasing franchise our discuss years leases. Regis Fiscal approximately our Quarter prepared to salons, to operating approximately over leases. Call. pay and off Earnings serviced the of the to count salon factored approximately questions so should Regis' would office as for liabilities or like will position have the they $XXX that, up results. With Regis. be in Year investorrelations@regiscorp.com you last the to I
We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.