Regis (RGS) - 2025 Q3 - Quarterly Report

Company Operations - As of March 31, 2025, Regis Corporation operated 4,087 locations, including 3,776 franchised salons and 311 company-owned salons[96]. - Regis Corporation had 1,860 employees as of March 31, 2025, with 1,666 acquired through the Alline Acquisition[96]. Financial Performance - System-wide revenue for the three months ended March 31, 2025, was $266.9 million, a decrease of 6.9$286.8 million in the same period of 2024[102]. - Total system-wide same-store sales decreased by 1.1% for the three months ended March 31, 2025, compared to an increase of 0.5% in the same period of 2024[102]. - Franchise revenue decreased by $9.9 million and$22.1 million during the three and nine months ended March 31, 2025, respectively, attributed to a decline in franchise salon count and negative same-store sales[128]. - Company-owned salon revenue increased by $17.7 million and$18.2 million during the three and nine months ended March 31, 2025, primarily driven by the Alline Acquisition[132]. - Company-owned salon adjusted EBITDA improved by $1.6 million and$2.8 million during the three and nine months ended March 31, 2025, respectively, mainly due to the Alline Acquisition[133]. Revenue Sources - Royalties decreased by $2.2 million, or 14.0$6.9 million, or 29.0%, during the three months ended March 31, 2025, primarily due to a decrease in franchise salon count[111]. - Advertising fund contributions decreased by $0.6 million, or 10.3$17.7 million, or 1,361.5%, during the three months ended March 31, 2025, primarily due to the Alline Acquisition[112]. Expenses and Costs - General and administrative expenses increased by $2.7 million, or 8.0$3.0 million, or 69.8%, during the nine months ended March 31, 2025, mainly due to salon rent expenses from the Alline Acquisition[114]. Cash and Liquidity - Cash provided by operating activities was $7.0 million for the nine months ended March 31, 2025, compared to cash used of$7.1 million in the prior year, reflecting a lower cost structure and reduced working capital needs[143]. - As of March 31, 2025, cash and cash equivalents totaled $13.3 million, with$12.1 million in the United States and $1.2 million in Canada[138]. - The Company has a credit agreement with a minimum liquidity covenant of$10.0 million, with total available liquidity of $19.0 million as of March 31, 2025[139]. Debt and Interest - The debt to capitalization ratio was 64.8$3.7 million for the nine months ended March 31, 2025, primarily due to less debt outstanding compared to the prior year[120]. Stock Repurchase Program - The Board has authorized $650.0 million for the stock repurchase program since May 2000, with$54.6 million remaining outstanding as of March 31, 2025[148]. - Approximately 1.5 million shares have been repurchased for a total of $595.4 million by March 31, 2025[148]. - The company did not repurchase any shares during the nine months ended March 31, 2025, and does not anticipate future repurchases[148]. Risks and Market Conditions - The company faces numerous risks and uncertainties that could materially affect future results, including changes in consumer shopping trends and economic conditions[150]. - Market risks include changes in interest rates and foreign currency exchange rates, with no material changes reported since the last annual report[152].