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Sep 30, 2020
Regis Q1 2021 Earnings Report
Reported first quarter results with significant progress in its transition to a fully-franchised asset-light model and completed salon re-opening.
Key Takeaways
Regis Corporation reported a first quarter 2021 net loss from continuing operations of $35.3 million, or $0.98 loss per diluted share. Excluding discrete items, the Company reported first quarter 2021 adjusted net loss of $27.9 million, or $0.78 loss per diluted share.
Total revenue in the quarter of $111.4 million decreased $135.6 million, or 54.9%, year-over-year driven primarily by the conversion of a net 1,056 company-owned salons to the Company's asset-light franchise portfolio over the past 12 months and due to the impact of the COVID-19 pandemic.
First quarter Franchise revenue was $64.0 million, a $8.5 million, or 11.7% decrease compared to the prior year quarter, and included franchise rental income of $32.3 million.
First quarter revenue for the Company-owned salon segment decreased $127.1 million, or 72.8%, versus the prior year to $47.4 million.
During the quarter, it sold and transferred 137 company-owned salons to its asset-light franchise portfolio.
Revenue by Segment
Forward Guidance
Despite the uncertainty of current times, the opportunities for Regis today are very real.
Positive Outlook
- We have seen consistent high interest in the remaining salons left in our corporate portfolio, from potential investors who see the current environment as a great opportunity to build a portfolio of hair salons to serve as a platform for future consolidation and aggressive new unit growth.
- The hair salon industry in North America is highly fragmented, and is mostly in the hands of independent players.
- Times like these present a tremendous opportunity for salon chains to earn market share through brand differentiation through technology.
- Times like these present a tremendous opportunity for salon chains to earn market share through brand differentiation through marketing.
- Times like these present a tremendous opportunity for salon chains to earn market share through advancement opportunities for our stylists.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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