Regis Corporation (RGS) Tops Q2 EPS by 11c, Revenues Miss

Regis Corporation (NYSE: RGS) reported Q2 EPS of $0.18, $0.11 better than the analyst estimate of $0.07. Revenue for the quarter came in at $274.67 million versus the consensus estimate of $289.5 million.

• The Company Recorded The Profitable Sale And Conversion Of An Additional 133 Company Owned Salons To Its Asset-Light Franchise Portfolio During The Quarter
• Second Quarter Income Per Share From Continuing Operations of $0.01, Which Includes A Non-Cash Goodwill Derecognition Charge Related To The Sale and Conversion of Company Owned Salons; Adjusted Diluted Earnings Per Share Of $0.18 Increased $0.06 Versus Prior Year
• Adjusted EBITDA of $20.6 Million is $4.0 Million, or 24.1% Favorable Year-Over-Year; Year-To-Date Adjusted EBITDA of $45.7 Million is $6.8 Million, or 17.5% Favorable Year-Over-Year Including Gains From The Sale of Salons to Franchisees
• The Company Repurchased 2.9M Shares, or approximately 7% of Its Total Common Stock in the Quarter

Hugh Sawyer, President and Chief Executive Officer, commented, "We remain focused on the ongoing transformation of our business and maximizing shareholder value. The gains generated from the sale of our company-owned salons during the quarter met our financial objectives for these transactions when considering not only the cash proceeds received for these salons, but also the on-going growth in predictable royalty fees, anticipated product sales, lower ongoing capital requirements, expected reductions in G&A expense and other intended ancillary benefits including establishing a platform for sustainable organic growth.” Mr. Sawyer added, “This quarter the 133 salon locations we added to our franchise portfolio were substantially from our Supercuts brand. Given our success transitioning elements of our company-owned Supercuts portfolio to franchise, we expect to consider opportunities to franchise our other company-owned brands in certain circumstances where we believe it will add to shareholder value and support an evolving strategy for our business."

For earnings history and earnings-related data on Regis Corporation (RGS) click here.

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