- Regis ( NYSE: RGS ) reported Tuesday 7.1% growth in system-wide same-store sales during Q4 2022.
- The Minneapolis-based salon operator recorded fourth quarter's revenue of $66.1M (-32.3% Y/Y).
- By segment: Q4 Franchise revenue dropped to $62.5M (-13.6% Y/Y), in which royalties rose 11.7% to $17.2M due to higher franchise system sales; and company-owned salon sales declined $21.7M to $3.6M.
- Total revenue for the year dropped to $276M (-33% Y/Y) driven primarily by exiting company-owned salons that generated significant revenue, but were loss generating.
- Adjusted EBITDA turned positive to $1.1M compared to the loss of $14.5M in Q4 2021.
- It comes after Regis reduced loss-generating company-owned locations from 276 to 105, resulting in a $38M year-over-year EBITDA improvement.
- Non-GAAP EPS was -$0.07.
- In addition, the company has completed the sale of its proprietary salon management system, Opensalon Pro, for up to $39M in proceeds to its technology partner, Zenoti, and has renegotiated its credit agreement with lending group and secured of extension the maturity date from March 2023 to August 2025 .
- Forward Looking Statement: "With our fully-franchised business model and strategies in place that focus on stylist retention and recruiting, enhanced digital marketing, and a more robust salon management system, we are poised to deliver stronger results in fiscal 2023," commented Matt Doctor, CEO of Regis.
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Regis reports 12% royalty growth while company-owned salon shutdowns hit revenue