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Regis Corporation (RGS-4.54%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in royalties to $14.8 million from $15.8 million in the same quarter the previous year. This decrease is attributed to a reduction in franchise salon count and negative same-store sales.
Fees increased to $2.9 million from $2.5 million, primarily due to terminated franchise fees related to Alline salons.
Advertising fund contributions decreased to $5.5 million from $6.8 million, due to a decrease in franchise salon count and lower contribution rates.
Franchise rental income decreased to $20.0 million from $24.1 million, primarily due to a decrease in franchise salon count and franchisees signing their own leases.
Company-owned salon revenue increased to $3.5 million from $1.8 million, primarily due to the acquisition of Alline.
General and administrative expenses decreased to $11.2 million from $11.8 million, primarily due to lower headcount, partially offset by acquisition costs associated with the Alline acquisition.
Net income for the quarter was $7.6 million, up from $1.0 million in the previous year. Income from discontinued operations increased due to proceeds from the sale of OSP related to salon migrations to the Zenoti platform.
Cash provided by operating activities was $0.8 million, while cash used in investing activities was $10.6 million, primarily due to the acquisition of Alline.
The filing also details the acquisition of Alline Salon Group, which added 314 salons to Regis's company-owned segment.
Regis's total debt was reported at $111.5 million, with a debt to capitalization ratio of 65.5% as of December 31, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Regis Corporation quarterly 10-Q report dated February 12, 2025. To report an error, please email earnings@qz.com.