Regis Q4 Adj. Profit Rises; Decides To Convert To Fully Franchised Portfolio

(RTTNews) - Regis Corp. (RGS) said, excluding discrete items and the losses from discontinued operations, the company reported fourth-quarter adjusted net income of $24.6 million, or $0.62 per share compared to $9.0 million, or $0.19 per share, last year. The company said the year-over-year increase in adjusted net income was driven primarily by the increase on the gain on salons sold to franchisees, excluding non-cash goodwill derecognition. Analysts polled by Thomson Reuters expected the company to report profit per share of $0.17, for the quarter. Analysts' estimates typically exclude special items.

Fourth-quarter total revenue was $248.2 million, down 17.4% year-over-year driven primarily by the closure of a net 214 salons, the conversion of 767 company-owned salons to franchised locations over the past 12-month period, a reduction in product sales to TBG and a decline in company-owned same store sales of 10 bps. Analysts expected revenue of $248.95 million for the quarter.

Regis said it has decided to fully franchise its remaining company-owned portfolio of salons. The company expects it may require 18 to 24 months to complete its conversion.