Regis Corp (RGS, Financial), a leader in the haircare industry, announced its financial results for the first fiscal quarter ended September 30, 2023, on November 1, 2023. The company reported a net income from operations of $1.2 million for the first time since fiscal 2018, reflecting the continued improvements and progress in its business. The adjusted EBITDA improved to $7.5 million compared to $3.8 million in Q1 fiscal 2023.
Financial Highlights
Regis Corp (RGS, Financial) reported a system-wide revenue of $306.6 million for Q1 2024, a decrease of $9.4 million from $316.0 million in Q1 2023. However, the company's operating income of $7.4 million increased by $5.0 million from $2.5 million in Q1 2023. The franchise adjusted EBITDA of $8.0 million also increased by $3.0 million from $5.0 million in Q1 2023.
Review of Strategic Alternatives
The company's Board of Directors, together with management, intends to evaluate a range of strategic alternatives to proactively assess the company's capital structure. The Board has established a Special Committee to evaluate various strategic alternatives and initiatives. The company has not set a timetable for the conclusion of its evaluation and does not intend to comment further on developments or status of this process until it deems further disclosure is appropriate or required by law.
Consolidated Results
Regis Corp (RGS, Financial) reported a total consolidated revenue in the first quarter 2024 of $53.4 million, a decrease of $8.5 million. The decrease was primarily driven by a reduction in non-margin franchise rental income and the wind down of loss-generating company-owned salons that generated significant revenue. The company reported first quarter 2024 operating income of $7.4 million, compared to $2.5 million in the first quarter 2023. The year-over-year improvement in operating income was primarily driven by the company's lower general and administrative expense structure and the wind down of loss-generating company-owned salons during the last twelve months.
Balance Sheet and Cash Flow
The company ended the first quarter of fiscal year 2024 with $9.3 million in cash and cash equivalents, $186.1 million in outstanding borrowings, and total liquidity of $42.4 million. Net cash used in operating activities for the three months ended September 30, 2023, totaled $2.8 million, an improvement of $2.2 million from the prior year.
For more detailed financial information, please refer to the full earnings report on the company's website.
Explore the complete 8-K earnings release (here) from Regis Corp for further details.
