Regis Posts Profit In Q4, Same Store Sales Down - Quick Facts

(RTTNews) - Hair salons operator Regis Corp. (RGS) reported Tuesday that its fourth-quarter net income was $5.56 million or $0.12 per share, including $0.06 per share unfavorable impact due to the deferred tax valuation allowance on income tax expense.

The prior year's net loss was $2.57 million or $0.05 per share, including net discrete expense of $3.1 million.

As a result of the Company's valuation allowance against most of its deferred tax assets, associated reported and as adjusted, after-tax results are not comparable to prior periods, the company said.

Excluding the impact of the deferred tax valuation allowance, adjusted earnings per share improved $0.24 per share compared to the prior year quarter, the company said.

Operating income was $10.6 million, compared to loss of $0.4 million in the prior year quarter. EBITDA, as adjusted, was $27.4 million, compared to $24.4 million last year.

Revenue in the quarter of $447.7 million declined 3.3% from last year's $462.89 million. Same-store sales decreased 1.4% compared to the prior year quarter. Management estimates the shift of Easter from April of last year to March of this year negatively impacted same-store sales by approximately 40 basis points.

The closing of unprofitable salons and foreign currency also hurt revenues, partly offset by one more calendar day in the quarter and growth from royalties and fees.

Same-store service sales decreased 1.6% and same-store product sales decreased 0.8%.