NYSE$RGS

Regis Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Operating results were materially impacted by the COVID-19 pandemic, the credit facility was successfully amended, and significant progress was announced in the transition to a franchise model.

Regis Corporation reported a fourth quarter 2020 net loss from continuing operations of $73.7 million, or $2.04 loss per diluted share, significantly impacted by government-mandated temporary salon closures and including a non-cash long-lived asset impairment charge of $22.6 million.

  • Successfully amended its revolving credit facility establishing covenant-light terms expected to provide the long-term flexibility needed to complete transformational strategy and navigate uncertainties caused by the pandemic
  • Approximately 76% of the Company Salon Portfolio Has Been Franchised Versus 56% At The End Of Fiscal Year 2019
  • Successfully Sold And Converted An Additional 112 Company-Owned Salons To Its Asset-Light Franchise Portfolio During The Quarter
  • The Company Expects To Complete Its Transition To A Fully-Franchised Model No Later Than The End Of Fiscal Year 2021

Headline financials

Total Revenue

$60.1M

Previous: $248M-75.8%
EPS (adj)

-$20.20

Previous: $12.40-262.9%
System-wide SSS Comps

-20.2%

Previous: 0.0%
Franchise SSS Comps

-20.4%

Previous: 0.1%-20500.0%
Company-Owned SSS Comps

-18.9%

Previous: -0.1%-18800.0%
Franchise Salons

5.2K

Previous: 4.0K+31.8%
Capital Expenditures

$5.16M

Previous: $8.46M-38.9%
Free Cash Flow

-$40.6M

Previous: -$5.71M-610.5%
Net Income

-$73.6M

Previous: -$5.4M-1263.5%
Operating Income

-$68.6M

Previous: -$1.84M-3636.6%
Gross Profit

$10.8M

Previous: $114M-90.6%
Cash & Equivalents

$114M

Previous: $70.1M+62.1%
Total Assets

$1.34B

Previous: $683M+96.6%
Stock-Based Comp

$1.16M

Previous: $1.94M-40.1%

Revenue & EPS history

Regis · Revenue · Quarterly

$60.1M

Q4 2020-75.8%vs Q4 2019
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Regis · $1.63K total across 1 segment · Q4 2020

  • Company-owned Salons
    $1.63K-47.5%

Forward guidance

The Company expects that the economic uncertainty created by the COVID-19 pandemic may further impact the number of salons to be sold, the pace of sales to franchisees and the proceeds from the sales. The Company is still committed to converting to a fully-franchised capital-light business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-2.5%

Avg return

Earnings day

-3.8%

Avg return

5 days after

-6.3%

Avg return

30 days after

39%

26 / 67 earnings

Positive

+27.1%

Q1 2016

Best reaction

-28.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+9.9%+9.7%
Q2 2026-6.4%-5.1%-8.9%
Q1 2026+0.2%-3.6%+3.8%
Q3 2025+10.0%+8.3%+18.1%
Q2 2025-21.2%-10.6%-31.7%
Q1 2025-18.7%-17.9%+4.3%
Q4 2024+1.8%-6.2%+23.9%
Q3 2024+2.9%+5.7%-18.5%
Q2 2024-5.8%-6.6%-40.2%
Q1 2024-8.9%-8.6%-39.5%
Q4 2023-11.2%-18.4%-38.4%
Q3 2023-11.0%-12.7%-6.8%
Q2 2023+4.9%+1.2%-15.2%
Q1 2023+13.7%+12.0%+9.4%
Q4 2022+0.7%+6.3%-34.3%
Q3 2022-28.8%-15.2%-55.2%
Q2 2022+3.9%+1.3%+5.9%
Q1 2022-6.8%-5.5%-11.6%
Q4 2021-16.6%-22.6%-45.9%
Q3 2021-19.7%-23.9%-22.5%
Q2 2021+7.8%+11.7%+22.9%
Q1 2021-5.1%-2.3%+64.3%
Q4 2020-17.2%-23.2%-32.4%
Q3 2020-7.8%-6.7%-13.7%
Q2 2020-3.4%-8.8%-25.9%
Q1 2020-7.9%-12.2%-30.4%
Q4 2019-3.6%+1.6%+25.9%
Q3 2019-9.9%-4.5%-2.5%
Q2 2019+1.9%+4.4%-0.1%
Q1 2019-11.4%-10.9%-5.9%
Q4 2018+18.3%+18.9%+17.7%
Q3 2018+5.1%+2.1%+10.7%
Q2 2018-3.2%-3.0%+0.6%
Q1 2018+0.3%-1.2%+8.2%
Q4 2017+18.5%+18.1%+30.9%
Q3 2017-15.9%-12.7%-9.2%
Q2 2017-6.1%-6.0%-8.6%
Q1 2017+7.1%+4.4%+19.0%
Q4 2016+0.7%-4.6%-7.2%
Q3 2016-14.6%
Q2 2016+1.6%
Q1 2016+27.1%
Q4 2015-17.7%
Q3 2015-1.3%
Q2 2015-2.1%
Q1 2015-2.1%
Q4 2014-1.7%
Q3 2014-1.9%
Q2 2014-10.3%
Q1 2014+7.5%
Q4 2013-5.2%
Q3 2013+0.0%
Q2 2013+7.8%
Q1 2013-17.7%
Q4 2012-0.8%
Q3 2012-0.6%
Q2 2012-2.0%
Q1 2012-4.7%
Q4 2011+5.3%
Q4 2009+5.3%
Q3 2010-0.4%
Q3 2011-0.4%
Q2 2010-0.7%
Q2 2011-0.7%
Q1 2010+1.1%
Q1 2011+1.1%
Q4 2010+1.1%

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