Summarized quarterly data for fiscal years 2014 and 2013 follows:



	Quarter Ended
	September 30(e)			December 31			March 31			June 30			Year Ended
	(Dollars in thousands, except per share amounts)
2014
Revenues	$	468,583		$	468,367		$	471,561		$	483,926		$	1,892,437
Cost of service and product revenues, excluding depreciation and amortization	269,039			273,874			272,490			279,095			1,094,498
Operating income (loss)(a)	1,429			(34,660		)	(3,221		)	2,462			(33,990		)
(Loss) income from continuing operations(a)(b)	(136		)	(109,085		)	(10,093		)	(17,766		)	(137,080		)
Income from discontinued operations(c)	—			—			609			744			1,353
Net (loss) income (a)(b)(c)	(136		)	(109,085		)	(9,484		)	(17,022		)	(135,727		)
(Loss) income from continuing operations per share, basic and diluted(d)	—			(1.93		)	(0.18		)	(0.31		)	(2.43		)
Income from discontinued operations per share, basic and diluted	—			—			0.01			0.01			0.02
Net (loss) income per basic and diluted share(d)	—			(1.93		)	(0.17		)	(0.30		)	(2.40		)
Dividends declared per share	0.06			0.06			—			—			0.12



	Quarter Ended
	September 30		December 31			March 31		June 30(e)			Year Ended
	(Dollars in thousands, except per share amounts)
2013
Revenues	$	505,360	$	506,165		$	504,937	$	502,251		$	2,018,713
Cost of service and product revenues, excluding depreciation and amortization	285,660		289,329			287,597		296,678			1,159,264
Operating income (loss)(a)	9,273		8,723			3,308		(8,978		)	12,326
Income (loss) from continuing operations(a)(b)	34,647		(16,119		)	896		(15,258		)	4,166
Income (loss) from discontinued operations(c)	3,777		3,853			1,465		15,933			25,028
Net income (loss)(a)(b)(c)	38,424		(12,266		)	2,361		675			29,194
Income (loss) from continuing operations per share, basic	0.60		(0.28		)	0.02		(0.27		)	0.07
Income (loss) from discontinued operations per share, basic(d)	0.07		0.07			0.03		0.28			0.44
Net income (loss) per basic share(d)	0.67		(0.22		)	0.04		0.01			0.51
Income (loss) from continuing operations per share, diluted	0.54		(0.28		)	0.02		(0.27		)	0.07
Income (loss) from discontinued operations per share, diluted	0.06		0.07			0.03		0.28			0.44
Net income (loss) per diluted share(d)	0.59		(0.22		)	0.04		0.01			0.51
Dividends declared per share	0.06		0.06			0.06		0.06			0.24

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(a)

During the second quarter of fiscal year 2014, the Company recorded a goodwill impairment charge of $34.9 million, an $84.4 million non-cash charge to establish a valuation allowance against the Company’s U.S. and U.K. deferred tax assets and non-cash salon asset impairment charge of $4.7 million. During the third quarter of fiscal 2014, the Company recorded non-cash salon impairment of $8.9 million. During the fourth quarter of fiscal year 2013, the Company recorded a $12.6 million ($7.7 million net of tax) inventory write-down associated with the Company's implementation of standardized plan-o-grams.

(b)

During the fourth quarter of fiscal year 2014, the Company recorded a $12.6 million charge representing its share of goodwill impairment charges recorded by EEG. During the first quarter of fiscal year 2013, the Company recorded a $32.2 million net of tax foreign currency gain associated with the sale of Provalliance. During the second quarter of fiscal year 2013, the Company recorded a $17.9 million impairment charge net of tax related to the impairment of EEG. During the fourth quarter of fiscal year 2013, the Company incurred $6.7 million net of tax of expense for a make-whole payment associated with the prepayment of debt.


(c)	During the fourth quarter of fiscal year 2013, the Company recorded a $15.4 million gain, net of professional and transaction fees and taxes, associated with the disposition of Hair Club.


(d)	Total is an annual recalculation; line items calculated quarterly may not sum to total.

(e)

During the fourth quarter of fiscal year 2013, the Company recorded a cumulative adjustment to correct prior period errors that related to an understatement of interest expense and certain uncertain tax positions. The impact of these items on the Company's Consolidated Statement of Operations increased interest expense by $0.4 million, increased income tax expense by $0.3 million and decreased net income by $0.7 million. During first quarter of fiscal year 2014, the Company recorded adjustments to correct errors related to the fourth quarter of fiscal year 2013 for an overstatement of inventory and self-insurance accruals and an understatement of cash. The impact of these items on the Company's Consolidated Statement of Operations decreased Site Operating expenses by $1.3 million, increased Cost of Product by $0.3 million and decreased net loss by $0.6 million. Because these errors were not material to the Company's consolidated financial statements for any prior periods, the respective quarter, or respective fiscal year, the Company recorded adjustments to correct the errors during each respective quarter.