The following is a summary of the impact of revisions on (loss) income from continuing operations for fiscal years 2014 and 2013:



	Fiscal Years
	2014			2013
	(Dollars in thousands)
(Loss) income from continuing operations, as reported	$	(137,080	)	$	4,166
Revisions:
Deferred rent, pre-tax (1)	(157		)	(471		)
Previous out of period items, pre-tax (2)	(811		)	2,154
Tax impact	(1,826		)	(371		)
Total revision impact	(2,794		)	1,312

(Loss) income from continuing operations, as revised	$	(139,874	)	$	5,478

_______________________________________________________________________________

(1)

The Company recognizes rental expense on a straight-line basis at the time the leased space becomes available to the Company. During the fourth quarter of fiscal year 2015, the Company determined its deferred rent balance was understated by $5.3 million. Accordingly, the Consolidated Financial Statements have been revised to correctly state its deferred rent balances and rent expense. The revisions resulted in an increase in net loss from continuing operations of $0.2 million for fiscal year 2014 and a decrease in net income from continuing operations of $0.5 million for fiscal year 2013. Accrued expenses and other noncurrent liabilities increased $1.0 and $4.2 million, respectively, at June 30, 2014 and retained earnings at June 30, 2014 decreased $5.2 million as a result of the cumulative adjustment for prior periods. This revision had no impact on cash provided by operations or net increase (decrease) in cash and cash equivalents for any year.

(2)

Also in the fourth quarter of fiscal year 2015, the Company revised certain prior year amounts in the Consolidated Balance Sheet and Statement of Operations to correctly recognize understatements of self-insurance accruals, interest expense, uncertain tax positions and cash and overstatements of inventory. The impact of these revisions resulted in an increase in net loss from continuing operations of $0.8 million for fiscal year 2014 and an increase in net income from continuing operations of $2.2 million for fiscal year 2013. Accrued expenses and other noncurrent liabilities increased $0.8 and $0.8 million, respectively, at June 30, 2014 and retained earnings at June 30, 2014 decreased by $1.6 million as a result of the cumulative adjustment for prior periods. In addition, cash and cash equivalents at June 30, 2013 increased by $0.6 million due to the revisions.

The Company assessed the materiality of these misstatements on prior periods' financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250 ("ASC 250"), Presentation of Financial Statements, and concluded these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the Consolidated Financial Statements as of June 30, 2014 and 2013, and the years then ended, which are presented herein, have been revised. The following are selected line items from the Company's Consolidated Financial Statements illustrating the effect of these revisions:



	REGIS CORPORATION
	CONSOLIDATED BALANCE SHEET
	(Dollars in thousands)
	June 30,
	2014
	As Previously Reported		Revision			As Revised
LIABILITIES AND SHAREHOLDERS' EQUITY
Accrued expenses	$	142,720	$	1,824		$	144,544
Total current liabilities	384,712		1,824			386,536
Other noncurrent liabilities	190,454		4,965			195,419
Total liabilities	695,168		6,789			701,957
Retained earnings	357,460		(6,789		)	350,671
Total shareholders' equity	720,781		(6,789		)	713,992
Total liabilities and shareholders' equity	$	1,415,949	$	—		$	1,415,949



	REGIS CORPORATION
	CONSOLIDATED STATEMENT OF OPERATIONS
	(Dollars in thousands, except per share data)
	Fiscal Years
	2014									2013
	As Previously Reported			Revision			As Revised			As Previously Reported			Revision			As Revised
Cost of product	$	187,204		$	(280	)	$	186,924		$	228,577		$	280		$	228,857
Site operating expenses	202,359			1,091			203,450			203,912			(1,784		)	202,128
Rent	322,105			157			322,262			324,716			471			325,187
Interest expense	(22,290		)	—			(22,290		)	(37,594		)	650			(36,944		)
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies	(54,328		)	(968		)	(55,296		)	10,098			1,683			11,781
Income taxes	(71,129		)	(1,826		)	(72,955		)	10,024			(371		)	9,653
(Loss) income from continuing operations	(137,080		)	(2,794		)	(139,874		)	4,166			1,312			5,478
Net (loss) income	$	(135,727	)	$	(2,794	)	$	(138,521	)	$	29,194		$	1,312		$	30,506

(Loss) income per share from continuing operations:
Basic and diluted earnings per share(1)	$	(2.43	)	$	(0.05	)	$	(2.48	)	$	0.07		$	0.02		$	0.10

Net (loss) income per share:
Basic and diluted earnings per share(1)	$	(2.40	)	$	(0.05	)	$	(2.45	)	$	0.51		$	0.02		$	0.54

_______________________________________________________________________________


(1)	Total is a recalculation; line items calculated individually may not sum to total due to rounding.



	REGIS CORPORATION
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	(Dollars in thousands)
	Fiscal Years
	2014									2013
	As Previously Reported			Revision			As Revised			As Previously Reported			Revision		As Revised
Net (loss) income	$	(135,727	)	$	(2,794	)	$	(138,521	)	$	29,194		$	1,312	$	30,506
Comprehensive loss	$	(133,632	)	$	(2,794	)	$	(136,426	)	$	(5,364	)	$	1,312	$	(4,052	)



	REGIS CORPORATION
	CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
	(Dollars in thousands)
	Fiscal Years
	Retained Earnings									Total
	As Previously Reported			Revision			As Revised			As Previously Reported			Revision			As Revised
Balance, June 30, 2012	$	484,229		$	(5,307	)	$	478,922		$	889,157		$	(5,307	)	$	883,850
Net income	29,194			1,312			30,506			29,194			1,312			30,506
Balance, June 30, 2013	499,760			(3,995		)	495,765			857,414			(3,995		)	853,419
Net loss	(135,727		)	(2,794		)	(138,521		)	(135,727		)	(2,794		)	(138,521		)
Balance, June 30, 2014	$	357,460		$	(6,789	)	$	350,671		$	720,781		$	(6,789	)	$	713,992



	REGIS CORPORATION
	CONSOLIDATED STATEMENT OF CASH FLOWS
	(Dollars in thousands)
	Fiscal Years
	2014									2013
	As Previously Reported			Revision			As Revised			As Previously Reported			Revision			As Revised
Cash flows from operating activities:
Net (loss) income	$	(135,727	)	$	(2,794	)	$	(138,521	)	$	29,194		$	1,312		$	30,506
Deferred income taxes	68,781			1,854			70,635			10,322			579			10,901
Changes in operating assets and liabilities:
Inventories	2,555			(280		)	2,275			(10,745		)	280			(10,465		)
Other current assets	(6,503		)	524			(5,979		)	(8,064		)	340			(7,724		)
Other assets	(103		)	15			(88		)	239			—			239
Accounts payable	1,907			—			1,907			19,086			(650		)	18,436
Accrued expenses	3,505			450			3,955			(26,431		)	(731		)	(27,162		)
Other noncurrent liabilities	(11,502		)	(417		)	(11,919		)	459			(482		)	(23		)
Net cash provided by operating activities	117,403			(648		)	116,755			69,148			648			69,796
Cash: Beginning of Year	200,488			648			201,136			111,943			—			111,943
Cash: End of Year	378,627			—			378,627			200,488			648			201,136