0000716643-18-000010.txt : 20180201 0000716643-18-000010.hdr.sgml : 20180201 20180201060458 ACCESSION NUMBER: 0000716643-18-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20180201 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180201 DATE AS OF CHANGE: 20180201 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REGIS CORP CENTRAL INDEX KEY: 0000716643 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PERSONAL SERVICES [7200] IRS NUMBER: 410749934 STATE OF INCORPORATION: MN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12725 FILM NUMBER: 18564564 BUSINESS ADDRESS: STREET 1: 7201 METRO BLVD CITY: MINNEAPOLIS STATE: MN ZIP: 55439 BUSINESS PHONE: 9529477777 MAIL ADDRESS: STREET 1: 7201 METRO BLVD CITY: MINNEAPOLIS STATE: MN ZIP: 55439 8-K 1 a8-k123117.htm 8-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): February 1, 2018
 
REGIS CORPORATION
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
Minnesota
 
1-12725
 
41-0749934
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No)
 
7201 Metro Boulevard
Minneapolis, MN 55439
(Address of principal executive offices and zip code)
 
(952) 947-7777
(Registrant’s telephone number, including area code)
 
(Not applicable)
(Former name or former address, if changed from last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
















Regis Corporation

Current Report on Form 8-K
 
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
 
On February 1, 2018, Regis Corporation announced the financial results for its fiscal second quarter ended December 31, 2017.  A copy of the News Release issued by Regis Corporation in connection with this Item 2.02 is attached as Exhibit No. 99 and incorporated by reference herein.
 
The information in this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.
 
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
 
(d) Exhibits.
 
 
 
 
 
EXHIBIT
NUMBER
 
 
 
 
 
99
 
Regis Corporation News Release dated February 1, 2018.




































SIGNATURE
 
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
REGIS CORPORATION
 
 
 
 
 
 
Dated: February 1, 2018
 
By:
/s/ Amanda Rusin
 
 
 
Name: Amanda Rusin, Title: Secretary
 
EXHIBIT INDEX
 
 
 
 
 
EXHIBIT
NUMBER
 
 
 
 
 
 
Regis Corporation News Release dated February 1, 2018.





 EX-99 2 a123117pressrelease.htm EX - 99 Exhibit
 
Exhibit No. 99
headererq1fy18.jpg
 
 
 

For Immediate Release


REGIS REPORTS IMPROVED SECOND QUARTER 2018 RESULTS

Second Quarter Diluted Earnings Per Share From Continuing Operations of $0.83, Which Includes A One-Time, Non-Cash Benefit Of Recently Passed Federal Tax Reform Legislation; Second Quarter Adjusted Diluted Earnings Per Share Of $0.06 Increased $0.02 Versus Prior Year

Adjusted EBITDA of $18.2 million is $1.0 million, or 6.0% Favorable Year-Over-Year;
Year-To-Date Adjusted EBITDA of $42.1 million Increased $2.2 million, or 5.5% Year-Over-Year

During the Quarter, the Company Executed Upon Two Major Transformative Events -
The Sale and Subsequent Franchising of Substantially All of Its Mall-Based Salons and U.K. Businesses and the Restructuring of its Company-Owned SmartStyle® Portfolio By Committing to Close Approximately 597 Cash Flow Negative Salons

 
 
Three Months Ended 
 December 31,
 
Six Months Ended 
 December 31,
(Dollars in thousands)
 
2017
 
2016(1)
 
2017
 
2016(1)
Consolidated Revenue
 
$308,515
 
$315,249
 
$618,388
 
$634,080
Consolidated Same-Store Sales Comps
 
(0.7
)%
 
(2.5
)%
 
(0.2
)%
 
(1.1
)%
 
 
 
 
 
 
 
 
 
Net Income From Continuing Operations
 
$39,321
 
$982
 
$50,113
 
$6,722
Diluted Earnings per Share From Continuing Operations
 
$0.83
 
$0.02
 
$1.07
 
$0.14
EBITDA
 
$(16,622)
 
$13,299
 
$(20,372)
 
$33,592
 
 
 
 
 
 
 
 
 
As Adjusted(2)
 
 
 
 
 
 
 
 
Net Income, as Adjusted
 
$2,886
 
$1,655
 
$7,598
 
$7,395
Diluted Earnings per Share, as Adjusted
 
$0.06
 
$0.04
 
$0.16
 
$0.16
EBITDA, as Adjusted
 
$18,198
 
$17,173
 
$42,135
 
$39,925
____________________________________
(1)
Amounts for fiscal year 2017 have been recast to account for mall-based business and International segment as discontinued operations.
(2)    See GAAP to non-GAAP reconciliations, within the attached section titled "Non-GAAP Reconciliations".

MINNEAPOLIS, February 1, 2018 -- Regis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is owning, operating and franchising hair salons, today reported second fiscal quarter 2018 net income from continuing operations of $39.3 million, or $0.83 per diluted share as compared to net income from continuing operations of $1.0 million, or $0.02 per diluted share in the second fiscal quarter of 2017. The Company’s reported results include $68.9 million of non-cash, one-time, tax benefits related to the enactment of the Tax Cuts and Jobs Act ("Tax Reform"), partially offset by $37.6 million of one-time

footerq1fy18.jpg

lease termination and other non-recurring costs associated with the recently announced restructuring of the Company's SmartStyle® salon portfolio, and $3.5 million of other discrete costs. Excluding these tax benefits, restructuring charges, discrete items, and the loss from discontinued operations, the Company reported second quarter 2018 as adjusted net income of $2.9 million, or $0.06 earnings per diluted share versus net income of $1.7 million, or $0.04 earnings per diluted share, for the same period last year.

Total revenue in the quarter of $308.5 million decreased $6.7 million, or 2.1%, year-over-year driven primarily by the closure, or re-franchising of 448 salons. Second quarter adjusted EBITDA of $18.2 million was $1.0 million, or 6.0% favorable year-over-year.

On a full year basis, the Company reported net income from continuing operations of $50.1 million, or $1.07 per diluted share as compared to net income from continuing operations of $6.7 million, or $0.14 per diluted share in the prior year. On an adjusted basis, EBITDA of $42.1 million increased $2.2 million, or 5.5% versus the same period last year.


Hugh Sawyer, President and Chief Executive Officer, commented, "Restructuring the non-performing elements of our company-owned salon portfolio in order to focus on the performing core, and the growth of our franchise business, has been a key element of our strategy.” Mr. Sawyer continued, “The second quarter represents an important milestone where we substantially completed the restructuring phase of our strategic transformation and operational turnaround. Moreover, we are pleased to report initial signs of progress in both our quarterly and year-over-year adjusted EBITDA results.”


Sale of Company’s Mall-based Salons and U.K. Business
In October 2017, after a comprehensive process, the Company reached the strategic conclusion to sell, and subsequently franchise, substantially all of its mall-based salon business in North America, representing 858 salons, and substantially all of its International segment, representing approximately 250 salons in the U.K. This transaction clarified the Company's strategy by focusing its company-owned salon portfolio in North America on the value segment. At the same time, this outcome was consistent with the Company's previously stated strategic imperative to accelerate the growth of its franchise portfolio.

Due to this transaction, the Company has classified the results of its mall-based business and its International segment as discontinued operations for all periods presented in the Condensed Consolidated Statement of Operations. Included within discontinued operations are the impairment charges, results of operations, and professional fees associated with the transaction, for the three and six months ended December 31, 2017. The operations of the mall-based business and International segment, which were previously recorded in the North American Value, North American Premium and International reporting segments, have been eliminated from ongoing operations of the Company. The new Company-owned segment is comprised of its SmartStyle®, Supercuts® and Signature Style® concepts.


Restructuring of Company-Owned SmartStyle® Portfolio
In December 2017, the Company committed to close 597 non-performing Company-owned SmartStyle® salons in January 2018. The 597 non-performing salons generated negative cash flow of approximately $15 million during the twelve months ended September 30, 2017. The action delivers on the Company's commitment to restructure its salon portfolio to improve shareholder value and position the Company for long-term growth. The Company anticipates this action will allow the Company to reallocate capital and human resources to strategically grow its remaining SmartStyle® salons with creative new offerings.





As part of the agreement, the Company recorded a net $24.0 million charge to rent expense in the second quarter driven primarily by $27.3 million of one-time lease termination and other related closure costs, partially offset by a $3.3 million reversal of deferred rent for the impacted salons. The Company also committed to return the salons to its pre-occupancy condition, or “modified white boxes”, and recorded $7.5 million in depreciation expense. Additionally, as part of the closures, the Company recorded inventory and fixed asset impairments of $0.6 million and $5.4 million, respectively.


Second Quarter Segment Results
Company-Owned Salons
 
Three Months Ended December 31,
 
(Decrease) Increase
 
Six Months Ended December 31,
 
(Decrease) Increase
(Dollars in millions) (1)
2017
 
2016(2)
 
 
2017
 
2016(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Revenue
$
280.0

 
$
296.2

 
(5.5
)%
 
$
568.7

 
$
595.6

 
(4.5
)%
Same-Store Sales Comps

(0.7
)%
 
(2.5
)%
 
180 bps

 
(0.2
)%
 
(1.1
)%
 
90 bps

 Year-over-Year Ticket change
2.5
 %
 
 
 
 
 
3.0
 %
 
 
 
 
 Year-over-Year Traffic change
(3.2
)%
 
 
 
 
 
(3.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Profit, as Adjusted(3)
117.7

 
116.3

 
1.2
 %
 
242.1

 
239.5

 
1.1
 %
   as a percent of revenue
42.0
 %
 
39.2
 %
 
280 bps

 
42.6
 %
 
40.2
 %
 
240 bps

 
 
 
 
 
 
 
 
 
 
 
 
EBITDA, as Adjusted
26.5

 
26.9

 
(1.2
)%
 
59.8

 
59.9

 
(0.2
)%
   as a percent of revenue
9.5
 %
 
9.1
 %
 
40 bps

 
10.5
 %
 
10.1
 %
 
40 bps

____________________________________
(1)
Variances calculated on amounts shown in millions may result in rounding differences.
(2)
Amounts for fiscal year 2017 have been revised for discontinued operations due to the October sale of the mall-based business and the International segment.
(3)
Gross profit, as Adjusted, excludes depreciation and amortization.

Second quarter revenue for the Company-owned salon segment decreased 5.5% versus the prior year to $280.0 million. The year-over-year decline in revenue was driven by the closure of unprofitable salons, the refranchising of salons, and a decrease in same-store sales of 0.7% partially offset by increase in average ticket and a favorable foreign currency impact in the Company’s Canadian business.
Second quarter adjusted EBITDA of $26.5 million declined $0.3 million, or 1.2% versus the same period last year driven primarily by same-store sales declines and investments in a strategic digital marketing campaign, partially offset by the closing of unprofitable salons, benefits from the Company's strategic initiative plan, and a one-time benefit related to the discontinuance of a limited loyalty program test.

Franchise Operations
 
Three Months Ended December 31,
 
Increase (Decrease)
 
Six Months Ended December 31,
 
Increase (Decrease)
(Dollars in millions) (1)
2017
 
2016(2)
 
 
2017
 
2016(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Revenue
$
28.6

 
$
19.0

 
50.2
%
 
$
49.6

 
$
38.4

 
29.2
%
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA, as Adjusted
9.8

 
8.2

 
19.5
%
 
19.6

 
16.7

 
17.2
%
   as a percent of revenue
34.3
%
 
43.1
%
 
(880) bps

 
39.4
%
 
43.5
%
 
(410) bps

____________________________________




(1)
Variances calculated on amounts shown in millions may result in rounding differences.
(2)
Amounts for fiscal year 2017 have been revised for discontinued operations due to the October sale of the mall-based business and the International segment.

Second quarter Franchise revenue was $28.6 million, a $9.5 million, or 50.2%, increase compared to the prior year quarter. Royalties and fees were $13.5 million, a $2.1 million, or 18.2% increase versus the same period last year. Royalties increased 9.9% driven primarily by positive same-store revenue and increased franchise salon counts. Initial franchise fees increased $1.2 million as the Company opened, or converted, a net 108 franchised locations in the quarter as compared to 41 in the prior year quarter. Franchise adjusted EBITDA of $9.8 million improved $1.6 million, or 19.5% year-over-year.

Other Company Updates
Consolidated Year-Over-Year General & Administrative ("G&A") Comparability
The Company announced during the first fiscal quarter a realignment of its field leadership team by brand. An outcome of this reorganization is that the costs associated with senior district leaders have been moved out of cost of goods sold and site operating expense, where the expense has historically been recorded, and into G&A. The Company notes that this change does not impact the overall consolidated results but does result in an $8.9 million decrease in cost of goods sold and site expense, and a corresponding $8.9 million increase to G&A this quarter, when compared to the comparable period last year. On a year-to-date basis, this reclassification of expenses decreased cost of goods sold and site expense, and had a corresponding increase to G&A, of $15.1 million versus the same period last year.

Transformational Strategy Update
The Company continued to make progress implementing its transformational strategy and operational turnaround initiatives focused on improving the performance of company-owned salons, while at the same time accelerating the growth of its franchise portfolio. During the quarter, the Company:
•
Closed on a transaction to sell, and subsequently franchise, substantially all of its mall-based salon business in North America and substantially all of its International segment. This transaction moved approximately 1,100 salons from the company-owned segment to the franchise segment.
•
Committed to closing 597 non-performing, cash flow negative Company-owned SmartStyle® salons in January 2018.
•
Executed a number of operational initiatives, building on its previously discussed 120-day plan, to help stabilize performance and establish a platform for longer-term revenue and earnings growth in Company-owned salons. The Company estimates the initiatives delivered benefit in a range of $7.0 million to $9.0 million in the second quarter of fiscal 2018.
•
Initiated a review of non-core, non-essential, G&A costs associated with the Company’s field and corporate restructuring efforts.
•
Announced its industry-exclusive agreement with LSMx, a Buxton local store marketing application. Buxton is a leading customer analytics provider for over 4,000 retailers. The Company currently




intends to use LSMx, and its advanced customer data insights, to drive hyper-local, targeted marketing for its corporate and franchise salons.
•
Entered into an industry-exclusive, multi-year sponsorship with Major League Baseball ("MLB") for the Supercuts® brand. The Supercuts® sponsorship will be implemented throughout MLB’s core marketing platforms including broadcast, digital, mobile and social.
•
Greatly reduced the complexity of the service offerings in its SmartSyle® portfolio with the introduction of “Everyday Simple Pricing” while also introducing a new “Express Haircut” service targeted toward male guests who shop at Walmart®.

Tax Update
As a result of the recently enacted Tax Reform, the Company recognized a one-time, non-cash, tax benefit of $68.9 million in the quarter related to impacts on its deferred tax assets and liabilities. The reduction in U.S. Federal corporate income tax rates, and a change in the net operating loss rules, were the primary drivers of this benefit.

Non-GAAP reconciliations:
For GAAP to non-GAAP reconciliations, please refer to attached section titled "Non-GAAP Reconciliations". A complete reconciliation of reported earnings to adjusted earnings is included in this press release and is available on the Company’s website at www.regiscorp.com.

Earnings Webcast
Regis Corporation will host a conference call via webcast discussing second quarter results today, February 1, 2018, at 9 a.m., Central time. Interested parties are invited to participate in the live webcast by logging on to www.regiscorp.com or participate via telephone by dialing (800) 239-9838 and entering access code 6862837. A replay of the presentation will be available later that day. The replay phone number is (888) 203-1112, access code 6862837.

About Regis Corporation
Regis Corporation (NYSE:RGS) is a leader in beauty salons and cosmetology education. As of December 31, 2017, the Company owned, franchised or held ownership interests in 8,883 worldwide locations. Regis’ corporate and franchised locations operate under concepts such as Supercuts®, SmartStyle®, MasterCuts®, Regis Salons®, Sassoon®, Cost Cutters®, Roosters® and First Choice Haircutters®. Regis maintains an ownership interest in Empire Education Group in the U.S. For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com. To join Regis Corporation’s email alert list, click on this link:
http://www.b2i.us/irpass.asp?BzID=913&to=ea&Nav=1&S=0&L=1

CONTACT: REGIS CORPORATION:
Paul Dunn




VP, Finance and Investor Relations, 952-947-7915

This press release contains or may contain “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, “may,” “believe,” “project,” “forecast,” “expect,” “estimate,” “anticipate,” and “plan.” In addition, the following factors could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include the continued ability of the Company to implement its strategy, priorities and initiatives; our ability to attract, train and retain talented stylists; financial performance of our franchisees; acceleration of sale of certain salons to franchisees; the ability of the Company to maintain a satisfactory relationship with Walmart; the success of The Beautiful Group, our largest franchisee; marketing efforts to drive traffic; changes in regulatory and statutory laws including increases in minimum wages; our ability to manage cyber threats and protect the security of sensitive information about our guests, employees, vendors or Company information; reliance on information technology systems; reliance on external vendors; competition within the personal hair care industry; changes in tax exposure; changes in healthcare; changes in interest rates and foreign currency exchange rates; failure to standardize operating processes across brands; consumer shopping trends and changes in manufacturer distribution channels; financial performance of Empire Education Group; the continued ability of the Company to implement cost reduction initiatives; compliance with debt covenants; changes in economic conditions; changes in consumer tastes and fashion trends; exposure to uninsured or unidentified risks; ability to attract and retain key management personnel; reliance on our management team and other key personnel or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth in the Company’s Annual Report on Form 10-K for the year ended June 30, 2017. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.





REGIS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
(Dollars in thousands, except share data)
 
 
 
December 31,
2017
 
June 30,
2017
ASSETS
 
 

 
 

Current assets:
 
 

 
 

Cash and cash equivalents
 
$
163,300

 
$
171,044

Receivables, net
 
31,895

 
19,683

Inventories
 
87,347

 
98,392

Other current assets
 
47,814

 
48,114

Current assets held for sale
 
—

 
32,914

Total current assets
 
330,356

 
370,147

 
 
 
 
 
Property and equipment, net
 
109,448

 
123,281

Goodwill
 
417,709

 
416,987

Other intangibles, net
 
11,416

 
11,965

Other assets
 
52,958

 
61,756

Noncurrent assets held for sale
 
—

 
27,352

Total assets
 
$
921,887

 
$
1,011,488

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
$
52,738

 
$
54,501

Accrued expenses
 
107,198

 
110,435

Current liabilities related to assets held for sale
 
—

 
13,126

Total current liabilities
 
159,936

 
178,062

 
 
 
 
 
Long-term debt, net
 
121,096

 
120,599

Other noncurrent liabilities
 
112,284

 
197,374

Noncurrent liabilities related to assets held for sale
 
—

 
7,232

Total liabilities
 
393,316

 
503,267

Commitments and contingencies
 


 


Shareholders’ equity:
 
 

 
 

Common stock, $0.05 par value; issued and outstanding 46,688,423 and 46,400,367 common shares at December 31, 2017 and June 30, 2017, respectively
 
2,335

 
2,320

Additional paid-in capital
 
216,301

 
214,109

Accumulated other comprehensive income
 
11,789

 
3,336

Retained earnings
 
298,146

 
288,456

 
 
 
 
 
Total shareholders’ equity
 
528,571

 
508,221

 
 
 
 
 
Total liabilities and shareholders’ equity
 
$
921,887

 
$
1,011,488



– more –










REGIS CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
For The Three and Six Months Ended December 31, 2017 and 2016
(Dollars and shares in thousands, except per share data amounts)

 
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
223,214

 
$
235,609

 
$
458,773

 
$
478,700

Product
 
71,816

 
68,229

 
132,756

 
131,945

Royalties and fees
 
13,485

 
11,411

 
26,859

 
23,435

 
 
308,515

 
315,249

 
618,388

 
634,080

Operating expenses:
 
 
 
 
 
 
 
 
Cost of service
 
134,850

 
151,193

 
274,686

 
301,990

Cost of product
 
39,864

 
34,584

 
70,026

 
65,399

Site operating expenses
 
32,119

 
32,638

 
65,422

 
65,283

General and administrative
 
48,592

 
36,695

 
83,758

 
72,611

Rent
 
65,473

 
45,091

 
107,889

 
91,324

Depreciation and amortization
 
24,951

 
12,646

 
37,206

 
24,755

Total operating expenses
 
345,849

 
312,847

 
638,987

 
621,362

 
 
 
 
 
 
 
 
 
Operating (loss) income
 
(37,334
)
 
2,402

 
(20,599
)
 
12,718

 
 
 
 
 
 
 
 
 
Other (expense) income:
 
 
 
 
 
 
 
 
Interest expense
 
(2,169
)
 
(2,153
)
 
(4,307
)
 
(4,316
)
Interest income and other, net
 
2,362

 
1,452

 
3,389

 
1,779

 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations before income taxes
 
(37,141
)
 
1,701

 
(21,517
)
 
10,181

 
 
 
 
 
 
 
 
 
Income tax benefit (expense)
 
76,462

 
(719
)
 
71,630

 
(3,459
)
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
39,321

 
982

 
50,113

 
6,722

 
 
 
 
 
 
 
 
 
  Loss from discontinued operations, net of taxes
 
(6,601
)
 
(3,201
)
 
(40,368
)
 
(5,660
)
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
32,720

 
$
(2,219
)
 
$
9,745

 
$
1,062

 
 
 
 
 
 
 
 
 
Net income (loss) per share:
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.84

 
$
0.02

 
$
1.07

 
$
0.15

Loss from discontinued operations
 
(0.14
)
 
(0.07
)
 
(0.86
)
 
(0.12
)
Net income (loss) per share, basic (1)
 
$
0.70

 
$
(0.05
)
 
$
0.21

 
$
0.02

Diluted:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.83

 
$
0.02

 
$
1.07

 
$
0.14

Loss from discontinued operations
 
(0.14
)
 
(0.07
)
 
(0.86
)
 
(0.12
)
Net income (loss) per share, diluted (1)
 
$
0.69

 
$
(0.05
)
 
$
0.21

 
$
0.02

 
 
 
 
 
 
 
 
 
Weighted average common and common equivalent shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
46,821

 
46,327

 
46,719

 
46,277

Diluted
 
47,314

 
46,774

 
47,053

 
46,751

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

– more –





REGIS CORPORATION (NYSE: RGS)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
(Dollars in thousands)
 
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
Net income (loss)
 
$
32,720

 
$
(2,219
)
 
$
9,745

 
$
1,062

Foreign currency translation adjustments
 
(381
)
 
(2,322
)
 
2,301

 
(4,838
)
Reclassification adjustments for losses included in net income (loss)
 
6,152

 
—

 
6,152

 
—

Comprehensive income (loss)
 
$
38,491

 
$
(4,541
)
 
$
18,198

 
$
(3,776
)



– more –





REGIS CORPORATION (NYSE: RGS)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited)
(Dollars in thousands)
 
 
Six Months Ended December 31,
 
 
2017
 
2016
Cash flows from operating activities:
 
 

 
 

Net income
 
$
9,745

 
$
1,062

Adjustments to reconcile net income to net cash (used in) provided by operating activities:
 
 
 
 

Non-cash impairment related to discontinued operations
 
25,095

 
—

Depreciation and amortization
 
20,492

 
20,369

Depreciation related to discontinued operations
 
3,038

 
7,220

Deferred income taxes
 
(77,055
)
 
3,297

Gain on life insurance
 
(7,986
)
 
—

Gain from sale of salon assets to franchisees, net(1)
 
(18
)
 
(121
)
Salon asset impairments
 
16,714

 
4,386

Accumulated other comprehensive income reclassification adjustments
 
6,152

 
—

Stock-based compensation
 
4,618

 
4,400

Amortization of debt discount and financing costs
 
703

 
703

Other non-cash items affecting earnings
 
(104
)
 
64

Changes in operating assets and liabilities, excluding the effects of asset sales
 
(13,647
)
 
(13,775
)
Net cash (used in) provided by operating activities
 
(12,253
)
 
27,605

 
 
 
 
 
Cash flows from investing activities:
 
 
 
 

Capital expenditures
 
(13,773
)
 
(15,510
)
Capital expenditures related to discontinued operations
 
(1,171
)
 
(2,893
)
Proceeds from sale of assets to franchisees(1)
 
2,696

 
335

Change in restricted cash
 
(542
)
 
738

Proceeds from company-owned life insurance policies
 
18,108

 
—

Net cash provided by (used in) investing activities
 
5,318

 
(17,330
)
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 

Taxes paid for shares withheld
 
(2,039
)
 
(1,113
)
Cash settlement of equity awards
 
(375
)
 
—

Net cash used in financing activities
 
(2,414
)
 
(1,113
)
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 
253

 
(866
)
 
 
 
 
 
(Decrease) increase in cash and cash equivalents
 
(9,096
)
 
8,296

 
 
 
 
 
Cash and cash equivalents:
 
 
 
 

Beginning of period
 
171,044

 
147,346

Cash and cash equivalents included in current assets held for sale
 
1,352

 
—

Beginning of period, total cash and cash equivalents
 
172,396

 
147,346

End of period
 
$
163,300

 
$
155,642

_____________________________
(1)    Excludes transaction with The Beautiful Group.



– more –





SAME-STORE SALES (1):
 
 
For the Three Months Ended
 
 
December 31, 2017
 
December 31, 2016
 
 
Service
 
Retail
 
Total
 
Service
 
Retail
 
Total
SmartStyle
 
(2.5
)
 
0.5

 
(1.5
)
 
(1.5
)
 
(3.8
)
 
(2.3
)
Supercuts
 
2.1

 
(4.8
)
 
1.4

 
(0.4
)
 
(7.1
)
 
(1.1
)
Signature Style
 
(1.0
)
 
(3.4
)
 
(1.3
)
 
(3.3
)
 
(6.3
)
 
(3.7
)
Consolidated
 
(0.7
)%
 
(0.8
)%
 
(0.7
)%
 
(1.9
)%
 
(4.7
)%
 
(2.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Six Months Ended
 
 
December 31, 2017
 
December 31, 2016
 
 
Service
 
Retail
 
Total
 
Service
 
Retail
 
Total
SmartStyle
 
(0.8
)
 
0.4

 
(0.5
)
 
(0.5
)
 
(2.3
)
 
(1.1
)
Supercuts
 
2.3

 
(5.3
)
 
1.6

 
0.4

 
(4.2
)
 
—

Signature Style
 
(0.6
)
 
(4.4
)
 
(1.1
)
 
(1.8
)
 
(2.8
)
 
(1.9
)
Consolidated
 
0.1
 %
 
(1.2
)%
 
(0.2
)%
 
(0.7
)%
 
(2.6
)%
 
(1.1
)%
____________________________________

(1) Same-store sales are calculated on a daily basis as the total change in sales for company-owned locations that were open on a specific day of the week during the current period and the corresponding prior period. Quarterly and year-to-date same-store sales are the sum of the same-store sales computed on a daily basis. Locations relocated within a one-mile radius are included in same-store sales as they are considered to have been open in the prior period. Same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation.

– more –





REGIS CORPORATION (NYSE: RGS)
System-wide location counts

 
December 31, 2017
 
June 30, 2017
COMPANY-OWNED SALONS:
 
 
 
 
 
 
 
 
 
SmartStyle/Cost Cutters in Walmart Stores (1)
 
2,497

 
2,652

Supercuts
 
954

 
980

Signature Style
 
1,414

 
1,468

Mall locations (Regis and MasterCuts)
 
—

 
898

Total North American Salons
 
4,865

 
5,998

Total International Salons (2)
 
—

 
275

Total Company-owned Salons
 
4,865

 
6,273

as a percent of total Company-owned and Franchise salons
 
55.3
%
 
70.3
%
 
 
 
 
 
FRANCHISE SALONS:
 
 
 
 
 
 
 
 
 
SmartStyle in Walmart Stores
 
210

 
62

Cost Cutters in Walmart Stores
 
116

 
114

Supercuts
 
1,730

 
1,687

Signature Style
 
754

 
770

Total non-mall franchise locations
 
2,810

 
2,633

Mall franchise locations (Regis and MasterCuts)
 
849

 
—

Total North American Salons
 
3,659

 
2,633

Total International Salons (2)
 
270

 
13

Total Franchise Salons
 
3,929

 
2,646

as a percent of total Company-owned and Franchise salons
 
44.7
%
 
29.7
%
 
 
 
 
 
OWNERSHIP INTEREST LOCATIONS:
 
 
 
 
 
 
 
 
 
Equity ownership interest locations
 
89

 
89

 
 
 
 
 
Grand Total, System-wide
 
8,883

 
9,008

____________________________________

(1)
In January 2018, the Company closed 597 non-performing Company-owned SmartStyle salons.

(2)
Canadian and Puerto Rican salons are included in the North American salon totals.


– more –







Non-GAAP Reconciliations

We believe our presentation of non-GAAP operating income, net income, net income per diluted share, and other non-GAAP financial measures provides meaningful insight into our ongoing operating performance and an alternative perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors’ analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information research analysts frequently use to analyze financial performance.

The method we use to produce non-GAAP results is not in accordance with U.S. GAAP and may differ from methods used by other companies. These non-GAAP results should not be regarded as a substitute for corresponding U.S. GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with both our financial statements prepared in accordance with U.S. GAAP and the reconciliation of the selected U.S. GAAP to non-GAAP financial measures, which are located in the Investor Information section of the corporate website at www.regiscorp.com.

Non-GAAP reconciling items for the three and six months ended December 31, 2017 and 2016:
 
The following information is provided to give qualitative and quantitative information related to items impacting comparability. Items impacting comparability are not defined terms within U.S. GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine which items to consider as “items impacting comparability” based on how management views our business, makes financial, operating and planning decisions and evaluates the Company’s ongoing performance. The following items have been excluded from our non-GAAP results:


•
SmartStyle restructuring costs.
•
Severance expense for former executive officers.
•
Professional fees.
•
Executive transition costs.
•
Gain on life insurance proceeds.
•
Goodwill derecognition.
•
Impact of tax reform.
•
Discontinued operations.

– more –
 





REGIS CORPORATION
Reconciliation of selected U.S. GAAP to non-GAAP financial measures
(Dollars in thousands, except per share data)
(unaudited)
Reconciliation of U.S. GAAP operating (loss) income and net income (loss) to equivalent non-GAAP measures
 
 
 
 
Three Months Ended
December 31,
 
Six Months Ended
December 31,
 
 
U.S. GAAP financial line item
 
2017
 
2016
 
2017
 
2016
U.S. GAAP revenue
 
 
 
$
308,515

 
$
315,249

 
$
618,388

 
$
634,080

 
 
 
 
 
 
 
 
 
 
 
U.S. GAAP operating (loss) income
 
 
 
$
(37,334
)
 
$
2,402

 
$
(20,599
)
 
$
12,718

 
 
 
 
 
 
 
 
 
 
 
Non-GAAP operating adjustments (1)
 
 
 
 
 
 
 
 
 
 
SmartStyle restructuring costs
 
Cost of product
 
585

 
—

 
585

 
—

Severance
 
General and administrative
 
2,295

 
—

 
2,828

 
—

Professional fees
 
General and administrative
 
806

 
673

 
1,636

 
673

Executive transition costs
 
General and administrative
 
146

 
—

 
418

 
—

SmartStyle restructuring costs
 
General and administrative
 
117

 
—

 
117

 
—

Gain on life insurance proceeds
 
General and administrative
 
—

 
—

 
(7,986
)
 
—

SmartStyle restructuring costs, net
 
Rent
 
23,999

 
—

 
23,999

 
—

SmartStyle restructuring costs
 
Depreciation and amortization
 
12,880

 
—

 
12,880

 
—

Non-GAAP operating adjustments
 
 
 
40,828

 
673

 
34,477

 
673

Non-GAAP operating income (1)
 
 
 
$
3,494

 
$
3,075

 
$
13,878

 
$
13,391

 
 
 
 
 
 
 
 
 
 
 
U.S. GAAP net income (loss)
 
 
 
$
32,720

 
$
(2,219
)
 
$
9,745

 
$
1,062

 
 
 
 
 
 
 
 
 
 
 
Non-GAAP net (loss) income adjustments:
 
 
 
 
 
 
 
 
 
 
Non-GAAP operating adjustments
 
 
 
40,828

 
673

 
34,477

 
673

Goodwill derecognition
 
Interest income and other, net
 
271

 
—

 
542

 
—

Tax impact of non-GAAP adjustments (2)
 
Income taxes
 
(8,631
)
 
—

 
(8,631
)
 
—

Impact of tax reform
 
Income taxes
 
(68,903
)
 
—

 
(68,903
)
 
—

Discontinued operations
 
  Loss from discontinued operations, net of tax
 
6,601

 
3,201

 
40,368

 
5,660

Total non-GAAP net income adjustments
 
 
 
(29,834
)
 
3,874

 
(2,147
)
 
6,333

Non-GAAP net income
 
 
 
$
2,886

 
$
1,655

 
$
7,598

 
$
7,395

____________________________________
Notes:
(1)
Adjusted operating margins for the three months ended December 31, 2017, and 2016, were 1.1% and 1.0%, respectively, and were 2.2% and 2.1% for the six months ended December 31, 2017, and 2016, respectively, and are calculated as non-GAAP operating income divided by U.S. GAAP revenue for each respective period.

(2)
Based on projected statutory effective tax rate analyses, the non-GAAP tax provision was calculated to be approximately 21% for the three months ended December 31, 2017, for all non-GAAP operating expense adjustments. Non-GAAP operating expense adjustments recognized during the first quarter of fiscal year 2018 were not tax effected as a result of the valuation allowance. As a result of the valuation allowance, non-GAAP adjustments were not tax effected for the three and six months ended December 31, 2016.


– more –






REGIS CORPORATION
Reconciliation of selected U.S. GAAP to non-GAAP financial measures
(Dollars in thousands, except per share data)
(Unaudited)
Reconciliation of U.S. GAAP net income (loss) per diluted share to non-GAAP net income per diluted share
 
Three Months Ended
December 31,
 
Six Months Ended
December 31,
 
2017
 
2016
 
2017
 
2016
U.S. GAAP net income (loss) per diluted share
 
$
0.692

 
$
(0.047
)
 
$
0.207

 
$
0.023

SmartStyle restructuring costs, net (1)
 
0.628

 
—

 
0.631

 
—

Severance (1)
 
0.038

 
—

 
0.050

 
—

Professional fees (1)
 
0.013

 
0.014

 
0.031

 
0.014

Executive transition costs (1)
 
0.002

 
—

 
0.008

 
—

Gain on life insurance proceeds (1)
 
—

 
—

 
(0.170
)
 
—

Goodwill derecognition (1)
 
0.005

 
—

 
0.010

 
—

Impact of tax reform
 
(1.456
)
 
—

 
(1.464
)
 
—

Discontinued operations, net of tax
 
0.140

 
0.068

 
0.858

 
0.121

Non-GAAP net income per diluted share (2)
 
$
0.061

 
$
0.035

 
$
0.161

 
$
0.158

 
 
 
 
 
 
 
 
 
U.S. GAAP Weighted average shares - basic
 
46,821

 
46,327

 
46,719

 
46,277

U.S. GAAP Weighted average shares - diluted 
 
47,314

 
46,774

 
47,053

 
46,751

`
____________________________________
Notes:
(1)
Based on projected statutory effective tax rate analyses, the non-GAAP tax provision was calculated to be approximately 21% for the three months ended December 31, 2017, for all non-GAAP operating expense adjustments. Non-GAAP operating expense adjustments recognized during the first quarter of fiscal year 2018 were not tax effected as a result of the valuation allowance. As a result of the valuation allowance, non-GAAP adjustments were not tax effected for the three and six months ended December 31, 2016.

(2)
Total is a recalculation; line items calculated individually may not sum to total due to rounding.


REGIS CORPORATION
Summary of Pre-Tax, Income Taxes and Net Income Impact for Q2 FY18 Discrete Items
(Dollars in thousands)
(Unaudited)

 
Pre-Tax
 
Income Taxes
 
Net Income
SmartStyle restructuring costs
$
37,581

 
$
(7,891
)
 
$
29,690

Severance
2,295

 
(483
)
 
1,812

Professional fees
806

 
(169
)
 
637

Executive transition costs
146

 
(31
)
 
115

Goodwill derecognition
271

 
(57
)
 
214

Impact of tax reform
—

 
(68,903
)
 
(68,903
)
 
$
41,099

 
$
(77,534
)
 
$
(36,435
)
 
 
 
 
 
 
Discontinued operations, net of tax
$
—

 
$
—

 
$
6,601

 
 
 
 
 
 
Total
$
41,099

 
$
(77,534
)
 
$
(29,834
)

– more –






REGIS CORPORATION
Reconciliation of reported U.S. GAAP net income (loss) to adjusted EBITDA, a non-GAAP financial measure
(Dollars in thousands)
(unaudited)

Adjusted EBITDA
EBITDA represents U.S. GAAP net income (loss) for the respective period excluding interest expense, income taxes and depreciation and amortization expense. The Company defines adjusted EBITDA, as EBITDA excluding identified items impacting comparability for each respective period. For the three and six months ended December 31, 2017 and 2016, the items impacting comparability consisted of the items identified in the non-GAAP reconciling items for the respective periods. The impacts of the income tax provision adjustments associated with the above items, impact of tax reform and the SmartStyle restructuring costs included within depreciation and amortization are already included in the U.S. GAAP reported net income (loss) to EBITDA reconciliation, therefore there is no adjustment needed for the reconciliation from EBITDA to adjusted EBITDA.
 
 
Three Months Ended December 31, 2017
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
Consolidated reported net income (loss), as reported (U.S. GAAP)
 
$
(20,211
)
 
$
9,703

 
$
43,228

 
$
32,720

Interest expense, as reported
 
—

 
—

 
2,169

 
2,169

Income taxes, as reported
 
—

 
—

 
(76,462
)
 
(76,462
)
Depreciation and amortization, as reported
 
22,054

 
91

 
2,806

 
24,951

EBITDA (as defined above)
 
$
1,843

 
$
9,794

 
$
(28,259
)
 
$
(16,622
)
 
 
 
 
 
 
 
 
 
SmartStyle restructuring costs, net
 
24,686

 
—

 
15

 
24,701

Severance
 
—

 
—

 
2,295

 
2,295

Professional fees
 
—

 
—

 
806

 
806

Executive transition costs
 
—

 
—

 
146

 
146

Goodwill derecognition
 
—

 
—

 
271

 
271

Discontinued operations, net of tax
 
—

 
—

 
6,601

 
6,601

Adjusted EBITDA, non-GAAP financial measure
 
$
26,529

 
$
9,794

 
$
(18,125
)
 
$
18,198

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31, 2016
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
Consolidated reported net income (loss), as reported (U.S. GAAP)
 
$
16,658

 
$
8,105

 
$
(26,982
)
 
$
(2,219
)
Interest expense, as reported
 
—

 
—

 
2,153

 
2,153

Income taxes, as reported
 
—

 
—

 
719

 
719

Depreciation and amortization, as reported
 
10,203

 
89

 
2,354

 
12,646

EBITDA (as defined above)
 
$
26,861

 
$
8,194

 
$
(21,756
)
 
$
13,299

 
 
 
 
 
 
 
 
 
Professional fees
 
—

 
—

 
673

 
673

Discontinued operations, net of tax
 
—

 
—

 
3,201

 
3,201

Adjusted EBITDA, non-GAAP financial measure
 
$
26,861

 
$
8,194

 
$
(17,882
)
 
$
17,173

 
 
 
 
 
 
 
 
 

– more –






 
 
Six Months Ended December 31, 2017
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
Consolidated reported net income (loss), as reported (U.S. GAAP)
 
$
3,139

 
$
19,399

 
$
(12,793
)
 
$
9,745

Interest expense, as reported
 
—

 
—

 
4,307

 
4,307

Income taxes, as reported
 
—

 
—

 
(71,630
)
 
(71,630
)
Depreciation and amortization, as reported
 
31,948

 
183

 
5,075

 
37,206

EBITDA (as defined above)
 
$
35,087

 
$
19,582

 
$
(75,041
)
 
$
(20,372
)
 
 
 
 
 
 
 
 
 
SmartStyle restructuring costs, net
 
24,686

 
—

 
15

 
24,701

Severance
 
—

 
—

 
2,828

 
2,828

Professional fees
 
—

 
—

 
1,636

 
1,636

Executive transition costs
 
—

 
—

 
418

 
418

Gain on life insurance proceeds
 
—

 
—

 
(7,986
)
 
(7,986
)
Goodwill derecognition
 
—

 
—

 
542

 
542

Discontinued operations, net of tax
 
—

 
—

 
40,368

 
40,368

Adjusted EBITDA, non-GAAP financial measure
 
$
59,773

 
$
19,582

 
$
(37,220
)
 
$
42,135

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended December 31, 2016
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
Consolidated reported net income (loss), as reported (U.S. GAAP)
 
$
40,124

 
$
16,535

 
$
(55,597
)
 
$
1,062

Interest expense, as reported
 
—

 
—

 
4,316

 
4,316

Income taxes, as reported
 
—

 
—

 
3,459

 
3,459

Depreciation and amortization, as reported
 
19,798

 
179

 
4,778

 
24,755

EBITDA (as defined above)
 
$
59,922

 
$
16,714

 
$
(43,044
)
 
$
33,592

 
 
 
 
 
 
 
 
 
Professional fees
 
—

 
—

 
673

 
673

Discontinued operations, net of tax
 
—

 
—

 
5,660

 
5,660

Adjusted EBITDA, non-GAAP financial measure
 
$
59,922

 
$
16,714

 
$
(36,711
)
 
$
39,925

 
 
 
 
 
 
 
 
 

– more –






REGIS CORPORATION
Reconciliation by reportable segment of reported U.S. GAAP gross profit (excluding depreciation and amortization) to adjusted gross profit (excluding depreciation and amortization), a non-GAAP financial measure
(Dollars in thousands)
(Unaudited)
Gross profit
The Company defines gross profit as service and product revenues less cost of service and cost of product, excluding depreciation and amortization. Non-GAAP gross profit is gross profit, as defined by the Company, adjusted for items impacting comparability for each respective period.
 
 
Three Months Ended December 31, 2017
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
223,214

 
$
—

 
$
—

 
$
223,214

Product
 
56,748

 
15,068

 
—

 
71,816

 
 
279,962

 
15,068

 
—

 
295,030

 
 
 
 
 
 
 
 
 
Cost of service
 
134,850

 
—

 
—

 
134,850

Cost of product
 
28,044

 
11,820

 
—

 
39,864

 
 
162,894

 
11,820

 
—

 
174,714

 
 
 
 
 
 
 
 
 
U.S. GAAP gross profit(1)
 
$
117,068

 
$
3,248

 
$
—

 
$
120,316

 
 
 
 
 
 
 
 
 
Non-GAAP gross profit adjustments:
 
 
 
 
 
 
 
 
    SmartStyle restructuring costs
 
585

 
—

 
—

 
585

Non-GAAP gross profit(1)
 
$
117,653

 
$
3,248

 
$
—

 
$
120,901

____________________________________
(1)    Gross profit excludes depreciation and amortization.

 
 
Three Months Ended December 31, 2016
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
235,609

 
$
—

 
$
—

 
$
235,609

Product
 
60,636

 
7,593

 
—

 
68,229

 
 
296,245

 
7,593

 
—

 
303,838

 
 
 
 
 
 
 
 
 
Cost of service
 
151,193

 
—

 
—

 
151,193

Cost of product
 
28,783

 
5,801

 
—

 
34,584

 
 
179,976

 
5,801

 
—

 
185,777

 
 
 
 
 
 
 
 
 
U.S. GAAP and Non-GAAP gross profit(1)
 
$
116,269

 
$
1,792

 
$
—

 
$
118,061

____________________________________
(1)    Gross profit excludes depreciation and amortization.

– more –






 
 
Six Months Ended December 31, 2017
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
458,773

 
$
—

 
$
—

 
$
458,773

Product
 
109,966

 
22,790

 
—

 
132,756

 
 
568,739

 
22,790

 
—

 
591,529

 
 
 
 
 
 
 
 
 
Cost of service
 
274,686

 
—

 
—

 
274,686

Cost of product
 
52,491

 
17,535

 
—

 
70,026

 
 
327,177

 
17,535

 
—

 
344,712

 
 
 
 
 
 
 
 
 
U.S. GAAP and Non-GAAP gross profit(1)
 
$
241,562

 
$
5,255

 
$
—

 
$
246,817

 
 
 
 
 
 
 
 
 
Non-GAAP gross profit adjustments:
 
 
 
 
 
 
 
 
    SmartStyle restructuring costs

 
585

 
—

 
—

 
585

Non-GAAP gross profit(1)
 
$
242,147

 
$
5,255

 
$
—

 
$
247,402

____________________________________
(1)    Gross profit excludes depreciation and amortization.

 
 
Six Months Ended December 31, 2016
 
 
Company-owned
 
Franchise
 
Corporate
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
Service
 
$
478,700

 
$
—

 
$
—

 
$
478,700

Product
 
116,949

 
14,996

 
—

 
131,945

 
 
595,649

 
14,996

 
—

 
610,645

 
 
 
 
 
 
 
 
 
Cost of service
 
301,990

 
—

 
—

 
301,990

Cost of product
 
54,130

 
11,269

 
—

 
65,399

 
 
356,120

 
11,269

 
—

 
367,389

 
 
 
 
 
 
 
 
 
U.S. GAAP and Non-GAAP gross profit(1)
 
$
239,529

 
$
3,727

 
$
—

 
$
243,256

____________________________________
(1)    Gross profit excludes depreciation and amortization.

REGIS CORPORATION
Reconciliation of reported U.S. GAAP revenue change to same-store sales
(unaudited)

 
Three Months Ended
December 31,
 
Six Months Ended
December 31,
 
2017
 
2016
 
2017
 
2016
Revenue decline, as reported (U.S. GAAP)
 
(2.1
)%
 
(2.2
)%
 
(2.5
)%
 
(1.7
)%
Effect of new stores and conversions
 
(0.6
)
 
(0.5
)
 
(0.6
)
 
(0.5
)
Effect of closed salons
 
4.8

 
1.5

 
4.2

 
1.7

Franchise
 
(2.5
)
 
0.1

 
(1.5
)
 
—

Foreign currency
 
(0.4
)
 
—

 
(0.3
)
 
—

Other
 
0.1

 
(1.4
)
 
0.5

 
(0.6
)
Same-store sales, non-GAAP
 
(0.7
)%
 
(2.5
)%
 
(0.2
)%
 
(1.1
)%

– end –




 GRAPHIC 3 footerq1fy18.jpg begin 644 footerq1fy18.jpg M_]C_X 02D9)1@ ! 0$ 8 !@ #_X1#R17AI9@ 34T *@ @ ! $[ ( M - (2H=I 0 ! (6)R= $ : 0T.H< < @, /@ M &UL;G,Z9&,](FAT=' Z M+R]P=7)L+F]R9R]D8R]E;&5M96YT#IX;7!M971A/@T*(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" * M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" \/WAP86-K970@ M96YD/2=W)S\^_]L 0P '!04&!00'!@4&" <'" H1"PH)"0H5#Q ,$1@5&AD8 M%1@7&QXG(1L=)1T7&"(N(B4H*2LL*QH@+S,O*C(G*BLJ_]L 0P$'" @*"0H4 M"PL4*AP8'"HJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ M*BHJ*BHJ*BHJ*BHJ_\ $0@ /0=^ P$B (1 0,1 ?_$ !\ $% 0$! 0$! M ! @,$!08'" D*"__$ +40 (! P,"! ,%!00$ !?0$" P $ M$042(3%!!A-180'EZ@X2%AH>( MB8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ !\! ,! 0$! 0$! 0$ ! M @,$!08'" D*"__$ +41 (! @0$ P0'!00$ $"=P ! @,1! 4A,08205$' M87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6&AXB)BI*3E)66 MEYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN+CY.7F MY^CIZO+S]/7V]_CY^O_: P# 0 "$0,1 #\ ]R_X2@?\^A_[^?\ UJ/^$H'_ M #Z'_OY_]:N>HKI]G$\3ZU6[_D=#_P )0/\ GT/_ '\_^M1_PE _Y]#_ -_/ M_K5SU%'LXA]:K=_R.A_X2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G$/K5 M;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4#_GT/_?S_P"M7/44>SB'UJMW_(Z'_A*! M_P ^A_[^?_6H_P"$H'_/H?\ OY_]:N>HH]G$/K5;O^1T/_"4#_GT/_?S_P"M M1_PE _Y]#_W\_P#K5SU%'LXA]:K=_P CH?\ A*!_SZ'_ +^?_6H_X2@?\^A_ M[^?_ %JYZBCV<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ E _P"?0_\ ?S_ZU<]1 M1[.(?6JW?\CH?^$H'_/H?^_G_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[_D=# M_P )0/\ GT/_ '\_^M1_PE _Y]#_ -_/_K5SU%'LXA]:K=_R.A_X2@?\^A_[ M^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4 M#_GT/_?S_P"M7/44>SB'UJMW_(Z'_A*!_P ^A_[^?_6H_P"$H'_/H?\ OY_] M:N>HH]G$/K5;O^1T/_"4#_GT/_?S_P"M1_PE _Y]#_W\_P#K5SU%'LXA]:K= M_P CH?\ A*!_SZ'_ +^?_6H_X2@?\^A_[^?_ %JYZBCV<0^M5N_Y'0_\)0/^ M?0_]_/\ ZU'_ E _P"?0_\ ?S_ZU<]11[.(?6JW?\CH?^$H'_/H?^_G_P!: MC_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[_D=#_P )0/\ GT/_ '\_^M1_PE _Y]#_ M -_/_K5SU%'LXA]:K=_R.A_X2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G M$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4#_GT/_?S_P"M7/44>SB'UJMW_(Z' M_A*!_P ^A_[^?_6H_P"$H'_/H?\ OY_]:N>HH]G$/K5;O^1T/_"4#_GT/_?S M_P"M1_PE _Y]#_W\_P#K5SU%'LXA]:K=_P CH?\ A*!_SZ'_ +^?_6H_X2@? M\^A_[^?_ %JYZBCV<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ E _P"?0_\ ?S_Z MU<]11[.(?6JW?\CH?^$H'_/H?^_G_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[ M_D=#_P )0/\ GT/_ '\_^M1_PE _Y]#_ -_/_K5SU%'LXA]:K=_R.A_X2@?\ M^A_[^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU M'_"4#_GT/_?S_P"M7/44>SB'UJMW_(Z'_A*!_P ^A_[^?_6H_P"$H'_/H?\ MOY_]:N>HH]G$/K5;O^1T/_"4#_GT/_?S_P"M1_PE _Y]#_W\_P#K5SU%'LXA M]:K=_P CH?\ A*!_SZ'_ +^?_6H_X2@?\^A_[^?_ %JYZBCV<0^M5N_Y'0_\ M)0/^?0_]_/\ ZU'_ E _P"?0_\ ?S_ZU<]11[.(?6JW?\CH?^$H'_/H?^_G M_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[_D=#_P )0/\ GT/_ '\_^M1_PE _ MY]#_ -_/_K5SU%'LXA]:K=_R.A_X2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_]:N> MHH]G$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4#_GT/_?S_P"M7/44>SB'UJMW M_(Z'_A*!_P ^A_[^?_6H_P"$H'_/H?\ OY_]:N>HH]G$/K5;O^1T/_"4#_GT M/_?S_P"M1_PE _Y]#_W\_P#K5SU%'LXA]:K=_P CH?\ A*!_SZ'_ +^?_6H_ MX2@?\^A_[^?_ %JYZBCV<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ E _P"?0_\ M?S_ZU<]11[.(?6JW?\CH?^$H'_/H?^_G_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q# MZU6[_D=#_P )0/\ GT/_ '\_^M1_PE _Y]#_ -_/_K5SU%'LXA]:K=_R.A_X M2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G$/K5;O\ D=#_ ,)0/^?0_P#? MS_ZU'_"4#_GT/_?S_P"M7/44>SB'UJMW_(Z'_A*!_P ^A_[^?_6H_P"$H'_/ MH?\ OY_]:N>HH]G$/K5;O^1T/_"4#_GT/_?S_P"M1_PE _Y]#_W\_P#K5SU% M'LXA]:K=_P CH?\ A*!_SZ'_ +^?_6H_X2@?\^A_[^?_ %JYZBCV<0^M5N_Y M'0_\)0/^?0_]_/\ ZU'_ E _P"?0_\ ?S_ZU<]11[.(?6JW?\CH?^$H'_/H M?^_G_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[_D=#_P )0/\ GT/_ '\_^M1_ MPE _Y]#_ -_/_K5SU%'LXA]:K=_R.A_X2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_ M]:N>HH]G$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4#_GT/_?S_P"M7/44>SB' MUJMW_(Z'_A*!_P ^A_[^?_6H_P"$H'_/H?\ OY_]:N>HH]G$/K5;O^1T/_"4 M#_GT/_?S_P"M1_PE _Y]#_W\_P#K5SU%'LXA]:K=_P CH?\ A*!_SZ'_ +^? M_6H_X2@?\^A_[^?_ %JYZBCV<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ E _P"? M0_\ ?S_ZU<]11[.(?6JW?\CH?^$H'_/H?^_G_P!:C_A*!_SZ'_OY_P#6KGJ* M/9Q#ZU6[_D=#_P )0/\ GT/_ '\_^M1_PE _Y]#_ -_/_K5SU%'LXA]:K=_R M.A_X2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G$/K5;O\ D=#_ ,)0/^?0 M_P#?S_ZU'_"4#_GT/_?S_P"M7/44>SB'UJMW_(Z'_A*!_P ^A_[^?_6H_P"$ MH'_/H?\ OY_]:N>HH]G$/K5;O^1T/_"4#_GT/_?S_P"M1_PE _Y]#_W\_P#K M5SU%'LXA]:K=_P CH?\ A*!_SZ'_ +^?_6H_X2@?\^A_[^?_ %JYZBCV<0^M M5N_Y'0_\)0/^?0_]_/\ ZU'_ E _P"?0_\ ?S_ZU<]11[.(?6JW?\CH?^$H M'_/H?^_G_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[_D=#_P )0/\ GT/_ '\_ M^M1_PE _Y]#_ -_/_K5SU%'LXA]:K=_R.A_X2@?\^A_[^?\ UJ/^$H'_ #Z' M_OY_]:N>HH]G$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4#_GT/_?S_P"M7/44 M>SB'UJMW_(Z'_A*!_P ^A_[^?_6H_P"$H'_/H?\ OY_]:N>HH]G$/K5;O^1T M/_"4#_GT/_?S_P"M1_PE _Y]#_W\_P#K5SU%'LXA]:K=_P CH?\ A*!_SZ'_ M +^?_6H_X2@?\^A_[^?_ %JYZBCV<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ E M_P"?0_\ ?S_ZU<]11[.(?6JW?\CH?^$H'_/H?^_G_P!:C_A*!_SZ'_OY_P#6 MKGJ*/9Q#ZU6[_D=#_P )0/\ GT/_ '\_^M1_PE _Y]#_ -_/_K5SU%'LXA]: MK=_R.A_X2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G$/K5;O\ D=#_ ,)0 M/^?0_P#?S_ZU'_"4#_GT/_?S_P"M7/44>SB'UJMW_(Z'_A*!_P ^A_[^?_6H M_P"$H'_/H?\ OY_]:N>HH]G$/K5;O^1T/_"4#_GT/_?S_P"M1_PE _Y]#_W\ M_P#K5SU%'LXA]:K=_P CH?\ A*!_SZ'_ +^?_6H_X2@?\^A_[^?_ %JYZBCV M<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ E _P"?0_\ ?S_ZU<]11[.(?6JW?\CH M?^$H'_/H?^_G_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[_D=#_P )0/\ GT/_ M '\_^M1_PE _Y]#_ -_/_K5SU%'LXA]:K=_R.A_X2@?\^A_[^?\ UJ/^$H'_ M #Z'_OY_]:N>HH]G$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4#_GT/_?S_P"M M7/44>SB'UJMW_(Z'_A*!_P ^A_[^?_6H_P"$H'_/H?\ OY_]:N>HH]G$/K5; MO^1T/_"4#_GT/_?S_P"M1_PE _Y]#_W\_P#K5SU%'LXA]:K=_P CH?\ A*!_ MSZ'_ +^?_6H_X2@?\^A_[^?_ %JYZBCV<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ M E _P"?0_\ ?S_ZU<]11[.(?6JW?\CH?^$H'_/H?^_G_P!:C_A*!_SZ'_OY M_P#6KGJ*/9Q#ZU6[_D=#_P )0/\ GT/_ '\_^M1_PE _Y]#_ -_/_K5SU%'L MXA]:K=_R.A_X2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G$/K5;O\ D=#_ M ,)0/^?0_P#?S_ZU'_"4#_GT/_?S_P"M7/44>SB'UJMW_(Z'_A*!_P ^A_[^ M?_6H_P"$H'_/H?\ OY_]:N>HH]G$/K5;O^1T/_"4#_GT/_?S_P"M1_PE _Y] M#_W\_P#K5SU%'LXA]:K=_P CH?\ A*!_SZ'_ +^?_6H_X2@?\^A_[^?_ %JY MZBCV<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ E _P"?0_\ ?S_ZU<]11[.(?6JW M?\CH?^$H'_/H?^_G_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[_D=#_P )0/\ MGT/_ '\_^M1_PE _Y]#_ -_/_K5SU%'LXA]:K=_R.A_X2@?\^A_[^?\ UJ/^ M$H'_ #Z'_OY_]:N>HH]G$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4#_GT/_?S M_P"M7/44>SB'UJMW_(Z'_A*!_P ^A_[^?_6H_P"$H'_/H?\ OY_]:N>HH]G$ M/K5;O^1T/_"4#_GT/_?S_P"M1_PE _Y]#_W\_P#K5SU%'LXA]:K=_P CH?\ MA*!_SZ'_ +^?_6H_X2@?\^A_[^?_ %JYZBCV<0^M5N_Y'0_\)0/^?0_]_/\ MZU'_ E _P"?0_\ ?S_ZU<]11[.(?6JW?\CH?^$H'_/H?^_G_P!:C_A*!_SZ M'_OY_P#6KGJ*/9Q#ZU6[_D=#_P )0/\ GT/_ '\_^M1_PE _Y]#_ -_/_K5S MU%'LXA]:K=_R.A_X2@?\^A_[^?\ UJ/^$H'_ #Z'_OY_]:N>HH]G$/K5;O\ MD=#_ ,)0/^?0_P#?S_ZU'_"4#_GT/_?S_P"M7/44>SB'UJMW_(Z'_A*!_P ^ MA_[^?_6H_P"$H'_/H?\ OY_]:N>HH]G$/K5;O^1T/_"4#_GT/_?S_P"M1_PE M _Y]#_W\_P#K5SU%'LXA]:K=_P CH?\ A*!_SZ'_ +^?_6H_X2@?\^A_[^?_ M %JYZBCV<0^M5N_Y'0_\)0/^?0_]_/\ ZU'_ E _P"?0_\ ?S_ZU<]11[.( M?6JW?\CH?^$H'_/H?^_G_P!:C_A*!_SZ'_OY_P#6KGJ*/9Q#ZU6[_D=#_P ) M0/\ GT/_ '\_^M1_PE _Y]#_ -_/_K5SU%'LXA]:K=_R.A_X2@?\^A_[^?\ MUJ/^$H'_ #Z'_OY_]:N>HH]G$/K5;O\ D=#_ ,)0/^?0_P#?S_ZU'_"4#_GT M/_?S_P"M7/44>SB'UJMW_(Z'_A*!_P ^A_[^?_6H_P"$H'_/H?\ OY_]:N>H MH]G$/K5;O^1T/_"4#_GT/_?S_P"M1_PE _Y]#_W\_P#K5SU%'LXA]:K=_P C MH?\ A*!_SZ'_ +^?_6H_X2@?\^A_[^?_ %JYZBCV<0^M5N_Y'0_\)0/^?0_] M_/\ ZU'_ E _P"?0_\ ?S_ZU<]11[.(?6JW?\@HHHK0Y0HHHH **** "BBB M@ HHHH **** ,W6=>LM!ABDOS(%E8JNQ<\BLN'Q_H4KA3/)'D]7C(%4OB(,Q MZ4#T^T_X5T&J:5I4^GS?;K>!8E0DR; "G'4&HN[Z'2HTU"+DGJ:$4R3PK+"Z MO&XRK*<@BGUQ7@K4AIW@N>ZOV(@@D;9[CC@?C1!K'BW68_M>EV=O;VIYC$IY MTOQ!INLY%A5]K%E;>7C=]GX MW8_/-/F1,:4I*^WJ=G163X>UZ+7K%I50PS1-LFB/5&KF]"\2^(-8OE@AAC>* M*X'VB;:!MCR.![XS1S(%1D[^1W5%<-<^+=8C\2WVEV=LMU('V6ZXQL]23WJ2 MXU;Q=HT?VO4[2WN;47=:G:T5G1:Y9RZ#_:P>.1 M[?7/%U4=:\2:O:>*WTO384N-\2^4A7HQYR3Z8S1S*URE1FYF_ R>.V?2L_[;XVAB^URV=M)&!N, QN _ T< MR!49-7NCLZS[?6K2ZU>XTV(O]HMUW."O&..A_&L'POXDO_$%WJ2L$C$: PQD M?<)SP3WY%8VA)KG_ GEV&DM_M "_:SCY2F5SMXZ]*7-V+5"W,I;I'<6VL6M MUJUSIT1?[1:@&0%>.?0_C5^N9TF[:7QQK%N8H56)$(=8P&;@=3WJ/4_$U_-J MSZ5X;M5N)XO]=*_W4/I3OH0Z3.>3YQC.]< \'M1S(/8RYDEU.GHKBI=2\9K;'4/LELMN! MO-OU8+_.NBT#68]=TB.\C3RV)*NF<[6'6A2N3*E**ON:=%%%49!1110 4444 M %%%% &7K7B&QT$0G4#(/.W;-B[NF,_SK*_X6)H7]ZX_[]?_ %ZZ:2&*;'G1 MI)CIN4'%<9XMACU'6M/T"SCC1I6$D[(H!5?_ -63^51*Z.FE&G)VDCL([J*6 MS2Z#;8GC$@9N,*1GFL,^.]!6Z\G[4QYQY@0[?SJQXBTNZOO#K:=I12-CM3YV M( 0=OTI)]"TFT\.O;W%M L,4)WN5&<@?>SUS3=R8JG:\C8BE2:)9(G5T<95E M.016/J?B[2-)N&@N;@M*OWDC7<5^M9'@^XN(/ -U,2?W/G- 3_="Y'ZYIGP_ MTVTGT62]N($FN))F#22*&../6ES-[%^RC'FMV&LPM)I\ZR;?O+C# M+]15?6?$MAH,D27YD!E!*[$STKG9K>+2/BA91V""&.Z@W2(G"Y^?M_P$5U^I M1HVFW)958B%\9'3@T)MHF4(1DNS(M'UFUURS-U8ES&KE#O7!R #_ %J_7(?# M7_D69?\ KZ;_ -!6NOIIW1%6*A-Q17O[V+3K&6[N-WE0KN;:,G%5=&U^QUZ& M62P9B(F"N'7!&>E0^+?^13U'_KB?YBN3\.#^P_$-A_#;:K:+]-X_^O\ SI-V M9I"G&5-OJ>@RRK#"\LAPB*68^@%96C>)].UVXDAL&D+1KN;>F.,XJEXXU!K7 M0OLD'_'Q?.(4 ZX[G^GXUE^$+)=.\9:G:)TAMHU/UPN?UH;UL$:2=)R>_0[F MBN2U'Q-J-UJ\FE^&;59Y(>)9W^ZI_E4)\1ZYH-S$/$UK&]K*VWSX/X33YD2J M$VO/MU.IU'4(-+L9+NZW"*/[VT9-2VMREY9PW,.?+FC61,C!P1D?SKEO';7\ MN@^;8R0FQ*9FS]YLD;=M0P7^L:1\.S>RR0[XXH3:[5SB,E0 P]<&ES:C5&\$ MT]6[':45S?AC5-9U9C=:A D-BT7[H\99LCGZ=:I2^)-8UF^E@\+VL;00G:UU M+T)]J?,B?8RYFNQV-%)-5TW5(;+Q1:I$L[;8[F/[N?>NNIIW)G!PW*6J MZM;:-8F[O2PB#!?D7)R:R;7QWH=U,L8N&B+' ,J;1^=0_$/_ )%-O^NR?UK. MUV?1'\%1(?LSWA@C$0C +A\#TYJ&WFW9T?P7;7&JE MD,%NN\'K[#Z]!6/#J_BW6(_M>F65O;VIYC$I&7'XU7,9*DW?71':45SOA_Q) M-?WDNFZM;_9=0B&2G9QZBET'6+O4-?U>TN64Q6DI2(!<$#)'/KTHNA.E)7OT M.AJA=ZQ:V6IVEA.7\^[SY>%R./4UG>*=7N]*;319LJBXN1')N7.5JCXB_P"1 MZ\/_ %:ALJ%.]F^M_P #KJ*P?$GB/^QA#;VD/VF_N#B*$=O7 M5G;2PK\SQ)CW'(_/-%T2Z'[.*&S5L++/CYOS_ *4P_;+>SMHH2-R MQ/COX5H5YUI6K3:O\1+& M2[MC;7$43QRQ^X1J]%HB[A5I^S:7D%%%%48A1110 4444 %4=6U:VT6R^U7I M<1;@OR+DY-7JY?X@#/AM0>1]H2D]$:4XJ4U%FYI6JVVLV*W=DQ:(DK\PP01[ M4_4+^#3+&2[NV*Q1C+$#)KEO"X_L;Q-J.BL<12?Z1;CV/;\C^E2>,Y#J%YIV M@PL=UU('EQV0?Y/Y5-]#7V2]IR]-_D;FC:[9Z[!)-8%RD;;6WKCG&:?I6LVN ML+.UF7(@D\M]RXYK!\"1K%_;$<:A42^95 [ 5#H&J3?V!K]TD<$4EJTK)Y<0 M4$A202!UH3"5)7DETM^)V=%<'IFO>*M=LE;3(+=1'P\\F ';T K6\.^(;V[U M.?2=:MUAO85W KT8?CS3;L1&DY*^R.THK"\.>)$UN&6.> M(VUY;G$T1/3W'M63)XEUK6KZ6+PO:QFWB;:;B7HQ_&CF0U1G=IZ6.SHKS_5? M%/B71+:5X;TV^@9?,G>/S\32:C>2Z;JEO]EU M"$9*CHX]J?,A2HR2OV.CHKF-9\2WBZM_9&@6HN;P#,CM]V.J4NO>)=!*S:]9 MQ3V9(#R0$93_ #[T7A81(0#M&3R-3 MYL8;;PO3/0TFRH4TTK]W^1V-%<_XDURZTZXL[#2XDDO;QB$,A^50._\ GTIF MB:GK/]K2Z;KMNNX)O2XA7Y&]LT[J]C/V4N7F.CK&U7Q5INC7R6M\TBR. PVI MD8/O6S7 ^*-/&J>-%M",L]BY3V8 D?J*)-I:%48QE*TMCO58,H93D$9!K+UK MQ'I^@^4+]W!FSM"+N/'_ .NJO@S4SJ/AR$2']_;?N90?4=#^6/UKD_$(.N:I MK%Z?FMM-@\I/]_/_ .U^E)RTT+IT4ZCC+9'<7FOV5CHL.J3F3[-,J,N%R?F& M1Q5NQOH-1LHKJT??%*,J:XWQ)S\,=-'_ $SM_P#T"F>'KF7POK,>E7C$V-\J MR6\C=%8@623V#HT##Y2@P/RKS_ $;Q#IEEJ.JW5_#)=2W%RS(D<0EECL#(6B +;TQUK7K'T+6])U=7.E[4D4?/&4", M!]*L:YJT6C:3+=R\E1B-.[L>@IIZ&W K0DE2*-I)6"(HRS$X %><:?I]Q:>,M%N;]F:[O=\\N?X<@X'Y5W^IZ> MFJ:;+93.\:2C#,AP<9I)MEU*<8.*3,J+QOH4MX+=;L@DX#LI"Y^M;^:\_P#% MN 2#0F^I M4J46HN.E^_YDM[XVT2RN3 ]R9&4X8Q+N /UK6T_4[35;47%A,LT><$CL?0CM M6)X6T+2U\-VDGV:&X>XB#R22(&))'(Y].GX5G:3;II/Q&N;'3CBUE@WR1@\( M<9'^?>B[Z@Z=-W4;W1VU%%%65]I</7,ITJPDD,5M M2VTS3>9$Q5ML>1FJ?@"5TTZ_MBY>"VN"L3'TYSC^?XUBZ!XBTFP2^FOH);JX MN;EI,1PA]J=N3CWIF.M2:KKEAHL2O MJ$XCW_=4#+-]!46AZQI>K0L^EE5(^^FS:R_450'AV:Z\8S:GJ:PS6JQA;>,G M=M(QU!&/4U5W8RY8\[YM$B[I/B?2]:D,=E/^] SY;C:Q'MZUKUPGBVVM[3Q+ MH\FEHL=\\OS+&,9&1@G'XUW=";V%4A%)2CU"L/4_&&CZ5N*YOP-I&GS^'TOIX(KBYG=_,>10Q7#$8Y]N?Q MH;=[(<(QY7.6QT6EZU8ZS"TFGSK+M^\O1E^HJ_7#S6<.C?$:P72P(ENHSYT* M< #GG'X?I74:WJT6C:5+>3-VT9/) 'ZFO/[&PN+7QAHMU?,6N[XO/*#_ M Y!P/RKTET21"LBJRGJ&&123;'5A&#C;4YC_A8FA?WKC_OU_P#7K=TK5+?6 M+!;NS+&)B0-PP>*P?&UQ!I^@M#;P1"XNV\J/:@S@] M'Y7C@B$\W[J(!!G)[_EFK?A;2AI'AZWMR/WK#S)3ZL>O]!^%"O>PY1I^SYDK M%*?Q]HMME0)Y[F.%0,!5'^0/PHUN"C3<')+8V=8\5Z; MH=XEM?F42/&)!L3(P21_0U1C^(.B22*BM<98@#,7_P!>NDDMX96W2PQNV,99 M0:XO4+>+7/'EOI\$2+;:>/-G*J!D^GYX'YT.Z"G&G):IZ'<44459S!1110 4 M444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !11 M10 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% M !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 M<7\11NBTH'(S<8X./2L?4]/DL_%,5EXAO[V73+@_NI&G)'7H6T'VG[/]FE\S_5[MWMU&*GU[1(->TQK2<[&ZQR8R4/K6;C=G;3K1C& M,?6_D8/CFP6U\%QV^G1".W@F0LJ_W<'^I%,TZR\4W&FP2V/B"V^SM&-@6W3@ M8Z?=KHM-TI[;1AI^H7 OD"[-S1[5OKO:Y1L]+O)/&EO/?ZW:W-[!]^.--K%<=. !W[U9\.2):^.- M4Y9O\!61XF@T2_UJ&UO MII;"_P!H,5TOR@^Q-%K:C]HIR<>ENQM>([BWM_#MZUV5V-"R@'N2, #\:Y7P M]_R2W4O]V;_T&J^MZ+::9ITL^KZW+J4NPBWA)P-Q& <9.<=:V_#&C22> 393 M,86O$$];L;&ZO?MUC=ML0/]Y,8'U[CVK;?PI;3^&8-(NI6?R!\DZ+M(;UQS M4.F^#DM=0BO=1U"?4)8?]3YO 3\,G-%F+VD+.[TUT_R['2"N*\;1R:?K>EZZ MB%XK=A'+CMSD?S-=K45S;PW=N\%S&LD3C#*PR#5-71STY\DKC;.\M[^U2XM) M5EB<9#*:J:CK^F:5-'#?70CED^ZBHSL?P4&L&;X?I',S:1JMS8HQR8Q\P_#D M?KFKVC^#+'2[K[7+)+>W0Y$LQSCW I>\7RT5KS&;XL9;?Q9H5W=_\>BM@EAP MK9ZG\Q^5=EO79OW#;C.[/&*JZGI=KJ]DUK?1[XVY'8J?4'L:YK_A 7(\@ZY> M?8NGD8YQZ9SC]*-4PO"<4I.U@\(E;GQ1KMY:?\>CNJJ1T9N>1^OYT?#L?\2^ M_/?[4?Y5TVFZ9:Z39+:V,>R-??))]2:I>'= _L"WN(OM/VCSI3)GR]N/;J:$ MGH5*I&2E\OP.?T.YMX/B1K$WRA"JA1_" M0,$5;2U@2S%JD2B )L\O'&WTKF)O :QS.VD:KT@M%VL8NLR1V?Q'TRY MO2%MVA*1LW17Y&?U%=@SJJ%F8!0,DD\"J.KZ+9ZW9_9[Z,D Y5U.&0^H-<^O M@.4_N9]=NY+/_GAC&1Z9S_2C5$WA.*YG:Q#X.GM[GQ7KTUGCR'8%"!P?F//X M]:FT3_DI6M?]<1_-:T]"\+Q:#J%Y/;39BN H2+9CRP/?)S4MEH'V/Q)>ZM]I MW_:DV^5Y>-O3OGGIZ4DG9%RJ0;E9[K_(RM$_Y*)KO^XG\A4/@=TM]2UBSN"! M>?:"QSU9>?\ /XUN6.A?8_$5]JGVC?\ ;%4>5LQLQCOGGIZ5!K7A.TU>Z%W' M+)9W@_Y;PGD_4=Z+/<7M(.\6]&E^ GC6XMX/"MVMP5S(NR-2>2W;'\ZYO7+> M2/P_X6@NAE_,0,#VX''Y<5M67@>%+Q+G5K^?4I(SE!)PH_#)_G6CKN@?VT]D MWVGR/LDPEQY>[=TXZC'2AIL<)P@U%/Y_(UR 5((R#P17(?#?_D W'_7P?Y"N MPK'\-Z!_PCUC);?:?M&^0ON\O9CVQDU5M3&,DJY_$\U-KLVC)1IM+=_ MD3S316\#S3NL<:#+,QP *XJ1KOQW>F.$O;:+ _S/C!F/^?RKI/$.BG7=*-D+ MDVV7#%PF[..V,BL"'P+J-M"L5OXEFCC7HJP$ ?\ C]*5S2BX15V[,Z.]LX[? MPW=6EI&%1;5T1%_W36)\.74^&"@8%EG;(STZ5M:'I=QI5B\%W?O?NTA<2.N" M!@#'4^GZUD7G@>)KM[G2+^?3'D/SK$,J?PR,4:[BC*/*X-_,I:FPG^*VFB([ MC#;X?'\/WS_45UVH?\@VZ_ZXO_(UF:'X7M-%E>X$DES=R??GE//X>E:]Q%Y] MM+#G;YB%@D(Z?G_Z#5K0VW?$; M7,_\\U'_ *#6KX:\-Q^'+6:))O/>5]QD*;>.PZFGV&@?8?$5]JOVG?\ :P!Y M7EXV=.^>>GI2LRY5(>\H[6LCB?"UMKC7%_;Z=JD-G<)+^^CDB5F8^O()Q6CK MNFZXVGF'7?$5F+>1@,/"JY(Y&"%S6[K'A&TU2Z^V032V-Y_SVA/7ZC_Z]5[+ MP1#'=I%'X9/\Z7*]C3VT&^>_P"&OWD>N6[VGPV,$D@E:.%! MO4<-R,&H]:_Y)-%_UZ6W\TKH-:TO^V-(FL?-\GS0!OV[L<^F15>]T#[9X371 M/M.S;#%%YWEY^X5YVY[[?7O5-,RC4CI?O<+.*27P9'%;\2/9;4QZE.*S/A[/ M WASR(\+-%(WFKWSZUT=C:_8K""VW[_*C";L8S@=<5A:GX+@N[YKW3KN;3KE M^7:+E6/KCC^=%GN3&46I1;M2Z XY_$C\J[W2KB"YTJVEM&4Q-&NW;VXZ4L&FVEOIHT^*%1;!- MGEGD$=\USLEY\4+$61#-; MPDSLO;@]?S _&G>&'6+QIK\$AVR/*74'N-Q_Q%;>A^';/08G%MODFD_UDTAR MS?\ UJJ:UX2AU6^%];74MC> 8,L7.[TR./YTK/R?XG)^(8[U?B-";:Z2TDEB4 M032H&4<8QR".N?SK5ET_Q;'"SS>(;98U&69K=, ?]\UN:SH5GKMJ(;U#E3E) M$.&0^QK"'@-Y"([W6[RXM0?]3TR/0G)_E19W&JL'%7TMY7%\(:.B:3J$;WL- M];7C8+0@@ X(;^8KG5U&:P\.WGAK.;S[7]G0>J,>3]./UKTFSLX+"TCMK2,1 MQ1C"J*QYO"EO-XLCULR\H,F'9]Y@,!LY_I0XNV@HUHN4G+U^:(]:TUK3P!<6 M-H.8;<#CN 06_/FI_!]S;7'A>T%J5_=IM=1U#=\UMD9&",@]17*W?@6/[4]Q MHVHSZ:TARR1CXMO*L;?*FY\W< .JK4^J#_B MZ6F9_P"?0?\ H3TD_P .X)H5)U&9[OS [W$J[RP] ,C'YFMJZT#[3XIMM9^T M[?L\/E>3Y>=W+'.[/'WO2E9W->>G&*BGT?XF-\0 4CTN>0$VT5U^]'Y8_D:Z MV&6.:!)875HV&593P13+RR@U"SDMKN,20R##*:Y;_A Y(B8K+7+N"T)YAQGC MTSD?RIZIW,DX3@HR=K%)+BWN/BY$;4JP5&5V7H6$;9KO:YG3O!-KI>O6^H65 MPRI"A4Q,N2Y*D9W9]_2NFHBGU%6E&37+T044459@%%%% !1110 5RWQ#;;X8 M##M.A_G74UE>(]$_M_2OL7VC[/\ .'W[-W3VR*F6J-:4E&HFS#\7J^FWFE:] M"#FWD$*M0UP_-!'B"W)_I^'\ZZ35-,CU71YK"8X65- MH?&=I[''L:CT+1TT/28[*-_,VDLTFW;N)[XR:5M37VL?96Z[?(Q/ C;_ .V& M/\5\QK,\/?\ (I^*/K/_ .@&NIT'0O[#6['VCS_M,YE^YMVY[=3FJVG^%OL& MDZI9?;/,_M#?\_E8\OPWP*H7PE:[1C)8GZYJI< #XJ M6N.,V/.._+5N:'I7]C:1%8^=YWEY^?;MSD^F344NA^9XJBUG[1CRX/)\G9UZ M\[L^_I3L[(CGCSR?>YB>'5!\?:^Q'S# !^I_^M4GQ%'_ !3]N</EF^S:+,KA(D?YG9=RJQ"X)'?H:O)I_B]XP\?B&V M9",AA;H01_WS7176FV]]IYL[R,2Q%0I!XZ=_:N:_X0.2/,5MKEY%:'_ECU./ M3.0/TI-.]RH5(N"B]+>5RAIFE74FIZM<+J]M>WDEK)'((%P0Y& >!CJ*UOA_ M<6[^&EABP)HI&$J]\GO6SH^B6>B6OD6,9 8Y=V.6<^I-9.I^"H+J^:]TV\FT MZX M,65?!FBM(-R"2$L/4>6:LS?#V.YM9/M6IS3WCXQ<2KD*!V"Y_K2>-[80>'M) MM6/F+'=11DXQN 0CI2=]673<$XQB[ZG66EQ#=6D++BW MM_"]_P#:BN)(61 3U8C Q^//X4S7/"MGK4JW!>2VNT^[/"<'\?6L^V\"QM<) M+K&I7&I>6?EC?Y5_$9-&J5A\U.4E-OY&;?120_"-%FR&(C8 ]@7&*E\5?\>/ MAK_KK'_):Z;7='&M:+)IZRBW#E<.$W;<$'ID>E5=5\-_VG!ID?VKROL#JV?+ MW>9@#WXZ>])ICC5C=-]V_O17\1V>FZUJ%OISWCVNIQ@R0,BMD ]>>G;U[57T M"_U2Q\1OH.KW N\0^9%-_%CW_P#KUIZ[X;AUIX9UGDM+N#B.>+J!Z'UI-$\- M1Z1<2WWDHVM/+Z>@%.SN2IP]G9OY>?J;=-M^*E@!_%;,#_WRQ_I7 M7UC3Z!YWBNVUK[3M\B,IY/E_>R",[L^_I39E3DHMW[,Y>ZO_ /A#O$>K*!B& M\A,]N,<;^P_//X5(M@VG_"^Y>49FNE\Z0GJ=Q&/TKH/$?A>'Q"UJTLWDF!\D MA-V]>Z]1CZU=U?2AJFBRZ>DGD+(H4,%W;0/;(J>5F_MHVCWTO\CE?$G'PQTW M_KG;_P#H%;.JZ*NO^%;>-<+<)"DD#?W6VCC/O4FI^&O[1\+VVC_:O+\A8U\[ MR\[MBXZ9[_6MBUA^S6<,&[=Y4:INQC.!C-.WJ;/,TUF75-9\/P7H M87EG=+%-N')PPY^O%>HUSE]X/@N_$MOK$,_D/%(LDD8CR)"ISUR,?K71T136 MX5IPDERF/XEO]/L=/C&KVQN+:>01D;00#U!.?I5Y;:Q-@(UAA^R[/N[1MVX_ M*C4M.MM5L7M+U-\3]<<$'U'O7,#P VWR/[#';TSG'Z4W>Y,>1QLW8@ M\$SK:V^N-"&DL(9MT(7G(^;./P"UO>')-(O=/-UI%K' DCG>NT!@?>KVG:7: MZ78+:6<06(=0>2Q[D^M<_<>!$6ZDFTC4[C3A(>G^ M%=3H?ABST-FEC9Y[J3[\\IRQ^GI6L8(68LT2$GJ2HIUG>)F,\J5X*$="*:3U%*= M*7+IH4_$=AIMSH=Y->Q0\0EA-M&X$#@@]?2JGA.'^T? \-O?J7CD5D()ZKDX MJHO@'>R1WFL7=Q9H>+<\?AG/]*ZR"".VMTA@0)'&H55'0"A+6XI2C&'+%WU/ M/M4T_5O!VGR-8:WLM';;'"R L2>PR#CZC%;?@G1);*S?4M0+/>WGS$NOY5#_5V@CP,^I.>>?:MX<4*.HZE:\.5;O<****L MY0HHHH **** "BBB@#,U[0[?7M.-M.2C [HY .5-<)K \0Z=)!H8UAKIKCY5 MCC'S!>G+8S^&:]..<<=:P=)\,BQU>XU2^NOMMW-]US'L$8] ,FHE&YTT:O(O M>Z;(DT^Q@\+^%V1D:80QM)/M&2YQEO\ /H*D\/G2KG2DN-(MHH89225"@$'N M#6HR!T*N RL,$'N*Y.7P&L=Q(^DZK_;VJ_K5KK5R\)T34([-5!\P/&&W'MU! M]ZR(O!^JQS([>)[APK E3$>?;[]==32TL14G[W,G?Y?YF9I-IJ4=C+%KMW'> MN['!6,*-I'3 ]ZY74=$O_"<-S>Z1K'V6SZF&10W)Z @@GWKO:PM<\-MKM] M;-1Q_A[UZ"B+'&J1J%51@ = *:;>%F+ M-$A)ZDJ*.72PU67.YM?\ \XU/Q9I]WXLTO48H[@0VJL'#1@,'([S7['4A(D:VH(,(B!$F<]\\=?0UJS1L]L\<+B)F M4JK;<[>.N*$FA590DHJ)QT;?\)'\0MP^>STH?+Z%_7\_Y5UU]'&XM1G?$L*J6X..0/7!K4U74$TO2KB\DZ1(2 >Y[#\ZN5C^(]"? M7[..U%X;:)9-\@$>XOCMU&*-EH2I*3D<5>Y\1_$"& MS'S6FFC?)Z%O_P!>!^!KMJQ?#OAX:$MRSW)NI[F3?),4VD^V,GU-;5)+N55D MFTH[(Y7QWJ#IIT.EVISY_$UG2 M>&_/\5)K-S=>8(EVQ6_EX"<=P_.L+P'821Z7+J=UEKB_X_UK@GYJ MMT44AMM[A1113$%%%% !1110 4444 %%%% !1110 4444 %%%% !1110 444 M4 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 M 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% ! M1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 55OM-M- M2CC2^A$JQN)$!)&&'?CZU:HI#3:=T%%%%,04444 %%%% !1110 4444 %%%% M !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 M%%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4 M444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !11 M10 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% L !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110!__]D! end GRAPHIC 4 headererq1fy18.jpg begin 644 headererq1fy18.jpg M_]C_X 02D9)1@ ! 0$ 8 !@ #_X1#R17AI9@ 34T *@ @ ! $[ ( M - (2H=I 0 ! (6)R= $ : 0T.H< < @, /@ M &UL;G,Z9&,](FAT=' Z M+R]P=7)L+F]R9R]D8R]E;&5M96YT#IX;7!M971A/@T*(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" * M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" \/WAP86-K970@ M96YD/2=W)S\^_]L 0P '!04&!00'!@4&" <'" H1"PH)"0H5#Q ,$1@5&AD8 M%1@7&QXG(1L=)1T7&"(N(B4H*2LL*QH@+S,O*C(G*BLJ_]L 0P$'" @*"0H4 M"PL4*AP8'"HJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ M*BHJ*BHJ*BHJ*BHJ_\ $0@ X@/H P$B (1 0,1 ?_$ !\ $% 0$! 0$! M ! @,$!08'" D*"__$ +40 (! P,"! ,%!00$ !?0$" P $ M$042(3%!!A-180'EZ@X2%AH>( MB8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ !\! ,! 0$! 0$! 0$ ! M @,$!08'" D*"__$ +41 (! @0$ P0'!00$ $"=P ! @,1! 4A,08205$' M87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6&AXB)BI*3E)66 MEYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN+CY.7F MY^CIZO+S]/7V]_CY^O_: P# 0 "$0,1 #\ ^D:**Y+XC^*+[PEX;AO],2!Y MI+I82)U++M*L>Q'/RB@#K:*\$_X7;XG_ .?;3/\ OR__ ,71_P +M\3_ //M MIG_?E_\ XNG8#WNBO!/^%V^)_P#GVTS_ +\O_P#%T?\ "[O$W_/MIG_?E_\ MXNBP'O=%>*:?\==020?VII%M*GBO$+SXZ:N[G[!I-E"O83,\A_,%:KQ?'#Q&K?O;+3'7N!'(#^>^G8#W>BO)] M)^.=G*ZIK6E2VXZ&6VD\P?\ ?)P0/Q->D:/KNF:_9BZT>\CNHN^P\J?1@>0? MK2 T**** "BBFRRQPQ-),ZQQH-S.QP%'J30 ZBO/-?\ C+H.ER-#I<N.Y^R:;I\2]A('<_F&'\J=@/9>)/C#_PC_B*\TK^P_M'V5]GF_:]F[@'. M-AQU]: /3:*Y/P'XX_X3:WO)?[/^P_975<>?YF[<#_LC'2NLH **CGN(;6W> M>YE2&&,;GDD8*JCU)/2O.==^-6C6$C0Z/;2ZFZ\>9GRH_P "02?R_&@#TJBO M"I_CCK[L?L^GZ=$O8.CL?SW#^5.MOCGKB./M>F6$J]Q&'0_F6/\ *G8#W.BN M \._�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end