SEGMENT INFORMATION (Tables)

6 Months Ended

Dec. 31, 2020

Schedule of reportable operating segment salons

The Company’s reportable operating segments consisted of the following salons:


	December 31, 2020		June 30, 2020

FRANCHISE SALONS:
SmartStyle/Cost Cutters in Walmart Stores	1,535		1,317
Supercuts	2,368		2,508
Portfolio Brands (1)	1,207		1,217
Total North American salons	5,110		5,042
Total International salons (2)	159		167
Total Franchise salons	5,269		5,209
as a percent of total Franchise and Company-owned salons	83.6	%	76.1	%

COMPANY-OWNED SALONS:
SmartStyle/Cost Cutters in Walmart Stores	466		751
Supercuts	154		210
Portfolio Brands (1)	340		505
Mall-based (3)	77		166
Total Company-owned salons	1,037		1,632
as a percent of total Franchise and Company-owned salons	16.4	%	23.9	%

OWNERSHIP INTEREST LOCATIONS:
Equity ownership interest locations	78		82

Grand Total, System-wide	6,384		6,923

_______________________________________________________________________________

(1)Portfolio Brands was previously referred to as Signature Style.

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

(3)The mall-based salons were acquired from TBG on December 31, 2019. They are included in continuing operations under the Company-owned operating segment from January 1, 2020.

Schedule of summarized financial information of reportable operating segments

Financial information concerning the Company's reportable operating segments is shown in the following tables:


	Three Months Ended December 31, 2020
	Franchise		Company-owned		Corporate		Consolidated

	(Dollars in thousands)

Revenues:
Service	$	—	$	28,987	$	—	$	28,987
Product	14,236		8,910		—		23,146
Royalties and fees	19,902		—		—		19,902
Franchise rental income	32,285		—		—		32,285
Total revenue	66,423		37,897		—		104,320

Operating expenses:
Cost of service	—		22,097		—		22,097
Cost of product	11,291		5,912		—		17,203
Site operating expenses	4,748		5,602		—		10,350
General and administrative	6,881		2,435		17,374		26,690
Rent	405		11,844		653		12,902
Franchise rent expense	32,285		—		—		32,285
Depreciation and amortization	289		4,311		1,788		6,388
Long-lived asset impairment	94		3,066		—		3,160


Total operating expenses	55,993		55,267		19,815		131,075
Operating income (loss)	10,430		(17,370)		(19,815)		(26,755)
Other (expense) income:
Interest expense	—		—		(3,701)		(3,701)
Loss from sale of salon assets to franchisees, net	—		—		(3,226)		(3,226)
Interest income and other, net	—		—		403		403
Income (loss) from continuing operations before income taxes	$	10,430	$	(17,370)	$	(26,339)	$	(33,279)


	Three Months Ended December 31, 2019
	Franchise		Company-owned		Corporate		Consolidated

	(Dollars in thousands)

Revenues:
Service	$	—	$	101,805	$	—	$	101,805
Product	16,864		27,119		—		43,983
Royalties and fees	29,347		—		—		29,347
Franchise rental income	33,630		—		—		33,630
Total revenue	79,841		128,924		—		208,765

Operating expenses:
Cost of service	—		67,358		—		67,358
Cost of product	13,072		14,186		—		27,258
Site operating expenses	10,704		15,626		—		26,330
General and administrative	8,976		7,547		16,168		32,691
Rent	401		19,374		720		20,495
Franchise rent expense	33,630		—		—		33,630
Depreciation and amortization	210		5,938		1,599		7,747
TBG mall location restructuring	722		—		—		722
Total operating expenses	67,715		130,029		18,487		216,231
Operating income (loss)	12,126		(1,105)		(18,487)		(7,466)
Other (expense) income:
Interest expense	—		—		(1,464)		(1,464)
Loss from sale of salon assets to franchisees, net	—		—		(12,407)		(12,407)
Interest income and other, net	—		—		2,869		2,869
Income (loss) from continuing operations before income taxes	$	12,126	$	(1,105)	$	(29,489)	$	(18,468)


	Six Months Ended December 31, 2020
	Franchise		Company-owned		Corporate		Consolidated

	(Dollars in thousands)

Revenues:
Service	$	—	$	65,395	$	—	$	65,395
Product	27,978		19,917		—		47,895
Royalties and fees	37,858		—		—		37,858
Franchise rental income	64,568		—		—		64,568
Total revenue	130,404		85,312		—		215,716

Operating expenses:
Cost of service	—		50,620		—		50,620
Cost of product	21,969		11,603		—		33,572
Site operating expenses	9,258		14,331		—		23,589
General and administrative	15,604		5,411		31,822		52,837
Rent	962		23,790		1,375		26,127
Franchise rent expense	64,568		—		—		64,568
Depreciation and amortization	563		9,393		3,808		13,764
Long-lived asset impairment	704		8,280		—		8,984


Total operating expenses	113,628		123,428		37,005		274,061
Operating income (loss)	16,776		(38,116)		(37,005)		(58,345)
Other (expense) income:
Interest expense	—		—		(7,463)		(7,463)
Loss from sale of salon assets to franchisees, net	—		—		(3,888)		(3,888)
Interest income and other, net	—		—		517		517
Income (loss) from continuing operations before income taxes	$	16,776	$	(38,116)	$	(47,839)	$	(69,179)


	Six Months Ended December 31, 2019
	Franchise		Company-owned		Corporate		Consolidated

	(Dollars in thousands)

Revenues:
Service	$	—	$	243,746	$	—	$	243,746
Product	29,969		59,670		—		89,639
Royalties and fees	57,364		—		—		57,364
Franchise rental income	65,054		—		—		65,054
Total revenue	152,387		303,416		—		455,803

Operating expenses:
Cost of service	—		157,840		—		157,840
Cost of product	23,352		30,233		—		53,585
Site operating expenses	21,130		38,142		—		59,272
General and administrative	17,333		17,697		38,286		73,316
Rent	591		43,163		1,005		44,759
Franchise rent expense	65,054		—		—		65,054
Depreciation and amortization	370		12,045		4,712		17,127
TBG mall location restructuring	2,222		—		—		2,222
Total operating expenses	130,052		299,120		44,003		473,175
Operating income (loss)	22,335		4,296		(44,003)		(17,372)
Other (expense) income:
Interest expense	—		—		(2,903)		(2,903)
Loss from sale of salon assets to franchisees, net	—		—		(18,267)		(18,267)
Interest income and other, net	—		—		3,040		3,040
Income (loss) from continuing operations before income taxes	$	22,335	4,296		$	(62,133)	$	(35,502)