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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2022
Mar. 31, 2021
Revenues:        
Franchise rental income $ 32,666 $ 31,317 $ 100,200 $ 95,885
Total revenues 64,749 100,267 212,761 315,983
Operating expenses:        
Inventory reserve [1] 6,420 0 6,420 0
General and administrative 15,569 24,582 53,342 77,419
Rent 32,700 31,300 100,200 95,900
Advertising fund expense 8,078 5,580 24,213 14,804
Company-owned salon expense 5,292 33,707 18,304 110,261
Depreciation and amortization 1,997 3,620 5,846 17,384
Long-lived asset impairment 327 833 542 9,817
Goodwill impairment 16,000 0 16,000 0
Total operating expenses 90,193 118,808 245,133 392,869
Operating loss (25,444) (18,541) (32,372) (76,886)
Other (expense) income:        
Interest expense (3,403) (3,163) (10,158) (10,626)
Loss from sale of salon assets to franchisees, net (494) (4,575) (2,189) (8,463)
Interest income and other, net 153 15,099 13 15,616
Loss from operations before income taxes (29,188) (11,180) (44,706) (80,359)
Income tax benefit 1,270 333 1,482 1,368
Net loss $ (27,918) $ (10,847) $ (43,224) $ (78,991)
Basic and diluted:        
Net loss per share, basic (in dollars per share) $ (0.61) $ (0.30) $ (1.01) $ (2.20)
Net loss per share, diluted (in dollars per share) $ (0.61) $ (0.30) $ (1.01) $ (2.20)
Weighted average common and common equivalent shares outstanding:        
Basic (in shares) 45,886 36,011 42,789 35,929
Diluted (in shares) 45,886 36,011 42,789 35,929
Non-Franchise Lease        
Operating expenses:        
Rent $ 1,246 $ 8,001 $ 6,137 $ 34,128
Franchisor        
Operating expenses:        
Rent 32,666 31,317 100,200 95,885
Royalties        
Revenues:        
Revenues 15,799 12,835 48,526 36,989
Fees        
Revenues:        
Revenues 3,364 5,120 11,496 9,600
Advertising fund contributions        
Revenues:        
Revenues 8,078 5,580 24,213 14,804
Franchisees products        
Revenues:        
Revenues 1,293 13,079 11,729 41,057
Operating expenses:        
Cost of product sales to franchisees 2,598 11,168 14,129 33,171
Inventory reserve 6,420      
Company owned salon products and services        
Revenues:        
Revenues 3,549 32,336 16,597 117,648
Operating expenses:        
Company-owned salon expense [2] $ 5,292 $ 33,707 $ 18,304 $ 110,261
[1] Includes charge in the third quarter associated with liquidation of distribution center inventory. Excludes reserves for inventory at salons.
[2] Includes cost of service and product sold to guests in our Company-owned salons. Excludes general and administrative expense, rent and depreciation and amortization related to Company-owned salons