SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION:

Segment information is prepared on the same basis that the chief operating decision maker (CODM) reviews financial information for operational decision-making purposes. The Company's reportable operating segments consisted of the following salons:

	September 30, 2022		June 30, 2022
FRANCHISE SALONS:
Supercuts	2,233		2,264
SmartStyle/Cost Cutters in Walmart Stores	1,625		1,646
Portfolio Brands	1,325		1,344
Total North American salons	5,183		5,254
Total International salons (1)	140		141
Total Franchise salons	5,323		5,395
as a percent of total Franchise and Company-owned salons	98.2	%	98.1	%
COMPANY-OWNED SALONS:
Supercuts	15		18
SmartStyle/Cost Cutters in Walmart Stores	49		49
Portfolio Brands	31		38
Total Company-owned salons	95		105
as a percent of total Franchise and Company-owned salons	1.8	%	1.9	%
OWNERSHIP INTEREST LOCATIONS:
Equity ownership interest locations	76		76
Grand Total, System-wide	5,494		5,576

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

As of September 30, 2022, the Franchise operating segment is comprised primarily of Supercuts®, SmartStyle®, Cost Cutters®, First Choice Haircutters®, Magicuts®, and Roosters® concepts and the Company-owned operating segment is comprised primarily of Supercuts®, SmartStyle®, and other regional trade names.

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

	Three Months Ended September 30, 2022
	Franchise		Company-owned		Consolidated
	(Dollars in thousands)
Revenues:
Royalties	$	17,180	$	—	$	17,180
Fees	2,553		—		2,553
Product sales to franchisees	443		—		443
Advertising fund contributions	8,251		—		8,251
Franchise rental income	30,330		—		30,330
Company-owned salon revenue	—		3,114		3,114
Total revenue	58,757		3,114		61,871
Operating expenses:
Cost of product sales to franchisees	470		—		470
General and administrative	14,182		179		14,361
Rent	509		1,244		1,753
Advertising fund expense	8,251		—		8,251
Franchise rent expense	30,330		—		30,330
Company-owned salon expense	—		2,985		2,985
Depreciation and amortization	950		301		1,251
Total operating expenses	54,692		4,709		59,401
Operating income (loss)	$	4,065	$	(1,595)	$	2,470

	Three Months Ended September 30, 2021
	Franchise		Company-owned		Consolidated
	(Dollars in thousands)
Revenues:
Royalties	$	16,602	$	—	$	16,602
Fees	2,327		—		2,327
Product sales to franchisees	8,008		—		8,008
Advertising fund contributions	8,114		—		8,114
Franchise rental income	33,762		—		33,762
Company-owned salon revenue	—		8,005		8,005
Total revenue	68,813		8,005		76,818
Operating expenses:
Cost of product sales to franchisees	7,648		—		7,648
General and administrative	20,238		546		20,784
Rent	1,621		126		1,747
Advertising fund expense	8,114		—		8,114
Franchise rent expense	33,762		—		33,762
Company-owned salon expense	—		7,945		7,945
Depreciation and amortization	1,293		246		1,539
Long-lived asset impairment	—		163		163
Total operating expenses	72,676		9,026		81,702
Operating loss	$	(3,863)	$	(1,021)	$	(4,884)