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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands
3 Months Ended 9 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Mar. 31, 2023
Mar. 31, 2022
Revenues:        
Franchise $ 26,629,000 $ 32,666,000 $ 85,845,000 $ 100,200,000
Total revenue 55,773,000 63,810,000 177,611,000 209,897,000
Operating expenses:        
Inventory reserve 0 6,420,000 1,228,000 6,420,000
General and administrative 13,099,000 14,842,000 39,207,000 50,708,000
Rent 26,600,000 32,700,000 85,800,000 100,200,000
Advertising fund expense 7,787,000 8,078,000 24,003,000 24,213,000
Depreciation and amortization 1,008,000 1,622,000 6,052,000 4,766,000
Long-lived asset impairment 36,000 327,000 36,000 542,000
Goodwill impairment     0 16,000,000
Total operating expenses 53,769,000 86,022,000 172,407,000 237,481,000
Operating income (loss) 2,004,000 (22,212,000) 5,204,000 (27,584,000)
Other expense:        
Interest expense (4,787,000) (3,224,000) (13,123,000) (9,621,000)
Loss from sale of salon assets to franchisees, net 0 (494,000) 0 (2,189,000)
Other, net 381,000 153,000 1,166,000 13,000
Loss from operations before income taxes (2,402,000) (25,777,000) (6,753,000) (39,381,000)
Income tax benefit 241,000 1,270,000 213,000 1,482,000
Loss from continuing operations (2,161,000) (24,507,000) (6,540,000) (37,899,000)
Income (loss) from discontinued operations (Note 3) 518,000 (3,411,000) 3,958,000 (5,325,000)
Net loss $ (1,643,000) $ (27,918,000) $ (2,582,000) $ (43,224,000)
Basic and diluted:        
Loss from continuing operations, basic (in dollars per share) $ (0.05) $ (0.53) $ (0.14) $ (0.89)
Loss from continuing operations, diluted (in dollars per share) (0.05) (0.53) (0.14) (0.89)
Income (loss) from discontinued operations, basic (in dollars per share) 0.01 (0.07) 0.09 (0.12)
Income (loss) from discontinued operations, diluted (in dollars per share) 0.01 (0.07) 0.09 (0.12)
Net loss per share, basic (in dollars per share) [1] (0.04) (0.61) (0.06) (1.01)
Net loss per share, diluted (in dollars per share) $ (0.04) $ (0.61) $ (0.06) $ (1.01)
Weighted average common and common equivalent shares outstanding:        
Basic (in shares) 46,301 45,886 46,160 42,789
Diluted (in shares) 46,301 45,886 46,160 42,789
Continuing Operations        
Operating expenses:        
Goodwill impairment $ 0 $ 13,120,000 $ 0 $ 13,120,000
Non-Franchise Lease        
Operating expenses:        
Rent 2,077,000 1,200,000 5,920,000 5,989,000
Franchisor        
Operating expenses:        
Rent 26,629,000 32,666,000 85,845,000 100,200,000
Royalties        
Revenues:        
Revenues 16,036,000 15,799,000 49,374,000 48,526,000
Fees        
Revenues:        
Revenues 2,510,000 2,425,000 8,301,000 8,632,000
Product sales to franchisees        
Revenues:        
Revenues 644,000 1,293,000 2,194,000 11,729,000
Operating expenses:        
Cost of product sales to franchisees 1,045,000 2,455,000 2,825,000 13,219,000
Advertising fund contributions        
Revenues:        
Revenues 7,787,000 8,078,000 24,003,000 24,213,000
Company-owned salon revenue        
Revenues:        
Revenues 2,167,000 3,549,000 7,894,000 16,597,000
Operating expenses:        
Company-owned salon expense [2] $ 2,088,000 $ 5,292,000 $ 7,291,000 $ 18,304,000
[1] Total is a recalculation; line items calculated individually may not sum to total due to rounding.
[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