QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Jun. 30, 2012

QUARTERLY FINANCIAL DATA (UNAUDITED)

QUARTERLY FINANCIAL DATA (UNAUDITED)

16. QUARTERLY FINANCIAL DATA (UNAUDITED)

        Summarized quarterly data for fiscal years 2012 and 2011 follows:

	Quarter Ended
	September 30		December 31			March 31			June 30			Year Ended
	(Dollars in thousands, except per share amounts)
2012
Revenues	$	568,749	$	563,278		$	573,584		$	568,168		$	2,273,779
Gross margin, excluding royalties and depreciation		252,627		247,697			249,010			249,027			998,361
Operating income (loss)(a)		13,072		(61,617	)		25,200			(43,968	)		(67,313	)
Income (loss) from continuing operations(a)(b)		8,337		(57,427	)		(2,468	)		(63,634	)		(115,192	)
Income (loss) from discontinued operations(c)		—		—			1,099			—			1,099
Net income (loss)(a)(b)		8,337		(57,427	)		(1,369	)		(63,634	)		(114,093	)
Income (loss) from continuing operations per share, basic		0.15		(1.01	)		(0.04	)		(1.11	)		(2.02	)
Income from discontinued operations per share, basic		—		—			0.02			—			0.02
Net income (loss) per basic share(f)		0.15		(1.01	)		(0.02	)		(1.11	)		(2.00	)
Income (loss) from continuing operations per share, diluted		0.15		(1.01	)		(0.04	)		(1.11	)		(2.02	)
Income (loss) from discontinued operations per share, diluted		—		—			0.02			—			0.02
Net income (loss) per diluted share(f)		0.15		(1.01	)		(0.02	)		(1.11	)		(2.00	)
Dividends declared per share		0.06		0.06			0.06			0.06			0.24

Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 6 in this Form 10-K for explanations of items, which impacted fiscal year 2012 revenues, operating and net income (loss).

	Quarter Ended
	September 30		December 31		March 31			June 30			Year Ended
	(Dollars in thousands, except per share amounts)
2011
Revenues	$	578,245	$	574,372	$	581,267		$	591,985		$	2,325,869
Gross margin, excluding royalties and depreciation		257,558		251,132		253,017			261,614			1,023,321
Operating income (loss)(a)(d)		33,434		22,864		(59,504	)		7,154			3,948
Income (loss) from continuing operations(a)(d)(e)		18,320		14,505		(25,335	)		(16,395	)		(8,905	)
Net income (loss)(a)(d)(e)		18,320		14,505		(25,335	)		(16,395	)		(8,905	)
Income (loss) from continuing operations per share, basic		0.32		0.26		(0.45	)		(0.29	)		(0.16	)
Net income (loss) per basic share		0.32		0.26		(0.45	)		(0.29	)		(0.16	)
Income (loss) from continuing operations per share, diluted		0.30		0.24		(0.45	)		(0.29	)		(0.16	)
Net income (loss) per diluted share		0.30		0.24		(0.45	)		(0.29	)		(0.16	)
Dividends declared per share		0.04		0.04		0.06			0.06			0.20

Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 6 in this Form 10-K for explanations of items, which impacted fiscal year 2011 revenues, operating and net income.

(a)

Expense of $67.7 million ($55.2 million net of tax) was recorded in the fourth quarter ended June 30, 2012 related to our Regis salon concept goodwill impairment. Expense of $78.4 million ($72.6 million net of tax) was recorded in the second quarter ended December 31, 2011 related to our Hair Restoration Centers reporting unit goodwill impairment. Expense of $74.1 million ($50.8 million net of tax) was recorded in the third quarter ended March 31, 2011 related to our Promenade salon concept goodwill impairment due to recent performance challenges in that concept.

(b)

Expense of $17.2 million was recorded during fiscal year 2012 related to the impairment of our investment in Provalliance as a result of the Company entering into a Share Purchase Agreement to sell the Company's 46.7 percent equity interest in Provalliance for a purchase price of €80 million. Expense of $19.4 million was recorded during fiscal year 2012 related to the impairment of our investment in EEG.

(c)

During the third quarter ended March 31, 2012, the Company recorded a $1.1 million tax benefit in discontinued operations related to the release of tax reserves associated with the disposition of the Trade Secret salon concept.

(d)

Operating income and net income decreased $31.2 million ($19.2 million net of tax) as a result of a valuation reserve on a note receivable with the purchase of Trade Secret that was recorded in the third quarter ($9.0 million) and fourth quarter ($22.2 million) of fiscal year 2011.

(e)

Income (loss) from continuing operations and net income decreased as a result of $9.2 million that was recorded in the third quarter ($8.7 million) and in the fourth quarter ($0.5 million) as a result of an other than temporary impairment on an investment in preferred shares of Yamano and a premium paid at the time of an initial investment in MY Style.

(f)

Total is a recalculation; line items calculated individually may not sum to total.