DISCONTINUED OPERATIONS:

3 Months Ended

Sep. 30, 2013

DISCONTINUED OPERATIONS:

DISCONTINUED OPERATIONS:

2. DISCONTINUED OPERATIONS:

Hair Restoration Centers

On April 9, 2013, the Company sold its Hair Club for Men and Women business (Hair Club), a provider of hair restoration services. The Company received $162.8 million during fiscal year 2013, which was the purchase price of $163.5 million adjusted for the preliminary working capital provision. During the three months ended September 30, 2013, the Company received the $3.0 million of cash recorded as a receivable as of June 30, 2013, of which $2.0 million was a result of the final working capital provision, resulting in a final purchase price of $164.8 million, and $1.0 million of excess cash from the transaction completion date.

The Company classified the results of operations of Hair Club as discontinued operations for all periods presented in the Condensed Consolidated Statement of Operations.

The following summarizes the results of operations of the discontinued Hair Club operations for the three months ended September 30, 2012:

	(Dollars in thousands)
Revenues	$	38,951
Income from discontinued operations, before income taxes	5,872
Income tax provision on discontinued operations	(2,299		)
Equity in income of affiliated companies, net of income taxes	204
Income from discontinued operations, net of income taxes	$	3,777

Income taxes have been allocated to continuing and discontinued operations based on the methodology required by interim reporting and accounting for income taxes guidance.  Depreciation and amortization ceased during the three months ended September 30, 2012 in accordance with accounting for discontinued operations.