Regis Announces Significant Actions To Reduce G&A Costs As The Company Continues Its Transition To A Fully Franchised Model
January 16 2020 - 6:00AM
Business Wire
Regis Corporation (NYSE: RGS), a leader in the haircare
industry, whose primary business is franchising, owning, and
operating technology enabled hair salons, today announced the
completion of certain restructuring actions to improve its
financial performance and further align costs with the company’s
transition to a fully franchised business model.
Regis has eliminated administrative costs and personnel
substantially required to support the company’s historical
portfolio of owned and operated salons. The restructuring actions,
which reduces the Company’s administration staff by approximately
290 positions, including 15 contractors, across the US and Canada,
is expected to result in approximately $18.7 million of annualized
general and administrative expense savings as the company
accelerates its multi-year transformation.
“We are pleased that we are at a point in our transformation
where we can continue efforts underway to re-engineer our cost
structure. Although this phase of our transformation is certainly
difficult, it is necessary in order to properly allocate capital
and human resources to support investments in our rapidly growing
franchise business,” said Hugh Sawyer, President and Chief
Executive Officer of Regis Corporation. “We have been successful in
transferring salons to franchisees at a faster rate than we
originally expected, which allowed us to take these actions early
in the new calendar year. While redesigning our cost structure is
an important aspect of our strategy, we recognize these changes
represent a deeply personal impact to our employees and their
families and we are grateful for the many contributions they have
made to the historical achievements of Regis.”
About Regis Corporation Regis Corporation (NYSE:RGS) is a
leader in beauty salons and cosmetology education. As of September
30, 2019, the Company franchised, owned or held ownership interests
in 7,092 worldwide locations. Regis' franchised and corporate
locations operate under concepts such as Supercuts®, SmartStyle®,
Cost Cutters®, Roosters® and First Choice Haircutters®. Regis
maintains an ownership interest in Empire Education Group in the
U.S. For additional information about the Company, including a
reconciliation of certain non-GAAP financial information and
certain supplemental financial information, please visit the
Investor Information section of the corporate website at
www.regiscorp.com.
Safe Harbor Statement This press release contains or may
contain "forward-looking statements" within the meaning of the
federal securities laws, including statements concerning
anticipated future events and expectations that are not historical
facts. These forward-looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. The forward-looking statements in this document
reflect management's best judgment at the time they are made, but
all such statements are subject to numerous risks and
uncertainties, which could cause actual results to differ
materially from those expressed in or implied by the statements
herein. Such forward-looking statements are often identified herein
by use of words including, but not limited to, "may," "believe,"
"project," "forecast," "expect," "estimate," "anticipate," and
"plan." In addition, the following factors could affect the
Company's actual results and cause such results to differ
materially from those expressed in forward-looking statements.
These factors include the ability of the Company to recognize the
expected savings from the restructuring actions and the risk that
the Company is unable to conduct its operations with the reduced
administrative resources. Additional information concerning
potential factors that could affect future financial results is set
forth under Item 1A on Form 10-K. We undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
However, your attention is directed to any further disclosures made
in our subsequent annual and periodic reports filed or furnished
with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on
Schedule 14A.
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version on businesswire.com: https://www.businesswire.com/news/home/20200116005097/en/
REGIS CORPORATION Kersten Zupfer
investorrelations@regiscorp.com
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