Tue, May 13, 10:14 AM (62 days ago)
**Regis Corporation (RGS) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $56.96 million (Q1 2025) vs. $49.18 million (Q1 2024), a 15.8% increase. - **Operating Income:** $5.02 million (Q1 2025) vs. $4.08 million (Q1 2024), a 23.1% increase. - **Net Income:** $0.25 million (Q1 2025) vs. -$2.33 million (Q1 2024), a significant improvement. - **Cash Flow from Operations:** $7.0 million (Q1 2025) vs. -$7.1 million (Q1 2024), a positive turnaround. **Profit Margins:** - **Operating Margin:** 8.8% (Q1 2025) vs. 8.3% (Q1 2024). - **Net Margin:** 0.4% (Q1 2025) vs. -4.7% (Q1 2024). **Earnings Changes:** - **EPS (Basic):** $0.10 (Q1 2025) vs. -$1.00 (Q1 2024). - **EPS (Diluted):** $0.08 (Q1 2025) vs. -$1.00 (Q1 2024). **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased company-owned salon revenue due to the Alline Acquisition. - **Cost Management:** General and administrative expenses increased slightly, but were offset by cost savings in other areas. - **Cash Flow:** Improved significantly due to better working capital management and lower cash interest. **Trends & Uncertainties:** - **Positive Trends:** Successful integration of Alline Acquisition, improved cash flow, and increased revenue. - **Uncertainties:** Potential challenges in realizing the full benefits of the Alline Acquisition, economic uncertainties, and regulatory risks. **Future Operations Impact:** - **Growth Strategy:** Focus on integrating Alline Acquisition, expanding company-owned salons, and improving operational efficiency. - **Financial Strategy:** Maintain strong liquidity, manage debt levels, and explore strategic acquisitions. **Key Metrics:** - **Debt to Capitalization:** 64.8% (Q1 2025) vs. 67.0% (Q2 2024). - **Liquidity:** $19.0 million available liquidity as of Q1 2025. **System-Wide Sales & Same-Store Sales:** - **System-Wide Revenue:** $266.9 million (Q1 2025) vs. $286.8 million (Q1 2024). - **Same-Store Sales:** -1.1% (Q1 2025) vs. 0.5% (Q1 2024). **Segment Performance:** - **Franchise Salons:** Revenue decreased due to lower salon count and negative same-store sales. - **Company-Owned Salons:** Revenue increased significantly due to the Alline Acquisition. **Legal & Regulatory:** - **Litigation:** Ongoing lawsuits and claims, but no material adverse effects expected. - **Regulatory:** Compliance with Nasdaq listing requirements and potential impacts of trade policies. **Risk Factors:** - **Operational Risks:** Integration of Alline Acquisition, increased operational costs, and potential unknown liabilities. - **Financial Risks:** Debt levels, interest rate changes, and economic uncertainties. - **Legal Risks:** Potential liabilities related to employee retention credit and regulatory compliance.