RGS News & Events

The company reports positive preliminary quarter-to-date same-store sales growth of 3.0% for Supercuts and 1.3% on a consolidated basis for the first two months of the fourth quarter of fiscal 2025 as compared with the same periods last year. Month-to-date same-store-sales through June 15, 2025 for Supercuts and Regis Consolidated are also positive as compared with the same period last year. Quarter-to-date operating expenses have remained consistent with the third quarter of fiscal 2025.

Regis Corporation announced that Matthew Doctor has made the decision to step down from his roles as President, CEO and Director of the company effective June 30. The Board of Directors has appointed Jim Lain, current EVP Brand Operations - Supercuts and Cost Cutters, to serve as interim President and CEO while the company conducts a comprehensive search for a permanent successor. The Board has formed a Succession Planning Committee led by director Susan Lintonsmith and has engaged a leading executive search firm to help identify the next CEO, which will include both internal and external candidates. In the interim, Jim Lain, current EVP Brand Operations - Supercuts and Cost Cutters, will work closely with the executive team and Board to ensure a seamless transition and continued execution of the company's strategic priorities. To ensure a smooth transition, Matt Doctor will be staying on in a support role until September 1.

Regis acquired Alline Salon Group - ASG -, its largest franchisee, in a transaction valued at $22M of initial consideration, with the ability for ASG to earn an additional $3M - $1M annually - through earn out payments over the next three years. The transaction includes 314 salon portfolio across five states, primarily Michigan, Ohio and Pennsylvania. Trailing 12 month October 2024 financial highlights: $83M in revenue, $11.1M in 4-wall EBITDA, $5.8M in EBITDA. Initial consideration represents 3.79x TTM EBITDA; total consideration including potential earn out represents 4.31x TTM EBITDA. Under the terms of the purchase agreement, Regis will acquire all of Alline's issued and outstanding membership interests for $22M in a cash and stock transaction, of which $19M of the initial consideration was delivered in cash, in addition to shares of Regis common stock valued at $3M. The agreement also includes additional performance-based earnout opportunities of up to $3M, in $1M increments, over the next 3 years. Regis funded the $19M cash portion of the purchase price with $15M in proceeds from an upsize of Regis' credit agreement with existing lenders, and $4M from available cash on hand. The transaction is accretive to Adjusted EBITDA.

Reports Q1 revenue $46.06M vs. $53.4M last year. Same-store-sales decreased 1.1%. Matthew Doctor, Regis Corporation's president and CEO, commented: "Our results continue to reflect our efforts to stabilize the business, as well as the work we must do to drive future growth. I am excited by our operational and digital strategies aimed to ensure we are consistently delivering superior convenience, service, and quality to our guests. By getting back to basics and delivering on this experience, we have a clear path to drive guests to our salons and ensure they keep coming back. Much work remains, but I believe strongly in the initiatives we have in place to return Regis to long-term, sustainable growth."