Insanely Awesome to Have this: Regis Corporation (NYSE: RGS)

Regis Corporation (NYSE: RGS) spotted trading -60.72% off 52-week high price. On the other end, the stock has been noted 116.58% away from the low price over the last 52-weeks. The stock changed -0.76% to recent value of $9.14. The stock transacted 999642 shares during most recent day however it has an average volume of 665.81K shares.

Regis Corporation (RGS) recently stated a third quarter 2020 net loss from continuing operations of $75.3M, or $2.10 loss per diluted share as contrast to net loss from continuing operations of $14.8M, or $0.37 loss per diluted share in the third quarter of 2019. The Company’s third quarter stated results include the following discrete items; a one-time non-cash goodwill impairment charge of $44.5M related to the Company-owned salon section, non-cash goodwill derecognition charges of $19.8M associated with the sale of 375 company-owned salons to franchisees in the third quarter, as well as $7.1M of other discrete items. The non-cash goodwill impairment charge is driven by changes to the Company’s forecast for the Company-owned section related to the economic impact of COVID-19 substantially caused by the government mandated hibernations of the Company’s salons. Absent the goodwill impairment charge in the third quarter, the company-owned goodwill would have been derecognized over the course of the vendition timeline. Not Including discrete items, the Company stated third quarter 2020 adjusted net loss of $4.5M, or $0.12 loss per diluted share as contrast to adjusted net income of $15.4M, or $0.37 earnings per diluted share, for the same period last year. The year-over-year decrease in adjusted net income was driven primarily by the year-over-year decrease in the gain from the sale of salons to franchisees of $17.8M Because of lower proceeds per salon in the current year. The elimination of adjusted net income that had been generated in the previous year period from the 1,581 company-owned salons that were sold and converted to the Company’s asset-light franchise portfolio over the past twelve months also contributed to the decline, but this was partially offset by important reductions in general and administrative expense and marketing. Additionally, the Company estimates it lost about $8M in margin Because of reduced traffic and store closures associated with the COVID-19 pandemic.

Total revenue in the quarter of $153.8M reduced $104.6M, or 40.5%, year-over-year driven primarily by the conversion of a net 1,581 company-owned salons to the Company’s asset-light franchise portfolio over the past 12 months. These reductions were partially offset by revenue growth of $18.7M in the Company’s franchise section. The Company noted that in connection with the new leasing guidance, it now records franchise rental income and the corresponding rental expense on separate line items. The net impact is a gross up to both revenue and expense with no impact to overall earnings. The impact during the third quarter was a raise in revenue and expense by $31.8M, with no impact on operating income.

Third quarter adjusted EBITDA of $6.0M reduced $31.2M, versus the same period last year. Not Including the $9.6 and $27.4M adjusted gain from the sale of company-owned salons during the current and previous year quarter, respectively, adjusted EBITDA loss of $3.6M was $13.4M unfavorable versus the same period last year. This was driven primarily by the elimination of adjusted EBITDA that had been generated in the previous year period from the 1,581 company-owned salons that were sold and converted to the Company’s asset-light franchise portfolio over the past twelve months, partially offset by important reductions in general and administrative expense and marketing spend.

Third quarter revenue for the Company-owned salon section reduced $123.3M, or 55.7%, versus the previous year to $97.9M. The year-over-year decline in revenue was driven by the decrease of a net 1,581 salons sold and converted to the Company’s asset-light franchise portfolio over the past 12 months, the closure of a net 187 unprofitable salons over the past 12 months, the temporary closure of salons at the end of March Because of the COVID-19 pandemic and a decline in company-owned same-store sales of 7.9%. The year-over-year decline in company-owned same store sales was driven by a 10.5% decrease in transactions, partially related to the COVID-19 pandemic, partially offset by a 2.6% increase in average ticket.

Third quarter adjusted EBITDA loss of $1.3M reduced $18.5M, or 107.4% versus the same period last year driven primarily by the elimination of EBITDA that had been generated in the previous year period from the 1,581 company-owned salons that were sold and converted to the Company’s asset-light franchise portfolio over the past 12 months, the impacts of the COVID-19 pandemic and the decline in service and product margins, partially offset by a decrease in general and administrative expense and marketing spend.

Its earnings per share (EPS) expected to touch remained -117.70% for this year while earning per share for the next 5-years is expected to reach at 8.00%. RGS has a gross margin of 49.30% and an operating margin of -4.30% while its profit margin remained -4.50% for the last 12 months.   According to the most recent quarter its current ratio was 0.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of -13.57% from the mean of 20 days, -4.20% from mean of 50 days SMA and performed -37.25% from mean of 200 days price. Company’s performance for the week was -22.28%, 11.06% for month and YTD performance remained -48.85%.

 

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