Supercuts 2010 Annual Report Download - page 57

Table of Contents
North American Salons
North American Salon Revenues. Total North American salon revenues were as follows:
The percentage increases during the years ended June 30, 2010, 2009, and 2008 were due to the following factors:
We acquired 26 North American salons during the twelve months ended June 30, 2010, including 23 franchise buybacks. The decline in
organic sales was the result of a same-store sales decrease of 3.3 percent due to a decline in same-store customer visits, partially offset by an
increase in average ticket. Contributing to the organic sales decline during the twelve months ended June 30, 2010 was the completion of an
agreement to supply the purchaser of Trade Secret product at cost. The Company generated revenues of $20.0 and $32.2 million for product
sold to the purchaser of Trade Secret during the twelve months ended June 30, 2010 and 2009, respectively. The foreign currency impact
during fiscal year 2010 resulted from the weakening of the United States dollar against the Canadian dollar as compared to the exchange rate
for fiscal year 2009.
We acquired 177 North American salons during the twelve months ended June 30, 2009, including 83 franchise buybacks. The organic
decrease was due primarily to same-store sales decrease of 2.9 percent, partially offset by the construction of 168 company-owned salons in
North America and $32.2 million of product sales to the purchaser of Trade Secret during the twelve months ended June 30, 2009. The foreign
currency impact during fiscal year 2009 resulted from the strengthening of the United States dollar against the Canadian dollar as compared to
the exchange rate for fiscal year 2008.
We acquired 287 North American salons during the twelve months ended June 30, 2008, including 145 franchise buybacks. The organic
growth was due primarily to the construction of 294 company-owned salons in North America during the twelve months ended June 30, 2008,
and a same-store sales increase of 1.8 percent during the twelve months ended June 30, 2008. The Company experienced the largest
comparable increase in same-store service sales in eight years during the third and fourth quarter of fiscal year 2008, 4.1 and 3.4 percent,
respectively. The foreign currency impact during fiscal year 2008 was driven by the weakening of the United States dollar against the Canadian
dollar as compared to the exchange rate for fiscal year 2007.
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(Decrease) Increase Over
Prior
Fiscal Year
Same-Store
Sales
(Decrease)
Increase Years Ended June 30, Revenues Dollar
Percentage
(Dollars in thousands)
2010
$
2,060,563
$
(57,135
)
(2.7
)%
(3.3
)%
2009
2,117,698
27,952
1.3
(2.9
)
2008
2,089,746
177,566
9.3
1.8
Percentage Increase
(Decrease) in Revenues
For the Years
Ended June 30,
Factor 2010 2009 2008
Acquisitions (previous twelve months)
0.8
%
3.7
%
4.6
%
Organic
(3.6
)
(0.9
)
4.2
Foreign currency
0.5
(0.9
)
0.8
Franchise revenues
—
(
0.1
)
0.1
Closed salons
(0.4
)
(0.5
)
(0.4
)
(2.7
)%
1.3
%
9.3
%