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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
17. QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued)
142
Quarter Ended
September 30
December 31
March 31
June 30
Year Ended
(Dollars in thousands, except per share amounts)
2010
Revenues(c)
$
605,550
$
575,365
$
587,571
$
589,948
$
2,358,434
Gross margin, excluding
depreciation(c)
259,967
254,564
260,199
264,397
1,039,127
Operating income (loss)(b)(c)
28,257
32,063
1,184
35,714
97,218
Income (loss) from continuing
operations(b)
4,611
18,154
(1,525
)
18,339
39,579
Income from discontinued
operations(d)
3,161
—
—
—
3,161
Net income (loss)(b)(d)
7,772
18,154
(1,525
)
18,339
42,740
Income (loss) from continuing
operations per share, basic
0.09
0.32
(0.03
)
0.32
0.71
Income (loss) from
discontinued operations per
share, basic(d)
0.06
—
—
—
0.06
Net income (loss) per basic
share(f)
0.14
0.32
(0.03
)
0.32
0.77
Income (loss) from continuing
operations per share, diluted
0.09
0.30
(0.03
)
0.30
0.71
Income (loss) from
discontinued operations per
share, diluted(f)
0.06
—
—
—
0.05
Net income (loss) per diluted
share(f)
0.14
0.30
(0.03
)
0.30
0.75
Dividends declared per share
0.04
0.04
0.04
0.04
0.16
Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 6 in this
Form 10-K for explanations of items which impacted fiscal year 2010 revenues, operating and net income.
(a) Operating income and net income decreased $31.2 million ($19.2 million net of tax) as a result of a valuation reserve on a
note receivable with the purchase of Trade Secret that was recorded in the third quarter ($9.0 million) and fourth quarter
($22.2 million) of fiscal year 2011.
(b) Expense of $74.1 million ($50.8 million net of tax) was recorded in the third quarter ended March 31, 2011 related to our
Promenade salon concept goodwill impairment due to recent performance challenges in that concept. Expense of
$35.3 million ($28.7 million net of tax) was recorded in the third quarter ended March 31, 2010 related to our Regis salon
concept goodwill impairment due to recent performance challenges in that concept and current economic conditions.
(c) The Company sold $20.0 million of product to the purchaser of Trade Secret at cost for the three months ended
September 30, 2009.
(d) During the second quarter ended December 31, 2008, the Company determined Trade Secret to be held for sale and
accounted for it as a discontinued operation. An income tax benefit of $3.0 million was recorded in the first quarter ended
September 30, 2009 to correct the prior year calculation of the income tax benefit related to the disposition of the Trade
Secret concept.
(e) Income (loss) from continuing operations and net income decreased as a result of $9.2 million that was recorded in the
third quarter ($8.7 million) and in the fourth quarter ($0.5 million) as a result of an other than temporary impairment on an
investment in preferred shares of Yamano and a premium paid at the time of an initial investment in MY Style.
(f)
Total is a recalculation; line items calculated individually may not sum to total.