Supercuts 2011 Annual Report Download - page 54

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Table of Contents
As the Company's July 2008 and June 2009 plans to close underperforming company-owned salons were substantially complete as of
June 30, 2010, the Company did not incur lease termination costs during the twelve months ended June 30, 2011.
The fiscal year 2010 lease termination costs are associated with the Company's June 2009 plan to close underperforming United Kingdom
company-owned salons in fiscal year 2010. During fiscal year 2010 we closed 29 salons under the June 2009 plan.
The fiscal year 2009 lease termination costs are primarily associated with the Company's July 2008 plan to close underperforming
company-owned salons in fiscal year 2009. The planned closures in fiscal year 2009 included salons in North America and the United Kingdom.
During fiscal year 2009 we closed 64 salons under the July 2008 plan.
See further discussion within Note 11 of the Consolidated Financial Statements.
Interest Expense
Interest expense was as follows:
The basis point improvement in interest as a percent of consolidated revenues during the twelve months ended June 30, 2011 was primarily
due to a reduction in interest expense due to the twelve months ended June 30, 2010 including $18.0 million of make-whole payments and other
fees associated with the repayment of private placement debt, and decreased debt levels during fiscal year 2011.
The basis point increase in interest as a percent of consolidated revenues during the twelve months ended June 30, 2010 was primarily due
to $18.0 million of make-whole payments and other fees associated with the repayment of private placement debt. The increase due to the make-
whole payments and other fees was partially offset by a reduction in interest expense due to decreased debt levels.
The basis point improvement in interest as a percent of consolidated revenues during the twelve months ended June 30, 2009 was primarily
due to lower average interest rates on variable rate debt and decreased debt levels as a result of the Company's commitment to reduce debt levels.
52
(Decrease) Increase
Over Prior Fiscal Year
Years Ended June 30,
Interest
Expense as
%
of
Consolidated
Revenues
Dollar
Percentage
Basis
Point
(1)
(Dollars in thousands)
2011
$
34,388
1.5
%
$
(20,026
)
(36.8
)%
(80
)
2010
54,414
2.3
14,646
36.8
70
2009
39,768
1.6
(4,511
)
(10.2
)
(20
)
(1) Represents the basis point change in interest expense as a percent of consolidated revenues as compared to
the corresponding period of the prior fiscal year.