Supercuts 2012 Annual Report Download - page 22

Table of Contents
Affiliated Ownership Interests:
The Company maintains ownership interests in salons, beauty schools and hair restoration centers. The primary ownership interests are in
Provalliance, EEG and Hair Club for Men, Ltd., which are accounted for as equity method investments.
The Company maintains a 46.7 percent ownership interest in Provalliance. The fiscal year 2008 merger of the operations of the European
operating subsidiaries with the Franck Provost Salon Group created a newly formed entity, Provalliance. The Franck Provost Salon Group
management structure has a proven platform to build and acquire company-owned stores as well as a strong franchise operating group that is
positioned for expansion. In March of 2011, the Company acquired approximately 17 percent additional equity interest in Provalliance. In
April 2012, the Company entered into a Share Purchase Agreement (Agreement) to sell the Company's 46.7 percent equity interest in
Provalliance to the Provost Family for a purchase price of €80 million. The transaction is expected to close no later than September 30, 2012
and is subject to the Provost Family securing financing for the purchase price.
The Company maintains a 55.1 percent ownership interest in EEG. Contributing the Company's beauty schools in fiscal year 2008 to EEG
leverages EEG's management expertise, while enabling the Company to maintain a vested interest in the beauty school industry.
The Company's 50.0 percent ownership in Hair Club for Men, Ltd., which operates Hair Club centers in Illinois and Wisconsin, is
included in the definitive agreement entered into on July 13, 2012 to divest Hair Club. The transaction is expected to close during the first half
of fiscal year 2013.
Corporate Trademarks:
The Company holds numerous trademarks, both in the United States and in many foreign countries. The most recognized trademarks are
"Regis Salons," "Supercuts," "MasterCuts," "SmartStyle," "Cost Cutters," "Hair Masters," "First Choice Haircutters," "Magicuts" and "Hair
Club for Men and Women."
"Sassoon" is a registered trademark of Procter & Gamble. The Company has a license agreement to use the Sassoon name for existing
salons and academies, and new salon development.
Although the Company believes the use of these trademarks is an element in establishing and maintaining its reputation as a national
operator of high quality hairstyling salons, and is committed to protecting these trademarks by vigorously challenging any unauthorized use,
the Company's success and continuing growth are the result of the quality of its salon location selections and real estate strategies.
Corporate Employees:
During fiscal year 2012, the Company had approximately 52,000 full- and part-time employees worldwide, of which approximately
46,000 employees were located in the United States. None of the Company's employees is subject to a collective bargaining agreement and the
Company believes that its employee relations are amicable.
Executive Officers:
On July 11, 2012, the Company announced that Daniel Hanrahan was named President and CEO, effective August 6, 2012, and also
became a member of the Regis Board of Directors on that date. In January 2012, Eric Bakken, Executive Vice President, General Counsel and
Business Development, was appointed to assume the role of Interim Corporate Chief Operating Officer. Randy Pearce retired as President
effective June 30, 2012. Paul Finkelstein retired as Chief Executive Officer effective February 2012.
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