Supercuts 2002 Annual Report Download - page 157

Download and view the complete annual report

Please find page 157 of the 2002 Supercuts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 177

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177

Regis Corporation
Notes to Consolidated Financial Statements (continued)
retirement of tangible long-lived assets and the associated asset retirement costs. FAS No. 143 is effective for financial statements issued for
fiscal years beginning after June 15, 2002. The Company does not expect the initial adoption of this Statement to have a material impact on the
Consolidated Statement of Operations.
Effective July 1, 2001, the Company adopted the provisions of Statement of Financial Accounting Standards (FAS) No. 142, "Goodwill and
Other Intangible Assets." This statement discontinued the amortization of goodwill and indefinite-lived intangible assets, subject to periodic
impairment testing. The effect of the change in accounting during the year ended June 30, 2002 was to increase net income by approximately
$11.1 million, or $.25 per diluted share. The pro forma amounts shown below reflect the effect of retroactive application of the non-
amortization of goodwill as if the new method of accounting had been in effect in the prior periods.
In addition, the remaining estimated useful lives of intangible assets being amortized were reviewed in accordance with the provisions of the
new standard and deemed to be appropriate.
2. OTHER FINANCIAL STATEMENT DATA The following provides additional information concerning selected balance sheet accounts as
of June 30, 2002 and 2001:
--------------------------------------------------------------------------------
(Pro Forma Amounts) 2002 2001 2000
--------------------------------------------------------------------------------
Net income (Dollars in thousands)
Reported net income ..................... $ 72,054 $ 53,088 $ 49,654
Goodwill amortization (net of tax
effect) ................................ 8,866 7,741
--------------------------------------------------------------------------------
Adjusted net income ..................... $ 72,054 $ 61,954 $ 57,395
--------------------------------------------------------------------------------
Basic earnings per share
Reported basic earnings per share ....... $ 1.70 $ 1.29 $ 1.22
Goodwill amortization (net of tax
effect) ................................ .21 .19
--------------------------------------------------------------------------------
Pro forma basic earnings per share ...... $ 1.70 $ 1.50 $ 1.41
--------------------------------------------------------------------------------
Diluted earnings per share
Reported diluted earnings per share ..... $ 1.63 $ 1.26 $ 1.19
Goodwill amortization (net of tax
effect) ................................ .21 .19
--------------------------------------------------------------------------------
Pro forma diluted earnings per share .... $ 1.63 $ 1.47 $ 1.38
================================================================================
------------------------------------------------------------------------------------------------
(Dollars in thousands) 2002 2001
------------------------------------------------------------------------------------------------
Property and equipment:
Land ............................................................... $ 3,817 $ 3,817
Buildings and improvements ......................................... 29,518 29,449
Equipment, furniture and leasehold improvements .................... 479,662 433,374
Internal use software .............................................. 44,186 39,635
Equipment, furniture and leasehold improvements under capital
leases ............................................................ 15,135 15,113
------------------------------------------------------------------------------------------------
572,318 521,388
Less accumulated depreciation and amortization ..................... (243,888) (211,722)
Less amortization of equipment, furniture and leasehold improvements
under capital leases .............................................. (9,948) (8,676)
------------------------------------------------------------------------------------------------
$ 318,482 $ 300,990
================================================================================================
Accounts payable* ..................................................... $ 54,545 $ 37,689
================================================================================================
Accrued expenses:
Payroll and payroll related costs* ................................. $ 41,769 $ 34,344
Insurance .......................................................... 20,252 15,021
Acquisition purchase price payable ................................. 9,771
Restructuring ...................................................... 713 1,056
Other .............................................................. 25,018 18,367
------------------------------------------------------------------------------------------------
$ 97,523 $ 68,788
================================================================================================
Other noncurrent liabilities:
Deferred income taxes .............................................. $ 29,813 $ 1,971