Supercuts 2003 Annual Report Download - page 31

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Table of Contents
RESULTS OF OPERATIONS
Revenues
System-wide sales, which includes consolidated revenues and the sales of franchise salons, increased 22.9 percent to a record $2.8 billion for
the year ended June 30, 2003. Certain franchisees and licensees are not required to report financial information, including revenues.
Accordingly, estimates are used to approximate system-wide sales. Overall, management believes these estimates are representative of the
respective system-wide sales. Management believes that system-wide sales information is useful in assessing the overall health of the entire
salon system. Consolidated revenues, which includes revenues of company-owned salons, royalties, initial franchise fees and product and
equipment sales to franchisees but does not include sales at franchise salons, increased 15.8 percent to a record $1.7 billion. The following
chart details the Company’s system-wide sales and consolidated revenues by concept:
*
Includes aggregate franchise revenues of $101.9, $77.6 and $56.3 million for fiscal years 2003, 2002 and 2001, respectively.
28
(Dollars in thousands) 2003 2002 2001
System
-
wide sales:
Domestic:
Regis Salons
$
437,449
$
416,240
$
401,756
MasterCuts
170,288
164,768
155,703
Trade Secret
222,848
206,161
194,604
SmartStyle
227,527
178,728
125,851
Strip Center Salons (primarily Supercuts and Cost
Cutters)
1,069,124
991,280
924,385
International
642,563
295,808
100,952
Total
$
2,769,799
$
2,252,985
$
1,903,251
Percent change from prior year
22.9
%
18.4
%
13.7
%
Revenues:
Domestic:
Regis Salons
$
437,449
$
416,240
$
401,756
MasterCuts
170,288
164,768
155,703
Trade Secret
*
209,671
192,892
181,787
SmartStyle
227,527
178,728
125,851
Strip Center Salons (primarily Supercuts and Cost
Cutters)*
468,121
382,483
345,572
International
*
171,474
119,080
100,952
Total
$
1,684,530
$
1,454,191
$
1,311,621
Percent change from prior year
15.8
%
10.9
%
14.8
%