Supercuts 2004 Annual Report Download - page 28

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Table of Contents
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
ANNUAL RESULTS
The following table sets forth, for the periods indicated, certain information derived from the Company’
s Consolidated Statement of Operations
in Item 8. expressed as a percent of revenues. The percentages are computed as a percent of total revenues, except as noted.
22
For the Years Ended June 30,
2004
2003
2002
Company
owned service revenues (1)
70.0
%
70.6
%
70.0
%
Company
owned product revenues (1)
30.0
29.4
30.0
Franchise revenues
5.6
6.1
5.3
Company
owned operations:
Profit margins on service (2)
43.4
43.6
43.4
Profit margins on product (3)
49.2
50.0
47.6
Direct salon (1)
9.0
9.0
9.0
Rent (1)
14.7
14.8
14.3
Depreciation (1)
3.4
3.5
3.5
Franchise direct costs, including product and equipment (4)
54.6
56.0
49.1
Corporate and franchise support costs
9.5
9.7
9.6
Depreciation and amortization
0.7
0.7
0.7
Operating income
9.4
9.4
9.2
Income before income taxes
8.6
8.2
8.0
Net income
5.5
5.1
5.0
(1)
Computed as a percent of company
owned revenues.
(2)
Computed as a percent of company
owned service revenues.
(3)
Computed as a percent of company
owned product revenues.
(4)
Computed as a percent of franchise revenues.