Supercuts 2004 Annual Report Download - page 49

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Table of Contents
New Financing Arrangements
Fiscal Year 2004
In the second quarter of fiscal year 2004, the Company entered into an $11.9 million term loan related to its Salt Lake City Distribution Center.
The loan has a rate of 7.16 percent and matures in November of fiscal year 2011.
Fiscal Year 2003
In November 2002, we extended our revolving credit facility through November 2006. In February 2003, we renewed one of our private
placement debt facilities, thereby extending its terms through October 1, 2005 and increasing its related borrowing capacity from $125.0 to
$246.0 million. No other significant changes were made to either of the facilities’ terms. There were no other significant financing activities
during fiscal year 2003. Derivative instruments are discussed in Note 5 to the Consolidated Financial Statements and in Item 7A. of this Annual
Report on Form 10-K.
In June 2003, we borrowed $30.0 million under a 4.69 percent senior term note due June 2013 to repay existing debt from our revolving credit
facility.
Fiscal Year 2002
In March 2002, we completed a $125.0 million private debt placement, with an average life of 8.6 years and a fixed coupon rate of
6.98 percent. Proceeds were in part used to repay approximately $75.0 million of existing debt from our revolving credit facility. The additional
$50.0 million of proceeds were primarily used to fund the JLD acquisition, which was completed in April 2002.
Acquisitions
The acquisitions during fiscal years 2004 and 2003 are summarized below. These acquisitions individually and in the aggregate are not material
to our operations. Therefore, pro forma information is not included in the Notes to the Consolidated Financial Statements.
The acquisitions were funded primarily from operating cash flow, debt and the issuance of common stock. Since 1994, we have acquired over
7,400 salons. One of the Vidal Sassoon Beauty Academies and 14 of the Vidal Sassoon salons acquired during fiscal year 2003 were located in
Europe. The remaining acquisitions listed above relate to salons or schools located within North America.
37
Number of
Number of
Fiscal Year 2004
Salons/Schools
Fiscal Year 2003
Salons/Schools
Company
Owned
Company
Owned
Franchise buybacks
206
Franchise buybacks
97
Holiday Hair
153
BoRics
328
Blaine Beauty Career Schools
6
Vidal Sassoon salons
25
Other
46
Vidal Sassoon Beauty Academies
4
Opal Concepts (various salons)
90
Other
16
Total
411
Total
560
Franchise Networks
Franchise Networks
None
Pro Cuts
198