Supercuts 2004 Annual Report Download - page 7

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Table of Contents
PART I
Item 1. Business
Regis Corporation, the Registrant, together with its subsidiaries, is referred to herein as the “Company.”
(a) General Development of Business
In 1922, Paul and Florence Kunin opened Kunin Beauty Salon, which quickly expanded into a chain of value-priced salons located in
department stores. Their son, Myron, bought the chain in 1958 and changed its name to Regis. Regis Corporation was listed on the Nasdaq
June 21, 1991 at a price of $13.00 ($5.78 adjusted for subsequent stock splits). In March of 2003, Regis Corporation began trading on the
NYSE under the ticker symbol
“RGS.” Discussions of the general development of the business take place throughout this Annual Report on
Form 10-K. During fiscal year 2004, there were no significant changes to the Company’s corporate structure or material changes in the
Company’s method of conducting business.
(b) Financial Information about Segments
Segment Data for the years ended June 30, 2004, 2003 and 2002 are included in Note 11 to the Consolidated Financial Statements in Part II,
Item 8, of this Form 10-K.
(c) Narrative Description of Business
The following topical areas are discussed below in order to aid in understanding the Company and its operations:
Background:
The Company, based in Minneapolis, Minnesota, is an owner, operator and franchisor of hair and retail product salons. Additionally, the
Company operates a limited number of beauty career schools in North America and internationally, which is a new undertaking for the
Company in the past two years. The Company’s worldwide operations include 10,162 company-owned and franchise salons at June 30, 2004
(including ten beauty career schools). Each of the Company’s concepts generally has similar products and services, concentrates on the mass-
market consumer marketplace and generally display similar economic characteristics. The Company is organized to manage its operations
based on geographical location. The Company’s North American operations include 8,148 salons, including six beauty career schools and
2,330 franchise salons, operating in North America. The Company’
s international operations include 2,014 salons, including four beauty career
schools and 1,594 franchise salons, operating throughout Europe, primarily in the United Kingdom, France, Italy and Spain. The Company’s
worldwide operations utilize key hair salon concepts such as: Supercuts, Jean Louis David, Vidal Sassoon, Regis Salons, MasterCuts, Trade
Secret, SmartStyle and Cost Cutters. During fiscal year 2004, the number of customer visits at the Company’s corporate salons approximated
90.7 million. The Company had an average of approximately 50,000 corporate employees worldwide during fiscal year 2004.
3
Topic
Page(s)
Background
3
Industry Overview
4
Business Strategy
4
10
Salon Concepts
11
13
Franchising Program
14
15
Markets and Marketing
15
Education and Training Programs
15
16
Staff Recruiting and Retention
16
Salon Design
16
Management Information Systems
16
Competition
17
Trademarks
17
Employees
17
Community Involvement
17
Governmental Regulations
17
18