Supercuts 2006 Annual Report Download - page 104

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
11. SEGMENT INFORMATION:
The Company operates or franchises 9,293 North American salons (located in the United States, Canada and Puerto Rico), 2,040
international salons and 54 beauty schools. Additionally, the Company operates or franchises 90 hair restoration centers, stemming from its
purchase of Hair Club during December 2004. The Company operates its North American salon operations through five primary concepts:
Regis Salons, MasterCuts, Trade Secret, SmartStyle and Strip Center salons. Each of the concepts offer similar products and services,
concentrates on the mass market consumer marketplace and has consistent distribution channels. All of the company-owned and franchise
salons within the North American salon concepts are located in high traffic, retail shopping locations that attract mass market consumers, and
the individual salons generally display similar economic characteristics. The salons share interdependencies and a common support base. The
Company’s international salon operations, which are primarily in Europe, are located in malls, leading department stores, mass merchants and
high-street locations. The Company’s beauty schools are located in the United States and the United Kingdom. The Company’
s newly acquired
hair restoration centers are located in the United States and Canada.
Based on the way the Company manages its business, it has reported its North American salons, international salons, beauty schools and
hair restoration centers as four separate reportable operating segments.
103