Supercuts 2006 Annual Report Download - page 4

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PART I
I
tem 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. In 1958, the chain was purchased by their son and renamed Regis Corporation. Regis Corporation is listed 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 2006, there were no significant changes to the Company’s corporate structure or material changes in the Company’s
method of conducting business. During fiscal year 2005, the Company purchased Hair Club for Men and Women, in part, to expand the
Company’s product and service offerings. Additionally, the Company continues to acquire hair and retail product salons and beauty schools.
(b) Financial Information about Segments
Segment data for the years ended June 30, 2006, 2005 and 2004 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:
3
Topic
Page(s)
Background
4
Industry Overview
4
Salon Business Strategy
4
-
7
Salon Concepts
8
-
14
Salon Franchising Program
14
-
16
Salon Markets and Marketing
16
Salon Education and Training Programs
16
Salon Staff Recruiting and Retention
17
Salon Design
17
Salon Management Information Systems
17
Salon Competition
18
Beauty School Business Strategy
18
-
20
Hair Restoration Business Strategy
20
-
22
Corporate Trademarks
22
Corporate Employees
22
Executive Officers
23
-
24
Corporate Community Involvement
24
Governmental Regulations
24
-
25