Supercuts 2006 Annual Report Download - page 46

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Constant Currency Presentation
The presentation below demonstrates the effect of foreign currency exchange rate fluctuations from year to year. To present this
information, current period results for entities reporting in currencies other than United States dollars are converted into United States dollars at
the average exchange rates in effect during the corresponding period of the prior fiscal year, rather than the actual average exchange rates in
effect during the current fiscal year. Therefore, the foreign currency impact is equal to current year results in local currencies multiplied by the
change in the average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year. In
the year ended June 30, 2006, foreign currency translation had a negative impact on total consolidated revenues due to the weakening of the
British pound and Euro against the United States dollar, partially offset by the continuing strengthening of the Canadian dollar. During fiscal
year 2005, foreign currency translation had a positive impact on total consolidated revenues due to the strengthening of the Canadian dollar,
British pound and Euro.
Results of Operations by Segment
Based on our internal management structure, we report four segments: North American salons, International salons, beauty schools and
hair restoration centers. Significant results of operations are discussed below with respect to each of these segments.
North American Salons
North American Salon Revenues. Total North American salon revenues were as follows:
45
Favorable (Unfavorable) Impact of Foreign
Currency Exchange Rate Fluctuations
Impact on Revenues
Impact on Income
Before Income Taxes
Currency
Fiscal 2006
Fiscal 2005
Fiscal 2006
Fiscal 2005
(Dollars in thousands)
Canadian dollar
$
7,274
$
6,032
$
1,060
$
785
British pound
(6,753
)
10,511
(341
)
892
Euro
(2,472
)
3,722
(292
)
(1,787
)
Total
$
(1,951
)
$
20,265
$
427
$
(110
)
Increase Over Prior
Fiscal Year
Same
-
Store
Years Ended June 30,
Revenues
Dollar
Percentage
Sales Increase
(Dollars in thousands)
2006
$
2,036,548
$
162,337
8.7
%
0.7
%
2005
1,874,211
168,665
9.9
0.8
2004
1,705,546
194,727
12.9
2.2