Supercuts 2007 Annual Report Download - page 24

Beauty schools derive a significant portion of their revenue from student financial assistance originating from the U.S. Department of
Education’s Title IV Higher Education Act of 1965. For the students to receive financial assistance at the school, the beauty schools must
maintain eligibility requirements established by the U.S. ED. The Company thoroughly researches each potential acquisition to ensure they
remain in good standing with the U.S. Department of Education. The Company believes all of its existing schools are compliant.
(d) Financial Information about Foreign and North American Operations
Financial information about foreign and North American markets is incorporated herein by reference to Management’s Discussion and
Analysis of Financial Condition and Results of Operations in Part II, Item 7 and segment information in Note 11 to the Consolidated Financial
Statements in Part II, Item 8 of this Form 10-K.
(e) Available Information
The Company is subject to the informational requirements of the Securities and Exchange Act of 1934 (Exchange Act). The Company
therefore files periodic reports, proxy statements and other information with the Securities and Exchange Commission (SEC). Such reports may
be obtained by visiting the Public Reference Room of the SEC at 100 F Street N.E., Washington, D.C. 20549, or by calling the SEC at 1-800-
SEC-0330. In addition, the SEC maintains an internet site ( http://www.sec.gov ) that contains reports, proxy and information statements and
other information regarding issuers that file electronically.
Financial and other information can be accessed in the Investor Information section of the Company’s website at www.regiscorp.com .
The Company makes available, free of charge, copies of its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably
practicable after filing such material electronically or otherwise furnishing it to the SEC.
Item 1A.
Risk Factors
If we are not able to increase our number of salons, we may not be able to grow our revenue and earnings.
The key driver of our revenue and earnings growth is the number of salons we and our franchisees acquire or construct. Acquiring and
constructing new salons is subject to the ability of our company and our franchisees to identify suitable sites and obtain financing for
development. While we believe that substantial future acquisition and organic growth opportunities exist, any inability to identify and
successfully complete future acquisitions or increase our same-store sales would have a material adverse effect on our revenue and earnings
growth.
Changes in the general economic environment may impact our business and results of operations.
Changes to the United States, Canadian, United Kingdom and other European economies have an impact on our business. As a result of
our recent entrance into the Asian market, changes in the Asian economies may also impact our business. General economic factors that are
beyond our control, such as interest rates, recession, inflation, deflation, tax rates and policy, energy costs, unemployment trends, and other
matters that influence consumer confidence and spending, may impact our business. In particular, visitation patterns to our salons and hair
restoration centers can be adversely impacted by changes in unemployment rates and discretionary income levels.
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