Supercuts 2007 Annual Report Download - page 38

Consolidated Revenues
Consolidated revenues primarily include revenues of company-owned salons, product and equipment sales to franchisees, beauty schools
revenues, hair restoration center revenues, and franchise royalties and fees. As compared to the prior fiscal year, consolidated revenues
increased 8.1 percent to $2.6 billion during fiscal year 2007 and 10.8 percent to $2.4 billion during fiscal year 2006. The following table details
our consolidated revenues by concept. All service revenues, product revenues (which include product and equipment sales to franchisees), and
franchise royalties and fees are included within their respective concept within the table.
(1)
Includes aggregate franchise royalties and fees of $80.5, $77.9, and $79.5 million in fiscal years 2007, 2006, and 2005, respectively.
North American salon franchise royalties and fees represented 48.2, 50.4, and 50.6 percent of total franchise revenues in fiscal years 2007,
2006, and 2005, respectively.
(2)
Same-store sales increases or decreases are calculated on a daily basis as the total change in sales for company-owned locations which
were open on a specific day of the week during the current period and the corresponding prior period. Annual same-store sales increases
are the sum of the same-store sales increases computed on a daily basis. Relocated locations are included in same-store sales as they are
considered to have been open in the prior period. International same-store sales are calculated in local currencies so that foreign currency
fluctuations do not impact the calculation. We began including hair restoration centers in same-store sales calculations beginning with the
third fiscal quarter of 2007, as we did not own or operate any hair restoration centers until December 2004. Management believes that
same-store sales, a component of organic growth, are useful in order to help determine the increase in salon revenues attributable to its
organic growth (new salon construction and same-store sales growth) versus growth from acquisitions.
(3) We did not own or operate any hair restoration centers until December 2004.
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For the Periods Ended June 30,
2007
2006
2005
(Dollars in thousands)
North American salons:
Regis
$ 498,577
$ 481,760
$ 475,736
MasterCuts
174,287
174,674
172,792
Trade Secret(1)
253,250
262,862
252,934
SmartStyle
462,321
413,907
351,741
Strip Center(1)
776,995
703,345
621,008
Total North American Salons
2,165,430
2,036,548
1,874,211
International salons(1)
253,430
220,662
226,784
Beauty schools
85,627
63,952
33,911
Hair restoration centers(1)(3)
122,101
109,702
59,388
Consolidated revenues
$ 2,626,588
$ 2,430,864
$ 2,194,294
Percent change from prior year
8.1
%
10.8
%
14.1
%
Salon same
-
store sales increase(2)
0.2
%
0.4
%
0.9
%