Supercuts 2007 Annual Report Download - page 47

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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:
The percentage increases during the years ended June 30, 2007 and 2006 were due to the following factors:
We acquired 338 North American salons during the twelve months ended June 30, 2007, including 93 franchise buybacks. The organic
growth was due primarily to the construction of 395 company-owned salons in North America during the twelve months ended June 30, 2007,
partially offset by a lower same-store sales increase of 0.1 percent during the twelve months ended June 30, 2007 as compared to 0.7 percent
during the twelve months ended June 30, 2006. The foreign currency impact during fiscal year 2007 was driven by the weakening of the United
States dollar against the Canadian dollar as compared to the exchange rate for fiscal year 2006.
We acquired 278 North American salons during the twelve months ended June 30, 2006, including 140 franchise buybacks. The organic
growth stemmed primarily from the construction of 498 company-owned salons in North America during the twelve months ended June 30,
2006. The foreign currency impact during fiscal year 2006 was driven by the weakening of the United States dollar against the Canadian dollar
as compared to the exchange rate for fiscal year 2005.
46
Increase Over Prior
Fiscal Year
Same
-
Store
Years Ended June 30,
Revenues
Dollar
Percentage
Sales Increase
(Dollars in thousands)
2007
$
2,165,430
$
128,882
6.3
%
0.1
%
2006
2,036,548
162,337
8.7
0.7
2005
1,874,211
168,665
9.9
0.8
Percentage Increase
(Decrease) in Revenues
For the Years Ended June 30,
Factor
2007
2006
Acquisitions (previous twelve months)
4.0
%
4.4
%
Organic growth
2.6
4.4
Foreign currency
0.2
0.4
Franchise revenues
0.0
(0.1
)
Closed salons
(0.5
)
(0.4
)
6.3
%
8.7
%