Supercuts 2007 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2007 Supercuts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 193

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193

hair restoration centers (seven of which were franchise buybacks) during fiscal year 2006. During fiscal year 2006, we entered into a credit
agreement with a third party, under which we lent $6.0 million, and in 2007, we extended the term of the note to March 31, 2009. Refer to Note
3, “Acquisitions and Investments,” of Notes to Consolidated Financial Statements for further details surrounding this arrangement.
We constructed 525 company-owned salons and acquired 444 company-owned salons (139 of which were franchise buybacks), 13 beauty
schools and 42 hair restoration centers during fiscal year 2005.
The company-owned constructed and acquired locations (excluding franchise buybacks) consisted of the following number of locations in
each concept:
During fiscal year 2007, loans and investments, net, included $9.9 million related to an equity investment the Company made in
October 2006, $8.2 million related to a cost method investment made in April 2007, $3.1 million related to the cost method investment made in
April 2007 and $4.0 million related to a note receivable issued under a credit agreement with the entity that is the majority corporate investor of
an entity in which we hold a minority interest. Investing activities also included an $8.9 million cash outlay related to the settlement of our
cross-currency swap (which had a notional amount of $21.3 million and hedged a portion of the Company’s net investment in its foreign
operations).
Financing Activities
Net cash (used in) or provided by financing activities during the twelve months ended June 30, 2007, 2006 and 2005 were the result of the
following:
During fiscal year 2007, the net borrowings on revolving credit facilities were primarily used to fund loans and acquisitions, share
repurchases and customary income tax payments. Acquisitions funded are
55
Years Ended June 30,
2007
2006
2005
Constructed
Acquired
Constructed
Acquired
Constructed
Acquired
Regis
17
49
38
14
39
13
MasterCuts
15
—
32
—
47
2
Trade Secret
20
3
33
2
56
23
SmartStyle
242
—
215
—
194
—
Strip Center
101
193
180
122
167
248
International
25
12
33
10
22
19
Beauty schools
2
1
2
30
—
13
Hair restoration centers
—
1
1
1
—
42
422
259
534
179
525
360
Financing Cash Flows
For the Years Ended June 30,
2007
2006
2005
(Dollars in thousands)
Net borrowings (payments) on revolving credit facilities
$
84,806
$
56,250
$
(22,650
)
Net (repayments) borrowings of long
-
term debt
(15,888
)
(20,787
)
280,625
Proceeds from the issuance of common stock
14,310
14,410
17,257
Repurchase of common stock
(79,710
)
(20,280
)
(23,117
)
Excess tax benefit from stock
-
based compensation plans
4,536
4,556
—
Dividend payments
(7,169
)
(7,256
)
(7,149
)
Other
(7,310
)
1,678
(2,472
)
(6,425
)
$
28,571
$
242,494