Supercuts 2009 Annual Report Download - page 60

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Table of Contents
We acquired two hair restoration centers during the twelve months ended June 30, 2009, both of which were franchise buybacks, and
constructed eight hair restoration centers during the twelve months ended June 30, 2009. The decrease in organic hair restoration revenues
during fiscal year 2009 was due to the decrease in same-store sales of 0.8 percent.
We acquired six hair restoration centers during the twelve months ended June 30, 2008, all of which were franchise buybacks, and
constructed three hair restoration centers during the twelve months ended June 30, 2008. The increase in organic hair restoration revenues during
fiscal year 2008 was due to the increase in same-store sales of 5.2 percent.
We acquired two hair restoration centers during the twelve months ended June 30, 2007, one of which was a franchise buyback. The
increase in total hair restoration revenues during fiscal year 2007 was due to strong recurring and new customer revenues and increases in hair
transplant management fees.
Hair Restoration Center Operating Income. Operating income for our hair restoration centers was as follows:
(1)
Increase (Decrease) Over Prior Fiscal Year
Years Ended June 30,
Operating
Income
Operating Income
as % of
Total Revenues
Dollar
Percentage
Basis Point(1)
(Dollars in thousands)
2009
$
23,871
17.0
%
$
(4,310
)
(15.3
)%
(380
)
2008
28,181
20.8
2,620
10.3
(10
)
2007
25,561
20.9
3,988
18.5
120
Represents the basis point change in hair restoration center operating income as a percent of total hair restoration center revenues as
compared to the corresponding period of the prior fiscal year.
The basis point decrease in hair restoration operating income as a percent of hair restoration revenues during fiscal year 2009 was primarily
due to lower operating margins on newly constructed and acquired centers and negative leverage in fixed cost categories due to negative same-
store sales.
The basis point decrease in hair restoration operating income as a percent of hair restoration revenues during fiscal year 2008 was primarily
due to lower operating margins at the six acquired franchise centers during the twelve months ended June 30, 2008.
The basis point improvement in hair restoration operating income as a percent of hair restoration revenues during fiscal year 2007 was due
to strong recurring and new customer revenues and increases in hair transplant management fees, partially offset by an increase in professional
fees and advertising and marketing expenses.
58