Supercuts 2010 Annual Report Download - page 43

Table of Contents
Consolidated Revenues
Consolidated revenues primarily include revenues of company-owned salons, product and equipment sales to franchisees, hair restoration
center revenues, and franchise royalties and fees. As compared to the prior fiscal year, consolidated revenues decreased 2.9 percent during
fiscal year 2010 and decreased 2.1 percent during fiscal year 2009. 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.
41
For the Years Ended June 30,
2010 2009 2008
(Dollars in thousands)
North American salons:
Regis
$
437,990
$
474,964
$
514,219
MasterCuts
166,821
170,338
175,974
SmartStyle
533,094
529,782
507,349
Supercuts(1)
314,698
310,913
305,104
Promenade(1)(6)
607,960
631,701
581,542
Other(3)
—
—
5,558
Total North American Salons(5)
2,060,563
2,117,698
2,089,746
International salons(1)(2)
156,085
171,569
256,063
Hair restoration centers(1)
141,786
140,520
135,582
Consolidated revenues
$
2,358,434
$
2,429,787
$
2,481,391
Percent change from prior year
(2.9
)%
(2.1
)%
4.6
%
Salon same
-
store sales (decrease) increase(4)
(3.2
)%
(3.1
)%
1.5
%
(1) Includes aggregate franchise royalties and fees of $39.7, $39.6, $67.6 million in fiscal years 2010, 2009, and 2008,
respectively. North American salon franchise royalties and fees represented 93.7, 93.7, and 58.6 percent of total franchise
revenues in fiscal years 2010, 2009, and 2008, respectively. The decrease in aggregate franchise royalties and fees and
the increase in North American salon franchise royalties and fees as a percent of total revenues for fiscal years 2010 and
2009 is a result of the deconsolidation of the Company's European franchise salon operations.
(2) On January 31, 2008, the Company deconsolidated the results of operations of its European franchise salon operations.
Accordingly, revenue growth was negatively impacted as a result of the deconsolidation. See Item 6, Selected Financial
Data, for further information.
(3) On August 1, 2007, the Company contributed its 51 accredited cosmetology schools to Empire Education Group, Inc.
Accordingly, revenue growth was negatively impacted as a result of the deconsolidation. See Item 6, Selected Financial
Data, for further information. For the fiscal year ended June 30, 2008, the results of operations for the month ended
July 31, 2007 for the accredited cosmetology schools are reported in the North American salons segment. The Company
retained ownership of its one North American and four United Kingdom Sassoon schools. Subsequent to August 1, 2007
results of operations for the Sassoon schools are included in the respective North American and international salon
segments.
(4) 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. Salons
relocated within a one mile radius are included in same-store sales as they are considered to have been open in the prior
period.