Supercuts 2012 Annual Report Download - page 24

Table of Contents
Governmental regulations surrounding franchise operations in Europe are similar to those in the United States. The Company believes it is
operating in substantial compliance with applicable laws and regulations governing all of its operations.
The Company maintains an ownership interest in EEG. Beauty schools derive a significant portion of their revenue from student financial
assistance originating from the U.S Department of Education's Title IV Higher Education Act of 1965. For the students to receive financial
assistance at the school, the beauty schools must maintain eligibility requirements established by the U.S Department of Education.
In June 2012, the United States Supreme Court upheld the Patient Protection and Affordable Care Act (Act). We expect the Act will
increase our annual employee healthcare costs, with significant increases commencing in fiscal year 2014.
Financial Information about Foreign and North American Operations
Financial information about foreign and North American markets is incorporated herein by reference to Management's Discussion and
Analysis of Financial Condition and Results of Operations in Part II, Item 7 and segment information in Note 15 to the Consolidated Financial
Statements in Part II, Item 8 of this Form 10-K.
Available Information
The Company is subject to the informational requirements of the Securities and Exchange Act of 1934 (Exchange Act). The Company
therefore files periodic reports, proxy statements and other information with the Securities and Exchange Commission (SEC). Such reports may
be obtained by visiting the Public Reference Room of the SEC at 100 F Street NE, Washington, DC 20549, or by calling the SEC at 1-800-
SEC-0330. In addition, the SEC maintains an internet site ( http://www.sec.gov ) that contains reports, proxy and information statements and
other information regarding issuers that file electronically.
Financial and other information can be accessed in the Investor Information section of the Company's website at www.regiscorp.com
. The
Company makes available, free of charge, copies of its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably
practicable after filing such material electronically or otherwise furnishing it to the SEC.
Item 1A. Risk Factors
Changes in the general economic environment may impact our business and results of operations.
Changes to the United States, Canadian, United Kingdom, Asian and other European economies have an impact on our business. General
economic factors that are beyond our control, such as interest rates, recession, inflation, deflation, tax rates and policy, energy costs,
unemployment trends, and other matters that influence consumer confidence and spending, may impact our business. In particular, visitation
patterns to our salons and hair restoration centers can be adversely impacted by increases in unemployment rates and decreases in discretionary
income levels.
If we continue to have negative same
-store sales our business and results of operations may be affected.
Our success depends, in part, upon our ability to improve sales, as well as both gross margins and operating margins. Comparable same-
store sales are affected by average ticket and same-store guest visits. A variety of factors affect same-store guest visits, including the guest
experience, fashion trends, competition, current economic conditions, changes in our product assortment, the success of marketing
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