Supercuts 2012 Annual Report Download - page 34

Table of Contents
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is designed to provide a reader of our
financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and
certain other factors that may affect our future results. Our MD&A is presented in five sections:
• Management's Overview
• Critical Accounting Policies
• Overview of Fiscal Year 2012 Results
• Results of Operations
• Liquidity and Capital Resources
MANAGEMENT'S OVERVIEW
Regis Corporation (RGS) owns or franchises beauty salons and hair restoration centers. As of June 30, 2012, we owned, franchised or held
ownership interests in approximately 12,600 worldwide locations. Our locations consisted of 9,738 system wide North American and
international salons, 98 hair restoration centers, and 2,811 locations in which we maintain a non-controlling ownership interest less than
100 percent. Our salon concepts offer generally similar products and services and serve mass market consumers. Our salon operations are
organized to be managed based on geographical location. Our North American salon operations include 9,340 salons, including 2,016 franchise
salons, operating in the United States, Canada and Puerto Rico primarily under the trade names of Regis Salons, MasterCuts, SmartStyle,
Supercuts and Cost Cutters. Our international salon operations include 398 salons located in Europe, primarily in the United Kingdom. Hair
Club for Men and Women includes 98 North American locations, including 29 franchise locations. During fiscal year 2012, we had
approximately 52,000 corporate employees worldwide.
Our fiscal year 2013 growth strategy is focused on improving the guest experience. We plan to execute our strategy by putting guests and
stylists first, leveraging the power of our salon brands, focusing on technology and connectivity, and reviewing our non-core assets. Initiatives
include:
• Putting guests and stylists first by improving both the experience for the person in the chair and behind the chair. The Company
continues to work on attracting, developing and retaining the best stylists through orientation programs, training and
development and rewards and recognition through a performance driven culture.
• Leveraging the power of our salon brands through focusing on the best brands within the best markets.
• Using technology and connectivity, including internet in the salons, to enhance effectiveness of field management and improve
guest satisfaction and retention.
• Reviewing non-core assets.
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• An income tax charge of approximately $3.8 million was recorded during fiscal year 2009 associated with an
adjustment to correct our prior year deferred income tax balances. An income tax charge of approximately
$3.0 million of which $1.3 million was recorded through income tax expense and $1.7 million was recorded
through other comprehensive income during fiscal year 2008 was associated with repatriating approximately
$30.0 million of cash previously considered to be indefinitely reinvested outside of the United States.