Supercuts 2012 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2012 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 181

  • 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

Table of Contents
The basis point improvement in interest as a percent of consolidated revenues during the twelve months ended June 30, 2012 was
primarily due to decreased debt levels as compared to fiscal year 2011.
The basis point improvement in interest as a percent of consolidated revenues during the twelve months ended June 30, 2011 was
primarily due to a reduction in interest expense due to the twelve months ended June 30, 2010 including $18.0 million of make-whole
payments and other fees associated with the repayment of private placement debt, and decreased debt levels during fiscal year 2011.
The basis point increase in interest as a percent of consolidated revenues during the twelve months ended June 30, 2010 was primarily due
to $18.0 million of make-whole payments and other fees associated with the repayment of private placement debt. The increase due to the
make-whole payments and other fees was partially offset by a reduction in interest expense due to decreased debt levels.
Interest Income and Other, net
Interest income and other, net was as follows:
Interest income and other, net as a percent of consolidated revenues during the twelve months ended June 30, 2012, was consistent with
the comparable prior period as there was a favorable foreign currency impact related to the Company's investment in MY Style and a favorable
legal settlement during fiscal year 2012 that were offset by the prior year comparable period including higher fees received for warehousing
services provided to the purchaser of Trade Secret.
The basis point decrease in the interest income and other, net as a percent of consolidated revenues during the twelve months ended
June 30, 2011 was primarily due to the foreign currency impact of the Company's investment in MY Style, $1.9 million received from the
purchaser of Trade Secret in the comparable prior period for administrative services, and $1.9 million in interest income recorded in the
comparable prior period on the outstanding note receivable due from the purchaser of Trade Secret.
Interest income and other, net as a percent of consolidated revenues during the twelve months ended June 30, 2010 was consistent with the
twelve months ended June 30, 2009. Interest income increased as a result of higher cash balances available to earn interest, partially offset by a
decline in rates.
53
Increase (Decrease)
Over Prior Fiscal Year
Years Ended June 30, Interest
Income as % of
Consolidated
Revenues Dollar Percentage
Basis Point(1)
(Dollars in thousands)
2012
$
5,130
0.2
%
$
319
6.6
%
—
2011
4,811
0.2
(5,599
)
(53.8
)
(20
)
2010
10,410
0.4
949
10.0
—
(1) Represents the basis point change in interest income and other, net as a percent of consolidated revenues as
compared to the corresponding period of the prior fiscal year.