Supercuts 2012 Annual Report Download - page 60
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Table of Contents
North American Salon Operating Income. Operating income for the North American salons was as follows:
The basis point increase in North American salon operating income as a percent of North American salon revenues during fiscal year 2012
was primarily due to the $67.7 million goodwill impairment of the Company's Regis salon concept was less than the $74.1 million goodwill
impairment of the Company's Promenade salon concept in fiscal year 2011. The basis point increase was also due to improved service margins,
partially offset by negative leverage in fixed cost categories due to negative same-store sales.
The basis point decrease in North American salon operating income as a percent of North American salon revenues during fiscal year
2011 was primarily due to the $74.1 million goodwill impairment of the Company's Promenade salon concept and negative leverage in fixed
cost categories due to negative same-store sales. Partially offsetting the basis point decrease was lower depreciation expense due to a reduction
in salon construction.
The basis point decrease in North American salon operating income as a percent of North American salon revenues during fiscal year
2010 was primarily due to the $35.3 million goodwill impairment of the Company's Regis salon concept and negative leverage in fixed cost
categories due to negative same-store sales. In addition, the basis point decrease was due to the settlement of two legal claims regarding guest
and employee matters totaling $5.2 million, higher self-insurance expense (the Company recorded reduction in self-insurance accruals of
$1.7 million in the twelve months ended June 30, 2010 compared to a $9.9 million reduction in the twelve months ended June 30, 2009),
partially offset by the Company's cost saving initiatives and gross margin improvement.
International Salons
International Salon Revenues. Total International salon revenues were as follows:
58
(Decrease) Increase Over Prior Fiscal Year
Operating
Income
as % of
Total
Revenues
Years Ended June 30, Operating
Income Dollar Percentage Basis
Point(1)
(Dollars in thousands)
2012
$
165,368
8.3
%
$
(1,315
)
(0.8
)%
10
2011
166,683
8.2
(53,172
)
(24.2
)
(250
)
2010
219,855
10.7
(55,773
)
(20.2
)
(230
)
(1)
Represents the basis point change in North American salon operating income as a percent of total North American
salon revenues as compared to the corresponding period of the prior fiscal year.
Decrease Over Prior
Fiscal Year
Same-Store
Sales Decrease
Years Ended June 30, Revenues Dollar Percentage
(Dollars in thousands)
2012
$
141,122
$
(9,115
)
(6.1
)%
(9.1
)%
2011
150,237
(5,848
)
(3.7
)
(3.1
)%
2010
156,085
(15,484
)
(9.0
)
(3.8
)