Supercuts 2012 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 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 decrease in International salon operating income as a percent of International salon revenues during fiscal year 2012 was
primarily due to negative leverage on fixed costs due to a decrease in same-store sales.
The basis point improvement in International salon operating income as a percent of International salon revenues during fiscal year 2011
was primarily due to $2.1 million of lease termination costs recognized during fiscal year 2010 associated with the Company's planned closure
of underperforming salons. Partially offsetting the basis point improvement was a decline on product margins from mix play, as a larger than
expected percentage of our product sales came from lower-margin products.
The basis point improvement in International salon operating income as a percent of International salon revenues during fiscal year 2010
was primarily due to the comparable prior period including a $41.7 million goodwill impairment of the United Kingdom reporting unit and
higher impairment charges related to the impairment of property and equipment at underperforming locations. In addition the Company's
planned closure of underperforming United Kingdom salons and the continuation of the Company's expense control and payroll management
contributed to the basis point improvement during fiscal year 2010.
Hair Restoration Centers
Hair Restoration Center Revenues. Total Hair Restoration Centers revenues were as follows:
The percentage increases during the years ended June 30, 2012, 2011, and 2010 were due to the following factors:
The increase in Hair Restoration Centers revenues during fiscal year 2012 was due to the increase in same-store sales of 2.9 percent, the
construction of six hair restoration centers and the four acquired hair restoration centers during fiscal year 2011.
The increase in Hair Restoration Centers revenues during fiscal year 2011 was due to the increase in same-store sales of 1.2 percent, the
acquisition of four hair restoration centers, all of which were franchise buybacks, and the construction of three hair restoration centers.
The increase in Hair Restoration Centers revenues during fiscal year 2010 was due to the increase in same-store sales of 0.4 percent and
the construction of four hair restoration centers.
60
Increase Over Prior
Fiscal Year
Same-Store
Sales Increase
Years Ended June 30, Revenues Dollar Percentage
(Dollars in thousands)
2012
$
151,552
$
5,864
4.0
%
2.9
%
2011
145,688
3,902
2.8
1.2
2010
141,786
1,266
0.9
0.4
Percentage Increase
(Decrease) in Revenues For
the Years Ended June 30,
2012 2011 2010
Acquisitions
1.3
%
1.1
%
0.2
%
Same
-
store sales
2.9
1.2
0.4
New centers
0.4
0.3
0.0
Franchise revenues
0.1
0.7
(0.2
)
Closed centers
(0.2
)
(0.3
)
0.0
Other
(0.5
)
(0.2
)
0.5
4.0
%
2.8
%
0.9