Regis Corporation, the global leader in the $150 billion hair care industry, reported first quarter net income of $23.1 million, or $0.50 per diluted share, a four percent increase over the $22.2 million, or $0.48 per diluted share, reported in the comparable period in fiscal 2006.
First quarter earnings per diluted share came in slightly above the high end of the company's guidance range of $0.44 to $0.48.
The incremental two cents per diluted share was largely the result of two factors: a one-time income tax benefit associated with a favorable ruling from the IRS on an open income tax matter and lower than forecasted marketing expenses during the quarter.
The company previously reported revenues for the first quarter ended September 30, 2006 increased nine percent to $639 million versus the comparable period in fiscal 2006. Same-store sales decreased 0.3 percent for the quarter.
During the quarter, Regis Corporation added a net total of 157 locations. The company constructed 129 salons and franchisees built 66 salons.
In addition, Regis acquired 83 salons, including 40 franchise salon buybacks, and one beauty school. The company closed or relocated 81 salons and one hair restoration center during the quarter.
Second Quarter 2007 Outlook The following outlook pertains to the fiscal second quarter ending December 31, 2006:
Earnings per diluted share are forecasted to be in a range of $0.50 to $0.56, compared to $0.59 a year ago.
Consolidated revenue is forecasted to grow seven percent to nine percent to a range of $650 million to $660 million compared to $607 million a year ago.
Consolidated same-store sales are forecasted to be in a range of negative one percent to positive one percent.
Regis Corporation will host a conference call discussing first quarter results today, October 25, 2006 at 10:00 a.m., Central Time. Interested parties are invited to listen by logging on to company website.
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