Regis Corporation reported second quarter net income of $26.9 million, or $0.59 per diluted share. Second quarter earnings results included a five cent per diluted share tax benefit associated with the retroactive reinstatement of the Work Opportunity and Welfare-to-Work Credits. This change to the tax law was enacted on December 20, 2006. Absent the tax benefit, earnings per diluted share were $0.54, which was at the upper end of the company's previously released guidance range.
The company previously reported that revenues for the second quarter ended December 31, 2006 increased eight percent to $657 million versus $607 million in second quarter of fiscal 2006. Consolidated same-store sales increased 0.5 percent for the quarter versus a 1.2 percent increase during the comparable quarter a year ago.
Regis Corporation added a net total of 79 locations during the second quarter. The company constructed 85 salons and franchisees built 62 salons. In addition, Regis acquired 15 salons, including nine franchise salon buybacks. The company closed or relocated 73 salons and one hair restoration center during the quarter.
"We are encouraged by the initial signs of recovery in our business during the second quarter," commented Paul D. Finkelstein, Chairman and Chief Executive Officer of Regis Corporation. "We are particularly pleased by the improvement in our service same-store sales which increased 1.3 percent compared to a 0.7 percent increase during the comparable period last year."
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