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SEGMENT INFORMATION: | 6 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION: Segment information is prepared on the same basis that the chief operating decision maker reviews financial information for operational decision-making purposes. The Company’s reportable operating segments consisted of the following salons:
|  | December 31, 2019 |  | June 30, 2019
FRANCHISE SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 969 |  |  | 615 |
Supercuts |  | 2,493 |  |  | 2,340 |
Signature Style |  | 1,156 |  |  | 766 |
Total North American salons |  | 4,618 |  |  | 3,721 |
Total International salons (1) |  | 172 |  |  | 230 |
Total Franchise salons |  | 4,790 |  |  | 3,951 |
as a percent of total Company-owned and Franchise salons |  | 67.8 | % |  | 56.0 | %
COMPANY-OWNED SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 1,159 |  |  | 1,550 |
Supercuts |  | 262 |  |  | 403 |
Signature Style |  | 649 |  |  | 1,155 |
Mall-based (2) |  | 207 |  |  | — |
Total Company-owned salons |  | 2,277 |  |  | 3,108 |
as a percent of total Company-owned and Franchise salons |  | 32.2 | % |  | 44.0 | %
OWNERSHIP INTEREST LOCATIONS: |  |  |  |
Equity ownership interest locations |  | 85 |  |  | 86 |
Grand Total, System-wide |  | 7,152 |  |  | 7,145 |
____________________________________
(1) | Canadian and Puerto Rican salons are included in the North American salon totals.
(2) | The mall-based salons were acquired from TBG on December 31, 2019 resulting in no impact to the Statement of Operations for the three and six months ended December 31, 2019.
As of December 31, 2019, the Company-owned operating segment is comprised primarily of SmartStyle®, Supercuts®, Cost Cutters®, and other regional trade names and the Franchise operating segment is comprised primarily of Supercuts®, SmartStyle®, Cost Cutters®, First Choice Haircutters®, Roosters® and Magicuts® concepts. Financial information concerning the Company's reportable operating segments is shown in the following table:
|  | For the Three Months Ended December 31, 2019
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 101,805 |  |  | $ | — |  |  | $ | 101,805 |
Product |  | 16,864 |  |  | 27,119 |  |  | — |  |  | 43,983 |
Royalties and fees |  | 29,347 |  |  | — |  |  | — |  |  | 29,347 |
Franchise rental income |  | 33,630 |  |  | — |  |  | — |  |  | 33,630 |
Total revenue |  | 79,841 |  |  | 128,924 |  |  | — |  |  | 208,765 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 67,358 |  |  | — |  |  | 67,358 |
Cost of product |  | 13,072 |  |  | 14,186 |  |  | — |  |  | 27,258 |
Site operating expenses |  | 10,704 |  |  | 15,626 |  |  | — |  |  | 26,330 |
General and administrative |  | 8,976 |  |  | 7,547 |  |  | 16,168 |  |  | 32,691 |
Rent |  | 401 |  |  | 19,374 |  |  | 720 |  |  | 20,495 |
Franchise rent expense |  | 33,630 |  |  | — |  |  | — |  |  | 33,630 |
Depreciation and amortization |  | 210 |  |  | 5,938 |  |  | 1,599 |  |  | 7,747 |
TBG restructuring |  | 722 |  |  | — |  |  | — |  |  | 722 |
Total operating expenses |  | 67,715 |  |  | 130,029 |  |  | 18,487 |  |  | 216,231 |
Operating income (loss) |  | 12,126 |  |  | (1,105 | ) |  | (18,487 | ) |  | (7,466 | )
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (1,464 | ) |  | (1,464 | )
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (5,692 | ) |  | (5,692 | )
Interest income and other, net |  | — |  |  | — |  |  | 4,346 |  |  | 4,346 |
Income (loss) from continuing operations before income taxes |  | $ | 12,126 |  |  | $ | (1,105 | ) |  | $ | (21,297 | ) |  | $ | (10,276 | )
|  | For the Three Months Ended December 31, 2018
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 190,419 |  |  | $ | — |  |  | $ | 190,419 |
Product |  | 17,818 |  |  | 43,831 |  |  | — |  |  | 61,649 |
Royalties and fees |  | 22,603 |  |  | — |  |  | — |  |  | 22,603 |
Total revenue |  | 40,421 |  |  | 234,250 |  |  | — |  |  | 274,671 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 114,931 |  |  | — |  |  | 114,931 |
Cost of product |  | 14,449 |  |  | 21,901 |  |  | — |  |  | 36,350 |
Site operating expenses |  | 7,867 |  |  | 27,696 |  |  | — |  |  | 35,563 |
General and administrative |  | 9,466 |  |  | 14,198 |  |  | 22,172 |  |  | 45,836 |
Rent |  | 184 |  |  | 34,258 |  |  | 200 |  |  | 34,642 |
Depreciation and amortization |  | 215 |  |  | 6,728 |  |  | 1,957 |  |  | 8,900 |
Total operating expenses |  | 32,181 |  |  | 219,712 |  |  | 24,329 |  |  | 276,222 |
Operating income (loss) |  | 8,240 |  |  | 14,538 |  |  | (24,329 | ) |  | (1,551 | )
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (1,072 | ) |  | (1,072 | )
Gain from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | 2,865 |  |  | 2,865 |
Interest income and other, net |  | — |  |  | — |  |  | 629 |  |  | 629 |
Income (loss) from continuing operations before income taxes |  | $ | 8,240 |  |  | $ | 14,538 |  |  | $ | (21,907 | ) |  | $ | 871 |
|  | For the Six Months Ended December 31, 2019
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 243,746 |  |  | $ | — |  |  | $ | 243,746 |
Product |  | 29,969 |  |  | 59,670 |  |  | — |  |  | 89,639 |
Royalties and fees |  | 57,364 |  |  | — |  |  | — |  |  | 57,364 |
Franchise rental income |  | 65,054 |  |  | — |  |  | — |  |  | 65,054 |
Total revenue |  | 152,387 |  |  | 303,416 |  |  | — |  |  | 455,803 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 157,840 |  |  | — |  |  | 157,840 |
Cost of product |  | 23,352 |  |  | 30,233 |  |  | — |  |  | 53,585 |
Site operating expenses |  | 21,130 |  |  | 38,142 |  |  | — |  |  | 59,272 |
General and administrative |  | 17,333 |  |  | 17,697 |  |  | 38,286 |  |  | 73,316 |
Rent |  | 591 |  |  | 43,163 |  |  | 1,005 |  |  | 44,759 |
Franchise rent expense |  | 65,054 |  |  | — |  |  | — |  |  | 65,054 |
Depreciation and amortization |  | 370 |  |  | 12,045 |  |  | 4,712 |  |  | 17,127 |
TBG restructuring |  | 2,222 |  |  | — |  |  | — |  |  | 2,222 |
Total operating expenses |  | 130,052 |  |  | 299,120 |  |  | 44,003 |  |  | 473,175 |
Operating income (loss) |  | 22,335 |  |  | 4,296 |  |  | (44,003 | ) |  | (17,372 | )
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (2,903 | ) |  | (2,903 | )
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (11,552 | ) |  | (11,552 | )
Interest income and other, net |  | — |  |  | — |  |  | 4,517 |  |  | 4,517 |
Income (loss) from continuing operations before income taxes |  | $ | 22,335 |  |  | $ | 4,296 |  |  | $ | (53,941 | ) |  | $ | (27,310 | )
|  | For the Six Months Ended December 31, 2018
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 398,267 |  |  | $ | — |  |  | $ | 398,267 |
Product |  | 33,447 |  |  | 85,793 |  |  | — |  |  | 119,240 |
Royalties and fees |  | 44,999 |  |  | — |  |  | — |  |  | 44,999 |
Total revenue |  | 78,446 |  |  | 484,060 |  |  | — |  |  | 562,506 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 236,428 |  |  | — |  |  | 236,428 |
Cost of product |  | 26,862 |  |  | 41,669 |  |  | — |  |  | 68,531 |
Site operating expenses |  | 15,843 |  |  | 56,541 |  |  | — |  |  | 72,384 |
General and administrative |  | 17,130 |  |  | 30,579 |  |  | 45,854 |  |  | 93,563 |
Rent |  | 278 |  |  | 69,944 |  |  | 398 |  |  | 70,620 |
Depreciation and amortization |  | 373 |  |  | 14,785 |  |  | 3,944 |  |  | 19,102 |
Total operating expenses |  | 60,486 |  |  | 449,946 |  |  | 50,196 |  |  | 560,628 |
Operating income (loss) |  | 17,960 |  |  | 34,114 |  |  | (50,196 | ) |  | 1,878 |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (2,078 | ) |  | (2,078 | )
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (1,095 | ) |  | (1,095 | )
Interest income and other, net |  | — |  |  | — |  |  | 989 |  |  | 989 |
Income (loss) from continuing operations before income taxes |  | $ | 17,960 |  |  | 34,114 |  |  | $ | (52,380 | ) |  | $ | (306 | )

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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