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SEGMENT INFORMATION (Tables) | 3 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Schedule of reportable operating segment salons | The Company’s reportable operating segments consisted of the following salons:
|  | September 30, 2020 |  | June 30, 2020
FRANCHISE SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 1,428 |  |  | 1,317 |
Supercuts |  | 2,423 |  |  | 2,508 |
Signature Style |  | 1,212 |  |  | 1,217 |
Total North American salons |  | 5,063 |  |  | 5,042 |
Total International salons (1) |  | 163 |  |  | 167 |
Total Franchise salons |  | 5,226 |  |  | 5,209 |
as a percent of total Franchise and Company-owned salons |  | 80.0 | % |  | 76.1 | %
COMPANY-OWNED SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 629 |  |  | 751 |
Supercuts |  | 170 |  |  | 210 |
Signature Style |  | 405 |  |  | 505 |
Mall-based (2) |  | 104 |  |  | 166 |
Total Company-owned salons |  | 1,308 |  |  | 1,632 |
as a percent of total Franchise and Company-owned salons |  | 20.0 | % |  | 23.9 | %
OWNERSHIP INTEREST LOCATIONS: |  |  |  |
Equity ownership interest locations |  | 80 |  |  | 82 |
Grand Total, System-wide |  | 6,614 |  | 6,923
_______________________________________________________________________________ (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. They are included in continuing operations under the Company-owned operating segment from January 1, 2020.
Schedule of summarized financial information of reportable operating segments | Financial information concerning the Company's reportable operating segments is shown in the following tables:
|  | For the Three Months Ended September 30, 2020
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 36,408 |  |  | $ | — |  |  | $ | 36,408 |
Product |  | 13,742 |  |  | 11,007 |  |  | — |  |  | 24,749 |
Royalties and fees |  | 17,956 |  |  | — |  |  | — |  |  | 17,956 |
Franchise rental income |  | 32,283 |  |  | — |  |  | — |  |  | 32,283 |
Total revenue |  | 63,981 |  |  | 47,415 |  |  | — |  |  | 111,396 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 28,523 |  |  | — |  |  | 28,523 |
Cost of product |  | 10,678 |  |  | 5,691 |  |  | — |  |  | 16,369 |
Site operating expenses |  | 4,510 |  |  | 8,729 |  |  | — |  |  | 13,239 |
General and administrative |  | 8,724 |  |  | 2,977 |  |  | 14,447 |  |  | 26,148 |
Rent |  | 557 |  |  | 11,946 |  |  | 722 |  |  | 13,225 |
Franchise rent expense |  | 32,283 |  |  | — |  |  | — |  |  | 32,283 |
Depreciation and amortization |  | 274 |  |  | 5,082 |  |  | 2,020 |  |  | 7,376 |
Long-lived asset impairment |  | 610 |  |  | 5,214 |  |  | — |  |  | 5,824 |
Total operating expenses |  | 57,636 |  |  | 68,162 |  |  | 17,189 |  |  | 142,987 |
Operating income (loss) |  | 6,345 |  |  | (20,747) |  |  | (17,189) |  |  | (31,591) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (3,762) |  |  | (3,762) |
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (662) |  |  | (662) |
Interest income and other, net |  | — |  |  | — |  |  | 114 |  |  | 114 |
Income (loss) from continuing operations before income taxes |  | $ | 6,345 |  |  | $ | (20,747) |  |  | $ | (21,499) |  |  | $ | (35,901) |
|  | For the Three Months Ended September 30, 2019
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 141,941 |  |  | $ | — |  |  | $ | 141,941 |
Product |  | 13,105 |  |  | 32,551 |  |  | — |  |  | 45,656 |
Royalties and fees |  | 28,017 |  |  | — |  |  | — |  |  | 28,017 |
Franchise rental income |  | 31,424 |  |  | — |  |  | — |  |  | 31,424 |
Total revenue |  | 72,546 |  |  | 174,492 |  |  | — |  |  | 247,038 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 90,482 |  |  | — |  |  | 90,482 |
Cost of product |  | 10,280 |  |  | 16,047 |  |  | — |  |  | 26,327 |
Site operating expenses |  | 10,426 |  |  | 22,516 |  |  | — |  |  | 32,942 |
General and administrative |  | 8,357 |  |  | 10,150 |  |  | 22,118 |  |  | 40,625 |
Rent |  | 190 |  |  | 23,789 |  |  | 285 |  |  | 24,264 |
Franchise rent expense |  | 31,424 |  |  | — |  |  | — |  |  | 31,424 |
Depreciation and amortization |  | 160 |  |  | 6,107 |  |  | 3,113 |  |  | 9,380 |
TBG mall location restructuring |  | 1,500 |  |  | — |  |  | — |  |  | 1,500 |
Total operating expenses |  | 62,337 |  |  | 169,091 |  |  | 25,516 |  |  | 256,944 |
Operating income (loss) |  | 10,209 |  |  | 5,401 |  |  | (25,516) |  |  | (9,906) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (1,439) |  |  | (1,439) |
Gain from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (5,860) |  |  | (5,860) |
Interest income and other, net |  | — |  |  | — |  |  | 171 |  |  | 171 |
Income (loss) from continuing operations before income taxes |  | $ | 10,209 |  |  | $ | 5,401 |  |  | $ | (32,644) |  |  | $ | (17,034) |

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