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SEGMENT INFORMATION | 6 Months Ended
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Dec. 31, 2020
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, 2020 |  | June 30, 2020
FRANCHISE SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 1,535 |  |  | 1,317 |
Supercuts |  | 2,368 |  |  | 2,508 |
Portfolio Brands (1) |  | 1,207 |  |  | 1,217 |
Total North American salons |  | 5,110 |  |  | 5,042 |
Total International salons (2) |  | 159 |  |  | 167 |
Total Franchise salons |  | 5,269 |  |  | 5,209 |
as a percent of total Franchise and Company-owned salons |  | 83.6 | % |  | 76.1 | %
COMPANY-OWNED SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 466 |  |  | 751 |
Supercuts |  | 154 |  |  | 210 |
Portfolio Brands (1) |  | 340 |  |  | 505 |
Mall-based (3) |  | 77 |  |  | 166 |
Total Company-owned salons |  | 1,037 |  |  | 1,632 |
as a percent of total Franchise and Company-owned salons |  | 16.4 | % |  | 23.9 | %
OWNERSHIP INTEREST LOCATIONS: |  |  |  |
Equity ownership interest locations |  | 78 |  |  | 82 |
Grand Total, System-wide |  | 6,384 |  |  | 6,923 |
_______________________________________________________________________________ (1)Portfolio Brands was previously referred to as Signature Style. (2)Canadian and Puerto Rican salons are included in the North American salon totals. (3)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. As of December 31, 2020, the Franchise operating segment is comprised primarily of Supercuts®, SmartStyle®, Cost Cutters®, First Choice Haircutters®, Magicuts®, and Roosters® concepts and the Company-owned operating segment is comprised primarily of SmartStyle®, Supercuts®, Cost Cutters®, and other regional trade names. Financial information concerning the Company's reportable operating segments is shown in the following tables:
|  | Three Months Ended December 31, 2020
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 28,987 |  |  | $ | — |  |  | $ | 28,987 |
Product |  | 14,236 |  |  | 8,910 |  |  | — |  |  | 23,146 |
Royalties and fees |  | 19,902 |  |  | — |  |  | — |  |  | 19,902 |
Franchise rental income |  | 32,285 |  |  | — |  |  | — |  |  | 32,285 |
Total revenue |  | 66,423 |  |  | 37,897 |  |  | — |  |  | 104,320 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 22,097 |  |  | — |  |  | 22,097 |
Cost of product |  | 11,291 |  |  | 5,912 |  |  | — |  |  | 17,203 |
Site operating expenses |  | 4,748 |  |  | 5,602 |  |  | — |  |  | 10,350 |
General and administrative |  | 6,881 |  |  | 2,435 |  |  | 17,374 |  |  | 26,690 |
Rent |  | 405 |  |  | 11,844 |  |  | 653 |  |  | 12,902 |
Franchise rent expense |  | 32,285 |  |  | — |  |  | — |  |  | 32,285 |
Depreciation and amortization |  | 289 |  |  | 4,311 |  |  | 1,788 |  |  | 6,388 |
Long-lived asset impairment |  | 94 |  |  | 3,066 |  |  | — |  |  | 3,160 |
Total operating expenses |  | 55,993 |  |  | 55,267 |  |  | 19,815 |  |  | 131,075 |
Operating income (loss) |  | 10,430 |  |  | (17,370) |  |  | (19,815) |  |  | (26,755) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (3,701) |  |  | (3,701) |
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (3,226) |  |  | (3,226) |
Interest income and other, net |  | — |  |  | — |  |  | 403 |  |  | 403 |
Income (loss) from continuing operations before income taxes |  | $ | 10,430 |  |  | $ | (17,370) |  |  | $ | (26,339) |  |  | $ | (33,279) |
|  | 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 mall location 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 |  | — |  |  | — |  |  | (12,407) |  |  | (12,407) |
Interest income and other, net |  | — |  |  | — |  |  | 2,869 |  |  | 2,869 |
Income (loss) from continuing operations before income taxes |  | $ | 12,126 |  |  | $ | (1,105) |  |  | $ | (29,489) |  |  | $ | (18,468) |
|  | Six Months Ended December 31, 2020
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 65,395 |  |  | $ | — |  |  | $ | 65,395 |
Product |  | 27,978 |  |  | 19,917 |  |  | — |  |  | 47,895 |
Royalties and fees |  | 37,858 |  |  | — |  |  | — |  |  | 37,858 |
Franchise rental income |  | 64,568 |  |  | — |  |  | — |  |  | 64,568 |
Total revenue |  | 130,404 |  |  | 85,312 |  |  | — |  |  | 215,716 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 50,620 |  |  | — |  |  | 50,620 |
Cost of product |  | 21,969 |  |  | 11,603 |  |  | — |  |  | 33,572 |
Site operating expenses |  | 9,258 |  |  | 14,331 |  |  | — |  |  | 23,589 |
General and administrative |  | 15,604 |  |  | 5,411 |  |  | 31,822 |  |  | 52,837 |
Rent |  | 962 |  |  | 23,790 |  |  | 1,375 |  |  | 26,127 |
Franchise rent expense |  | 64,568 |  |  | — |  |  | — |  |  | 64,568 |
Depreciation and amortization |  | 563 |  |  | 9,393 |  |  | 3,808 |  |  | 13,764 |
Long-lived asset impairment |  | 704 |  |  | 8,280 |  |  | — |  |  | 8,984 |
Total operating expenses |  | 113,628 |  |  | 123,428 |  |  | 37,005 |  |  | 274,061 |
Operating income (loss) |  | 16,776 |  |  | (38,116) |  |  | (37,005) |  |  | (58,345) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (7,463) |  |  | (7,463) |
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (3,888) |  |  | (3,888) |
Interest income and other, net |  | — |  |  | — |  |  | 517 |  |  | 517 |
Income (loss) from continuing operations before income taxes |  | $ | 16,776 |  |  | $ | (38,116) |  |  | $ | (47,839) |  |  | $ | (69,179) |
|  | 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 mall location 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 |  | — |  |  | — |  |  | (18,267) |  |  | (18,267) |
Interest income and other, net |  | — |  |  | — |  |  | 3,040 |  |  | 3,040 |
Income (loss) from continuing operations before income taxes |  | $ | 22,335 |  |  | 4,296 |  |  | $ | (62,133) |  |  | $ | (35,502) |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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