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SEGMENT INFORMATION (Tables) | 6 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Schedule of reportable operating segment salons | 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.
Schedule of summarized financial information of reportable operating segments | 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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