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SEGMENT INFORMATION (Tables) | 9 Months Ended
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Mar. 31, 2021
Segment Reporting [Abstract] |
Schedule of reportable operating segment salons | The Company’s reportable operating segments consisted of the following salons:
|  | March 31, 2021 |  | June 30, 2020
FRANCHISE SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 1,569 |  |  | 1,317 |
Supercuts |  | 2,357 |  |  | 2,508 |
Portfolio Brands (1) |  | 1,233 |  |  | 1,217 |
Total North American salons |  | 5,159 |  |  | 5,042 |
Total International salons (2) |  | 158 |  |  | 167 |
Total Franchise salons |  | 5,317 |  |  | 5,209 |
as a percent of total Franchise and Company-owned salons |  | 86.6 | % |  | 76.1 | %
COMPANY-OWNED SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 373 |  |  | 751 |
Supercuts |  | 124 |  |  | 210 |
Portfolio Brands (1) |  | 267 |  |  | 505 |
Mall-based (3) |  | 62 |  |  | 166 |
Total Company-owned salons |  | 826 |  |  | 1,632 |
as a percent of total Franchise and Company-owned salons |  | 13.4 | % |  | 23.9 | %
OWNERSHIP INTEREST LOCATIONS: |  |  |  |
Equity ownership interest locations |  | 78 |  |  | 82 |
Grand Total, System-wide |  | 6,221 |  |  | 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 March 31, 2021
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 24,645 |  |  | $ | — |  |  | $ | 24,645 |
Product |  | 13,079 |  |  | 7,691 |  |  | — |  |  | 20,770 |
Royalties and fees |  | 23,535 |  |  | — |  |  | — |  |  | 23,535 |
Franchise rental income |  | 31,317 |  |  | — |  |  | — |  |  | 31,317 |
Total revenue |  | 67,931 |  |  | 32,336 |  |  | — |  |  | 100,267 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 15,821 |  |  | — |  |  | 15,821 |
Cost of product |  | 11,148 |  |  | 10,120 |  |  | — |  |  | 21,268 |
Site operating expenses |  | 5,600 |  |  | 7,766 |  |  | — |  |  | 13,366 |
General and administrative |  | 7,450 |  |  | 1,525 |  |  | 15,607 |  |  | 24,582 |
Rent |  | 101 |  |  | 7,229 |  |  | 671 |  |  | 8,001 |
Franchise rent expense |  | 31,317 |  |  | — |  |  | — |  |  | 31,317 |
Depreciation and amortization |  | 333 |  |  | 1,687 |  |  | 1,600 |  |  | 3,620 |
Long-lived asset impairment |  | 22 |  |  | 811 |  |  | — |  |  | 833 |
Total operating expenses |  | 55,971 |  |  | 44,959 |  |  | 17,878 |  |  | 118,808 |
Operating income (loss) |  | 11,960 |  |  | (12,623) |  |  | (17,878) |  |  | (18,541) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (3,163) |  |  | (3,163) |
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (4,575) |  |  | (4,575) |
Interest income and other, net |  | — |  |  | — |  |  | 15,099 |  |  | 15,099 |
Income (loss) from continuing operations before income taxes |  | $ | 11,960 |  |  | $ | (12,623) |  |  | $ | (10,517) |  |  | $ | (11,180) |
|  | Three Months Ended March 31, 2020
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 78,387 |  |  | $ | — |  |  | $ | 78,387 |
Product |  | 15,318 |  |  | 19,559 |  |  | — |  |  | 34,877 |
Royalties and fees |  | 8,698 |  |  | — |  |  | — |  |  | 8,698 |
Franchise rental income |  | 31,821 |  |  | — |  |  | — |  |  | 31,821 |
Total revenue |  | 55,837 |  |  | 97,946 |  |  | — |  |  | 153,783 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 54,824 |  |  | — |  |  | 54,824 |
Cost of product |  | 11,452 |  |  | 10,220 |  |  | — |  |  | 21,672 |
Site operating expenses |  | (7,789) |  |  | 11,449 |  |  | — |  |  | 3,660 |
General and administrative |  | 8,657 |  |  | 4,566 |  |  | 18,648 |  |  | 31,871 |
Rent |  | 176 |  |  | 17,585 |  |  | 904 |  |  | 18,665 |
Franchise rent expense |  | 31,821 |  |  | — |  |  | — |  |  | 31,821 |
Depreciation and amortization |  | 292 |  |  | 9,799 |  |  | 268 |  |  | 10,359 |
TBG mall location restructuring |  | 146 |  |  | — |  |  | — |  |  | 146 |
Goodwill impairment |  | — |  |  | 40,164 |  |  | — |  |  | 40,164 |
Total operating expenses |  | 44,755 |  |  | 148,607 |  |  | 19,820 |  |  | 213,182 |
Operating income (loss) |  | 11,082 |  |  | (50,661) |  |  | (19,820) |  |  | (59,399) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (1,712) |  |  | (1,712) |
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (7,858) |  |  | (7,858) |
Interest income and other, net |  | — |  |  | — |  |  | 148 |  |  | 148 |
Income (loss) from continuing operations before income taxes |  | $ | 11,082 |  |  | $ | (50,661) |  |  | $ | (29,242) |  |  | $ | (68,821) |
|  | Nine Months Ended March 31, 2021
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 90,040 |  |  | $ | — |  |  | $ | 90,040 |
Product |  | 41,057 |  |  | 27,608 |  |  | — |  |  | 68,665 |
Royalties and fees |  | 61,393 |  |  | — |  |  | — |  |  | 61,393 |
Franchise rental income |  | 95,885 |  |  | — |  |  | — |  |  | 95,885 |
Total revenue |  | 198,335 |  |  | 117,648 |  |  | — |  |  | 315,983 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 66,441 |  |  | — |  |  | 66,441 |
Cost of product |  | 33,117 |  |  | 21,723 |  |  | — |  |  | 54,840 |
Site operating expenses |  | 14,858 |  |  | 22,097 |  |  | — |  |  | 36,955 |
General and administrative |  | 23,055 |  |  | 6,936 |  |  | 47,428 |  |  | 77,419 |
Rent |  | 1,063 |  |  | 31,019 |  |  | 2,046 |  |  | 34,128 |
Franchise rent expense |  | 95,885 |  |  | — |  |  | — |  |  | 95,885 |
Depreciation and amortization |  | 896 |  |  | 11,080 |  |  | 5,408 |  |  | 17,384 |
Long-lived asset impairment |  | 726 |  |  | 9,091 |  |  | — |  |  | 9,817 |
Total operating expenses |  | 169,600 |  |  | 168,387 |  |  | 54,882 |  |  | 392,869 |
Operating income (loss) |  | 28,735 |  |  | (50,739) |  |  | (54,882) |  |  | (76,886) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (10,626) |  |  | (10,626) |
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (8,463) |  |  | (8,463) |
Interest income and other, net |  | — |  |  | — |  |  | 15,616 |  |  | 15,616 |
Income (loss) from continuing operations before income taxes |  | $ | 28,735 |  |  | $ | (50,739) |  |  | $ | (58,355) |  |  | $ | (80,359) |
|  | Nine Months Ended March 31, 2020
|  | Franchise |  | Company-owned |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 322,133 |  |  | $ | — |  |  | $ | 322,133 |
Product |  | 45,287 |  |  | 79,229 |  |  | — |  |  | 124,516 |
Royalties and fees |  | 66,062 |  |  | — |  |  | — |  |  | 66,062 |
Franchise rental income |  | 96,875 |  |  | — |  |  | — |  |  | 96,875 |
Total revenue |  | 208,224 |  |  | 401,362 |  |  | — |  |  | 609,586 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 212,664 |  |  | — |  |  | 212,664 |
Cost of product |  | 34,804 |  |  | 40,453 |  |  | — |  |  | 75,257 |
Site operating expenses |  | 13,341 |  |  | 49,591 |  |  | — |  |  | 62,932 |
General and administrative |  | 25,990 |  |  | 22,263 |  |  | 56,934 |  |  | 105,187 |
Rent |  | 767 |  |  | 60,748 |  |  | 1,909 |  |  | 63,424 |
Franchise rent expense |  | 96,875 |  |  | — |  |  | — |  |  | 96,875 |
Depreciation and amortization |  | 662 |  |  | 21,844 |  |  | 4,980 |  |  | 27,486 |
TBG mall location restructuring |  | 2,368 |  |  | — |  |  | — |  |  | 2,368 |
Goodwill impairment |  | — |  |  | 40,164 |  |  | — |  |  | 40,164 |
Total operating expenses |  | 174,807 |  |  | 447,727 |  |  | 63,823 |  |  | 686,357 |
Operating income (loss) |  | 33,417 |  |  | (46,365) |  |  | (63,823) |  |  | (76,771) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (4,615) |  |  | (4,615) |
Loss from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (26,125) |  |  | (26,125) |
Interest income and other, net |  | — |  |  | — |  |  | 3,188 |  |  | 3,188 |
Income (loss) from continuing operations before income taxes |  | $ | 33,417 |  |  | (46,365) |  |  | $ | (91,375) |  |  | $ | (104,323) |

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