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SEGMENT INFORMATION (Tables) | 9 Months Ended
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Mar. 31, 2022
Segment Reporting [Abstract] |
Schedule of reportable operating segment salons | The Company's reportable operating segments consisted of the following salons:
|  | March 31, 2022 |  | June 30, 2021
FRANCHISE SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 1,667 |  |  | 1,666 |
Supercuts |  | 2,316 |  |  | 2,386 |
Portfolio Brands |  | 1,378 |  |  | 1,357 |
Total North American salons |  | 5,361 |  |  | 5,409 |
Total International salons (1) |  | 143 |  |  | 154 |
Total Franchise salons |  | 5,504 |  |  | 5,563 |
as a percent of total Franchise and Company-owned salons |  | 97.9 | % |  | 95.3 | %
COMPANY-OWNED SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores |  | 52 |  |  | 91 |
Supercuts |  | 19 |  |  | 35 |
Portfolio Brands |  | 46 |  |  | 150 |
Total Company-owned salons |  | 117 |  |  | 276 |
as a percent of total Franchise and Company-owned salons |  | 2.1 | % |  | 4.7 | %
OWNERSHIP INTEREST LOCATIONS: |  |  |  |
Equity ownership interest locations |  | 76 |  |  | 78 |
Grand Total, System-wide |  | 5,697 |  |  | 5,917 |
_______________________________________________________________________________ (1)Canadian and Puerto Rican salons are included in the North American salon totals.
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, 2022
|  | Franchise |  | Company-owned |  | Consolidated (1)
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |
Royalties |  | $ | 15,799 |  |  | $ | — |  |  | $ | 15,799 |
Fees |  | 3,364 |  |  | — |  |  | 3,364 |
Product sales to franchisees |  | 1,293 |  |  | — |  |  | 1,293 |
Advertising fund contributions |  | 8,078 |  |  | — |  |  | 8,078 |
Franchise rental income |  | 32,666 |  |  | — |  |  | 32,666 |
Company-owned salon revenue |  | — |  |  | 3,549 |  |  | 3,549 |
Total revenue |  | 61,200 |  |  | 3,549 |  |  | 64,749 |
Operating expenses: |  |  |  |  |  |
Cost of product sales to franchisees |  | 2,598 |  |  | — |  |  | 2,598 |
Inventory reserve (1) |  | — |  |  | — |  |  | 6,420 |
General and administrative |  | 14,934 |  |  | 635 |  |  | 15,569 |
Rent |  | 327 |  |  | 919 |  |  | 1,246 |
Advertising fund expense |  | 8,078 |  |  | — |  |  | 8,078 |
Franchise rent expense |  | 32,666 |  |  | — |  |  | 32,666 |
Company-owned salon expense |  | — |  |  | 5,292 |  |  | 5,292 |
Depreciation and amortization |  | 1,592 |  |  | 405 |  |  | 1,997 |
Long-lived asset impairment |  | 322 |  |  | 5 |  |  | 327 |
Goodwill impairment |  | 16,000 |  |  | — |  |  | 16,000 |
Total operating expenses |  | 76,517 |  |  | 7,256 |  |  | 90,193 |
Operating loss |  | $ | (15,317) |  |  | $ | (3,707) |  |  | $ | (25,444) |
_______________________________________________________________________________ (1)This charge, primarily related to reserving for personal protective equipment acquired as a result of the COVID-19 pandemic, relates to the wind down of our distribution centers and is reviewed separately from the segment results by the CODM. Consolidated results will not cross foot as the inventory reserve is not part of the Company's segments.
|  | Three Months Ended March 31, 2021
|  | Franchise |  | Company-owned |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |
Royalties |  | $ | 12,835 |  |  | $ | — |  |  | $ | 12,835 |
Fees |  | 5,120 |  |  | — |  |  | 5,120 |
Product sales to franchisees |  | 13,079 |  |  | — |  |  | 13,079 |
Advertising fund contributions |  | 5,580 |  |  | — |  |  | 5,580 |
Franchise rental income |  | 31,317 |  |  | — |  |  | 31,317 |
Company-owned salon revenue |  | — |  |  | 32,336 |  |  | 32,336 |
Total revenue |  | 67,931 |  |  | 32,336 |  |  | 100,267 |
Operating expenses: |  |  |  |  |  |
Cost of product sales to franchisees |  | 11,168 |  |  | — |  |  | 11,168 |
General and administrative |  | 23,057 |  |  | 1,525 |  |  | 24,582 |
Rent |  | 772 |  |  | 7,229 |  |  | 8,001 |
Advertising fund expense |  | 5,580 |  |  | — |  |  | 5,580 |
Franchise rent expense |  | 31,317 |  |  | — |  |  | 31,317 |
Company-owned salon expense |  | — |  |  | 33,707 |  |  | 33,707 |
Depreciation and amortization |  | 1,933 |  |  | 1,687 |  |  | 3,620 |
Long-lived asset impairment |  | 22 |  |  | 811 |  |  | 833 |
Total operating expenses |  | 73,849 |  |  | 44,959 |  |  | 118,808 |
Operating loss |  | $ | (5,918) |  |  | $ | (12,623) |  |  | $ | (18,541) |
|  | Nine Months Ended March 31, 2022
|  | Franchise |  | Company-owned |  | Consolidated (1)
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |
Royalties |  | $ | 48,526 |  |  | $ | — |  |  | $ | 48,526 |
Fees |  | 11,496 |  |  | — |  |  | 11,496 |
Product sales to franchisees |  | 11,729 |  |  | — |  |  | 11,729 |
Advertising fund contributions |  | 24,213 |  |  | — |  |  | 24,213 |
Franchise rental income |  | 100,200 |  |  | — |  |  | 100,200 |
Company-owned salon revenue |  | — |  |  | 16,597 |  |  | 16,597 |
Total revenue |  | 196,164 |  |  | 16,597 |  |  | 212,761 |
Operating expenses: |  |  |  |  |  |
Cost of product sales to franchisees |  | 14,129 |  |  | — |  |  | 14,129 |
Inventory reserve (1) |  | — |  |  | — |  |  | 6,420 |
General and administrative |  | 51,099 |  |  | 2,243 |  |  | 53,342 |
Rent |  | 3,359 |  |  | 2,778 |  |  | 6,137 |
Advertising fund expense |  | 24,213 |  |  | — |  |  | 24,213 |
Franchise rent expense |  | 100,200 |  |  | — |  |  | 100,200 |
Company-owned salon expense |  | — |  |  | 18,304 |  |  | 18,304 |
Depreciation and amortization |  | 4,718 |  |  | 1,128 |  |  | 5,846 |
Long-lived asset impairment |  | 450 |  |  | 92 |  |  | 542 |
Goodwill impairment |  | 16,000 |  |  | — |  |  | 16,000 |
Total operating expenses |  | 214,168 |  |  | 24,545 |  |  | 245,133 |
Operating loss |  | $ | (18,004) |  |  | $ | (7,948) |  |  | $ | (32,372) |
_______________________________________________________________________________ (1)This charge, primarily related to reserving for personal protective equipment acquired as a result of the COVID-19 pandemic, relates to the wind down of our distribution centers and is reviewed separately from the segment results by the CODM. Consolidated results will not cross foot as the inventory reserve is not part of the Company's segments.
|  | Nine Months Ended March 31, 2021
|  | Franchise |  | Company-owned |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |
Royalties |  | $ | 36,989 |  |  | $ | — |  |  | $ | 36,989 |
Fees |  | 9,600 |  |  | — |  |  | 9,600 |
Product sales to franchisees |  | 41,057 |  |  | — |  |  | 41,057 |
Advertising fund contributions |  | 14,804 |  |  | — |  |  | 14,804 |
Franchise rental income |  | 95,885 |  |  | — |  |  | 95,885 |
Company-owned salon revenue |  | — |  |  | 117,648 |  |  | 117,648 |
Total revenue |  | 198,335 |  |  | 117,648 |  |  | 315,983 |
Operating expenses: |  |  |  |  |  |
Cost of product sales to franchisees |  | 33,171 |  |  | — |  |  | 33,171 |
General and administrative |  | 70,483 |  |  | 6,936 |  |  | 77,419 |
Rent |  | 3,109 |  |  | 31,019 |  |  | 34,128 |
Advertising fund expense |  | 14,804 |  |  | — |  |  | 14,804 |
Franchise rent expense |  | 95,885 |  |  | — |  |  | 95,885 |
Company-owned salon expense |  | — |  |  | 110,261 |  |  | 110,261 |
Depreciation and amortization |  | 6,304 |  |  | 11,080 |  |  | 17,384 |
Long-lived asset impairment |  | 726 |  |  | 9,091 |  |  | 9,817 |
Total operating expenses |  | 224,482 |  |  | 168,387 |  |  | 392,869 |
Operating loss |  | $ | (26,147) |  |  | $ | (50,739) |  |  | $ | (76,886) |

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