XML 28 R19.htm IDEA: XBRL DOCUMENT
v3.22.4

SEGMENT INFORMATION | 6 Months Ended
--- | ---
Dec. 31, 2022
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION: Segment information is prepared on the same basis that the chief operating decision maker (CODM) reviews financial information for operational decision-making purposes. The Company's reportable operating segments consisted of the following salons:
|  | December 31, 2022 |  | June 30, 2022
FRANCHISE SALONS: |  |  |  |
Supercuts |  | 2,160 |  |  | 2,264 |
SmartStyle/Cost Cutters in Walmart Stores |  | 1,605 |  |  | 1,646 |
Portfolio Brands |  | 1,293 |  |  | 1,344 |
Total North American salons |  | 5,058 |  |  | 5,254 |
Total International salons (1) |  | 138 |  |  | 141 |
Total Franchise salons |  | 5,196 |  |  | 5,395 |
as a percent of total Franchise and Company-owned salons |  | 98.6 | % |  | 98.1 | %
COMPANY-OWNED SALONS: |  |  |  |
Supercuts |  | 10 |  |  | 18 |
SmartStyle/Cost Cutters in Walmart Stores |  | 48 |  |  | 49 |
Portfolio Brands |  | 17 |  |  | 38 |
Total Company-owned salons |  | 75 |  |  | 105 |
as a percent of total Franchise and Company-owned salons |  | 1.4 | % |  | 1.9 | %
OWNERSHIP INTEREST LOCATIONS: |  |  |  |
Equity ownership interest locations |  | 76 |  |  | 76 |
Grand Total, System-wide |  | 5,347 |  |  | 5,576 |
_______________________________________________________________________________ (1)Canadian and Puerto Rican salons are included in the North American salon totals. As of December 31, 2022, 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 Supercuts®, SmartStyle®, and other regional trade names. Financial information concerning the Company's reportable operating segments is shown in the tables below. Segment information is presented in the same way that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. In the second quarter of fiscal year 2023, the Company revised its internal reporting such that the CODM’s primary measures of segment performance are revenue and segment adjusted EBITDA. Revenue and segment adjusted EBITDA are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance and forecast future performance. Segment adjusted EBITDA is defined as income from continuing operations before interest, income taxes, depreciation and amortization. C onsistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within U.S. GAAP. They are based on how management views the business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance and are not attributable to either segment. Unallocated fees include distribution center wind down fees, inventory reserve, one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROUA, lease termination fees, asset retirement obligation costs and long-lived asset impairment charges. Figures for prior reporting periods have been restated to conform to the current period.
|  | Three Months Ended December 31, |  | Six Months Ended December 31,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Franchise |  | $ | 57,354 |  |  | $ | 64,227 |  |  | $ | 116,111 |  |  | $ | 133,040 |
Company-owned |  | 2,613 |  |  | 5,043 |  |  | 5,727 |  |  | 13,048 |
Total revenue |  | 59,967 |  |  | 69,270 |  |  | 121,838 |  |  | 146,088 |
Segment adjusted EBITDA: |  |  |  |  |  |  |  |
Franchise |  | 7,532 |  |  | 5,721 |  |  | 12,523 |  |  | 2,256 |
Company-owned |  | 303 |  |  | (3,133) |  |  | (863) |  |  | (4,688) |
Total |  | 7,835 |  |  | 2,588 |  |  | 11,660 |  |  | (2,432) |
Unallocated expenses |  | (2,064) |  |  | (1,935) |  |  | (2,631) |  |  | (1,417) |
Depreciation and amortization |  | (3,793) |  |  | (1,605) |  |  | (5,044) |  |  | (3,144) |
Long-lived asset impairment |  | — |  |  | (52) |  |  | — |  |  | (215) |
Interest expense |  | (4,519) |  |  | (3,270) |  |  | (8,336) |  |  | (6,397) |
Income tax benefit (expense) |  | — |  |  | 164 |  |  | (28) |  |  | 213 |
Income (loss) from discontinued operations |  | 134 |  |  | (818) |  |  | 3,440 |  |  | (1,914) |
Total net loss |  | $ | (2,407) |  |  | $ | (4,928) |  |  | $ | (939) |  |  | $ | (15,306) |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration