REGIS CORP
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
RGS$24.07+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0000716643-25-000021
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0000716643-25-000041
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 95 current paragraphs.
56 unchanged; 25 reworded; 13 added; 17 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
(2)Total is a recalculation; line items calculated individually may not sum to total due to rounding.
Current report
During the three months ended September 30, 2025, fees decreased $0.6 million, or 25.0%, primarily due to salon closures and lower rebate fees from our franchise product vendor.
Current report
During the three months ended September 30, 2025, company-owned salon revenue increased $19.4 million from $0.8 million to $20.2 million, due to the increase in company-owned salon count as a result of the Alline Acquisition.
Current report
General and administrative expense for the three months ended September 30, 2025, decreased $2.6 million, or 18.6%, primarily due to lower severance and stock-based compensation expense in the current year period.
Current report
Rent expense increased $2.1 million, or 190.9%, during the three months ended September 30, 2025, as a result of rent expense associated with the acquired Alline salons.
Current report
Company-owned salon expense, for the three months ended September 30, 2025, increased $14.0 million from $0.8 million to $14.8 million, primarily due to the strategic Alline Acquisition.
Current report
Depreciation and amortization for the three months ended September 30, 2025, increased $0.4 million, or 100.0%, primarily due to depreciation expense associated with the assets acquired in the Alline Acquisition.
Current report
Gain on Earn-out Liability
Current report
The $1.0 million gain on earn-out liability in the three months ended September 30, 2025, is due to a change in the estimated fair value expected to be paid in conjunction with the Alline Acquisition.
Current report
Income Tax (Expense) Benefit
Current report
Company-owned salon revenue increased $19.4 million during the three months ended September 30, 2025, primarily due to the Alline Acquisition.
Current report
In the three months ended September 30, 2025, company-owned salon adjusted EBITDA improved $1.9 million, primarily due to increased revenues generated by the greater salon count.
Current report
During the three months ended September 30, 2025, cash provided by operating activities was $2.3 million compared to $1.3 million cash used in operating activities in the three months ended September 30, 2024. Cash provided by (used in) operating activities improved year over year due primarily to a build in restricted ad fund cash and net income in the current year period compared to a net loss in the three months ended September 30, 2024.
Removed paragraphs (17)
Previous report
Business Combinations
Previous report
We account for our business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, we make significant estimates and assumptions, especially with respect to intangible assets. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Once the purchase accounting is finalized, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred.
Previous report
(1)Cost of product sales to franchisees is computed as a percent of product sales to franchisees. The basis point change is not meaningful (N/M).
Previous report
(3)Total is a recalculation; line items calculated individually may not sum to total due to rounding.
Previous report
(5)Amounts from prior periods may not equal those per the prior period financials due to rounding from updating formulas for consistency purposes.
Previous report
Advertising fund contributions decreased $0.6 million and $3.5 million, or 10.3% and 17.7%, during the three and nine months ended March 31, 2025, respectively, primarily due to the decrease in franchise salon count and lower contribution rates.
Previous report
During the three and nine months ended March 31, 2025, company-owned salon revenue increased $17.7 million and $18.2 million, or 1,361.5% and 364.0%, respectively, primarily due to the Alline Acquisition.
Previous report
For the three and nine months ended March 31, 2025, general and administrative expense increased $0.0 million and $2.7 million, or 0.0% and 8.0%, respectively, primarily due to severance costs of $0.4 million and $2.7 million, respectively. Additionally, the nine month period includes $1.4 million of acquisition costs associated with the Alline Acquisition.
Previous report
Rent expense increased $2.3 million and $3.0 million, or 127.8% and 69.8%, during the three and nine months ended March 31, 2025, respectively. The increase is primarily due to Alline Acquisition salon rent expense.
Previous report
Advertising fund expense decreased $0.6 million and $3.5 million, or 10.3% and 17.7%, during the three and nine months ended March 31, 2025, respectively, primarily due to the decrease in franchise salon count and lower contribution rates.
Previous report
Company-owned salon expense increased $12.3 million and $12.2 million, or 820.0% and 283.7% for the three and nine months ended March 31, 2025, respectively, primarily due to the Alline Acquisition.
Previous report
Depreciation and amortization decreased $0.3 million and $0.5 million, or 30.0% and 23.8%, for the three and nine months ended March 31, 2025, respectively, primarily due to company-owned salon closures, partially offset by the Alline Acquisition.
Previous report
Income Tax Benefit (Expense)
Previous report
Company-owned salon revenue increased $17.7 million and $18.2 million during the three and nine months ended March 31, 2025, respectively. The increases are primarily driven by the Alline Acquisition, partially offset by other company-owned store closures.
Previous report
In the three and nine months ended March 31, 2025, company-owned salon adjusted EBITDA improved $1.6 million and $2.8 million, respectively, primarily due to the Alline Acquisition, partially offset by the wind-down of underperforming company-owned stores.
Previous report
On June 30, 2022, the Company sold its OSP software-as-a-service solution to Soham, Inc., for a purchase price of $20.0 million in cash plus additional cash proceeds contingent upon the number of salons that migrate to Soham's Zenoti product as their salon technology platform. As of March 31, 2025, the Company has received $28.5 million in cash proceeds related to the sale of and completed migration to the Zenoti platform.
Previous report
During the nine months ended March 31, 2025, cash provided by operating activities was $7.0 million compared to cash used in operating activities of $7.1 million during the nine months ended March 31, 2024. Cash flows from operating activities improved year over year due primarily to our lower cost structure, less cash used for working capital, and lower cash interest.
Reworded paragraphs (25)
Previous wording
Regis Corporation (NasdaqGM:RGS) is a leader in the beauty salon industry. As of March 31, 2025, the Company franchised or owned 4,087 locations, primarily in North America. Our locations consisted of 3,776 franchised salons and 311 company-owned salons. Regis’s franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters®, and First Choice Haircutters®. As of March 31, 2025, the Company had 1,860 employees, of which 1,666 were acquired as part of the Alline Acquisition.
Current wording
Regis Corporation (NasdaqGM:RGS) is a leader in the beauty salon industry. As of September 30, 2025, the Company franchised or owned 3,879 locations, primarily in North America. Our locations consisted of 3,593 franchised salons and 286 company-owned salons. Regis’ franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®. As of September 30, 2025, the Company had 1,745 employees of which 1,577 were acquired as part of the Alline Acquisition.
Previous wording
The Company assesses goodwill impairment on an annual basis, during the Company's fourth fiscal quarter, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. An interim impairment analysis was not required in the three months ended March 31, 2025. As of March 31, 2025, and June 30, 2024, the franchise reporting unit had goodwill of $172.2 million and $173.1 million, respectively, and the company-owned reporting unit had goodwill of $12.1 million and $0.0 million as of March 31, 2025, and June 30, 2024, respectively.
Current wording
The Company assesses goodwill impairment on an annual basis, during the Company's fourth fiscal quarter, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. An interim impairment analysis was not required in the three months ended September 30, 2025. As of September 30, 2025, and June 30, 2025, the franchise reporting unit had goodwill of $172.8 million and $173.2 million, respectively, and the company-owned reporting unit had goodwill of $10.3 million as of both September 30, 2025, and June 30, 2025.
Previous wording
Our significant accounting policies can be found in Note 1 to the Consolidated Financial Statements contained in Part II, Item 8 of the June 30, 2024, Annual Report on Form 10-K. There have been no changes to our critical accounting policies from those disclosed on our Form 10-K for the year ended June 30, 2024, except as noted above.
Current wording
Our significant accounting policies can be found in Note 1 to the Consolidated Financial Statements contained in Part II, Item 8 of the June 30, 2025, Annual Report on Form 10-K. There have been no changes to our critical accounting policies from those disclosed on our Form 10-K for the year ended June 30, 2025.
Previous wording
Our results are impacted by our system-wide sales, which include sales by all points of distribution, whether owned by our franchisees or the Company. While we do not record sales by franchisees as revenue, and such sales are not included in our unaudited Condensed Consolidated Financial Statements, we believe that this operating measure is important in obtaining an understanding of our financial performance. We believe system-wide sales information aids in understanding how we derive royalty revenue and in evaluating performance. In the nine months ended March 31, 2025, a net 301 franchise salons, excluding any impact from the Alline Acquisition, have closed. An additional 314 salons were acquired as part of the Alline Acquisition, which will reduce future royalty income. The Alline Acquisition will increase future company-owned salon revenue and expenses.
Current wording
Our results are impacted by our system-wide sales, which include sales by all points of distribution, whether owned by our franchisees or the Company. While we do not record sales by franchisees as revenue, and such sales are not included in our unaudited Condensed Consolidated Financial Statements, we believe that this operating measure is important in obtaining an understanding of our financial performance. We believe system-wide sales information aids in understanding how we derive royalty revenue and in evaluating performance. In the three months ended September 30, 2025, a net 54 franchise salons and eight company-owned salons have closed.
Previous wording
(2)Includes cost of services and products sold to guests in our company-owned salons. Excludes general and administrative expense, rent, and depreciation and amortization related to company-owned salons.
Current wording
(1)Includes cost of services and products sold to guests in our company-owned salons. Excludes general and administrative expense, rent and depreciation and amortization related to company-owned salons.
Previous wording
(4)Computed as a percent of income (loss) from continuing operations before income taxes. The income tax basis point change is noted as not applicable (N/A) because the discussion within the MD&A is related to the effective income tax rate.
Current wording
(3)Computed as a percent of income (loss) from continuing operations before income taxes. The income tax basis point change is noted as not applicable (N/A) because the discussion within the MD&A is related to the effective income tax rate.
Previous wording
During the three and nine months ended March 31, 2025, royalties decreased $2.2 million and $4.0 million, or 14.0% and 8.3%, respectively, primarily due to a decrease in franchise salon count and negative same-store sales.
Current wording
During the three months ended September 30, 2025, royalties decreased $1.6 million, or 10.3%, primarily due to a decrease in franchise salon count caused by franchise salon closures and the Alline Acquisition.
Previous wording
During the three and nine months ended March 31, 2025, fees remained relatively flat year over year, primarily due to terminated franchise fees related to the acquisition of Alline salons, offset by lower rebate fees from franchise product vendors.
Current wording
Advertising fund contributions remained relatively flat year over year.
Previous wording
During the three and nine months ended March 31, 2025, franchise rental income decreased $6.9 million and $14.0 million, or 29.0% and 19.3%, respectively, primarily due to the decrease in franchise salon count and franchisees signing their own leases.
Current wording
During the three months ended September 30, 2025, franchise rental income decreased $4.2 million, or 19.4%, primarily due to the decrease in franchise salon count.
Previous wording
During the three and nine months ended March 31, 2025, franchise rent expense decreased $6.9 million and $14.0 million, or 29.0% and 19.3%, respectively, primarily due to the decrease in franchise salon count and franchisees signing their own leases.
Current wording
During the three months ended September 30, 2025, franchise rent expense decreased $4.2 million, or 19.4%, primarily due to the decrease in franchise salon count.
Previous wording
During the three and nine months ended March 31, 2025, the Company recorded long-lived asset impairment charges of $0.0 million and $0.4 million, respectively, related to the right-of-use asset associated with the corporate office lease. Long-lived asset impairment charges for the three and nine months ended March 31, 2024, were $0.0 million and $0.2 million, respectively.
Current wording
In the three months ended September 30, 2025, the Company did not record any long-lived asset impairments. In the three months ended September 30, 2024, the Company recorded a long-lived asset impairment charge of $0.4 million related to the right-of-use asset associated with the corporate office lease.
Previous wording
Interest expense was $5.1 million and $14.8 million, which included non-cash interest of $1.3 million and $3.8 million in the three and nine months ended March 31, 2025, respectively. The $1.1 million and $3.7 million decreases in interest expense for the three and nine months ended March 31, 2025, respectively, were primarily due to less debt outstanding compared to the three and nine months ended March 31, 2024.
Current wording
The $0.5 million increase in interest expense for the three months ended September 30, 2025, was primarily due to higher debt outstanding compared to the three months ended September 30, 2024. Cash interest remained relatively flat at $3.0 million for the three months ended September 30, 2025, and 2024.
Previous wording
Other, net increased $0.6 million in the three months ended March 31, 2025, primarily due to a favorable currency adjustment and corporate sublease income. Other, net increased $0.9 million in the nine months ended March 31, 2025, primarily due to unclaimed property and corporate office sublease income, partially offset by an unfavorable currency adjustment.
Current wording
Other, net decreased $0.5 million in the three months ended September 30, 2025, primarily due to an unfavorable currency adjustment and unclaimed property revenue in the prior year period, offset partially by corporate office sublease income.
Previous wording
During the three months ended March 31, 2025, the Company recognized a tax benefit of $0.0 million, with a corresponding effective tax rate of (0.4)%, as compared to recognizing a tax expense of $0.1 million during the three months ended March 31, 2024, for an effective tax rate of (2.3)%. During the nine months ended March 31, 2025, the Company recognized a tax benefit of $0.1 million, with a corresponding effective tax rate of 6.2%, as compared to recognizing a tax benefit of $0.2 million, with a corresponding effective tax rate of 8.3% during the nine months ended March 31, 2024. See Note 5 to the unaudited Condensed Consolidated Financial Statements.
Current wording
During the three months ended September 30, 2025, the Company recognized a tax expense of $0.5 million, with a corresponding effective tax rate of 28.3%, as compared to recognizing a tax benefit of $0.2 million, with a corresponding effective tax rate of 11.1% during the three months ended September 30, 2024. See Note 5 to the unaudited Condensed Consolidated Financial Statements.
Previous wording
Income from discontinued operations decreased $0.1 million in the three months ended March 31, 2025. Income from discontinued operations increased $6.3 million in the nine months ended March 31, 2025, due primarily to receiving proceeds from the sale of OSP related to the number of salons migrating to the Zenoti platform. See Note 3 to the unaudited Condensed Consolidated Financial Statements.
Current wording
Income from discontinued operations in the three months ended September 30, 2024, relates to proceeds received from the sale of OSP related to the number of salons migrating to the Zenoti platform. See Note 3 to the unaudited Condensed Consolidated Financial Statements.
Previous wording
Franchise revenue decreased $9.9 million and $22.1 million during the three and nine months ended March 31, 2025, respectively. The decreases in franchise revenue during the three and nine months ended March 31, 2025, were primarily due to the decrease in franchise salon count and negative same-store sales, as well as lower franchise rental income and lower advertising fund revenues, which provide no contribution margin.
Current wording
Franchise revenue decreased $6.6 million during the three months ended September 30, 2025. The decrease in franchise revenue during the three months ended September 30, 2025, was primarily due to the decrease in franchise salon count.
Previous wording
During the three months ended March 31, 2025, and 2024, franchise adjusted EBITDA increased $0.2 million to $6.3 million. During the nine months ended March 31, 2025, franchise adjusted EBITDA totaled $20.7 million, a decrease of $0.6 million compared to the nine months ended March 31, 2024. The decrease was primarily due to a decrease in royalties partially offset by a lower general and administration expense structure.
Current wording
During the three months ended September 30, 2025, franchise adjusted EBITDA totaled $6.4 million, a decrease of $1.6 million compared to the three months ended September 30, 2024. The decline was primarily due to a decrease in royalties and fees, offset partially by decreased general and administrative expenses.
Previous wording
The Company has a credit agreement with TCW Asset Management Company, LLC, and MidCap Financial Trust, which matures in June 2029. In addition to a $10.0 million minimum liquidity covenant, the agreement includes typical provisions and financial covenants, including leverage and fixed-charge coverage ratio covenants. The agreement was amended in December 2024 in connection with the Alline Acquisition.
Current wording
In June 2024, the Company entered into a new credit agreement with TCW Asset Management Company, LLC, and MidCap Financial Trust, which matures in June 2029. In addition to a $10.0 million minimum liquidity covenant, the agreement includes typical provisions and financial covenants, including leverage and fixed-charge coverage ratio covenants. The agreement was amended in December 2024 in connection with the Alline Acquisition.
Previous wording
As of March 31, 2025, cash and cash equivalents were $13.3 million, with $12.1 million and $1.2 million within the United States and Canada, respectively.
Current wording
As of September 30, 2025, cash and cash equivalents were $16.6 million, with $15.9 million and $0.7 million within the United States and Canada, respectively.
Previous wording
As of March 31, 2025, the Company's borrowing arrangements include a $119.2 million term loan, $3.9 million of paid-in-kind interest and a $25.0 million revolving credit facility that matures in June 2029. As of March 31, 2025, the unused available credit under the revolving credit facility was $15.7 million, the credit agreement has a minimum liquidity covenant of $10.0 million, and total available liquidity per the agreement was $19.0 million. See Note 9 to the unaudited Condensed Consolidated Financial Statements.
Current wording
As of September 30, 2025, the Company's borrowing arrangements include a $117.0 million term loan, $6.8 million of paid-in-kind interest and a $25.0 million revolving credit facility that matures in June 2029. As of September 30, 2025, the unused available credit under the revolving credit facility was $19.0 million, and total available liquidity, net of the $10.0 million minimum liquidity covenant, was $25.5 million. See Note 9 to the unaudited Condensed Consolidated Financial Statements.
Previous wording
During the nine months ended March 31, 2025, cash used in investing activities of $10.9 million was primarily due to cash used in the acquisition of Alline of $18.6 million, partially offset by the receipt of OSP sale proceeds of $8.5 million. During the nine months ended March 31, 2024, cash provided by investing activities of $1.6 million was primarily due to $2.0 million of OSP sale proceeds, partially offset by salon capital improvements.
Current wording
During the three months ended September 30, 2025, cash used in investing activities of $0.4 million was primarily due to capital expenditures. During the three months ended September 30, 2024, cash provided by investing activities of $0.9 million primarily related to OSP sale proceeds.
Previous wording
During the nine months ended March 31, 2025, cash provided by financing activities was $7.2 million, primarily as a result of $15.0 million in proceeds from issuance of long-term debt, partially offset by net payments on the revolving credit facility of $5.9 million. During the nine months ended March 31, 2024, cash used in financing activities was $1.1 million, primarily as a result of fees associated with our strategic review, partially offset by net borrowings of $1.5 million.
Current wording
During the three months ended September 30, 2025, cash used in financing activities was $1.3 million, primarily as a result of the repayment of long-term debt of $1.8 million, partially offset by $0.6 million of proceeds from the issuance of common stock. During the three months ended September 30, 2024, cash used in financing activities was $6.5 million, primarily as a result of repayments of the revolving credit facility of $10.2 million, partially offset by $4.3 million of borrowings under the revolving credit facility.
Previous wording
Our debt to capitalization ratio, calculated as the principal amount of debt, including paid-in-kind interest accrued, as a percentage of the principal amount of debt and shareholders' equity (deficit) at fiscal quarter end, was as follows:
Current wording
Our debt to capitalization ratio, calculated as the principal amount of debt, including paid-in-kind interest accrued, as a percentage of the principal amount of debt and shareholders' equity at fiscal quarter end, was as follows:
Previous wording
In May 2000, the Board approved a stock repurchase program with no stated expiration date. Since that time and through March 31, 2025, the Board has authorized $650.0 million to be expended for the repurchase of the Company's stock under this program. All repurchased shares become authorized but unissued shares of the Company. The timing and amounts of any repurchases depend on many factors, including the market price of the common stock and overall market conditions. During the nine months ended March 31, 2025, the Company did not repurchase any shares. As of March 31, 2025, approximately 1.5 million shares have been cumulatively repurchased for $595.4 million, and $54.6 million remain outstanding under the approved stock repurchase program. The Company does not anticipate repurchasing shares of common stock for the foreseeable future.
Current wording
In May 2000, the Board approved a stock repurchase program with no stated expiration date. Since that time and through September 30, 2025, the Board has authorized $650.0 million to be expended for the repurchase of the Company's stock under this program. All repurchased shares become authorized but unissued shares of the Company. The Company last purchased shares through this program in fiscal year 2020. As of September 30, 2025, a total accumulated 1.5 million shares have been cumulatively repurchased for $595.4 million. At September 30, 2025, $54.6 million remain outstanding under the approved stock repurchase program. The Company does not expect to repurchase shares in fiscal year 2026.
Previous wording
This Quarterly Report on Form 10-Q, as well as information included in, or incorporated by reference from, future filings by the Company with the Securities and Exchange Commission and information contained in written material, press releases and oral statements issued by or on behalf of the Company contains or may contain "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may," "will," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." These uncertainties include a potential material adverse impact on our business and results of operations as a result of changes in consumer shopping trends and changes in manufacturer distribution channels; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; compliance with Nasdaq listing requirements; our ability to realize the anticipated benefits of the Alline Acquisition; reliance on franchise royalties and overall success of our franchisees’ salons; our salons' dependence on a third-party supplier agreement for merchandise; our and our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' and company-owned salons; our ability to maintain and enhance the value of our brands; reliance on legacy information technology systems; reliance on external vendors; the use of social media; the effectiveness of our enterprise risk management program; our ability to minimize risks associated with owning and operating additional salons; ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreements with our franchisees; the continued ability of the Company to …
Excerpt shortened here; the source contains the full paragraph.
Current wording
This Quarterly Report on Form 10-Q, as well as information included in, or incorporated by reference from, future filings by the Company with the Securities and Exchange Commission and information contained in written material, press releases and oral statements issued by or on behalf of the Company contains or may contain "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may," "will," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." These uncertainties include a potential material adverse impact on our business and results of operations as a result of changes in consumer shopping trends and changes in manufacturer distribution channels; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in the general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; our ability to realize the anticipated benefits of the Alline Acquisition; reliance on franchise royalties and overall success of our franchisees’ salons; our salons' dependence on a third-party supplier agreement for merchandise; our and our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' and company-owned salons; our ability to maintain and enhance the value of our brands; reliance on legacy information technology systems; reliance on external vendors; the use of social media; the effectiveness of our enterprise risk management program; potential challenges with the planning or implementation of our new enterprise resource planning system; our ability to minimize risks associated with owning and operating additional salons; ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreement…
Excerpt shortened here; the source contains the full paragraph.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Advertising fund expense remained relatively flat year over year.