Business Wire | Aug 25, 2021 06:00PM EDT

Regis(r) Reports Fourth Quarter and Full Year Results, Completion of Transformational Phase and Continued Progress on Key Foundational Initiatives

Aug. 25, 2021

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 25, 2021--Regis Corporation (NYSE: RGS):

Three Months Ended June Twelve Months Ended June 30, 30,

(Dollars in 2021 2020 2021 2020thousands)



Consolidated $ 99,130 $ 60,143 $ 415,113 $ 669,729 revenue

System-wide revenue $ 293,981 $ 119,417 $ 1,086,024 $ 1,367,567 (1)



System-wide ) ) )same-store sales 4.2 % (20.2 % (25.8 % (4.4 %comps

Two-yearsystem-wide (21.0 ) N/A (28.3 ) N/A same-store sales % %comps



Operating loss $ (27,265 ) $ (68,567 ) $ (104,152 ) $ (145,338 )

Loss fromcontinuing $ (34,339 ) $ (73,654 ) $ (113,331 ) $ (172,194 )operations

Diluted loss pershare from $ (0.95 ) $ (2.05 ) $ (3.15 ) $ (4.79 )continuingoperations

EBITDA (2) $ (26,677 ) $ (37,478 ) $ (69,210 ) $ (108,947 )

as a percent of (26.9 ) (62.3 ) (16.7 ) (16.3 )revenue % % % %



As adjusted (2)

Net loss, as $ (26,500 ) $ (36,211 ) $ (105,672 ) $ (21,714 )adjusted

Diluted loss per $ (0.74 ) $ (1.01 ) $ (2.94 ) $ (0.60 )share, as adjusted

EBITDA, as adjusted $ (23,246 ) $ (33,845 ) $ (79,225 ) $ 19,512 (2)

as a percent of (23.5 ) (56.3 ) (19.1 ) 2.9 %revenue % % %

_______________________________________________________________________________

(1) Represents total sales within the system.

(2) See GAAP to non-GAAP reconciliations, within the attached section titled "Non-GAAP Reconciliations."

Regis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is franchising technology-enabled hair salons, today reported a fourth quarter 2021 net loss from continuing operations of $34.3 million, or $0.95 loss per diluted share as compared to net loss of $73.7 million or $2.05 loss per diluted share in the fourth quarter of 2020. The Company's fourth quarter 2021 reported results included $7.8 million of discrete items. Excluding discrete items, the Company reported fourth quarter 2021 adjusted net loss of $26.5 million, or $0.74 loss per diluted share as compared to adjusted net loss of $36.2 million, or $1.01 per diluted share for the same period last year. The year-over-year improvement in adjusted net loss was driven primarily by government-mandated salon closures in the prior year due to COVID-19. The improvement in adjusted net loss was partially offset by an increase in the loss from the sale of salons to franchisees of $7.1 million year-over-year due to lower proceeds per salon.

Total revenue in the quarter of $99.1 million increased $39.0 million, or 64.8%, year-over-year driven primarily by mandated salon closures in the prior year due to the COVID-19 pandemic.

Fourth quarter adjusted EBITDA loss of $23.2 million decreased $10.6 million, versus adjusted EBITDA loss of $33.8 million in the same period last year. Excluding the $8.2 million adjusted loss and $1.2 adjusted loss from the sale of company-owned salons during the current and prior year quarter, respectively, adjusted EBITDA loss of $15.0 million was $17.7 million favorable versus the same period last year. This was driven primarily by government-mandated salon closures in response to COVID-19 in the prior year.

On a full year basis, adjusted EBITDA loss of $79.2 million increased $98.7 million versus adjusted EBITDA income of $19.5 million in the same period last year. Excluding the $16.7 million loss and $49.7 million gain from the sale of company-owned salons during the current and prior year, respectively, adjusted EBITDA loss of $62.5 million was $32.4 million unfavorable versus the same period last year and was driven primarily by the impact of COVID-19 on same-store sales in the current year and the elimination of EBITDA that was generated in the prior year from the net 747 company-owned salons that were sold and converted to the Company's asset-light franchise portfolio over the past 12 months.

Felipe Athayde, President and Chief Executive Officer, commented, "While we are still feeling the effects of the pandemic, Regis is well-positioned heading into fiscal year 2022 due to our achievements during a time of unprecedented challenges in fiscal year 2021. The Regis of today is an entirely different company when compared to the beginning of fiscal year 2021, from our management team to our technology platform and everything in between. We have a new team, a brand-centric focus to drive sales, the right business model for growth, and the right-sized organizational structure and technology platform to support and drive that growth."

Fourth Quarter Segment Results

Franchise Salons

Three Months Ended Twelve Months Ended June 30, Increase June 30, Increase (Decrease) (Decrease)(Dollars in 2021 2020 2021 2020 millions) (1)



Revenue

Product $ 15.6 $ 7.2 $ 8.4 $ 56.7 $ 50.4 $ 6.3

Product soldto TBG - - - - 2.0 (2.0 )locations

Product $ 15.6 $ 7.2 $ 8.4 $ 56.7 $ 52.4 $ 4.3

Royalties and 26.7 7.3 19.4 88.1 73.4 14.7 fees

Franchise 31.5 30.3 1.2 127.4 127.2 0.2 rental income

Totalfranchised $ 73.8 $ 44.8 $ 29.0 $ 272.1 $ 253.0 $ 19.1 salonsrevenue



Franchisesame-store 4.4 % (20.4 ) (24.5 ) (4.4 ) sales comps % % %(2)

Franchisetwo-year ) )same-store (20.2 % N/A (27.2 % N/A sales comps(2)



EBITDA, as $ 11.3 $ 1.4 $ 9.9 $ 41.0 $ 37.9 $ 3.1 Adjusted

as a percent 15.3 % 3.1 % 15.1 % 15.0 % of revenue

as a percentof adjusted 32.1 % 9.7 % 33.4 % 34.3 % revenue (3)



TotalFranchise 5,563 5,209 354 Salons

as a percentof totalFranchise and 95.3 % 76.1 % Company-ownedsalons

_______________________________________________________________________________

(1) Variances calculated on amounts shown in millions may result in rounding differences.

(2) TBG is excluded from same-store sales in all periods

(3) Adjusted revenue excludes non-margin revenue. See Non-GAAP reconciliation

Fourth quarter Franchise revenue was $73.8 million, a $29.0 million, or 64.7% increase compared to the prior year quarter. Royalties and fees were $26.7 million, a $19.4 million, or 265.8% increase versus the same period last year. Product sales to franchisees of $15.6 million increased $8.4 million. Both increases were due to government-mandated salon closures in the prior year. Franchise adjusted EBITDA of $11.3 million increased $9.9 million, or 707.1% year-over-year primarily due to an increase in royalties and a decrease in bad debt.

Company-Owned Salons

Three Months Ended Twelve Months Ended June 30, Increase June 30, Increase (Decrease) (Decrease)(Dollars in 2021 2020 2021 2020 millions) (1)



Total Revenue $ 25.3 $ 15.3 $ 10.0 $ 143.0 $ 416.7 $ (273.7 )

Company-owned ) ) ) )same-store (7.0 % (18.9 % (33.4 % (4.4 % sales comps

Company-ownedtwo-year (30.4 ) N/A (35.2 ) N/A same-store % %sales comps



EBITDA, as $ (13.3 ) $ (21.6 ) $ 8.3 $ (47.5 ) $ (6.6 ) $ (40.9 )Adjusted

as a percent (52.6 ) (141.2 ) (33.2 ) (1.6 ) of revenue % % % %



TotalCompany-owned 276 1,632 (1,356 ) Salons

as a percentof totalFranchise and 4.7 % 23.9 % Company-ownedsalons

_______________________________________________________________________________

(1) Variances calculated on amounts shown in millions may result in rounding differences.

Fourth quarter revenue for the Company-owned salon segment increased $10.0 million versus the prior year to $25.3 million. The year-over-year increase in revenue was driven by the government-mandated closure of salons during fiscal year 2020 due to the COVID-19 pandemic.

Fourth quarter adjusted EBITDA loss of $13.3 million decreased $8.4 million versus the same period last year driven primarily by the government-mandated closure of salon in fiscal year 2020 due to the COVID-19 pandemic.

Non-GAAP reconciliations

For GAAP to non-GAAP reconciliations, please refer to the attached section titled "Non-GAAP Reconciliations". A complete reconciliation of reported earnings to adjusted earnings is included in this press release and is available on the Company's website at www.regiscorp.com.

Earnings Webcast

Regis Corporation will host a conference call via webcast discussing fourth quarter results on August 26, 2021, at 9 a.m., Central time. Interested parties are invited to participate in the live webcast by registering for the event at www.regiscorp.com/investor-relations.html. A replay of the presentation will be available on our website at www.regiscorp.com/investor-relations.html.

About Regis Corporation

Regis Corporation (NYSE:RGS) is a leader in the beauty salon industry. As of June 30, 2021, the Company franchised, owned or held ownership interests in 5,917 worldwide locations. Regis' franchised and corporate locations operate under concepts such as Supercuts(r), SmartStyle(r), Cost Cutters(r), Roosters(r) and First Choice Haircutters(r). Regis maintains an ownership interest in Empire Education Group in the U.S. For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com.

This press release 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," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include a potential material adverse impact on our business and results of operations as a result of the uncertain duration and severity of the COVID-19 pandemic, including any adverse impact from the Delta variant; the impact of the COVID-19 pandemic on our key suppliers; consumer shopping trends and changes in manufacturer distribution channels; changes in regulatory and statutory laws including increases in minimum wages; laws and regulations could require us to modify current business practices and incur increased costs; changes in economic conditions; changes in consumer tastes and fashion trends; the continued ability of the Company to implement its strategy, priorities and initiatives including the re-engineering of our corporate and field infrastructure; new merchandising strategy; our and our franchisees' ability to attract, train and retain talented stylists; financial performance of our franchisees; success of the sale of salons to franchisees; the ability to operate or sell the salons transferred back from TBG; our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, 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' salons; our ability to maintain and enhance the value of our brands; reliance on information technology systems; reliance on external vendors; the use of social media; failure to standardize operating processes across brands; exposure to uninsured or unidentified risks; Opensalon(r) Pro may not yield the intended results on timing and amounts; compliance with credit facility covenants and access to the existing revolving credit facility; ability to re-finance our existing credit facility or the ability to re-finance at a similar rate; if our capital investments in technology do not achieve appropriate returns; premature termination of agreements with our franchisees; financial performance of Empire Education Group; the continued ability of the Company to implement cost reduction initiatives; continued ability to compete in our business markets; reliance on our management team and other key personnel; the continued ability to maintain an effective system of internal controls over financial reporting; changes in tax exposure; potential litigation and other legal or regulatory proceedings could have an adverse effect on our business or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A of Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.

REGIS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Dollars in thousands, except per share data)

June 30,

2021 2020



ASSETS

Current assets:

Cash and cash equivalents $ 19,191 $ 113,667

Receivables, net 27,372 31,030

Inventories 22,993 62,597

Other current assets 17,103 19,138

Total current assets 86,659 226,432



Property and equipment, net 23,113 57,176

Goodwill 229,582 227,457

Other intangibles, net 3,761 4,579

Right of use asset 611,880 786,216

Other assets 41,388 40,934

Total assets $ 996,383 $ 1,342,794



LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 27,157 $ 50,918

Accrued expenses 54,857 48,825

Short-term lease liability 116,471 137,271

Total current liabilities 198,485 237,014



Long-term debt, net 186,911 177,500

Long-term lease liability 518,866 680,454

Long-term financing liabilities - 27,981

Other non-current liabilities 75,075 94,142

Total liabilities 979,337 1,217,091

Commitments and contingencies

Shareholders' equity:

Common stock, $0.05 par value; issued andoutstanding, 35,795,844 and 35,625,716 common 1,790 1,781shares at June 30, 2021 and 2020, respectively

Additional paid-in capital 25,102 22,011

Accumulated other comprehensive income 9,543 7,449

Retained (deficit) earnings (19,389 ) 94,462

Total shareholders' equity 17,046 125,703

Total liabilities and shareholders' equity $ 996,383 $ 1,342,794

REGIS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars and shares in thousands, except per share data)

Three Months Ended June 30,

Twelve Months Ended June 30,

2021

2020

2021

2020

Revenues:

Service

$

18,080

$

9,405

$

108,120

$

331,538

Product

22,879

13,070

91,544

137,586

Royalties and fees

26,664

7,340

88,057

73,402

Franchise rental income

31,507

30,328

127,392

127,203

Total revenue

99,130

60,143

415,113

669,729

Operating expenses:

Cost of service

12,703

9,615

79,144

222,279

Cost of product

24,327

9,441

79,167

84,698

Site operating expenses

14,507

8,611

51,463

71,543

General and administrative

28,014

25,766

105,433

130,953

Rent

6,802

12,958

40,930

76,382

Franchise rent expense

31,507

30,328

127,392

127,203

Depreciation and amortization

5,330

9,466

22,713

36,952

Long-lived asset impairment

3,205

22,560

13,023

22,560

TBG mall restructuring

-

(35

)

-

2,333

Goodwill impairment

-

-

-

40,164

Total operating expenses

126,395

128,710

519,265

815,067

Operating loss

(27,265

)

(68,567

)

(104,152

)

(145,338

)

Other (expense) income:

Interest expense

(3,187

)

(2,907

)

(13,813

)

(7,522

)

Loss from sale of salon assets to franchisees

(8,233

)

(1,181

)

(16,696

)

(27,306

)

Interest income and other, net

286

165

15,902

3,353

Loss from continuing operations before income taxes

(38,399

)

(72,490

)

(118,759

)

(176,813

)

Income tax benefit (expense)

4,060

(1,164

)

5,428

4,619

Loss from continuing operations

(34,339

)

(73,654

)

(113,331

)

(172,194

)

Income from discontinued operations, net of income taxes

-

79

-

832

Net loss

$

(34,339

)

$

(73,575

)

$

(113,331

)

$

(171,362

)

Net loss per share:

Basic and diluted:

Loss from continuing operations

$

(0.95

)

$

(2.05

)

$

(3.15

)

$

(4.79

)

Income from discontinued operations

-

-

-

0.02

Net loss per share:, basic and diluted (1)

$

(0.95

)

$

(2.05

)

$

(3.15

)

$

(4.77

)

Weighted average common and common equivalent shares outstanding:

Basic and diluted

36,038

35,871

35,956

35,936

_______________________________________________________________________________

REGIS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars and shares in thousands, except per share data)

Three Months Ended June Twelve Months Ended June 30, 30,

2021 2020 2021 2020



Revenues:

Service $ 18,080 $ 9,405 $ 108,120 $ 331,538

Product 22,879 13,070 91,544 137,586

Royalties and fees 26,664 7,340 88,057 73,402

Franchise rental 31,507 30,328 127,392 127,203 income

Total revenue 99,130 60,143 415,113 669,729

Operating expenses:

Cost of service 12,703 9,615 79,144 222,279

Cost of product 24,327 9,441 79,167 84,698

Site operating 14,507 8,611 51,463 71,543 expenses

General and 28,014 25,766 105,433 130,953 administrative

Rent 6,802 12,958 40,930 76,382

Franchise rent 31,507 30,328 127,392 127,203 expense

Depreciation and 5,330 9,466 22,713 36,952 amortization

Long-lived asset 3,205 22,560 13,023 22,560 impairment

TBG mall - (35 ) - 2,333 restructuring

Goodwill impairment - - - 40,164

Total operating 126,395 128,710 519,265 815,067 expenses



Operating loss (27,265 ) (68,567 ) (104,152 ) (145,338 )



Other (expense) income:

Interest expense (3,187 ) (2,907 ) (13,813 ) (7,522 )

Loss from sale ofsalon assets to (8,233 ) (1,181 ) (16,696 ) (27,306 )franchisees

Interest income and 286 165 15,902 3,353 other, net



Loss from continuingoperations before (38,399 ) (72,490 ) (118,759 ) (176,813 )income taxes



Income tax benefit 4,060 (1,164 ) 5,428 4,619 (expense)



Loss from continuing (34,339 ) (73,654 ) (113,331 ) (172,194 )operations



Income fromdiscontinued - 79 - 832 operations, net ofincome taxes



Net loss $ (34,339 ) $ (73,575 ) $ (113,331 ) $ (171,362 )



Net loss per share:

Basic and diluted:

Loss from continuing $ (0.95 ) $ (2.05 ) $ (3.15 ) $ (4.79 )operations

Income fromdiscontinued - - - 0.02 operations

Net loss per share:, $ (0.95 ) $ (2.05 ) $ (3.15 ) $ (4.77 )basic and diluted (1)



Weighted averagecommon and common equivalent sharesoutstanding:

Basic and diluted 36,038 35,871 35,956 35,936

_______________________________________________________________________________

(1) Total is a recalculation; line items calculated individually may not sum to total due to rounding.

REGIS CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS

(Dollars in thousands)

Twelve Months Ended June 30,

2021

2020

Cash flows from operating activities:

Net loss

$

(113,331)

$

(171,362)

Adjustments to reconcile net loss used in operating activities

Non-cash adjustments related to discontinued operations

-

(1,098)

Depreciation and amortization

17,871

33,101

Salon asset impairment

-

3,851

Long-lived asset impairment

13,023

22,560

Deferred income taxes

(3,388)

(3,934)

Inventory reserve

12,068

-

Gain from disposal of distribution center assets

(14,997)

-

Gain from sale of company headquarters, net

-

(2,513)

Loss from sale of salon assets to franchisees, net

16,696

27,306

Goodwill impairment

-

40,164

Stock-based compensation

3,254

3,275

Amortization of debt discount and financing costs

1,839

398

Other non-cash items affecting earnings

(351)

(539)

Changes in operating assets and liabilities (1):

Receivables

(279)

(3,902)

Inventories

17,879

(2,255)

Income tax receivable

1,295

(1,804)

Other current assets

1,658

2,827

Other assets

(2,896)

(10,094)

Accounts payable

(21,669)

4,588

Accrued expenses

5,296

(27,622)

Net lease liabilities

(19,248)

276

Other non-current liabilities

(14,603)

368

Net cash used in operating activities:

(99,883)

(86,409)

Cash flows from investing activities:

Capital expenditures

(11,475)

(37,494)

Proceeds from sale of company headquarters

-

8,996

Proceeds from sale of assets to franchisees

8,437

91,616

Costs associated with sale of assets to franchisees

(261)

(2,089)

Proceeds from company-owned life insurance policies

1,200

-

Net cash (used in) provided by investing activities:

(2,099)

61,029

Cash flows from financing activities:

Borrowings on revolving credit facility

10,000

213,000

Repayments of revolving credit facility

(589)

(125,500)

Repurchase of common stock

-

(28,246)

Minority interest buyout

(562)

-

Distribution center lease payments

(724)

(769)

Taxes paid for shares withheld

(348)

(2,320)

Net cash provided by financing activities:

7,777

56,165

Effect of exchange rate changes on cash and cash equivalents

477

(284)

(Decrease) increase in cash, cash equivalents and restricted cash

(93,728)

30,501

Cash, cash equivalents and restricted cash:

Beginning of year

122,880

92,379

End of year

$

29,152

$

122,880

_______________________________________________________________________________

REGIS CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS

(Dollars in thousands)

Twelve Months Ended June 30,

2021 2020



Cash flows from operating activities:

Net loss $ (113,331) $ (171,362)

Adjustments to reconcile net loss used in operating activities

Non-cash adjustments related to discontinued - (1,098)operations

Depreciation and amortization 17,871 33,101

Salon asset impairment - 3,851

Long-lived asset impairment 13,023 22,560

Deferred income taxes (3,388) (3,934)

Inventory reserve 12,068 -

Gain from disposal of distribution center assets (14,997) -

Gain from sale of company headquarters, net - (2,513)

Loss from sale of salon assets to franchisees, net 16,696 27,306

Goodwill impairment - 40,164

Stock-based compensation 3,254 3,275

Amortization of debt discount and financing costs 1,839 398

Other non-cash items affecting earnings (351) (539)

Changes in operating assets and liabilities (1):

Receivables (279) (3,902)

Inventories 17,879 (2,255)

Income tax receivable 1,295 (1,804)

Other current assets 1,658 2,827

Other assets (2,896) (10,094)

Accounts payable (21,669) 4,588

Accrued expenses 5,296 (27,622)

Net lease liabilities (19,248) 276

Other non-current liabilities (14,603) 368

Net cash used in operating activities: (99,883) (86,409)

Cash flows from investing activities:

Capital expenditures (11,475) (37,494)

Proceeds from sale of company headquarters - 8,996

Proceeds from sale of assets to franchisees 8,437 91,616

Costs associated with sale of assets to franchisees (261) (2,089)

Proceeds from company-owned life insurance policies 1,200 -

Net cash (used in) provided by investing activities: (2,099) 61,029

Cash flows from financing activities:

Borrowings on revolving credit facility 10,000 213,000

Repayments of revolving credit facility (589) (125,500)

Repurchase of common stock - (28,246)

Minority interest buyout (562) -

Distribution center lease payments (724) (769)

Taxes paid for shares withheld (348) (2,320)

Net cash provided by financing activities: 7,777 56,165

Effect of exchange rate changes on cash and cash 477 (284)equivalents

(Decrease) increase in cash, cash equivalents and (93,728) 30,501restricted cash

Cash, cash equivalents and restricted cash:

Beginning of year 122,880 92,379

End of year $ 29,152 $ 122,880

_______________________________________________________________________________

(1) Changes in operating assets and liabilities exclude assets and liabilities sold or acquired.

SYSTEM-WIDE SAME-STORE SALES (1):

Three Months Ended

June 30, 2021

June 30, 2020

Service

Retail

Total

Service

Retail

Total

SmartStyle

2.4

%

(14.0

)%

(1.7

)%

(17.9

)%

(17.1

)%

(17.7

)%

Supercuts

12.4

(10.1

)

10.9

(23.1

)

(12.6

)

(22.5

)

Portfolio Brands

(0.5

)

(14.7

)

(2.2

)

(16.2

)

(13.3

)

(15.9

)

Total

6.8

%

(13.2

)%

4.2

%

(20.9

)%

(14.6

)%

(20.2

)%

SYSTEM-WIDE SAME-STORE SALES (1):

Three Months Ended

June 30, 2021 June 30, 2020

Service Retail Total Service Retail Total



SmartStyle 2.4 % (14.0 )% (1.7 )% (17.9 )% (17.1 )% (17.7 )%

Supercuts 12.4 (10.1 ) 10.9 (23.1 ) (12.6 ) (22.5 )

Portfolio (0.5 ) (14.7 ) (2.2 ) (16.2 ) (13.3 ) (15.9 )Brands

Total 6.8 % (13.2 )% 4.2 % (20.9 )% (14.6 )% (20.2 )%

Twelve Months Ended

June 30, 2021

June 30, 2020

Service

Retail

Total

Service

Retail

Total

SmartStyle

(26.1

)%

(28.5

)%

(26.7

)%

(3.6

)%

(10.1

)%

(5.5

)%

Supercuts

(25.9

)

(23.5

)

(25.8

)

(3.8

)

(10.7

)

(4.2

)

Portfolio Brands

(25.3

)

(20.6

)

(24.8

)

(3.3

)

(7.2

)

(3.7

)

Total

(25.8

)%

(25.5

)%

(25.8

)%

(3.6

)%

(9.4

)%

(4.4

)%

_______________________________________________________________________________

Twelve Months Ended

June 30, 2021 June 30, 2020

Service Retail Total Service Retail Total



SmartStyle (26.1 )% (28.5 )% (26.7 )% (3.6 )% (10.1 )% (5.5 )%

Supercuts (25.9 ) (23.5 ) (25.8 ) (3.8 ) (10.7 ) (4.2 )

Portfolio (25.3 ) (20.6 ) (24.8 ) (3.3 ) (7.2 ) (3.7 )Brands

Total (25.8 )% (25.5 )% (25.8 )% (3.6 )% (9.4 )% (4.4 )%

_______________________________________________________________________________

System-wide same-store sales in fiscal year 2021 are calculated as the change in sales for locations that were open on a specific day of the week during the current period and the corresponding prior period. System-wide same-store sales in fiscal year 2020 are calculated as the total change in sales for system-wide franchise and company-owned locations that were open for more than one year that were open on a(1) specific day of the week during the current period and the corresponding prior period. For both years, quarterly and year-to-date system-wide same-store sales are the sum of the system-wide same-store sales computed on a daily basis. Franchise salons that do not report daily sales are excluded from same-store sales. System-wide same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation.

REGIS CORPORATION

System-Wide Location Counts

June 30,

2021

2020

FRANCHISE SALONS:

SmartStyle/Cost Cutters in Walmart Stores

1,666

1,317

Supercuts

2,386

2,508

Portfolio Brands (1)

1,357

1,217

Total North American Salons

5,409

5,042

Total International Salons (2)

154

167

Total Franchise Salons

5,563

5,209

as a percent of total Franchise and Company-owned salons

95.3

%

76.1

%

COMPANY-OWNED SALONS:

SmartStyle/Cost Cutters in Walmart Stores

91

751

Supercuts

35

210

Portfolio Brands (1)

107

505

Mall-based (3)

43

166

Total Company-owned Salons

276

1,632

as a percent of total Franchise and Company-owned salons

4.7

%

23.9

%

OWNERSHIP INTEREST LOCATIONS:

Equity ownership interest locations

78

82

Grand Total, System-wide

5,917

6,923

_______________________________________________________________________________

REGIS CORPORATION

System-Wide Location Counts

June 30,

2021 2020



FRANCHISE SALONS:

SmartStyle/Cost Cutters in Walmart Stores 1,666 1,317

Supercuts 2,386 2,508

Portfolio Brands (1) 1,357 1,217

Total North American Salons 5,409 5,042

Total International Salons (2) 154 167

Total Franchise Salons 5,563 5,209

as a percent of total Franchise and Company-owned salons 95.3 % 76.1 %



COMPANY-OWNED SALONS:

SmartStyle/Cost Cutters in Walmart Stores 91 751

Supercuts 35 210

Portfolio Brands (1) 107 505

Mall-based (3) 43 166

Total Company-owned Salons 276 1,632

as a percent of total Franchise and Company-owned salons 4.7 % 23.9 %



OWNERSHIP INTEREST LOCATIONS:

Equity ownership interest locations 78 82



Grand Total, System-wide 5,917 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.

The mall-based salons were acquired from TBG on December 31, 2019. They(3) are included in continuing operations under the Company-owned operating segment beginning January 1, 2020.

Non-GAAP Reconciliations:

We believe our presentation of non-GAAP operating loss, net (loss), net (loss) per diluted share, and other non-GAAP financial measures provides meaningful insight into our ongoing operating performance and an alternative perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors' analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information that research analysts frequently use to analyze financial performance.

The method we use to produce non-GAAP results is not in accordance with U.S. GAAP and may differ from methods used by other companies. These non-GAAP results should not be regarded as a substitute for corresponding U.S. GAAP measures, but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations as they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with our financial statements prepared in accordance with U.S. GAAP.

Non-GAAP reconciling items for the three and twelve months ended June 30, 2021 and 2020:

The following information is provided to give qualitative and quantitative information related to items impacting comparability. Items impacting comparability are not defined terms within U.S. GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine the items to consider as "items impacting comparability" based on how management views our business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance. The following items have been excluded from our non-GAAP results:

* Employee litigation reserve * Marketing impairment * CEO transition * Professional fees * Severance expense * Corporate office transition * Benefit from lease liability decrease in excess of previously impaired ROUA ("Lease liability benefit") * Lease termination fees * Real estate fees * Asset retirement obligation * Long-lived asset impairment * TBG restructuring * Goodwill impairment * Gain on distribution centers * Goodwill derecognition * TBG discontinued operations

REGIS CORPORATION

Reconciliation Of Selected U.S. GAAP To Non-GAAP Financial Measures

(Dollars in thousands, except per share data)

Reconciliation of U.S. GAAP operating loss and net loss to equivalent non-GAAPmeasures

Three Months Ended June Twelve Months Ended June 30, 30,

U.S. GAAP financial line 2021 2020 2021 2020 item



U.S. GAAP $ 99,130 $ 60,143 $ 415,113 $ 669,729 revenue



U.S. GAAPoperating $ (27,265 ) $ (68,567 ) $ (104,152 ) $ (145,338 )loss



Non-GAAPoperatingexpense adjustments(1)

Employee Site operatinglitigation expenses - - - (600 )reserve

Marketing Site operating - 1,653 - 1,653 impairment expenses

CEO General and - - (694 ) - transition administrative

Professional General and 3,603 460 7,026 681 fees administrative

Severance General and 1,606 1,534 4,545 9,588 administrative

Corporateoffice Rent - 100 - 1,019 transition

Leaseliability Rent (8,727 ) - (20,022 ) - benefit

Leasetermination Rent 7,020 - 13,544 - fees

Real estate Rent 49 - 583 - fees

Asset Depreciationretirement and 1,280 - 4,726 - obligation amortization

Long-lived Long-livedasset asset 3,205 22,560 13,023 22,560 impairment impairment

TBG TBG - (35 ) - 2,333 restructuring restructuring

Goodwill Goodwill - - - 40,164 impairment impairment

Totalnon-GAAPoperating 8,036 26,272 22,731 77,398 expenseadjustments



Non-GAAPoperating $ (19,229 ) $ (42,295 ) $ (81,421 ) $ (67,940 )loss (1)



U.S. GAAP net $ (34,339 ) $ (73,575 ) $ (113,331 ) $ (171,362 )loss



Non-GAAP netloss adjustments:

Non-GAAPoperating 8,036 26,272 22,731 77,398 expenseadjustments

Corporate Interestoffice income and - - - (2,513 )transition other, net

Gain on Interestdistribution income and (120 ) - (14,997 ) - centers other, net

Goodwill Interestderecognition income and - - - 76,966 other, net

Income taximpact onNon-GAAP Income taxes (77 ) 11,171 (75 ) (1,371 )adjustments(2)

TBG Loss fromdiscontinued discontinuedoperations, operations, - (79 ) - (832 )net of income net of taxtax

Totalnon-GAAP net 7,839 37,364 7,659 149,648 lossadjustments



Non-GAAP net $ (26,500 ) $ (36,211 ) $ (105,672 ) $ (21,714 )loss

_______________________________________________________________________________

Adjusted operating margins for the three months ended June 30, 2021 and 2020, were (19.4)% and (70.3)%, respectively, and were (19.6)% and (10.1)(1) % for the twelve months ended June 30, 2021 and 2020, respectively, and are calculated as non-GAAP operating loss divided by non-GAAP revenue for each respective period.

Based on projected statutory effective tax rate analyses, the non-GAAP(2) tax provision was calculated to be approximately 1% and 22% for the three and twelve months ended June 30, 2021 and 2020, respectively, for all non-GAAP operating expense adjustments.

REGIS CORPORATION

Reconciliation Of Selected U.S. GAAP To Non-GAAP Financial Measures

(Dollars in thousands, except per share data)

Reconciliation of U.S. GAAP net loss per diluted share to non-GAAP net loss per diluted share

Three Months Ended June 30,

Twelve Months Ended June 30,

2021

2020

2021

2020

U.S. GAAP net loss per diluted share

$

(0.953

)

$

(2.051

)

$

(3.152

)

$

(4.769

)

Employee litigation reserve (1)

-

-

-

(0.013

)

Marketing impairment (1)

-

0.036

-

0.036

CEO transition (1)

-

-

(0.019

)

-

Professional fees (1)

0.100

0.010

0.192

0.015

Severance (1)

0.044

0.034

0.125

0.208

Corporate office transition (1)

-

-

-

(0.033

)

Lease liability benefit (1)

(0.240

)

-

(0.550

)

-

Lease termination fees (1)

0.193

-

0.373

-

Real estate fees (1)

0.001

-

0.016

-

Asset retirement obligation (1)

0.035

-

0.130

-

Long-lived asset impairment (1)

0.088

0.492

0.359

0.490

TBG restructuring (1)

-

(0.001

)

-

0.050

Goodwill impairment (1)

-

-

-

0.872

Goodwill derecognition (1)

-

-

-

1.671

Gain on distribution centers (1)

(0.003

)

-

(0.413

)

-

TBG discontinued operations, net of tax

-

(0.002

)

-

(0.023

)

CARES Act

-

-

-

0.408

Tax asset valuation

-

0.473

-

0.484

Impact of change in weighted average shares (3)

-

-

-

-

Non-GAAP net loss per diluted share (2) (3)

$

(0.735

)

$

(1.009

)

$

(2.939

)

$

(0.604

)

U.S. GAAP Weighted average share - basic and diluted

36,038

35,871

35,956

35,936

Non-GAAP Weighted average shares - diluted (2)

36,038

35,871

35,956

35,936

_______________________________________________________________________________

REGIS CORPORATION

Reconciliation Of Selected U.S. GAAP To Non-GAAP Financial Measures

(Dollars in thousands, except per share data)

Reconciliation of U.S. GAAP net loss per diluted share to non-GAAP net loss perdiluted share

Three Months Ended June Twelve Months Ended 30, June 30,

2021 2020 2021 2020



U.S. GAAP net loss per $ (0.953 ) $ (2.051 ) $ (3.152 ) $ (4.769 )diluted share

Employee litigation reserve - - - (0.013 )(1)

Marketing impairment (1) - 0.036 - 0.036

CEO transition (1) - - (0.019 ) -

Professional fees (1) 0.100 0.010 0.192 0.015

Severance (1) 0.044 0.034 0.125 0.208

Corporate office transition - - - (0.033 )(1)

Lease liability benefit (1) (0.240 ) - (0.550 ) -

Lease termination fees (1) 0.193 - 0.373 -

Real estate fees (1) 0.001 - 0.016 -

Asset retirement obligation 0.035 - 0.130 - (1)

Long-lived asset impairment 0.088 0.492 0.359 0.490 (1)

TBG restructuring (1) - (0.001 ) - 0.050

Goodwill impairment (1) - - - 0.872

Goodwill derecognition (1) - - - 1.671

Gain on distribution (0.003 ) - (0.413 ) - centers (1)

TBG discontinued - (0.002 ) - (0.023 )operations, net of tax

CARES Act - - - 0.408

Tax asset valuation - 0.473 - 0.484

Impact of change in - - - - weighted average shares (3)

Non-GAAP net loss per $ (0.735 ) $ (1.009 ) $ (2.939 ) $ (0.604 )diluted share (2) (3)



U.S. GAAP Weighted average 36,038 35,871 35,956 35,936 share - basic and diluted

Non-GAAP Weighted average 36,038 35,871 35,956 35,936 shares - diluted (2)

_______________________________________________________________________________

Based on projected statutory effective tax rate analyses, the non-GAAP tax provision was calculated to be approximately 1% for the three and(1) twelve months ended June 30, 2021, and 22% for the three and twelve months ended June 30, 2020, for all non-GAAP operating expense adjustments.

(2) Total is a recalculation; line items calculated individually may not sum to total due to rounding.

Non-GAAP net loss per share reflects the weighted average shares associated with non-GAAP net loss, which includes the dilutive effect of common stock equivalents. The impact of the adjustments described above(3) result in the impact of the common stock equivalents to be dilutive to the non-GAAP net loss per share. For the three months and twelve months ended June 30, 2021 and 2020, the impact of the adjustments described above resulted in a non-GAAP net loss, therefore, the impact of the common stock equivalents is not dilutive.

REGIS CORPORATION

Reconciliation Of Reported U.S. GAAP Net Income (Loss) To Adjusted EBITDA, A Non-GAAP Financial Measure

(Dollars in thousands)

(Unaudited)

REGIS CORPORATION

Reconciliation Of Reported U.S. GAAP Net Income (Loss) To Adjusted EBITDA, ANon-GAAP Financial Measure

(Dollars in thousands)

(Unaudited)

Adjusted EBITDA

EBITDA represents U.S. GAAP net income (loss) for the respective period excluding interest expense, income taxes and depreciation and amortization expense. The Company defines adjusted EBITDA, as EBITDA excluding identified items impacting comparability for each respective period. For the three and twelve months ended June 30, 2021 and 2020, the items impacting comparability consisted of the items identified in the non-GAAP reconciling items for the respective periods. The impacts of the income tax provision adjustments associated with the above items are already included in the U.S. GAAP reported net income (loss) to EBITDA reconciliation, therefore there is no adjustment needed for the reconciliation from EBITDA to adjusted EBITDA.

Adjusted EBITDA

EBITDA represents U.S. GAAP net income (loss) for the respective periodexcluding interest expense, income taxes and depreciation and amortizationexpense. The Company defines adjusted EBITDA, as EBITDA excluding identifieditems impacting comparability for each respective period. For the three andtwelve months ended June 30, 2021 and 2020, the items impacting comparabilityconsisted of the items identified in the non-GAAP reconciling items for therespective periods. The impacts of the income tax provision adjustmentsassociated with the above items are already included in the U.S. GAAP reportednet income (loss) to EBITDA reconciliation, therefore there is no adjustmentneeded for the reconciliation from EBITDA to adjusted EBITDA.

Three Months Ended June 30, 2021

Franchise

Company-owned

Corporate

Consolidated (1)

Consolidated reported net income (loss), as reported (U.S. GAAP)

$

11,917

$

(19,292

)

$

(26,964

)

$

(34,339

)

Interest expense, as reported

-

-

3,187

3,187

Income taxes, as reported

-

-

(4,060

)

(4,060

)

Depreciation and amortization, as reported

153

3,651

1,526

5,330

Long-lived asset impairment, as reported

-

3,205

-

3,205

EBITDA (as defined above)

$

12,070

$

(12,436

)

$

(26,311

)

$

(26,677

)

Professional fees

-

-

3,603

3,603

Severance

-

-

1,606

1,606

Lease liability benefit

(716

)

(8,011

)

-

(8,727

)

Lease termination fees

(103

)

7,123

-

7,020

Real estate fees

21

28

-

49

Gain on distribution centers

-

-

(120

)

(120

)

Adjusted EBITDA, non-GAAP financial measure

$

11,272

$

(13,296

)

$

(21,222

)

$

(23,246

)

Three Months Ended June 30, 2021

Franchise Company-owned Corporate Consolidated (1)



Consolidated reportednet income (loss), as $ 11,917 $ (19,292 ) $ (26,964 ) $ (34,339 )reported (U.S. GAAP)

Interest expense, as - - 3,187 3,187 reported

Income taxes, as - - (4,060 ) (4,060 )reported

Depreciation andamortization, as 153 3,651 1,526 5,330 reported

Long-lived assetimpairment, as - 3,205 - 3,205 reported

EBITDA (as defined $ 12,070 $ (12,436 ) $ (26,311 ) $ (26,677 )above)



Professional fees - - 3,603 3,603

Severance - - 1,606 1,606

Lease liability (716 ) (8,011 ) - (8,727 )benefit

Lease termination (103 ) 7,123 - 7,020 fees

Real estate fees 21 28 - 49

Gain on distribution - - (120 ) (120 )centers

Adjusted EBITDA,non-GAAP financial $ 11,272 $ (13,296 ) $ (21,222 ) $ (23,246 )measure

Three Months Ended June 30, 2020

Franchise

Company-owned

Corporate

Consolidated (1)

Consolidated reported net loss, as reported (U.S. GAAP)

$

(531

)

$

(49,763

)

$

(23,281

)

$

(73,575

)

Interest expense, as reported

-

-

2,907

2,907

Income taxes, as reported

-

-

1,164

1,164

Depreciation and amortization, as reported

260

7,269

1,937

9,466

Long-lived asset impairment, as reported

1,712

20,848

-

22,560

EBITDA (as defined above)

$

1,441

$

(21,646

)

$

(17,273

)

$

(37,478

)

Professional fees

-

-

460

460

Severance

-

-

1,534

1,534

Corporate office transition

-

-

100

100

TBG restructuring

(35

)

-

-

(35

)

Marketing impairment

-

-

1,653

1,653

TBG discontinued operations, net of tax

-

-

(79

)

(79

)

Adjusted EBITDA, non-GAAP financial measure

$

1,406

$

(21,646

)

$

(13,605

)

$

(33,845

)

_______________________________________________________________________________

Three Months Ended June 30, 2020

Franchise Company-owned Corporate Consolidated (1)



Consolidated reportednet loss, as reported $ (531 ) $ (49,763 ) $ (23,281 ) $ (73,575 )(U.S. GAAP)

Interest expense, as - - 2,907 2,907 reported

Income taxes, as - - 1,164 1,164 reported

Depreciation andamortization, as 260 7,269 1,937 9,466 reported

Long-lived assetimpairment, as 1,712 20,848 - 22,560 reported

EBITDA (as defined $ 1,441 $ (21,646 ) $ (17,273 ) $ (37,478 )above)



Professional fees - - 460 460

Severance - - 1,534 1,534

Corporate office - - 100 100 transition

TBG restructuring (35 ) - - (35 )

Marketing impairment - - 1,653 1,653

TBG discontinued - - (79 ) (79 )operations, net of tax

Adjusted EBITDA,non-GAAP financial $ 1,406 $ (21,646 ) $ (13,605 ) $ (33,845 )measure

_______________________________________________________________________________

Consolidated EBITDA margins for the three months ended June 30, 2021, and 2020, were (26.9)% and (62.3)%, respectively, and are calculated as EBITDA (as defined above) divided by U.S. GAAP revenue for each(1) respective period. Consolidated adjusted EBITDA margin for the three months ended June 30, 2021, and 2020 were (23.5)% and (56.3)%, respectively, and are calculated as consolidated adjusted EBITDA (as defined above) divided by consolidated adjusted revenue for each respective period.

Twelve Months Ended June 30, 2021

Franchise

Company-owned

Corporate

Consolidated (1)

Consolidated reported net income (loss), as reported (U.S. GAAP)

$

40,652

$

(70,032

)

$

(83,951

)

$

(113,331

)

Interest expense, as reported

-

-

13,813

13,813

Income taxes, as reported

-

-

(5,428

)

(5,428

)

Depreciation and amortization, as reported

1,049

14,730

6,934

22,713

Long-lived asset impairment, as reported

726

12,297

-

13,023

EBITDA (as defined above)

$

42,427

$

(43,005

)

$

(68,632

)

$

(69,210

)

CEO transition

-

-

(694

)

(694

)

Professional fees

-

-

7,026

7,026

Severance

-

-

4,545

4,545

Lease liability benefit

(1,322

)

(18,700

)

-

(20,022

)

Lease termination fees

(103

)

13,647

-

13,544

Real estate fees

22

561

-

583

Gain on distribution centers

-

-

(14,997

)

(14,997

)

Adjusted EBITDA, non-GAAP financial measure

$

41,024

$

(47,497

)

$

(72,752

)

$

(79,225

)

Twelve Months Ended June 30, 2021

Franchise Company-owned Corporate Consolidated (1)



Consolidated reportednet income (loss), as $ 40,652 $ (70,032 ) $ (83,951 ) $ (113,331 )reported (U.S. GAAP)

Interest expense, as - - 13,813 13,813 reported

Income taxes, as - - (5,428 ) (5,428 )reported

Depreciation andamortization, as 1,049 14,730 6,934 22,713 reported

Long-lived assetimpairment, as 726 12,297 - 13,023 reported

EBITDA (as defined $ 42,427 $ (43,005 ) $ (68,632 ) $ (69,210 )above)



CEO transition - - (694 ) (694 )

Professional fees - - 7,026 7,026

Severance - - 4,545 4,545

Lease liability (1,322 ) (18,700 ) - (20,022 )benefit

Lease termination (103 ) 13,647 - 13,544 fees

Real estate fees 22 561 - 583

Gain on distribution - - (14,997 ) (14,997 )centers

Adjusted EBITDA,non-GAAP financial $ 41,024 $ (47,497 ) $ (72,752 ) $ (79,225 )measure

Twelve Months Ended June 30, 2020

Franchise

Company-owned

Corporate

Consolidated (1)

Consolidated reported net income (loss), as reported (U.S. GAAP)

$

32,886

$

(96,128

)

$

(108,120

)

$

(171,362

)

Interest expense, as reported

-

-

7,522

7,522

Income taxes, as reported

-

-

(4,619

)

(4,619

)

Depreciation and amortization, as reported

922

29,113

6,917

36,952

Long-lived asset impairment, as reported

1,712

20,848

-

22,560

EBITDA (as defined above)

$

35,520

$

(46,167

)

$

(98,300

)

$

(108,947

)

Employee litigation reserve

-

(600

)

-

(600

)

Marketing impairment

-

-

1,653

1,653

Professional fees

-

-

681

681

Severance

-

-

9,588

9,588

Corporate office transition

-

-

(1,494

)

(1,494

)

TBG restructuring

2,333

-

-

2,333

Goodwill impairment, as reported

-

40,164

-

40,164

Goodwill derecognition

-

-

76,966

76,966

TBG discontinued operations, net of tax

-

-

(832

)

(832

)

Adjusted EBITDA, non-GAAP financial measure

$

37,853

$

(6,603

)

$

(11,738

)

$

19,512

_______________________________________________________________________________

Twelve Months Ended June 30, 2020

Franchise Company-owned Corporate Consolidated (1)



Consolidated reportednet income (loss), as $ 32,886 $ (96,128 ) $ (108,120 ) $ (171,362 )reported (U.S. GAAP)

Interest expense, as - - 7,522 7,522 reported

Income taxes, as - - (4,619 ) (4,619 )reported

Depreciation andamortization, as 922 29,113 6,917 36,952 reported

Long-lived assetimpairment, as 1,712 20,848 - 22,560 reported

EBITDA (as defined $ 35,520 $ (46,167 ) $ (98,300 ) $ (108,947 )above)



Employee litigation - (600 ) - (600 )reserve

Marketing impairment - - 1,653 1,653

Professional fees - - 681 681

Severance - - 9,588 9,588

Corporate office - - (1,494 ) (1,494 )transition

TBG restructuring 2,333 - - 2,333

Goodwill impairment, - 40,164 - 40,164 as reported

Goodwill - - 76,966 76,966 derecognition

TBG discontinuedoperations, net of - - (832 ) (832 )tax

Adjusted EBITDA,non-GAAP financial $ 37,853 $ (6,603 ) $ (11,738 ) $ 19,512 measure

_______________________________________________________________________________

Consolidated EBITDA margins for the twelve months ended June 30, 2021, and 2020, were (16.7)% and (16.3)%, respectively, and are calculated as EBITDA (as defined above) divided by U.S. GAAP revenue for each(1) respective period. Consolidated adjusted EBITDA margin for the twelve months ended June 30, 2021, and 2020, were (19.1)% and 2.9%, respectively, and are calculated as consolidated adjusted EBITDA (as defined above) divided by consolidated adjusted revenue for each respective period.

REGIS CORPORATION

Reconciliation Of Reported Franchise EBITDA As A Percent Of U.S. GAAP Revenue

To EBITDA As A Percent Of Adjusted Revenue

(Dollars in thousands)

(Unaudited)

Three Months Ended June 30,

2021

2020

As Adjusted EBITDA

$

11,272

$

1,406

U.S. GAAP revenue

73,813

44,802

As Adjusted EBITDA as a % of U.S. GAAP revenue

15.3

%

3.1

%

Non-margin revenue adjustments:

Franchise rental income

(31,507

)

(30,328

)

Ad fund revenue

(7,218

)

-

Adjusted revenue

$

35,088

$

14,474

As Adjusted EBITDA as a percent of adjusted revenue (1)

32.1

%

9.7

%

REGIS CORPORATION

Reconciliation Of Reported Franchise EBITDA As A Percent Of U.S. GAAP Revenue

To EBITDA As A Percent Of Adjusted Revenue

(Dollars in thousands)

(Unaudited)

Three Months Ended June 30,

2021 2020



As Adjusted EBITDA $ 11,272 $ 1,406

U.S. GAAP revenue 73,813 44,802

As Adjusted EBITDA as a % of U.S. GAAP revenue 15.3 % 3.1 %

Non-margin revenue adjustments:

Franchise rental income (31,507 ) (30,328 )

Ad fund revenue (7,218 ) -

Adjusted revenue $ 35,088 $ 14,474

As Adjusted EBITDA as a percent of adjusted revenue 32.1 % 9.7 %(1)

Twelve Months Ended June 30,

2021

2020

As Adjusted EBITDA

$

41,024

$

37,853

U.S. GAAP revenue

272,148

253,026

As Adjusted EBITDA as a % of U.S. GAAP revenue

15.1

%

15.0

%

Non-margin revenue adjustments:

Franchise rental income

(127,392

)

(127,203

)

Ad fund revenue

(22,023

)

(13,341

)

TBG product sales

-

(2,010

)

Adjusted revenue

$

122,733

$

110,472

As Adjusted EBITDA as a percent of adjusted revenue (1)

33.4

%

34.3

%

_______________________________________________________________________________

Twelve Months Ended June 30,

2021 2020



As Adjusted EBITDA $ 41,024 $ 37,853

U.S. GAAP revenue 272,148 253,026

As Adjusted EBITDA as a % of U.S. GAAP revenue 15.1 % 15.0 %

Non-margin revenue adjustments:

Franchise rental income (127,392 ) (127,203 )

Ad fund revenue (22,023 ) (13,341 )

TBG product sales - (2,010 )

Adjusted revenue $ 122,733 $ 110,472

As Adjusted EBITDA as a percent of adjusted 33.4 % 34.3 %revenue (1)

_______________________________________________________________________________

(1) Total is a recalculation; line items calculated individually may not sum to total due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210825005828/en/

CONTACT: REGIS CORPORATION: Kersten Zupfer investorrelations@regiscorp.com