Regis Corporation (RGS) saw its loss widen to $18.46 million, or $0.40 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $2.08 million, or $0.04 a share. On the other hand, adjusted net loss for the quarter widened to $8.26 million, or $0.18 a share from a loss of $2.69 million or $0.06 a share, a year ago. Revenue during the quarter dropped 6.77 percent to $412.60 million from $442.56 million in the previous year period. Gross margin for the quarter contracted 147 basis points over the previous year period to 39.77 percent. Operating margin for the quarter stood at negative 3.10 percent as compared to a positive 1.27 percent for the previous year period.
Operating loss for the quarter was $12.78 million, compared with an operating income of $5.62 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.59 million compared to operating profit of $4.85 million in prior year period.
Hugh Sawyer, president and chief executive officer, commented, “Regis is a great company with strong brands and a talented group of stylists, managers and professionals. Given the inherent strength of our core assets, our financial results have been disappointing. I look forward to working with the Regis team to accelerate the growth of our franchise business while addressing performance improvement opportunities in our Company-owned salons."
Operating cash flow improvesRegis Corporation has generated cash of $46.81 million from operating activities during the nine month period, up 18.25 percent or $7.22 million, when compared with the last year period. The company has spent $22.95 million cash to meet investing activities during the nine month period as against cash outgo of $11.28 million in the last year period. It has incurred net capital expenditure of $24.83 million on net basis during the nine month period, up 17.01 percent or $3.61 million from year ago period.
The company has spent $1.67 million cash to carry out financing activities during the nine month period as against cash outgo of $98.42 million in the last year period.
Cash and cash equivalents stood at $168.69 million as on Mar. 31, 2017, up 19.53 percent or $27.56 million from $141.13 million on Mar. 31, 2016.
Working capital increases
Regis Corporation has recorded an increase in the working capital over the last year. It stood at $184.07 million as at Mar. 31, 2017, up 13.79 percent or $22.30 million from $161.77 million on Mar. 31, 2016. Current ratio was at 2 as on Mar. 31, 2017, up from 1.81 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 8 days for the quarter from 34 days for the last year period. Days sales outstanding were almost stable at 6 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 23 days for the quarter compared with 49 days for the previous year period. At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of Regis Corporation remained almost stable for the quarter at $120.35 million, when compared with the last year period. Long-term debt of Regis Corp remained almost stable for the quarter at $120.35 million, when compared with the last year period. Total debt was 11.85 percent of total assets as on Mar. 31, 2017, compared with 11.62 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.24 as on Mar. 31, 2017, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
