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TABLE OF CONTENTS
Item 1. Business
TABLE OF CONTENTS1
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One) | ||
ý | | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended June 30, 2011 | ||
OR | ||
o | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Commission file number 1-12725
Regis Corporation
(Exact name of registrant as specified in its charter)
Minnesota State or other jurisdiction of incorporation or organization | 41-0749934 (I.R.S. Employer Identification No.) | |
7201 Metro Boulevard, Edina, Minnesota (Address of principal executive offices) | | 55439 (Zip Code) |
(952) 947-7777
(registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Name of each exchange on which registered | |
---|---|---|
Common Stock, par value $0.05 per share | New York Stock Exchange | |
Preferred Share Purchase Rights | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No ý
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes o No ý
The aggregate market value of the voting common equity held by non-affiliates computed by reference to the price at which common equity was last sold as of the last business day of the registrant's most recently completed second fiscal quarter, December 31, 2010, was approximately $944,774,658. The registrant has no non-voting common equity.
As of August 12, 2011, the registrant had 57,728,624 shares of Common Stock, par value $0.05 per share, issued and outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant's definitive Proxy Statement for the annual meeting of shareholders to be held on October 27, 2011 (the "2011 Proxy Statement") (to be filed pursuant to Regulation 14A within 120 days after the registrant's fiscal year-end of June 30, 2011) are incorporated by reference into Part III.
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REGIS CORPORATION
FORM 10-K
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
INDEX
| | | Page(s) | |||||
---|---|---|---|---|---|---|---|---|
Part I. | ||||||||
| Item 1. | Business | 3 | |||||
| Executive Officers of the Registrant | 21 | ||||||
| Item 1A. | Risk Factors | 23 | |||||
| Item 1B. | Unresolved Staff Comments | 26 | |||||
| Item 2. | Properties | 27 | |||||
| Item 3. | Legal Proceedings | 27 | |||||
| Item 4. | Reserved | 27 | |||||
Part II. | ||||||||
| Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Repurchase of Equity Securities | 28 | |||||
| Item 6. | Selected Financial Data | 30 | |||||
| Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 31 | |||||
| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | 72 | |||||
| Item 8. | Financial Statements and Supplementary Data | 76 | |||||
| Management's Statement of Responsibility for Financial Statements and Report on Internal Control over Financial Reporting | 77 | ||||||
| Report of Independent Registered Public Accounting Firm | 78 | ||||||
| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 143 | |||||
| Item 9A. | Controls and Procedures | 143 | |||||
| Item 9B. | Other Information | 143 | |||||
Part III. | ||||||||
| Item 10. | Directors, Executive Officers and Corporate Governance | 144 | |||||
| Item 11. | Executive Compensation | 144 | |||||
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 144 | |||||
| Item 13. | Certain Relationships and Related Transactions, and Director Independence | 144 | |||||
| Item 14. | Principal Accounting Fees and Services | 144 | |||||
Part IV. | ||||||||
| Item 15. | Exhibits and Financial Statement Schedules | 145 | |||||
| Signatures | 150 |
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PART I
Item 1. Business
Unless the context otherwise provides, when we refer to the "Company," "we," "our," or "us," we are referring to Regis Corporation, the Registrant, together with its subsidiaries.
(a) General Development of Business
In 1922, Paul and Florence Kunin opened Kunin Beauty Salon, which quickly expanded into a chain of value priced salons located in department stores. In 1958, the chain was purchased by their son and renamed Regis Corporation. In December 2004, the Company purchased Hair Club for Men and Women. On August 1, 2007, the Company contributed its 51 wholly-owned accredited cosmetology schools to Empire Education Group, Inc (EEG). On January 31, 2008, the Company merged its continental European franchise salon operations with the operations of the Franck Provost Salon Group in the newly formed entity, Provalliance. The Company acquired an additional equity interest in Provalliance in March 2011. On February 20, 2008, the Company acquired the capital stock of Cameron Capital I, Inc. (CCI), a wholly-owned subsidiary of Cameron Capital Investments, Inc. CCI owned and operated PureBeauty and BeautyFirst salons. On February 16, 2009, the Company sold its Trade Secret salon concept (Trade Secret), which included CCI. Additionally, the Company continues to acquire hair and retail product salons. Regis Corporation is listed on the NYSE under the ticker symbol "RGS." Discussions of the general development of the business take place throughout this Annual Report on Form 10-K.
(b) Financial Information about Segments
Segment data for the years ended June 30, 2011, 2010 and 2009 are included in Note 16 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K.
(c) Narrative Description of Business
The following topical areas are discussed below in order to aid in understanding the Company and its operations:
Topic | Page(s) | |||
---|---|---|---|---|
Background | 4 | |||
Industry Overview | 5 | |||
Salon Business Strategy | 5 | |||
Salon Concepts | 8 | |||
Salon Franchising Program | 14 | |||
Salon Markets and Marketing | 16 | |||
Salon Education and Training Programs | 16 | |||
Salon Staff Recruiting and Retention | 17 | |||
Salon Design | 17 | |||
Salon Management Information Systems | 17 | |||
Salon Competition | 18 | |||
Hair Restoration Business Strategy | 18 | |||
Affiliated Ownership Interest | 20 | |||
Corporate Trademarks | 20 | |||
Corporate Employees | 21 | |||
Executive Officers | 21 | |||
Corporate Community Involvement | 22 | |||
Governmental Regulations | 22 |
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