Regis' total debt decreases to $440 million in fiscal 2010

By Jennifer Lanning Drey

Portland, Ore., Aug. 26 - Regis Corp.'s total debt decreased by $194 million in fiscal 2010 to $440 million at the June 30 fiscal year-end, Paul Finkelstein, its chief executive officer, said Thursday during the company's fourth-quarter and year-end earnings call.

"Our balance sheet is exceptionally strong with a cash position of $152 million and no borrowings on our $300 million line of credit," Finkelstein said.

The company generated nearly $150 million in excess cash during fiscal 2010 by reducing capital expenditures and acquisition spending, controlling expenses and improving gross margins, he said.

EBITDA was $252 million for fiscal 2010.

Regis posted fourth-quarter revenues of $590 million, down from revenues of $625 million in the same quarter of fiscal 2009. Full-year revenues of $2.36 billion were down from revenues of $2.43 million in fiscal 2009.

Finkelstein said the company's primary challenge is a lengthening of time between customer visits, which is common across the industry.

"We believe that visits will eventually improve, but we can't be precise in terms of when stabilization will occur," he said.

Regis will resume growth through new builds and acquisitions when visitation patterns normalize, he said.

In the meantime, Regis' board of directors has engaged financial and legal advisers to help the company review strategic options, he said. Regis will not provide updates on that process until the review is complete and a decision has been made, he said.

Minneapolis-based Regis is a hair care salon franchise company.

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