Regis Corp (RGS), the haircare industry, swung to a net loss for the quarter ended Jun. 30, 2014. The company made a net loss of $17.02 million or $0.30 a share in the quarter against a profit of $0.68 million or $0.01 a share in the previous year period.
Non-GAAP loss per share came in at $0.10, when analysts expected earnings per share of $0.04.
Revenue during the quarter fell 3.65 percent to $483.93 million from $502.25 million in the last year period.
Gross margin expanded by 140 basis points over the last year period to 42.33 percent. Operating margin for the current period stood at positive 0.51 percent as compared to negative 1.79 percent for the previous year period.
The company posted operating income of $2.46 million, compared with operating loss of $8.98 million in the previous year period.
Dan Hanrahan, president and chief executive officer commented, ''During the last earnings call I outlined the path we have taken since joining Regis in August, 2012. I highlighted there was, and still is, a clear need for transformational change to lay the foundation for the turnaround. I also said, although early, we are seeing the first signs of transitioning from disruption to execution. During our fourth quarter we saw additional movement toward execution as our best operators continued to make progress.''
Cash Flow
Regis Corp has generated cash of $117.40 million from operating activities during the year, up 69.79 percent or $48.26 million when compared with the last year period. The company has generated 6.20 cents of operating cash flow in every sales dollar for the year, up from 3.43 cents in the same period last year.
The company has spent $44.38 million cash to meet investing activities during the year, as against cash inflow of $165.14 million in the last year period.
The company has generated net cash of $104.21 million from financing activities during the year, as against cash outgo of $146.80 million in the last year period. It has borrowed net of $111.00 million through debt during the year.
The company's cash dividend payment decreased 50.44 percent or $6.92 million to $6.79 million.
As on Jun. 30, 2014, the company's cash balance stood at $378.63 million, up 88.85 percent or $178.14 million from Jun. 30, 2013.