Regis Corporation (RGS) Q3 2023 Earnings Conference Call May 3, 2023 8:30 AM ET

Corporate Participants

Biz McShane - Vice President, Corporate Controller

Matt Doctor - President and Chief Executive Officer

Kersten Zupfer - Executive Vice President and Chief Financial Officer

Conference Call Participants

Eric Beder - Small Cap Consumer Research

Biz McShane

Good morning and thank you for joining the Regis Third Quarter Fiscal 2023 Earnings Conference Call. I am your host, Biz McShane, Vice President, Corporate Controller. All participants are in a listen-only mode. The prepared remarks by our President and Chief Executive Officer, Matthew Doctor, and Executive Vice President and Chief Financial Officer, Kersten Zupfer, are accompanied by slides to help participants follow along. [Operator Instructions]. As a reminder, this conference is being recorded.

I would like to remind everyone that the language on forward-looking statements included in our earnings release and 8-K filing also apply to our comments made on the call today. These documents, along with our presentation today can be found on our website at www.regiscorp.com/investorrelations, along with a reconciliation of any non-GAAP financial measures mentioned on today's call with their corresponding GAAP measures. Today's slides are located in the Investor Presentations and Supplemental Financial Statements section of the Investor site.

With that, I will now turn the call over to Matt.

Matt Doctor

Thank you, Biz. Good morning, everyone, and thank you for your interest in Regis. For today's call, I will highlight our third quarter fiscal 2023 results, and discuss our areas of focus for the remainder of our fiscal year and into fiscal 2024.

Our results this quarter continued to demonstrate the progress of our turnaround efforts as we work to get Regis back on the path towards growth. We have now delivered positive EBITDA and operating income in all 3 of our quarters thus far during fiscal 2023, representing additional data points that highlight the hard work, dedication, and execution of the entire Regis system, including our employees, franchisees and salon level staff.

We continue to build upon our positive first half of the fiscal year by delivering further sales and EBITDA growth. With Q3 2023 adjusted EBITDA of $4.2 million, which beat the guidance I provided on our last call when I stated we were expecting Q3 and Q4 EBITDA to fall below our Q1 2023 EBITDA of $3.8 million. The outperformance versus that guidance was due to tighter management of controllables just as the team has been doing for a while now, combined with the right balance of continuing to invest in our key initiatives. And while I've stated this on previous calls, I cannot stress enough that I continue to be proud of the progress we have made in a relatively short period of time.