Regis Corporation (NASDAQ:RGS) Q4 2024 Earnings Conference Call August 28, 2024 8:30 AM ET

Company Participants

Kersten Zupfer - Executive Vice President, Chief Financial Officer
Matthew Doctor - President and Chief Executive Officer

Conference Call Participants

Kersten Zupfer

Good morning, and thank you for joining the Regis Fourth Quarter and Full-Year 2024 Earnings Conference Call. I am your host, Kersten Zupfer, Executive Vice President and Chief Financial Officer. I am joined today by our President and Chief Executive Officer, Matthew Doctor. All participants are in a listen-only mode, and 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 can be found on our website, www.regiscorp.com/investor-relations, along with the reconciliation of any non-GAAP financial measures mentioned on today's call with the corresponding GAAP measures.

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

Matthew Doctor

Thank you, and good morning, everyone. I'm thrilled to be talking to you all today and to share perspectives on our next chapter here at Regis. This is my third fiscal year-end conference call as CEO, and I want to begin by reflecting on our recent achievements that have transformed the business to position it for growth.

This also marks the first time I am speaking since the conclusion of our strategic review process, which resulted in the refinancing of our debt with new lender partners, TCW and Midcap Financial. This is an outstanding result, which has reduced our indebtedness by more than $80 million, saves us approximately $7 million in cash interest annually and puts Regis back on solid financial foundation with right size leverage of approximately 4.5 times debt to adjusted EBITDA versus close to 8 times just two months ago.

This important milestone also has many other benefits, the first being the longer duration maturity extending from what was August 2025 to June of 2029. We have increased financial flexibility and can develop a capital allocation strategy to invest in the business and pursue growth initiatives that could not have been possible or contemplated otherwise. This removes a major distraction to our employees, franchisees and shareholders.

Importantly, management now has increased bandwidth to focus solely on the strategy and execution to grow the business itself alongside our franchisees. I can say with confidence that this is a new day and chapter for Regis in which we can finally operate as a true franchisor, as was intended all along when Regis set out on that journey to become fully franchised close to seven years ago. This is a major step for Regis and all of our stakeholders on our path to sustainable long-term growth and value creation.