UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): September 27, 2012

 

REGIS CORPORATION

(Exact name of registrant as specified in its charter)

 

Minnesota

 

1-12725

 

41-0749934

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No)

 

7201 Metro Boulevard
Minneapolis, MN 55439
(Address of principal executive offices and zip code)

 

(952) 947-7777

(Registrant’s telephone number, including area code)

 

(Not applicable)

(Former name or former address, if changed from last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Regis Corporation
Current Report on Form 8-K

 

ITEM 2.01.  COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS.

 

As previously disclosed, on April 9, 2012, Regis Merger S.A.R.L., a wholly-owned subsidiary of Regis Corporation (“Regis or the Company”), entered into a Share Purchase Agreement (“Agreement”) with Mr. Yvon Provost, Mrs. Olivia Provost, and Mr. Fabien Provost (collectively, the Provost Family) to sell Regis’ 46.7% ownership interest in Provalliance to the Provost Family (“Disposition”) for a purchase price of €80 million.  The transaction was completed on September 27, 2012 for net proceeds of $103.3 million.  The put and call arrangements between Regis and the Provost Family automatically terminated upon closing.

 

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

 

(b) Pro forma financial information.

 

The June 30, 2012 unaudited pro forma consolidated balance sheet is presented as if the Disposition was effective June 30, 2012. The unaudited pro forma consolidated statement of operations for the twelve months ended June 30, 2012  presents the Company’s results of operations as if the Disposition had occurred on July 1, 2011. The pro forma adjustments are based on factually supportable available information and certain assumptions that management believes are reasonable.

 

These pro forma financial statements do not purport to be indicative of the financial position or results of operations of the Company as of such date or for such periods, nor are they necessarily indicative of future results. In the opinion of management, all necessary adjustments to the unaudited pro forma financial information have been made. The unaudited pro forma financial statements should be read in conjunction with historical consolidated financial statements of the Company, including the notes thereto, in the Company’s Form 10-K for the year ended June 30, 2012.

 

2



 

REGIS CORPORATION

PRO FORMA CONSOLIDATED BALANCE SHEET

(Dollars in thousands, except per share data)

 

 

 

June 30, 2012

 

 

 

Historical
Financial
Statement

 

Pro Forma
Adjustment
Provalliance

 

Pro Forma
Financial
Statement

 

 

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

111,943

 

$

101,304

(a)

$

213,247

 

Receivables, net

 

31,578

 

 

31,578

 

Inventories

 

148,441

 

 

148,441

 

Deferred income taxes

 

17,395

 

 

17,395

 

Income tax receivable

 

14,098

 

 

14,098

 

Other current assets

 

61,222

 

 

61,222

 

Total current assets

 

384,677

 

101,304

 

485,981

 

Property and equipment, net

 

323,060

 

 

323,060

 

Goodwill

 

536,655

 

 

536,655

 

Other intangibles, net

 

101,790

 

 

101,790

 

Investment in and loans to affiliates

 

166,176

 

(101,304

)(a)

64,872

 

Other assets

 

59,488

 

 

59,488

 

Total assets

 

$

1,571,846

 

$

 

$

1,571,846

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Long-term debt, current portion

 

$

28,937

 

$

 

$

28,937

 

Accounts payable

 

50,454

 

 

50,454

 

Accrued expenses

 

172,582

 

 

172,582

 

Total current liabilities

 

251,973

 

 

251,973

 

Long-term debt and capital lease obligations

 

258,737

 

 

258,737

 

Other noncurrent liabilities

 

171,979

 

(633

)(b)

171,346

 

Total liabilities

 

682,689

 

(633

)

682,056

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

Common stock, $0.05 par value; issued and outstanding, 57,415,241 and common shares at June 30, 2012

 

2,871

 

 

2,871

 

Additional paid-in capital

 

346,943

 

 

346,943

 

Accumulated other comprehensive income

 

55,114

 

(30,038

)(c)

25,076

 

Retained earnings

 

484,229

 

30,671

(b)(c)

514,900

 

Total shareholders’ equity

 

889,157

 

633

 

889,790

 

Total liabilities and shareholders’ equity

 

$

1,571,846

 

$

 

$

1,571,846

 

 

3



 

REGIS CORPORATION

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars in thousands, expect per share data)

 

 

 

Twelve Months Ended June 30, 2012

 

 

 

Historical
Financial
Statement

 

Pro Forma
Adjustment
Provalliance

 

Pro Forma
Financial
Statement

 

 

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Service

 

$

1,712,703

 

$

 

$

1,712,703

 

Product

 

520,467

 

 

520,467

 

Royalties and fees

 

40,609

 

 

40,609

 

 

 

2,273,779

 

 

2,273,779

 

Operating expenses:

 

 

 

 

 

 

 

Cost of service

 

985,154

 

 

985,154

 

Cost of product

 

249,655

 

 

249,655

 

Site operating expenses

 

198,725

 

 

198,725

 

General and administrative

 

302,572

 

 

302,572

 

Rent

 

340,805

 

 

340,805

 

Depreciation and amortization

 

118,071

 

 

118,071

 

Goodwill impairment

 

146,110

 

 

146,110

 

Total operating expenses

 

2,341,092

 

 

2,341,092

 

Operating loss

 

(67,313

)

 

 

(67,313

)

Other income (expense):

 

 

 

 

 

 

 

Interest expense

 

(28,245

)

 

(28,245

)

Interest income and other, net

 

5,130

 

 

5,130

 

Loss from continuing operations before income taxes and equity in (loss) income of affiliated companies

 

(90,428

)

 

(90,428

)

 

 

 

 

 

 

 

 

Income taxes

 

5,279

 

 

5,279

 

Equity in (loss) income of affiliated companies, net of income taxes

 

(30,043

)

7,402

(d)

(22,641

)

(Loss) income from continuing operations

 

(115,192

)

7,402

 

(107,790

)

Income from discontinued operations, net of taxes

 

1,099

 

 

1,099

 

Net loss

 

$

(114,093

)

$

7,402

 

$

(106,691

)

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

Loss from continuing operations

 

(2.02

)

0.13

 

(1.89

)

Income from discontinued operations

 

0.02

 

 

0.02

 

Net loss per share, basic

 

$

(2.00

)

$

0.13

 

$

(1.87

)

Diluted

 

 

 

 

 

 

 

Loss from continuing operations

 

(2.02

)

0.13

 

(1.89

)

Income from discontinued operations

 

0.02

 

 

0.02

 

Net loss per share, basic

 

$

(2.00

)

$

0.13

 

$

(1.87

)

Weighted average common and common equivalent shares outstanding:

 

 

 

 

 

 

 

Basic

 

57,137

 

 

57,137

 

Diluted

 

57,137

 

 

57,137

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.24

 

 

$

0.24

 

 

4



 

REGIS CORPORATION

NOTES TO THE PRO FORMA FINANCIAL STATEMENTS

 

(a)          Cash proceeds and elimination of investment based on €80 million purchase price ($101.3 million at June 30, 2012 based on a Euro to USD spot rate of 1.2663).

(b)         Elimination of equity put option that automatically terminated upon closing of the Provalliance sale. The impact of this adjustment is not included in the pro forma consolidated statement of operations, as it is a material non-recurring adjustment directly attributable to the sale transaction.

(c)          Recognition of cumulative translation gain associated with European salon operations as Regis has substantially liquidated its investment in foreign entities denominated in the Euro. The impact of this adjustment is not included in the pro forma consolidated statement of operations, as it is a material non-recurring adjustment directly attributable to the sale transaction.

(d)         Elimination of net Provalliance impact on Regis’ consolidated statement of operations for the twelve months ended June 30, 2012.  The $7.4 million adjustment consists of $9.8 million of Regis’ share of Provalliance income, a $37.4 million other than temporary impairment charge related to our investment in Provalliance and the $20.2 million gain associated with the decrease in fair value of the equity put option included in Regis’ consolidated statement of operations for the twelve months ended June 30, 2012.

 

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(d) Exhibits.

 

EXHIBIT
NUMBER

 

 

 

 

 

99

 

Regis Corporation News Release dated October 2, 2012

 

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SIGNATURE

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

REGIS CORPORATION

 

 

 

 

 

 

Dated: October 3, 2012

  By:

/s/ Eric Bakken

 

 

Name: Eric Bakken, Title: Secretary

 

 

EXHIBIT INDEX

 

EXHIBIT
NUMBER

 

 

 

 

 

99

 

Regis Corporation News Release dated October 2, 2012

 

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