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Empire Education Group

empire.edu

Stage

Merger | Acquired

Total Raised

$16M

About Empire Education Group

Provider of cosmetology education. The company prepares students for careers in cosmetology (hair care, skin care, nail care, and massage), an industry that needs more salon professionals than can be supplied to fill job openings. [Keywords: beauty]

Headquarters Location

396 Pottsville/St. Claire Highway

Pottsville, Pennsylvania, 17901,

United States

(570)429-4321

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Latest Empire Education Group News

Regis Corporation Reports Operating Profit for the First Time in 16 Quarters

Nov 1, 2022

11/01/2022 | 06:02am EDT Message : *Required fields Regis Corporation (NYSE: RGS), a leader in the haircare industry, today announced financial results for the first fiscal quarter ended September 30, 2022. Financial Highlights: System-wide same-store sales increased 4.5% in the quarter. Operating profit improved $7.4 million to $2.5 million, from an operating loss of $4.9 million. The last time Regis reported positive operating profit was September 30, 2018. Positive EBITDA of $6.6 million compared to a loss of $5.6 million; adjusted EBITDA was $3.8 million compared to a loss of $5.0 million. Franchise EBITDA was $7.9 million compared to a loss of $5.0 million; adjusted Franchise EBITDA of $5.0 million compared to a loss of $3.5 million, and was positive for the fourth quarter in a row. Net income of $1.5 million improved $11.9 million from a loss of $10.4 million; adjusted net loss of $1.1 million, a significant improvement compared to a $9.3 million loss. Successfully renegotiated debt including amendment to our credit agreement and extension of the maturity date from March 2023 to August 2025. Matthew Doctor, Regis Corporation’s President and Chief Executive Officer, commented: “We began the year positively delivering growth in key operating metrics that demonstrate further progress on our strategy. To this end, system-wide same stores sales grew 4.5%, our adjusted EBITDA continued to increase, and we saw a $7.4 million improvement in operating profit reflecting our successful transformation to a franchise business. Our priorities in the year ahead are to build upon the work we've done to improve our operating platform and to provide our franchisees with the tools required to profitably drive sales and productivity at the salon level. The year will see us invest in marketing activities to increase customer traffic and intensify our stylist recruitment and education efforts. This, along with the continued discipline from which we operate, is expected to allow us to deliver continuous improvement in operating performance, improved liquidity, and generate increased value for our stakeholders.” First Quarter Fiscal Year 2023 Consolidated Results   Revenue Total revenue in the first quarter of $61.9 million decreased $14.9 million, driven primarily by exiting company-owned salons that generated significant revenue, but were loss generating and exiting product sales. Partially offsetting the decline in revenue was an increase in royalty revenue due to higher average royalty rates. Adjusted EBITDA First quarter adjusted EBITDA of $3.8 million improved $8.8 million, versus an adjusted EBITDA loss of $5.0 million in the same period last year. The improvement was driven by an increase in average royalty revenues; lower general and administrative expense; and the wind down of loss-generating company-owned salons during the last twelve months. Net Income from Continuing Operations Regis reported a first quarter 2023 net loss from continuing operations of $1.8 million, or $0.04 loss per diluted share, compared to a net loss from continuing operations of $9.3 million, or $0.25 loss per diluted share, in the first quarter 2022. The year-over-year improvement in net loss from continuing operations was driven primarily by an increase in average royalty revenues; lower general and administrative expense; and the Company winding down loss-generating company-owned salons during the last twelve months. Net Income The Company reported a first quarter 2023 net income of $1.5 million, or $0.03 per diluted share, compared to a net loss of $10.4 million, or $0.28 loss per diluted share for the same period last year. The net income in the quarter was driven by the gain from discontinued operations of $3.3 million in the quarter. The net income improved year-over-year due to the gain from discontinued operations, higher average royalty revenues and lower general and administrative expense. First Quarter Fiscal Year 2023 Segment Results Franchise Franchise Revenue First quarter Franchise revenue was $58.8 million, a $10.0 million, or 14.5% decrease compared to the prior year quarter. Royalties were $17.2 million, a $0.6 million, or 3.6% increase, versus the same period last year. The increase in royalties is due to higher average royalty rates, partially offset by a decrease in franchise salon count. Product sales to franchisees of $0.4 million decreased $7.6 million, or 95.0%, as a result of the transition out of the wholesale product business. Adjusted EBITDA Franchise adjusted EBITDA of $5.0 million improved $8.5 million year-over-year primarily due to an increase in average royalty revenues and a decrease in general and administrative expense. Company-Owned Salons Company-Owned Salon Revenue First quarter revenue for the Company-owned salon segment decreased $4.9 million, versus the prior year to $3.1 million. The year-over-year decline in revenue was expected and driven by 30 salons converted to the Company's franchise portfolio over the past 12 months and the closure of 54 unprofitable salons over the past 12 months. Company-Owned Salon Adjusted EBITDA First quarter adjusted EBITDA loss improved $0.4 million, or 25.0%, driven primarily by closure of unprofitable salons. Balance Sheet and Cash Flow The Company ended the first quarter with $9.5 million in cash and cash equivalents, $180.6 million in outstanding borrowings and total liquidity of $47.8 million. Net cash used in operating activities totaled $5.1 million, an improvement of $7.2 million from prior year. Cash used in operations includes the annual bonus payment. Non-GAAP reconciliations For GAAP to non-GAAP reconciliations, please refer to the attached section titled "Non-GAAP Reconciliations." A complete reconciliation of reported earnings to adjusted earnings is included in this press release and is available on the Company’s website at www.regiscorp.com . Earnings Webcast Regis Corporation will host a conference call via webcast discussing first quarter results today, November 1, 2022, at 7:30 a.m. Central time. Interested parties are invited to participate in the live webcast by registering for the event at www.regiscorp.com/investor-relations.html . The webcast will include a slide presentation. A replay of the presentation will be available on our website at the same web address. About Regis Corporation Regis Corporation (NYSE:RGS) is a leader in the haircare industry. As of September 30, 2022, the Company franchised, owned or held ownership interests in 5,494 locations worldwide. Regis’ franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®. Regis maintains an ownership interest in Empire Education Group in the U.S. For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com . This press release contains or may contain “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, “may,” “believe,” “project,” “forecast,” “expect,” “estimate,” “anticipate,” and “plan.” In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include a potential material adverse impact on our business and results of operations as a result of the COVID-19 pandemic, including any adverse impact from variants; consumer shopping trends and changes in manufacturer distribution channels; changes in regulatory and statutory laws including increases in minimum wages; laws and regulations could require us to modify current business practices and incur increased costs; changes in economic conditions; changes in consumer tastes, fashion trends and consumer spending patterns; compliance with New York Stock Exchange listing requirements; reliance on franchise royalties and overall success of our franchisees’ salons; the return of sales at franchise locations to pre-pandemic levels; new merchandising strategy that utilizes third-party preferred supplier arrangements; our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' salons; the successful migration of our franchisees to the Zenoti salon technology platform; our ability to maintain and enhance the value of our brands; reliance on information technology systems; reliance on external vendors; the use of social media; failure to standardize operating processes across brands; exposure to uninsured or unidentified risks; the effectiveness of our enterprise risk management program; compliance with covenants in our financing arrangement, access to the existing revolving credit facility, and we may face an accelerated obligation to repay our indebtedness; our capital investments in technology may not achieve appropriate returns; premature termination of agreements with our franchisees; financial performance of Empire Education Group, Inc.; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; continued ability to compete in our business markets; reliance on our management team and other key personnel; the continued ability to maintain an effective system of internal controls over financial reporting; changes in tax exposure; the ability to use U.S. net operating loss carryforwards; potential litigation and other legal or regulatory proceedings could have an adverse effect on our business; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A. REGIS CORPORATION Non-GAAP Reconciliations: We believe our presentation of non-GAAP operating income (loss), net loss, net loss per diluted share, and other non-GAAP financial measures provides meaningful insight into our ongoing operating performance and an alternative perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors’ analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information that research analysts frequently use to analyze financial performance. The method we use to produce non-GAAP results is not in accordance with U.S. GAAP and may differ from methods used by other companies. These non-GAAP results should not be regarded as a substitute for corresponding U.S. GAAP measures, but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations as they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with our financial statements prepared in accordance with U.S. GAAP. Non-GAAP reconciling items for the three months ended September 30, 2022 and 2021: The following information is provided to give qualitative and quantitative information related to items impacting comparability. Items impacting comparability are not defined terms within U.S. GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine the items to consider as "items impacting comparability" based on how management views our business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance. The following items have been excluded from our non-GAAP results: Distribution center wind down fees ("Distribution center fees") Professional fees and settlements

Empire Education Group Frequently Asked Questions (FAQ)

  • Where is Empire Education Group's headquarters?

    Empire Education Group's headquarters is located at 396 Pottsville/St. Claire Highway, Pottsville.

  • What is Empire Education Group's latest funding round?

    Empire Education Group's latest funding round is Merger.

  • How much did Empire Education Group raise?

    Empire Education Group raised a total of $16M.

  • Who are the investors of Empire Education Group?

    Investors of Empire Education Group include Cuyahoga Capital Partners.

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