Supercuts 2002 Annual Report Download - page 150

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Outlook
Regis Corporation is the world's largest owner, operator, franchisor and acquirer of hair and retail product salons in the $135 billion hair care
industry. The 8,684 company-owned and franchised salons, which generated $2.3 billion of system-wide sales in fiscal year 2002, are located
in the United States, Canada, France, Italy, the United Kingdom, Spain, Belgium, Switzerland, Poland, Brazil, and Puerto Rico.
Over the last ten years, the Company has been able to average double-digit revenue and earnings growth through its strategy of building,
acquiring and franchising salons in high traffic locations throughout North America and Europe.
Eight times larger than its nearest competitor, the Company maintains just a two percent worldwide market share, signaling substantial
opportunities for long-term future growth.
The Company's growth strategy will continue to focus on building and acquiring company-owned and operated salons in convenient locations
with good visibility, strong customer traffic and appropriate trade demographics. It will continue to focus on the middle to moderately upscale
market with its broad-based salon concepts.
The Company believes that the availability of real estate and quality stylists will not constrain its ability to achieve its long-term growth
objectives.
Franchising will also be a key component of the Company's future growth. Through the combination of company-owned and franchise salon
growth, the Company expects to be able to strengthen its presence in existing markets as well as successfully enter new markets.
In addition to growth in salon services, the Company has been successful in growing the retail product business. During fiscal year 2002, retail
product sales increased 14 percent to $413 million. Through the offering of the largest assortment of professional hair care products in the
industry and superior merchandising, the Company is confident that it can continue to successfully grow its retail product business. Today, the
Company estimates that it serves approximately 10 percent of the U.S. retail product market.
Maintaining financial flexibility is also a key element in continuing successful growth. With strong operating cash flow and an investment
grade rating, the Company is confident that it will be able to financially support its future growth.
SAFE HARBOR PROVISIONS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This annual report, as well as information included in, or incorporated by reference from, future filings by the Company with the Securities and
Exchange Commission and information contained in written material, press releases and oral statements issued by or on behalf of the Company
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," "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 competition within the personal hair care industry, which remains strong, both domestically and
internationally, and price sensitivity; changes in economic condition; changes in consumer tastes and fashion trends; labor and benefit costs;
legal claim; risk inherent to international development (including currency fluctuations); the continued ability of the Company and its
franchisees to obtain suitable locations and financing for new salon development; governmental initiatives such as minimum wage rates, taxes
and possible franchise legislation; the ability of the Company to successfully identify and acquire salons that support its growth objectives; or
other factors not listed above.
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