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Ageusia Ageusia (from negative prefix a- and Ancient Greek γεῦσις geûsis 'taste') is the loss of taste functions of the tongue, particularly the inability to detect sweetness, sourness, bitterness, saltiness, and umami (meaning 'pleasant/savory taste'). It is sometimes confused with anosmia – a loss of the sense of smell.
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Risk Factors
REGIS CORP Item 1A Risk Factors Impact of Acquisition and Real Estate Availability The key driver of our revenue and earnings growth is the number of salons we acquire or construct
While we believe that substantial future acquisition and organic growth opportunities exist, any inability to identify and successfully complete future acquisitions or increase our same-store sales would have a material adverse effect on our revenue and earnings growth
Impact of the Economic Environment Changes to the United States, Canadian, United Kingdom and other European economies have an impact on our business
Visitation patterns to our salons and hair restoration centers can be adversely impacted by changes in unemployment rates and discretionary income levels
Impact of Key Relationships We maintain key relationships with certain companies, including Wal-Mart
Termination or modification of any of these relationships could have an adverse impact on our ability to grow or future operating results
Impact of Changes in Regulatory and Statutory Laws With more than 11cmam000 locations and approximately 59cmam000 employees world wide, our financial results can be adversely impacted by regulatory or statutory changes in laws
Impact of Competition Competition on a market by market basis remains strong
Therefore, our ability to raise prices in certain markets can be adversely impacted by this competition
Impact of Changes in Manufacturers’ Choice of Distribution Channels The retail products that we sell are licensed to be carried exclusively by professional salons
Should the various product manufacturers decide to utilize other distribution channels, such as large discount retailers, it could negatively impact the revenue earned from product sales
Impact of Changes to Interest Rates and Foreign Currency Exchange Rates Changes in interest rates will have an impact on our expected results from operations
Currently, we manage the risk related to fluctuations in interest rates through the use of variable rate debt instruments and other financial instruments
See discussion in Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” for additional information
Changes in foreign currency exchange rates will have an impact on our reported results from operations
The majority of the revenue and costs associated with the performance of our foreign operations are denominated in local currencies such as the Canadian dollar, Euro and British pound
Therefore, we do not have significant foreign currency transaction risk; however, the translation at different exchange rates from period to period may impact the amount of reported income from our 26 ______________________________________________________________________ international operations
Refer to the constant currency discussion within Management’s Discussion and Analysis in the Item 7 for a detailed analysis
Impact of Seasonality Our business is not subject to substantial seasonal variations in demand
However, the timing of Easter may cause a quarterly variation in the third and fourth quarters
Historically, our revenue and net earnings have generally been realized evenly throughout the fiscal year
The service and retail product revenues associated with our company-owned salons, as well as our franchise revenues, are of a replenishment nature
We estimate that customer visitation patterns are generally consistent throughout the year
Product diversion could have a material adverse impact on our product revenues
The retail products that we sell are meant to be sold exclusively by professional salons
However, incidents of product diversion occur
Diversion involves the selling of salon exclusive hair care products to discount retailers, and the diverted product is often old, tainted or damaged
Diversion could result in adverse publicity that harms the commercial prospects of our products, as well as lower product revenues should consumers choose to purchase diverted product from discount retailers rather than purchasing from one of our salons
The results of operations from our hair restoration centers may be adversely affected if we are unable to anticipate and adapt to rapidly changing technology
The hair loss industry, including surgical procedures, is characterized by rapidly changing technology
The introduction of new technologies and products could render our current product and service selection obsolete or unmarketable
We must continually anticipate the emergence of, and adapt our products and services to, new technologies
Failure to comply with extensive regulations could have a material adverse effect on our beauty school business and failure of our beauty school campuses to comply with extensive regulations could result in financial penalties, loss or suspension of federal funding
A number of our beauty schools’ students pay tuition and other fees with funds received through student assistance financial aid programs under Title IV of The Higher Education Act (HEA)
To participate in such programs, an institution must obtain and maintain authorization by the appropriate state agencies, accreditation by an accrediting agency recognized by the ED, and certification by the ED As a result, our beauty schools are subject to extensive regulation by these agencies
These regulatory agencies periodically revise their requirements and modify their interpretations of existing requirements
If one or more of our beauty schools were to violate any of these regulatory requirements, the regulatory agencies could place limitations on or terminate such beauty schools’ receipt of federal student financial aid funds, which could have a material adverse effect on our beauty school business, results of operations or financial condition