Good morning. My name is Robert and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Regis Corporation Fiscal 2016 First Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. If anyone has not received a copy of today’s press release, please call Regis Corporation at 952-806-2154 and a copy will be sent to you immediately. If you wish to access the replay for this call, you may do so by dialing 1-888-203-1112, access code 262728. The replay will be available 60 minutes after the conclusion of today’s call. I would like to remind everyone that to the extent the company’s statements or comments this morning represent forward-looking statements, I refer you to the risk factors and other cautionary factors in today’s news release as well as the company’s SEC filings. Reconciliation to non-GAAP financial measures mentioned in the following presentation as well as others can be found on their website at www.regiscorp.com. Speaking today will be Dan Hanrahan, Chief Executive Officer and Steve Spiegel, Chief Financial Officer. After management has completed its review of the quarter, we will open the call for questions. [Operator Instructions] I would now like to turn the call over to Mr. Hanrahan for his comments. Dan, you may begin.

Thank you, Robert. Good morning, everyone and thank you for joining us today. With me are Steve Spiegel, our Executive Vice President and Chief Financial Officer; Eric Bakken, our Executive Vice President and Chief Administrative Officer; and Mark Fosland, our Senior Vice President of Finance. Today’s call will be brief as it has been fewer than 60 days since our last earnings call. As I review our first quarter, it will become evident we are making progress and my confidence in Regis future growth as we continue to improve our execution capabilities. In the first quarter, same-store sales increased 70 basis points comprised of increases in same-store service and retail sales of 30 and 240 basis points respectively. On the service side of our business, Supercuts and SmartStyle remain our best performers posting service comps of plus 3.1% in the quarter. Our retail business was driven in large part by combo sales, which are retail sales attached to a service ticket. During the first quarter, our combo sales percentage of 8.8% increased 140 basis points compared to the prior year quarter, which is an indication of better execution from our stylists. As you will see in a moment, we continue to make progress against our leadership development, asset protection and technical education initiatives. Our leaders are focused on staffing and retention, improving the guest experience and driving retail sales with combo sales improvements. Our strong leaders are executing our strategy and driving improved performance. They are driving sustainable improvement by using the tools, processes and metrics we provide to drive growth in the districts and salons quarter after quarter. These leaders are driving improved execution by developing their teams and hiring and retaining top stylists and salon leaders. That said our opportunity remains underperforming leaders who have yet to show…

Thank you, Dan and good morning. Before discussing our performance for the first quarter, I want to cover two housekeeping items. First, included in today’s press release as well as on our corporate website is a reconciliation bridging reported results to earnings as adjusted for the impact of discrete items for the first quarter of the current and prior years. Also on our website are revisions to our fiscal 2015 quarterly income statements. Second, the presence of evaluation allowance against most of our deferred tax assets affects comparability of reported and as adjusted results to prior periods. In the first quarter, we have recognized $2.8 million of income tax expense. This includes our non-cash charge relating to tax benefits we claim for goodwill amortization, but do not recognize for GAAP purposes. This non-cash tax amount will approach $8 million for the full year and will continually – and will continue annually in decreasing amounts as long as we have a deferred tax asset valuation in place. As we have discussed in the past, this non-cash charge should fluctuate significantly on a quarterly basis as a result of how the effective tax rate is determined in interim periods. Since our press release and 10-Q include detailed explanations for our major P&L line items, my comments will provide additional color on our as adjusted results for the first quarter. Adjusted EBITDA for the quarter came in at $22.9 million compared to $21.9 million in the prior year quarter. This improvement included $2.5 million of benefit from I think certain costs in the prior year and lower marketing expenditures due to timing, partly offset by unfavorable impacts associated with foreign exchange. There are two additional items I would like to highlight. As Dan mentioned earlier we make thoughtful investments in salon staffing and scheduling to drive future revenue growth. This reduced our first quarter service margins by approximately $1 million in stylists productivity. Second, after factoring out benefits from timing of certain costs and foreign exchange, our more normalized G&A run rate for the first quarter was within a range of $45 million to $46 million. Moving on to liquidity, our business generated approximately $12 million of operating cash flow during the quarter. We finished the quarter with $177 million of cash, $120 million of total debt and no outstanding borrowings under our $400 million revolving credit facility. As Dan mentioned earlier, since the beginning of the fiscal year, we have repurchased 5.8 million shares of our stock for $74 million at an average price approximating $12.82. This concludes the financial portion of the call. We would now like to answer any questions you may have. Robert, can you please provide the instructions for the Q&A portion of the call?

Thank you, Dan and Steve. The question-and-answer session will begin at this time. [Operator Instructions] We will take our first question from Jeff Stein with Northcoast Research.

Yes. It’s Kushan Akhtil on for Jeff. Good morning, guys. Thanks for taking our questions. Can you guys talk about any price increase that you have taken to offset the minimum wage hikes and if so how many salons and which divisions were impacted. Also can you talk about what initiatives are underway to improve performance of mall-based salons? And lastly, if you could can you talk about the lease maturity schedule at Regis and MasterCut divisions? Thank you.

Sure. Okay. So let me start with price increases. We have done a lot of work on price elasticity. So when we do take a price increase, the price increase is based on the price elasticity model, it’s not based on taking a price increase because there has been a change in minimum wage. We will – when we are going to be really successful is when we get all our stylists commissioning and that’s why you heard me talk so much today about our focus on stylists and stylists commissioning, because then the hourly rate doesn’t matter. So our attention to price increases is based strictly on price elasticity and where we think we can take extra price and we’re doing that where we think it’s appropriate. And regards to mall-based salons, one other things and I’ll interpret your question a little bit, we’ve been very successful in SmartStyle and we’ve been very successful in Supercuts and probably the strong part of the reason for our success in Supercuts is good training program that we have in place. And you heard me talk about investment and training across – across our business. The Supercuts training program has been in place for a long time, well before I got here and it’s always been an important part of Supercuts. So, we have taken a strong queue from that and we’re doing the same across all of our businesses and we put new leadership in place in our Regis business, Ken Warfield and he has built the very strong team. And he is learning from all the things that we did in our value business and I anticipate that that we’ll see good things coming on to him. And then your question on lease maturity, I think we’re probably better off taking that offline and why don’t you, why don’t just connect Mark Fosland and he can walk you through this maturity stuff.

Okay, sounds good. Thank you guys.

You’re welcome.

And we will take our next question from Stephanie Wissink with Piper Jaffray.

Thanks. Good morning everyone, I have a couple of questions with respect to some of your technology initiatives. The first I’m wondering guys if you can just talk a little bit about the mobile initiative that you have in your value salons and some of the uptake with respect to consumer feedback? And then also just with the planning modules are on your payroll hours and some of the labor cost increases. I’m wondering if you can just help us understand where there might be some opportunities to use some of your software to help mitigate some of the pressure points on those peal labor hour periods? Thank you.

Okay. So, let me start with the mobile app. The mobile app is live across our Supercuts system. It’s been out there for about a year now and it’s been growing nicely. We’ve been really pleased with the results that we’ve seen on that. It has a positive impact in a couple of ways; one, guest that are checked in that way and so it makes a little easier for stylist when somebody walks into a salon and rather than have to do so much work checking them in, because they are already checked in. And the other thing is that the consumer likes it, everything that we’re hearing from the guest are using it is favorable, and we’re seeing better repeat for it. So, we’re seeing our most loyal guests are using it and they continue to use it. So, it’s been a great tool. We are waiting to roll it out to the rest of our system, because we want to make sure that we’ve learned everything we can from the Supercuts, we execute very well in Supercuts. And as we get comfortable in that area then we’ll move it out to broader into our system. And then in regards to hours, we built a very good scheduling programming and, this is what we’re talking about today is a little different than just scheduling hours. We’re talking more about investing in our business and investing for the future. As we’ve grown more confident in our ability to execute, we’ve started to invest in hours, since I’ve been here we’ve tried to keep hours relative flat rather than a reduction in hours then we’ve succeeded fairly well in that area. But we’re now at a point where we think well we can start to invest hours. And what we’re seeing is our best leaders are investing those hours and they are getting comps immediately, they are getting comps right along with them. Because, they’ve all – they’ve done all of the things right to make the – make that salon an effective salon. Our developing leaders need a little more help and Mark Fosland and his team are there coaching them and helping them and our model is showing them how many hours to schedule. But that doesn’t mean that we don’t want to build that, and that scheduling model we’ll show them that we do want to build their hours and that what they need to do is then take all of the things they were giving them from leadership development to technical education and make that effective in the salons, so that we can grow revenues in the salons right along with the hours.

Thanks guys.

Thank you.

And this concludes the Q&A portion of the call. I will now turn the call back to Dan.

Thank you, Robert. Thank you everybody for joining us today. I appreciate your taking the time and look forward to talking to you on the next earnings call.