Ladies and gentlemen, thank you for standing by. Welcome to the Regis Corporation Fiscal 2017 Fourth Quarter Earnings Call. My name is Don, and I will be your conference facilitator today. At this time, all participants are in a listen-only mode. Following the management’s presentation, we will conduct a question-and-answer session [Operator Instructions]. As a reminder, this call is being recorded for playback and will be available by approximately 3 PM Eastern Time today. I’ll now turn the conference over to Paul Dunn, Vice President of Finance and Investor Relations. Please go ahead.

Thank you, Don. Good morning everyone, and thank you for joining us. On the call with me today are Hugh Sawyer, our Chief Executive Officer; Andrew Lacko, our new Chief Financial Officer; Eric Bakken, President of our Franchise Segment; Mark Fosland, our Senior Vice President of Finance. Before turning the call over to Hugh, there are few housekeeping items to address. First, today’s earnings release and conference call includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance, and by their nature, are subject to inherent risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the Company's current earnings release and SEC filings, including the 10-K we filed this morning for information on these risks and uncertainness. The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. Second, this morning conference call must be considered in conjunction with both the 10-K filings and earnings release we issued this morning. In today's call, we will be discussing non-GAAP financial results that exclude the impact of certain business events. These non-GAAP financial measures are provided to facilitate meaningful year-over-year comparisons but should not be considered superior to, or is a substitute for, and should be ready in conjunction with GAAP financial measures for the period. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in this morning's earnings release, which is available on our Web site at www.regiscorp.com. I will now turn the call over to Hugh.

Thanks Paul and good day everyone. Thank you for joining us and thanks as well for your interest in Regis. I have three topics to share with you today. First, a brief overview of our fourth quarter performance and progress against our initiatives, including our 120 day plan, which we initiated in the quarter; a few insights into the shift of our culture and focus, and thoughts regarding the renewal of our Company, including the key elements of our strategy. So let's begin with the results of our fourth quarter. You may recall during my first call with you that I stated that Regis is a great company, but our financial results were not great. You may also remember that we were in the process of implementing a number of new initiatives, including a 120-day plan, a plan intended to stabilize financial performance and establish a platform for longer-term revenue and earnings growth in our company owned salons in North America. The basic design of a 120-day plan is focused on the following key components: aligning variable salon labor costs and other resources based on forecasted demand; improving the quality of our revenue through price increase in our North American salons; and just investing in salon programs that were not delivering improvements in our financial performance. The Company's fourth quarter results improved over the preceding three quarters and prior year fourth quarter due in part to the preliminary benefits associated with the 120-day plan. In the fourth quarter, we generated revenues of $424 million, same-store revenues increased 40 basis points and adjusted EBITDA increased nearly $4 million to $31 million. Although, I was certainly encouraged by the results of the quarter, I also recognize that we have more work to do before we can report that an operational turnaround in…

Thanks Hugh and good morning everyone. Having joined Regis recently, I wanted to start by saying how excited I am to be here today and I look forward to working with you going forward. On this morning's call, I would like to provide with some additional color on our fourth quarter and full year financial results along with our quarter and in liquidity. But before I review the results of the fourth quarter, let me take a moment to discuss the couple of items. First, in conjunction with our previously announced plans to focus on a strong portfolio company owned and franchise locations along with a newly created role of president of franchise, we have made a change to our reportable segments. We believe that the new reportable segment structure, which reflects the shared importance of both franchise and company owned operations, will provide increased transparency to the key drivers of our business, including the focus on growing our franchise business along with the operational turnaround underway in our company owned salons. The new reporting segments that you seen in today's press release and file 10-K are North American Value, North American Franchise, North American Premium and International Salons. One example of this increased transparency with the new reporting segment is the visibility now to the strength of the North American Value segment. This is demonstrated by one’s ability to now see the segment’s $3 million or 8.6% increase in fourth quarter adjusted EBITDA year-over-year on a 1.6% increase in comparable store sales. In fact, for the full year, Supercuts, one of our key brands in the North American Value segment, recorded its fourth consecutive year of positive year-over-year comparable store sales growth. In addition to the change in our reportable segments, as in quarters past, I would like to…

Thank you [Operator Instructions]. And we’ll take our first question from Tucker Golden with Solas Capital.

I appreciate your new disclosure. I think it’s helpful in gaining more insight into your franchise operations versus your own. I would say though we still have $73 million as adjusted of unallocated corporate cost, and I think that’s what's preventing the markets from getting its head around the value of each of your segments. Understanding that there’s certainly going to be some shared cost, it just seems like an awfully large number given the size for the company. Can you give us any more clarity in terms of how you would further allocate that very large unallocated overhead bucket?

Tucker, this is Andrew, thank you very much for the question. I would say that as we continue to go through the analytical process as I'm getting up to speed, understanding where exactly those unallocated overhead and administrative costs lie, we will go through a more refined process by which we can provide insight as to how they would be allocated. Predominantly, the cost will reside in labor related cost, support related cost. And at this point, it's too soon for me to specifically point out where these costs align. Then there’s also a strong component of IT cost in that bucket that support the overall portfolio. But as I continue to develop the -- or develop the analytical background to feel comfortable allocate those expenses, we will be able to provide more detail.

I think, philosophically, Andrew and I agree with you. If there is an opportunity for greater precision and to be -- add clarity to the allocation methodology, so the company and we’ll work on it. You will see as we -- you guys asked for greater clarity, and I think we’ve given it to you and that’s first step and we’ll continue to provide more insight in the quarters ahead.

Okay, I appreciate the start and I look forward to more. And I appreciate the renewed sense of urgency here, it's time and we’re cautiously optimistic. It seems like things are starting to work. Thank you.

Thank you for your comments.

That does conclude today's question-and-answer session. So at this time, I'll turn the conference back to you, Sawyer, for any closing remarks.

Thank you for your attendance today. And thank you for your continued support of Regis, and we look forward to talking to you again next quarter. Thanks everyone.

This does conclude today's conference. Thank you for your participation. You may now disconnect.