Good morning, and thank you for joining the Regis Fourth Quarter and Full-Year 2024 Earnings Conference Call. I am your host, Kersten Zupfer, Executive Vice President and Chief Financial Officer. I am joined today by our President and Chief Executive Officer, Matthew Doctor. All participants are in a listen-only mode, and this conference is being recorded. I would like to remind everyone that the language on forward-looking statements included in our earnings release and 8-K filing also apply to our comments made on the call today. These documents can be found on our website, www.regiscorp.com/investor-relations, along with the reconciliation of any non-GAAP financial measures mentioned on today's call with the corresponding GAAP measures. With that, I will now turn the call over to Matt Doctor.

Thank you, and good morning, everyone. I'm thrilled to be talking to you all today and to share perspectives on our next chapter here at Regis. This is my third fiscal year-end conference call as CEO, and I want to begin by reflecting on our recent achievements that have transformed the business to position it for growth. This also marks the first time I am speaking since the conclusion of our strategic review process, which resulted in the refinancing of our debt with new lender partners, TCW and Midcap Financial. This is an outstanding result, which has reduced our indebtedness by more than $80 million, saves us approximately $7 million in cash interest annually and puts Regis back on solid financial foundation with right size leverage of approximately 4.5 times debt to adjusted EBITDA versus close to 8 times just two months ago. This important milestone also has many other benefits, the first being the longer duration maturity extending from what was August 2025 to June of 2029. We have increased financial flexibility and can develop a capital allocation strategy to invest in the business and pursue growth initiatives that could not have been possible or contemplated otherwise. This removes a major distraction to our employees, franchisees and shareholders. Importantly, management now has increased bandwidth to focus solely on the strategy and execution to grow the business itself alongside our franchisees. I can say with confidence that this is a new day and chapter for Regis in which we can finally operate as a true franchisor, as was intended all along when Regis set out on that journey to become fully franchised close to seven years ago. This is a major step for Regis and all of our stakeholders on our path to sustainable long-term growth and value creation. Next,…

Thanks, Matt. For this morning's call, I will review our fourth quarter and full-year results. In the fourth quarter and full year, we reported improved operating income, net income and earnings per share as well as improved adjusted EBITDA and cash from operations. Reviewing the fourth quarter in more detail. Total fourth quarter revenues were $49.4 million and declined $6.3 million from the prior year. This revenue decline was expected and relates primarily to a reduction in franchise rental income and advertising fund revenue, which are a gross up of revenue and expense and have no impact on profitability. Royalty and fee revenue of $18.5 million, which represents our core business revenue, was down $1.1 million versus the prior year fourth quarter due to the number of salon closures over the course of the last 12 months and a decrease in revenue related to terminated development agreements. Another reflection of our revenue performance is system-wide same-store sales, which declined 1.3% in the quarter. We closed a net 149 locations, including three company-owned locations in the fourth quarter of fiscal year 2024. We posted GAAP operating income of $4.6 million in the fourth quarter, compared to $3.6 million in the prior year quarter. The year-over-year increase in GAAP operating income of $1 million was driven by a lower rent expense in the fourth quarter of fiscal year 2024, primarily related to franchise rent accruals in the fourth quarter of fiscal year 2023 that did not reoccur, partially offset by lower core business revenue. We continue to produce operating profit each quarter, and we expect that trend to continue. We reported GAAP net income of $91.2 million and diluted earnings per share of $38.10 in the fourth quarter compared to a loss of $4.8 million and diluted loss per share of $2.07…