Good morning. My name is Jessica, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Regis Corporation Fiscal 2014 Fourth 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(952) 806-2154 and a copy will be faxed to you immediately. If you wish to access the replay this call, you may do so by dialing 1 (800) 101-20091 (800) 101-2009, using the access code 1131937. 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 to questions. (Operator Instructions) I'd now like to turn the call over to Mr. Hanrahan for his comments. Dan, you may begin.

Thank you, Jessica. Good morning, everyone, and thanks 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. Last quarter, I outlined the path we have taken since I joined Regis in August of 2012. I highlighted there was and still is a clear need for transformational change to lay the foundation for the turnaround. I also said, although early, we are seeing the first signs of transitioning from disruption to execution. I emphasis the interaction of people, process and metrics is key to improving our execution and performance. Today I will spend some of my time updating you on the progress in these areas during the fourth quarter then I will switch gears and provide some insight into emerging thoughts fiscal 2015. Afterward, I will turn the call over to Steve to cover fourth quarter results in greater detail. When we started 2014, we said it would be a year, where change would continue to be disruptive, but we would begin to manage change and get control of the business. Our quarterly same-store sales trends for the first three quarters of fiscal 2014 demonstrated our field organization, salon and stylist struggled with the foundational changes we made at the start of the year. However, as discussed on previous calls, our good field leaders who are executing our strategy and providing positive leadership to their salons are getting encouraging results, where we have people, process and metrics working we are getting good execution. The fourth quarter saw the disruption caused by the field reorganization in SuperSalon begin to wane, the execution processes we put in place at the begin of the year are helping…

Thank you, Dan and good morning. Before discussing our consolidated financial and operating performance for the fourth quarter, I want to remind you of two housekeeping items. First, as a result of our field reorganization at the start of this fiscal year, district leaders’ labor costs are now reported within cost of service and their travel costs are now reported within site operating expenses. Previously, these costs were reported as general and administrative expenses. Recasted historical annual and quarterly financial statements are available on our corporate website to better assist you with your comparisons. Second, because of the valuation allowance against most of our deferred tax assets, associated reported and as adjusted results of operations that have been tax affected. Consequently, current period reported results are not comparable to tax affected prior periods. For the fourth quarter, Regis reported a net loss of $17 million or $0.30 per diluted share. This includes approximately $16.4 million of non-cash charges or $0.29 per diluted share relating to our investment in Empire Education Group, which I will discuss in more detail shortly. Adjusted EBITDA for the quarter came in at $25.9 million compared to $37 million in the prior year quarter. Excluding net discrete charges, fourth quarter diluted net loss per share as adjusted was $0.10 compared to earnings of $0.06 in the prior year quarter declining $0.16 per share. This can be explained by three main impacts. $0.04 per share is driven by negative same-store sales. $0.05 per share is mainly the result of higher salon labor costs, relative to same-store sales, increased marketing, and lease termination costs, partly offset by improved product costs and cost savings. $0.07 per share represents non-cash losses associated with our equity investment in Empire Education Group. We included in today's press release as well as on…

Thank you, Dan and Steve. (Operator Instruction) Our first question is from the line of Jeff Stein from Northcoast Research.

Good morning, guys. Dan, just a question on product sales, since the planogram reset, there really doesn't seem to be much progress in terms of gaining some positive momentum in the -- on the retail side of your business? Where do you stand in terms of, I mean, where do you go from here, what's the next step to get the momentum moving in the right direction?

Thanks, Jeff. A number of things, I’d like to clarify for you. First is our results this past year have been a little bit more challenging in the fourth quarter because we left our largest clearance activity in the company's history. So, it’s made a little more difficult to analyze and maybe a little worse than it really was. As we look forward, we are moving into a period, it is a little softer performance, so we do have that. But then, beyond that we are testing a number of things in the first quarter here and it’s to early to comment on it. But we've done a lot of work around, where we are with the products and we have looked at everything from our assortments to on a macro scale down to geographic, more testing some promotional activity, we are testing some things that we think can get stylist more engaged. And like I said, it’s early in the quarter, but we've done a number of things that we put in place in this first quarter that we will be reporting on our next call.

Okay. Would you expect over the near-term that you will continue to see your salon payroll grow at a faster rate than sales?

Yeah. Good question. That’s -- we've historically been pretty good at cutting hours and managing to profits by that way. We can’t get the glory by cutting hours, so we need to increase hours and we've done a lot of work, Mark Fosland and his team in particular are in constant contact with the fields. We built out a team that supports each region, our financial team that supports each region, so that they can have help and guidance. And we have done, what I think is a lot of work on that. We’re starting to gain some traction. If you look at it over the fourth quarter that we’ve just finished, we got better in each month and in the last few weeks of the quarter we actually getting better week by week. And with the new -- it’s a new thing that we are doing investing in hours, but where we've got good operators in place, they are matching the hour increase with the appropriate sales increase and when they go up like that together that generates a lot of extra profitability for us. So, I think, that as we move through this year we will get pretty good at this. But we will have -- we still have work to do on it and in particular areas we have more work to do in others. But it is something that I see a lot of progress on.

Okay. And final question for you, Dan. Can you kind of discuss with us the current state of your field service organization and the progress you've made, I mean, what kind of -- what inning are you in, how many high performers do you have, how many kind of average performers and how many below average performers within that group?

Sure. Sure. I won’t get into really specific detail on that but let me talk about that a little bit, because you hit on the thing that the most important part of our turnaround and that's good leaders in the field. Jim Lain, who is our COO and Carmen Thiede, our Chief Human Resource Officer, have done an absolutely terrific job putting training and development program in place and we are seeing that take hold. We just had our -- all of our regional directors, so that’s about 100 people in our regional vice presidents, which is 10 in a couple weeks ago for very in-depth leadership training, ranging from how to conduct an effective one and one, how to work in a multi-unit environment, how to conduct a performance of the evaluation, how to conduct a productive salon visit and then how to train your people on how to do that. They were in for the week. I have to tell you I left that meeting excited because it was a very, very motivated group. We still have work to do. Definitely have work to do in that area and we have found that the people that we are bringing in from the outside that have multi-unit experience are doing well. They are quickly understanding the industry. Historically, we've had pretty much all stylists in those roles that had grown up through the business and now we are bringing in strong multi-unit people and we are finding that with the story we have to tell about the progress we’re making on turn, it’s never simple to recruit good people, but it is not as hard as it was year ago to bring good people in.

Got it. Thank you very much.

You bet, Jeff.

We’ll now go to Bill Armstrong from CL King & Associates. Bill Armstrong - CL King & Associates: Good morning, gentleman. A couple of thing, so I was wondering if you could maybe expand on Supercuts a little bit, where you have the comps up 7%, that number certainly stood out, was that just the Easter shift or is there something else going on that may point to improved performance ahead?

So, there's a few things going on there. That’s the good question. We did benefit from the Easter shift there. We also benefited from some change in promotion. We had a pretty aggressive loyalty program that we believe was the subject of some abuse. And so, we pulled that a year ago and so we saw some benefits by pulling that. It’s also the area where you have the most robust training program. The operating procedures there are very well laid out and well thought out. And so, I think, all three contributed to it and as you can see, as I mentioned in my comment, that Supercuts is up 170 basis points for the year. So in the quarter in particular, is those three things that drove it, but I think, the reason that we are up 170 basis points for the entire year is also driven by the fact that it’s got a great training program, we’ve got well laid out operating procedures and we’re executing well in the Supercuts. Bill Armstrong - CL King & Associates: Sounds like pulling a loyalty program would reduce comps, that…

Yeah. Well, this loyalty program it was eight equals nine program, is the way it works. So eight haircut gives you ninth free. We didn't have very good controls around that, so we believe that there was a lot of abuse around it and when we pulled it, we think that the abuse heightened. And when -- and then we’re comping against that, so we got some benefit against comping against that. So I don’t want you to misinterpret what I’m saying about loyalty program. We think the loyalty program will play a very strong role in our success at Regis, but we need to do it in the right way and this was the program that was open to abuse. Bill Armstrong - CL King & Associates: I see. Okay. It looks like from one of the charts that you have in your presentation that stylist turnover increased somewhat in the fourth quarter versus the third? Could you address that, what's going on there?

Nothing that we were worried about, it sort of the regular run of the mill turnover that we have. We do believe that as we get better at managing our people and having good leaders in place that turnover should go down. But in general, the position, the way our stores were staffed in the quarter and the fact that we were actually up in hours. I think is indicative of the fact that we're doing a better job being staffed in the salon, so we can limit wait times and provide a better guest experience. Bill Armstrong - CL King & Associates: Got it. Okay. Thank you.

Thank you.

Our next question comes from Jill Nelson from Johnson Rice Investment Firm.

Good morning. If you could talk about in the fourth quarter your total adjusted expenses dollar amount was actually up, first time we've seen growth year-over-year in about five quarters? Could you just talk about that trend going forward? I know you've seen a lot of progress on cost savings? But it seems as though now we are investing more in the business versus netting off this cost savings?

I just want to make sure I heard you, where you speaking our G&A expenses?

Actually, total expenses adding kind of all the four line items together?

Well, in our excluding cost of service and cost of product?

Yes.

Okay. Well, I’ll start with G&A, just because I went there in response to your question. On the G&A perspective, where the movement in our fourth quarter was largely driven by the buildout of asset protection and training activities. And so as a result, we saw those costs begin to elevate relative to the earlier quarters. In rent, I would argue that the percentage of rent increase is largely due to two things. One is some lease termination costs we incurred and also we’re getting negative leverage as a percentage of sales. Inside operating or salon selling, I'm sorry, we've seen increases predominantly in marketing expenses. We spend more this quarter than we did in the previous year at this time.

Okay. If we look at marketing spend, kind of, how are you approaching that for fiscal ‘15? And then maybe the additional question within that area is, for back-to-school, I saw you were running some $10.95 haircuts at Supercuts. If you could just talk about maybe just take out back-to-school holiday, how you approached it on a pricing perspective versus last year? Just trying to get a handle on how you feel the pricing environment is out there right now. Thank you.

Sure. In terms of marketing Jill, we see marketing being about flat for the year. We’ll watch it carefully. And we’ll see where we can generate that kind of return that we do look forward in every single investment that we make. In terms of pricing, that’s an excellent question, we built out a pretty good pricing capability here. We've been very, very careful to not take price unless it make sense. So we haven't done much price raising at all. We have been much more thoughtful about the way we measure promotions to see what kind of returns we get. So for example, we are -- couple of years ago, we ran 799 promotion in our Walmart stores. This time -- this year we ran a 999 and we actually saw improved take-up from the consumer on that program. In terms of Supercuts, we’re not doing anything on a holistic basis. We’re being much more surgical. So we’ re going into markets where we feel like there is enough elasticity where when we drop the price, we can get the kind of demand that will give us overall better result. So it’s a very thoughtful approach to pricing. It’s not a one-size-fits-all and afterwards we do a very deep dive on the results and use that to inform us for what we’re going to do going forward. So in terms of the Christmas holiday, we’re going to see what happens during the whole holiday period. We’re going to see what happens during back-to-school and will use that to help inform us on what we’re going to do in the fourth quarter and through the holidays.

Okay. Thank you. And just a last one, kind of, if we look at CapEx for fiscal ‘15 as well as acquisition spend, it looked like you're pretty inactive on acquisitions. Could we expect that activity going forward? And kind of what's a good CapEx maintenance type number for this coming fiscal year?

We don’t usually give guidance on those kind of numbers. What I’ll go back to is Dan’s comments earlier. We’re going to manage our capital very carefully whether it’s through the earnings statement or through the balance sheet and manage it to the appropriate level relative to the cash flow we generate.

And Jill, we don’t have any plans to be acquisitive. So the capital that we will spend is focused on making sure that we execute well within our business. And we deliver the kind of returns that this company should be delivering. We’re going to be very, very careful with our balance sheet. We’re going to be smart about the way we spend capitals. So we won't plow money into salons unless we feel like we can get a return. We worked hard to build this strong balance sheet. We’re going to make sure we protect it and be really smart about the way we invest our money.

I appreciate. Thank you.

We will now move to Ben Franklin from Intrepid Capital.

Hey guys, Thanks for taking my questions. This is a sort of a follow-up on Jill's question about pricing. There is a competitor out there that has discussed some 38 quarters of same-store sales growth. Their prices are well below yours, some of the cheapest I've seen. I've looked at this competitor's franchise disclosure documents as well as Supercuts, and it looks like they make more money and have higher margins than either corporate or franchise Supercuts stores. Now, I'm just thinking philosophically here, but it seems like this model of lower prices and higher volume and also higher earnings could grow its market share perpetually if competitors don't react. Is there a point when you start lowering prices to compete with maybe this competitor and others like it?

So interesting question Ben. We believe that the main focus that we need to execute against is to be good executionally in the salons. We watched competitive pricing. So in a market where we’re right next door, we will price competitively. If we think we need to what we will be careful of doing is not just dropping prices without a way to increase store traffic that we need to make sure that those two go hand-in-hand cause we can we can drop prices and without an increase in store traffic, we’ll decrease our profitability. We will drop our topline pretty dramatically. So we're -- like I said we've -- you can tell Jill, we build out what is a pretty strong pricing team that’s analyzing all of our businesses across the entire fleet of salons that we have and we’re being very thoughtful about how we use price. It doesn't mean that we won't use prices as the promotional tool to drive traffic. We’re just not at a point today where we’re going to drop prices on a wholesale basis and expect that we’ll see kind of traffic that we need to generate the kind of returns that would be acceptable.

That's very helpful. Thanks. Also going along with that, have you sort of looked at the market to see what percentage of the market goes in just for price versus service versus maybe a combination of both. And how you think that's sort of broken up?

So we’ve done a lot of work around the consumer. Over the past year and a half, we do know that there are consumers out there that are just price focused. That they are pretty agnostic in terms of what brand that they will take and they will move for a price. But we also know that there's consumers out there that are pretty loyal. So understanding exactly what you have in any given salon is important. But we think as a whole that what we need to do is we need to execute very well and that we need to provide a great guest experience and that we need to get the price right. So I'm not saying that we are -- that we have our prices completely right. But it’s ongoing work to make sure that we bring all three of those pieces together to deliver the kind of results that this company should deliver.

Okay. Thank you guys.

You bet.

Our next question comes from Jeremy Kahan from Bow Street.

Hey guys. Thanks for taking my question. I was wondering if you could help us think about the size and scale of some of the investments you are making?

We don’t usually break our investments down into that level of detail. So, we wouldn’t be investing in things like asset protection unless we thought it was going to provide a return on investment to shareholders that was more than acceptable.

Got it. Is that a one-year payback or you -- or would you expect that to build through 2016?

Well, in terms of asset protection, we think that that is, what we built out there is an ongoing team that we believe will provide a lot of benefit for long time. We have business that depends heavily on cash sales and we have got a lot of traffic to the salon. We have still to this day we have a fairly high turnover in stylist, so we need to be constantly educating the new stylist that come in on our asset protection policies and what is an appropriate discount, what is an appropriate discount and an appropriate discount rather. So that’s an investment that we think will definitely payback for us and we think it will payback for us within the year, but we think it will be one of those investments that continues to payback.

Okay. And then given the investments you're making, what sort of positive comp do you guys need to start getting EBITDA on right -- going in the right direction?

We are -- again, we don’t give guidance on where we think our numbers need to be prospectively, but again we always plan our business to make sure that we understand what headwinds we are facing going into a particular year, whether it would be investments or inflationary pressure that we are having on our business. And so, again, we don't give guidance, so it’s hard for me to give you any more specific on that.

And I would add that, we are running this business to generate cash and that we built a very, very strong balance sheet and we want to manage this turnaround within our P&L, so that we are not dipping into that balance sheet to our manage our turnaround. We think that all the investments we are making today are very, very thoughtful and we are -- when we got some cautious optimism about what we've seen in the business in the fourth quarter and we believe the investments that we are making over the long run will help us be very successful.

Got it. And then, just last question on the Empire Education Group, would you guys consider selling that as kind of a non-core asset?

Actually, we are -- we are actually excited about upcoming efforts with Empire Education. We've recently started with the help of Carmen Thiede in Human Resources to establish a partnership with Empire where we can begin to leverage their pipeline of our graduation candidates to fill our staffing needs. So in doing so it not only helps Empire navigate their regulatory environment that they have been facing, but it provides sort of a ready stream of placement for their graduates, which not only helps our underlying business, but it helps our underlying investment in Empire.

Thank you.

And we will now go to Bill Armstrong from CL King & Associates. Bill Armstrong - CL King & Associates: Thank you. Just a follow-up on the pricing issue, you had a 1.3% increase in your average ticket? Could you break that out between pricing and mix or was it driven by one or the other or was it a combination?

If it’s all right, would you just to keep this going, we will have Mark Fosland cover that with you after the call. Bill Armstrong - CL King & Associates: Okay. No problem.

And if there are no further questions, I will now turn the conference back to Dan.

Thanks, Jessica. Thanks everybody for calling in for the -- to spend some time with us today and we will look forward to talking to you after the next quarter. Take care.

Ladies and gentlemen, if you wish to access the replay for this presentation, you may do so by visiting regiscorp.com in the Investor Relations section of the website, or by dialing 1 (800) 101-20091 (800) 101-2009, using access code 1131937. This concludes our conference for today. Thank you all for your participating and have a nice day. All parties may now disconnect.