Regis Reports Second Quarter 2011 Earnings

Regis Corporation (NYSE:RGS), the global leader in the $160 billion hair care industry, today reported second quarter earnings per diluted share of $0.24. Second quarter earnings include $0.01 per share of expense related to the Company’s review of strategic alternatives. Absent this non-operational item, second quarter operational results were $0.25 per diluted share. A complete reconciliation of reported earnings to operational earnings is included in today’s press release. A more comprehensive reconciliation is available on the Company’s website at www.regiscorp.com

On January 7, 2011, the Company reported that revenues for the second quarter ended December 31, 2010 decreased 0.2 percent to $574 million, with second quarter total same-store sales declining 1.3 percent.

"Over the last several quarters we have seen improvement in customer visitation trends. However, business remains challenging and we were disappointed with our second quarter results. October started off positive, but a soft November and challenging weather in December resulted in lower than planned same-store sales,” commented Paul D. Finkelstein, Chairman and Chief Executive Officer. "Our primary focus remains on our initiatives to increase revenue and we continue to expect visitation trends to improve. While it is difficult to predict exactly when customer visitation patterns will completely anniversary and stabilize, we believe same-store sales in the second half of our current fiscal year should improve over the first half of the year. We are still comfortable with previously discussed fiscal 2011 same-store sales and EBITDA ranges. However, we now expect to be closer to the low end of both the same-store sales range of negative one percent to positive two percent and the EBITDA range of $235 million to $270 million.”

Mr. Finkelstein concluded, "Regis is a great business that provides consumers an affordable necessity. We have exceptional national and regional brands, and our portfolio consists of affordably priced salons located in prime retail locations. With a four percent market share in North America and a two percent share worldwide, we see no ceiling with respect to our growth opportunities. We believe that customer visits will stabilize and in the meantime we remain focused on executing our business plan and on positioning the Company for future growth. We are very confident in Regis’ future prospects and in our ability to generate significant long-term value for our shareholders.”

As of December 31, 2010 Regis Corporation owned, franchised, or held ownership interest in 12,744 worldwide locations.

Regis Corporation will host a conference call discussing second quarter results today, January 26, 2011 at 10 a.m., Central time. Interested parties are invited to listen by logging on to www.regiscorp.com or dialing 800-762-8779. A replay of the call will be available later that day. The replay phone number is 800-406-7325, access code 4393525#.

About Regis Corporation

Regis Corporation (NYSE:RGS) is the beauty industry’s global leader in beauty salons, hair restoration centers and cosmetology education. As of December 31, 2010, the Company owned, franchised or held ownership interests in over 12,700 worldwide locations. Regis’ corporate and franchised locations operate under concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle, Cost Cutters, Cool Cuts 4 Kids and Hair Club for Men and Women. In addition, Regis maintains an ownership interest in Provalliance, which operates salons primarily in Europe, under the brands of Jean Louis David, Franck Provost and Saint Algue. Regis also maintains ownership interests in Empire Education Group in the U.S. and the MY Style concepts in Japan. System-wide, these and other concepts are located in the U.S. and in over 30 other countries in North America, South America, Europe, Africa and Asia. For additional information about the company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com. To join Regis Corporation’s email alert list, click on this link:

http://www.b2i.us/irpass.asp?BzID=913&to=ea&Nav=1&S=0&L=1

This press release contains "forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward–looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may,” "believe,” "project,” ”forecast,” "expect,” "estimate,” "anticipate” and "plan.” In addition, the following factors could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include the results and impact of the Company’s announcement to explore strategic alternatives; competition within the personal hair care industry, which remains strong, both domestically and internationally; price sensitivity; changes in economic conditions, and in particular, continued weakness in the U.S. and global economies; changes in consumer tastes and fashion trends; the ability of the Company to implement its planned spending and cost reduction plan and to continue to maintain compliance with the financial covenants in its credit agreements; labor and benefit costs; legal claims; risk inherent to international development (including currency fluctuations); the continued ability of the Company and its franchisees to obtain suitable locations and financing for new salon development and to maintain satisfactory relationships with landlords and other licensors with respect to existing locations; governmental initiatives such as minimum wage rates, taxes and possible franchise legislation; the ability of the Company to successfully identify, acquire and integrate salons that support its growth objectives; the ability of the Company to maintain satisfactory relationships with suppliers; or other factors not listed above. The ability of the Company to meet its expected revenue target is dependent on salon acquisitions, new salon construction and same-store sales increases, all of which are affected by many of the aforementioned risks. Additional information concerning potential factors that could affect future financial results is set forth in the Company’s Annual Report on Form 10-K for the year ended June 30, 2010. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.

REGIS CORPORATION (NYSE: RGS)
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
as of December 31, 2010 and June 30, 2010
(In thousands, except per share data)
			December 31, 2010				June 30, 2010
ASSETS
Current assets:
Cash and cash equivalents			$	174,290			$	151,871
Receivables, net				29,277				24,312
Inventories				160,497				153,380
Deferred income taxes				16,863				16,892
Income tax receivable				24,632				46,207
Other current assets				29,951				36,203
Total current assets				435,510				428,865
Property and equipment, net				351,159				359,250
Goodwill				745,676				736,989
Other intangibles, net				114,568				118,070
Investment in and loans to affiliates				203,340				195,786
Other assets				88,279				80,612
Total assets			$	1,938,532			$	1,919,572
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Long-term debt, current portion			$	32,700			$	51,629
Accounts payable				53,883				57,683
Accrued expenses				155,671				160,797
Total current liabilities				242,254				270,109
Long-term debt and capital lease obligations				371,445				388,400
Other noncurrent liabilities				259,713				247,770
Total liabilities				873,412				906,279
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.05 par value; issued and outstanding 57,617,211 and
57,561,180 common shares at December 31, 2010 and June 30, 2010,
respectively				2,881				2,878
Additional paid-in capital				338,514				332,372
Accumulated other comprehensive income				64,489				47,032
Retained earnings				659,236				631,011
Total shareholders’ equity				1,065,120				1,013,293
Total liabilities and shareholders’ equity			$	1,938,532			$	1,919,572

REGIS CORPORATION (NYSE: RGS)
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(In thousands, except per share data)
		Three Months Ended											Six Months Ended
		December 31,											December 31,
			2010				2009						2010					2009
Revenues:
Service			$	430,939			$		435,125				$	870,468				$	884,403
Product			133,824				130,671						262,429					256,862
Product sold to Premier (1)			?				?						?					19,962
Royalties and fees			9,609				9,569						19,720					19,688
			574,372				575,365						1,152,617					1,180,915
Operating expenses:
Cost of service			249,705				248,812						499,206					504,781
Cost of product			63,926				62,420						125,001					121,953
Cost of product sold to Premier (1)			?				?						?					19,962
Site operating expenses			50,597				46,409						99,606					99,085
General and administrative			75,848				72,611						149,922					145,171
Rent			85,235				85,540						170,343					171,390
Depreciation and amortization			26,197				27,510						52,241					54,701
Lease termination costs			?				?						?					3,552
Total operating expenses			551,508				543,302						1,096,319					1,120,595
Operating income			22,864				32,063						56,298					60,320
Other income (expense):
Interest expense			(8,738		)		(9,069			)			(17,661			)		(36,385			)
Interest income and other, net			2,604				1,411						3,381					3,643
Income from continuing operations before income taxes
and equity in income of affiliated companies			16,730				24,405						42,018					27,578
Income taxes			(5,345		)		(8,908			)			(14,992			)		(10,527			)
Equity in income of affiliated companies, net of income
taxes			3,120				2,657						5,799					5,714
Income from continuing operations			$	14,505			$		18,154				$	32,825				$	22,765
Income from discontinued operations, net of tax			?				?						—					3,161
Net income			$	14,505			$		18,154				$		32,825			$	25,926
Net income per share:
Basic:
Income from continuing operations			0.26				0.32						0.58					0.41
Income from discontinued operations			?				?						—					0.06
Net income per share, basic (2)			$	0.26			$	0.32					$	0.58				$	0.47
Diluted:
Income from continuing operations			0.24				0.30						0.54					0.40
Income from discontinued operations			?				?						—					0.05
Net income per share, diluted (2)			$	0.24			$	0.30					$	0.54				$	0.45
Weighted average common and common equivalent shares
outstanding:
Basic			56,684				56,287						56,657					55,215
Diluted			68,136				67,570						68,053					65,615
Cash dividends declared per common share			$	0.04			$	0.04					$	0.08				$	0.08

		(1) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis Corporation on February 16, 2009. The agreement included a provision that Regis Corporation would supply product to Premier at cost for a transition period. The agreement was substantially complete as of September 30, 2009.
		(2) Total is a recalculation; line items calculated individually may not sum to total due to rounding.

REGIS CORPORATION (NYSE: RGS)
SELECTED CASH FLOW DATA
(In thousands)
							Six Months Ended
							December 31,
							2010					2009
Net cash provided by operating activities							$	102,833					$	77,321
Net cash used in investing activities							(38,750		)			(8,899			)
Net cash used in financing activities							(46,433		)			(1,975			)
Effect of exchange rate changes on cash and cash equivalents							4,769					5,499
Increase in cash and cash equivalents							22,419					71,946
Cash and cash equivalents:
Beginning of year							151,871					42,538
End of year							$	174,290				$	,8	114,484

REGIS CORPORATION (NYSE: RGS)
Salon / Hair Restoration Center Counts and Revenues
									December 31,				June 30,
SYSTEM-WIDE LOCATIONS:									2010				2010
Company-owned salons									7,924				7,909
Franchise salons									1,974				2,020
Company-owned hair restoration centers									64				62
Franchise hair restoration centers									32				33
Ownership interest locations									2,750				2,704
Total, system-wide									12,744				12,728
SALON LOCATION SUMMARY
									December 31,				June 30,
NORTH AMERICAN SALONS:									2010				2010
REGIS SALONS
Open at beginning of period									1,049				1,071
Salons constructed									7				14
Acquired									9				3
Less relocations									(6	)			(11	)
Salon openings									10				6
Conversions									?				?
Salons closed									(16	)			(28	)
Total, Regis Salons									1,043				1,049
MASTERCUTS
Open at beginning of period									600				602
Salons constructed									3				15
Acquired									?				?
Less relocations									(3	)			(7	)
Salon openings									?				8
Conversions									?				?
Salons closed									(4	)			(10	)
Total, MasterCuts Salons									596				600
SMARTSTYLE/COST CUTTERS IN WAL-MART
Company-owned salons:
Open at beginning of period									2,374				2,300
Salons constructed									45				80
Acquired									?				?
Franchise buybacks									?				5
Less relocations									(1	)			(3	)
Salon openings									44				82
Conversions									?				?
Salons closed									(5	)			(8	)
Total company-owned salons									2,413				2,374
Franchise salons:
Open at beginning of period									119				122
Salons constructed									2				2
Acquired									?				?
Less relocations									?				?
Salon openings									2				2
Conversions									?				?
Franchise buybacks									?				(5	)
Salons closed									(1	)			?
Total franchise salons									120				119
Total, SmartStyle/Cost Cutters in Wal-Mart Salons									2,533				2,493
									December 31,				June 30,
									2010				2010
SUPERCUTS
Company-owned salons:
Open at beginning of period									1,100				1,114
Salons constructed									7				10
Acquired									?				?
Franchise buybacks									31				12
Less relocations									(3	)			(2	)
Salon openings									35				20
Conversions									1				?
Salons closed									(29	)			(34	)
Total company-owned salons									1,107				1,100
Franchise salons:
Open at beginning of period									1,034				1,022
Salons constructed									18				42
Acquired (2)									?				?
Less relocations									(4	)			(6	)
Salon openings									14				36
Conversions									8				9
Franchise buybacks									(31	)			(12	)
Salons closed									(13	)			(21	)
Total franchise salons									1,012				1,034
Total, Supercuts Salons									2,119				2,134
PROMENADE
Company-owned salons:
Open at beginning of period									2,382				2,450
Salons constructed									12				18
Acquired									17				?
Franchise buybacks									1				6
Less relocations									(4	)			(10	)
Salon openings									26				14
Conversions									(1	)			?
Salons closed									(44	)			(82	)
Total company-owned salons									2,363				2,382
Franchise salons:
Open at beginning of period									867				901
Salons constructed									13				34
Acquired									?				?
Less relocations									(5	)			(9	)
Salon openings									8				25
Conversions									(8	)			(9	)
Franchise buybacks									(1	)			(6	)
Salons closed									(24	)			(44	)
Total franchise salons									842				867
Total, Promenade									3,205				3,249
									December 31,				June 30,
									2010				2010
INTERNATIONAL SALONS (1)
Company-owned salons:
Open at beginning of period									404				444
Salons constructed									7				2
Acquired									?				?
Franchise buybacks									?				?
Less relocations									(1	)			?
Salon openings									6				2
Conversions									?				?
Salons closed									(8	)			(42	)
Total, International salons									402				404
TOTAL SYSTEM-WIDE SALONS:
Company-owned salons:
Open at beginning of period									7,909				7,981
Salons constructed									81				139
Acquired									26				3
Franchise buybacks									32				23
Less relocations									(18	)			(33	)
Salon openings									121				132
Conversions									?				?
Salons sold									?				?
Salons closed									(106	)			(204	)
Total company-owned salons									7,924				7,909
Franchise salons:
Open at beginning of period									2,020				2,045
Salons constructed									33				78
Acquired (2)									?				?
Less relocations									(9	)			(15	)
Salon openings									24				63
Conversions									?				?
Franchise buybacks									(32	)			(23	)
Salons sold									?				?
Salons closed									(38	)			(65	)
Total franchise salons									1,974				2,020
Total Salons									9,898				9,929
HAIR RESTORATION CENTERS:
Company-owned hair restoration centers:
Open at beginning of period									62				62
Salons constructed									2				4
Acquired									?				?
Franchise buybacks									1				?
Less relocations									(1	)			(4	)
Salon openings									2				?
Conversions									?				?
Sites closed									?				?
Total company-owned hair restoration centers									64				62
									December 31,				June 30,
									2010				2010
Franchise hair restoration centers:
Open at beginning of period									33				33
Salons constructed									?				?
Acquired									?				?
Less relocations									?				?
Salon openings									?				?
Franchise buybacks									(1	)			?
Sites closed									?				?
Total franchise hair restoration centers									32				33
Total Hair Restoration Centers									96				95
Ownership interest locations									2,750				2,704
Grand Total, System-wide									12,744				12,728

(1) Canadian and Puerto Rican salons are included in the Regis Salons, MasterCuts, Supercuts and Promenade concepts and not included in the International salon totals.

(2) Represents primarily the acquisition of franchise networks.

Relocations represent a transfer of location by the same salon concept.

Conversions represent the transfer of one salon concept to another concept.

REVENUES BY CONCEPT:
				Three Months Ended												Six Months Ended
				December 31,												December 31,
(Dollars in thousands)					2010						2009					2010					2009
North American salons:
Regis					$		108,928				$	108,470				$	216,433				$	219,071
MasterCuts					41,295						41,181					83,335					82,273
SmartStyle					129,671						128,504					262,224					259,778
Supercuts					78,310						76,978					157,633					156,048
Promenade (2)					143,245						144,768					288,757					314,509
Total North American salons					501,449						499,901					1,008,382					1,031,679
International salons					37,077						40,346					72,135					79,145
Hair restoration centers					35,846						35,118					72,100					70,091
Consolidated revenues					$	574,372					$	575,365				$	1,152,617				$	1,180,915
Percent change from prior year					(0.2			)%			(2.1		)%			(2.4		)%			(1.7		)%
Same-store sales decrease (1)					(1.3			)%			(3.7		)%			(1.4		)%			(4.1		)%

(1) Salon same-store sales increases or decreases are calculated on a daily basis as the total change in sales for company-owned salons which were open on a specific day of the week during the current period and the corresponding prior period. Quarterly salon same-store sales are the sum of the same-store sales computed on a daily basis. Salons relocated within a one mile radius are included in same-store sales as they are considered to have been open in the prior period. International same-store sales are calculated in local currencies so that foreign currency fluctuations do not impact the calculation. Management believes that same-store sales, a component of organic growth, are useful in order to help determine the increase in salon revenues attributable to its organic growth (new salon construction and same-store sales growth) versus growth from acquisitions.

(2) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis Corporation on February 16, 2009. The agreement included a provision that Regis Corporation would supply product to Premier at cost for a transition period. For the six months ended December 31, 2009, the Company generated revenue of $20.0 million in product sold to Premier, which represented 1.7 percent of consolidated revenues. The agreement was substantially complete as of September 30, 2009.

FINANCIAL INFORMATION BY SEGMENT:

Financial information concerning the Company’s salon and hair restoration businesses is shown in the following tables.

				For the Three Months Ended December 31, 2010
												Hair
				Salons								Restoration				Unallocated
(Dollars in thousands)				North America				International				Centers				Corporate				Consolidated
Revenues:
Service				$	388,656			$	25,634			$	16,649			$             ?				$	430,939
Product					103,775				11,443				18,606			?					133,824
Royalties and fees					9,018			?					591			?					9,609
					501,449				37,077				35,846			?					574,372
Operating expenses:
Cost of service					226,739				13,314				9,652			?					249,705
Cost of product					51,622				6,266				6,038			?					63,926
Site operating
expenses					46,739				2,593				1,265			?					50,597
General and
administrative					32,485				3,259				8,276				31,828				75,848
Rent					73,454				8,903				2,314				564				85,235
Depreciation and
amortization					17,423				1,161				3,169				4,444				26,197
Total operating
expenses					448,462				35,496				30,714				36,836				551,508
Operating income (loss)					52,987				1,581				5,132				(36,836	)			22,864
Other income (expense):
Interest expense				?				?				?					(8,738	)			(8,738	)
Interest income and
other, net				?				?				?					2,604				2,604
Income (loss) from
continuing operations
before income taxes
and equity in income
of affiliated
companies				$	52,987			$	1,581			$	5,132			$	(42,970	)		$	16,730
				For the Three Months Ended December 31, 2009
												Hair
				Salons								Restoration				Unallocated
(Dollars in thousands)				North America				International				Centers				Corporate				Consolidated
Revenues:
Service				$	390,318			$	28,366			$	16,441			$             ?				$	435,125
Product					100,614				11,980				18,077			?					130,671
Royalties and fees					8,969			?					600			?					9,569
					499,901				40,346				35,118			?					575,365
Operating expenses:
Cost of service					224,952				14,854				9,006			?					248,812
Cost of product					50,828				6,109				5,483			?					62,420
Site operating
expenses					42,298				2,744				1,367			?					46,409
General and
administrative					29,776				3,460				8,794				30,581				72,611
Rent					73,109				9,730				2,235				466				85,540
Depreciation and
amortization					18,131				1,538				3,061				4,780				27,510
Total operating
expenses					439,094				38,435				29,946				35,827				543,302
Operating income (loss)					60,807				1,911				5,172				(35,827	)			32,063
Other income (expense):
Interest expense				?				?				?					(9,069	)			(9,069	)
Interest income and
other, net				?				?				?					1,411				1,411
Income (loss) from
continuing operations
before income taxes
and equity in income
of affiliated
companies				$	60,807			$	1,911			$	5,172			$	(43,485	)		$	24,405
				For the Six Months Ended December 31, 2010
												Hair
				Salons								Restoration				Unallocated
(Dollars in thousands)				North America				International				Centers				Corporate				Consolidated
Revenues:
Service				$	785,977			$	50,997			$	33,494			$	—			$	870,468
Product					203,895				21,138				37,396				—				262,429
Royalties and fees					18,510				—				1,210				—				19,720
					1,008,382				72,135				72,100				—				1,152,617
Operating expenses:
Cost of service					454,036				26,042				19,128				—				499,206
Cost of product					101,355				11,511				12,135				—				125,001
Site operating
expenses					93,068				4,783				1,755				—				99,606
General and
administrative					62,363				6,211				16,855				64,493				149,922
Rent					147,072				17,573				4,578				1,120				170,343
Depreciation and
amortization					34,655				2,248				6,312				9,026				52,241
Total operating
expenses					892,549				68,368				60,763				74,639				1,096,319
Operating income (loss)					115,833				3,767				11,337				(74,639	)			56,298
Other income (expense):
Interest expense					—				—				—				(17,661	)			(17,661	)
Interest income and
other, net					—				—				—				3,381				3,381
Income (loss) from
continuing operations
before income taxes
and equity in income
of affiliated
companies				$	115,833			$	3,767			$	11,337			$	(88,919	)		$	42,018
				For the Six Months Ended December 31, 2009
												Hair
				Salons								Restoration				Unallocated
(Dollars in thousands)				North America				International				Centers				Corporate				Consolidated
Revenues:
Service				$	795,459			$	56,559			$	32,385			$	—			$	884,403
Product					197,802				22,586				36,474			?					256,862
Product sold to
Premier (1)					19,962			?				?				?					19,962
Royalties and fees					18,456				—				1,232				—				19,688
					1,031,679				79,145				70,091				—				1,180,915
Operating expenses:
Cost of service					457,404				29,411				17,966				—				504,781
Cost of product					99,498				11,518				10,937				—				121,953
Cost of product sold
to Premier (1)					19,962			?				?				?					19,962
Site operating
expenses					91,048				5,415				2,622				—				99,085
General and
administrative					57,563				6,295				17,215				64,098				145,171
Rent					146,727				19,134				4,517				1,012				171,390
Depreciation and
amortization					36,051				3,038				6,075				9,537				54,701
Lease termination
costs					—				3,552				—				—				3,552
Total operating
expenses					908,253				78,363				59,332				74,647				1,120,595
Operating income (loss)					123,426				782				10,759				(74,647	)			60,320
Other income (expense):
Interest expense					—				—				—				(36,385	)			(36,385	)
Interest income and
other, net					—				—				—				3,643				3,643
Income (loss) from
continuing operations
before income taxes
and equity in income
of affiliated
companies				$	123,426			$	782			$	10,759			$	(107,389	)		$	27,578

(1) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis Corporation on February 16, 2009. The agreement included a provision that Regis Corporation will supply product to Premier at cost for a transition period. The agreement was substantially complete as of September 30, 2009.

REGIS CORPORATION (NYSE: RGS)

NON-GAAP FINANCIAL MEASURES (Unaudited)

The Company’s press release announcing results of operations for the three month period ended December 31, 2010 includes references to the following "non-GAAP financial measures” as defined by Regulation G of the Securities and Exchange Commission:

-- Second quarter earnings include $0.01 per share of expense related to the Company’s review of strategic alternatives.

-- Absent this non-operational item, second quarter operational results were $0.25 per diluted share.

Non-GAAP Diluted Net Income Per Share

The table below is provided to assist the reader’s understanding of the three month period ending December 31, 2010 earnings. The Company believes that adjusted net income per diluted share from operations, a non-GAAP financial measure, is a useful basis to compare the Company’s results against, because unusual items during the three month period ending December 31, 2010, impacted the Company’s reported net income (see "Adjustments” in table below). The presentation below reconciles as reported net income per diluted share (U.S. GAAP amounts) to adjusted net income per diluted share from operations. The adjusted net income per diluted share information should not be construed as an alternative to reported results under U.S. GAAP.

												Three Months Ended
												December 31, 2010
												(Dollars)
						Diluted net income per share, as reported (U.S. GAAP) (1)						$	0.242
						Adjustments:
						Strategic alternatives (2)							0.011
						Diluted net income per share from operations, adjusted (3)						$	0.254

(1) Diluted earnings per share, as reported for the three months ended December 31, 2010 were calculated under the if-converted method.

(2) The second quarter ending December 31, 2010 included $1.3 million ($0.8 million after-tax) in expenses associated with the Company’s review of strategic alternatives.

(3) Total is a recalculation; line items calculated individually may not sum to total due to rounding.