Good morning and thank you for joining the Regis Third Quarter 2022 Earnings Release Conference Call. All participants are in a listen-only mode. The prepared remarks by newly appointed President and Chief Executive Officer, Matthew Doctor, and Executive Vice President and Chief Financial Officer, Kersten Zupfer, are accompanied by slides to help participants. After the prepared remarks, we will have time for questions. Please use the chat feature or the 'Raise your hand' feature to ask a question. Also joining Matt and Kersten on this call is Jim Lain, our Chief Operations Officer. As a reminder, 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 applies to our comments made on the call today. These documents, along with our presentation today, can be found on our website at www.regiscorp.com/investor-relations, along with a reconciliation of any non-GAAP financial measures mentioned on today's call with their corresponding GAAP measures. Today's slides are located in the supplemental financial section of the investor site. With that, I will now turn the call over to Matt.

Thanks, Biz. And good morning, everyone. Today, I will walk you through highlights of our third-quarter results and the status of some of the key initiatives we highlighted on the last call, as well as how we are refining our priorities and areas of focus. Kersten will cover our results in more detail, in addition to addressing a few one-time items, as there continues to be some noise in our reported results as we work through the shift in our business model. Our third-quarter same-store sales and adjusted EBITDA improved year-over-year. Total adjusted EBITDA came in around break-even for the quarter, and franchise EBITDA, which represents a proxy of our go-forward business model, was positive compared to a loss in the prior year and positive for the second consecutive quarter. As sales remained well below pre-COVID-19 levels, the organizational moves we have made to streamline our G&A have helped mitigate losses during this period of slower-than-expected sales recovery. As our legacy businesses continue to wind down and sales eventually improve, we will benefit as our G&A remains largely fixed. While our results reflect progress on the path to profitability, they remain below where we want them to be. There were several factors during the quarter that affected our results, some one-time and some related to ongoing issues. The Omicron variant had an impact on sales throughout the quarter, as we had articulated that it would on our last call. In addition, several themes continued to affect our business as we drive towards recovery. Our sales continue to be challenged by labor issues, with active stylists and stylist hours remaining significantly below pre-COVID-19 levels. The labor shortage translates to an outsized effect on our results, given the specialized labor pool and the fact that stylists are the direct link to our revenue-generating capabilities. Lower customer counts due to remote work and longer haircut cycles continued to impact our sales as well. I want to be very clear that even though we have made progress towards mitigating losses, we need to grow the business. We know our sales levels are not close to where they need to be, and as we go forward, it is critical that we start making meaningful strides in this area, as this is a key driver for the health of our business. In addition to the stylist shortage and lower customer counts impacting sales, our business model shift is also affecting near-term profitability as we continue to wind down our legacy businesses. Our transition away from our wholesale product distribution business and remaining company-owned salons has been an EBITDA drag. For reference, these businesses impacted our adjusted EBITDA by contributing a loss of $4 million during the quarter and a loss of $13 million year-to-date. During the third quarter, we have taken steps to ensure we will be out of the product distribution business at the beginning of fiscal 2023. And while progress continues to be made, we still have work to do. By fully winding down product distribution and continuing to run off company-owned salons, the effect on our EBITDA will be minimized, and we will be able to squarely shift our focus to the core business. Now, while I mentioned being disappointed with where we are and not at all surprised that our third-quarter results landed where they did, our results reflect the fact that we have not yet implemented the initiatives we know are needed to improve our performance across tiers of the business. Let us turn to what those initiatives are. I've been in this seat for four months now, and I want to help you understand some of the work we've been underway that will improve our performance. On our Q2 call, we had articulated priorities for the balance of the year, split between Regis-specific and Regis-brand initiatives. Right off the bat, we took action to tackle our top Regis-specific priority, which is addressing our maturing revolving credit facility. Last quarter, we mentioned that we are working with our advisors to seek out new sources of capital with the goal of refinancing. I think we had the least amount of words dedicated to the largest priority, but I hope you can all appreciate that this is by design. The reality is there is only so much we can say here, given we're in the midst of identifying the appropriate solution. However, I want to make it clear that this continues to be our most important business priority. And our efforts around evaluating our capital structure is not something that is just beginning; rather, it has been underway for several months. I also want to emphasize that we're keeping the go-forward plans for Regis and shareholder value top of mind as we drive towards a financing solution. Turning to our company-owned salons, we reduced the number of company-owned salons to 117 over the next two years. As far as initiatives relating to our partnerships and relationships with our franchisees go, this is critical to our effort. The best strategy will fall flat without their trust, and we felt they needed to be heard and involved in shaping our areas of focus as it relates to the critical areas of the business, especially stylist recruiting and retention, and customer traffic. It is critically important for us to gain shared alignment and ensure that we are on the same side of the table, especially as we'll be executing on these plans together. We want to hear from our franchisees firsthand to get a sense of what's happening on the ground level, test some hypotheses, and capture areas of opportunity that may not fully be on our radar. Four days after our last earnings call, we did something that has not been done at Regis in the past. Thirteen of us, including the entire leadership team and the functional department heads, embarked on a five-city tour visiting Orlando, Dallas, Los Angeles, Philadelphia, and Minneapolis to meet with our franchisees. We did not present but instead hosted intimate round-table discussions so everyone could provide feedback and everyone could be heard. Across those five cities, we met with over 220 franchisees representing more than 3,200 of our US salons. We held 110 of these round table discussions that resulted in many learnings, which we have taken into account in our action planning. This connection and communication with our franchisees will be fundamental to our business and ongoing behavior as our involvement will be key in improving our collective performance. To further these efforts, we are in the beginning stages of setting up priority-specific committees, and we will be making our way to Canada in June. We wrapped up the US franchisee visits in mid-March, and since then, we've been working diligently on the action steps we will be taking. We are pushing ourselves as an organization to focus on the most meaningful drivers of our business. At our business core, we need three things: trained stylists, satisfied customers, and the ability for stylists and customers to seamlessly interact with our brands through technology. We laid out our priorities relating to this during our last call. We have refined our focus even more on the yields of discussions with our franchisees in further deliberation by the leadership team. We are seeking to identify the root cause of our current business challenges and have arrived at three major initiatives related to technology, stylist recruiting and retention, and customer traffic: 1. Ensuring our franchisee base is on a single technology platform, 2. Increasing our commitment to stylist education and events to drive our talent brand and improve recruiting and retention, and 3. Refocusing on more marketing, particularly more digital direct marketing efforts. Let me address each of these a bit more. On the technology front, just as being in lockstep with our franchisees is critical to our success, so is the right technology. The reality is, we're in a situation right now with our franchisee base being split between two platforms: the Legacy Pro Point and our new Opensalon PRO point-of-sale systems. While it's not uncommon to have this dynamic, what makes this a little more complex is we are in the middle of winding down a legacy system and ramping up a new one that candidly needs to improve its functionality to ensure that it is a platform we can fully stand by. We are taking the necessary steps to provide our franchisees with the right solution for their businesses, and our goal is to have the system on a single point-of-sale system by the end of the calendar year. There will be more to come on this effort, and I look forward to keeping you all updated. On stylist recruiting and retention, we look at this through the lens of what can we do as a franchise to achieve the most impact. We have an AI recruitment tool that we have rolled out to help franchisees process stylist applications, and this has been a fantastic tool for our franchisees to aid in the process. However, it does not fill the applicant funnel nor does it address retention. For that, we need to better articulate our value proposition for franchise salon employees and define why the Regis salon brands are a great place to work. To address this, we are increasing our commitment to in-person stylist education and re-launching national and regional stylist events. We know from our research and conversations with stylists and franchisees just how much this matters not only to stylists coming out of beauty schools looking to learn but also experienced stylists who are continually seeking to advance their craft. While having a strong digital platform for education has been a great development, it cannot replace the importance of in-person training and events. Furthering education allows stylists to uphold our brand promises of delivering quality, consistent hair services. It also addresses the top two purchasing criteria that matter to consumers, which are receiving a quality haircut and feeling that their stylist is trained and knowledgeable. All aspects of this initiative touch all facets of our business, and as a franchisor in the hair care space, this can be a major differentiator at scale versus our competitors. We are in the people business, and what better way to invest in people than by providing the best-in-class education platform with a large network of in-house educators, complemented by the largest network of trained trainers, and a top-notch digital platform. Our education trip will go beyond technical education; it will also include manager training and soft skills development. We aspire to be the landing spot not only for stylists right out of school but also for experienced stylists. While recruiting is key, retaining top stylists and trainers is deeply important. We will be re-launching national and regional stylist recognition events to create excitement, drive engagement, and build community to improve retention. Through our current salon data, we can see just how much this matters to performance. As salons where stylist hours are down less than 20% versus 2019 levels have outperformed those that are down by more than 20% by 25 percentage points on a same-store sales basis in the third quarter. We are excited to launch a revamped approach to education for all our brands, and we are equally excited about the ability to bring these initiatives to life through marketing campaigns worth promoting, as they will form the basis of future marketing initiatives in a very authentic manner. Transitioning to marketing, we plan to refocus our efforts to engage both the stylist community and consumers where they are, with a stronger focus on digital marketing. Our customers and stylists are engaging with social media and digital channels more than ever, and we need to build our presence and connect in a meaningful way. We will work to build stickiness and loyalty to our brands through direct marketing initiatives powered through CRM and branded loyalty programs. We have solid traffic coming through our salons, which is a great starting point to create repeat business. We see in the data that effective customer retention works and it is worth an area of our focus. Our system right now is roughly split 50/50 between the salons that have greater than 40% 90-day customer retention and those that are lower than 40% 90-day retention. For Q3, salons with 40% or more 90-day customer retention had 12.5 percentage points better same-store sales versus those under 40%. Moving to a more digital and direct focus enables us to be more agile with the use of our ad fund dollars to address those stylist and customer retention efforts, as well as new customer growth. I expect that our marketing technology teams will be working more closely together to build the digital marketing function that can help to return us to growth. While these may look like three distinct work streams, they are all interconnected in driving results. Efforts around hiring and retaining stylists ensure the ability to generate salon sales and provide consistent quality hair services. Tenured, trained stylists combined with direct marketing will help drive customer retention and new traffic. Technology will continue to build loyalty and engagement with our brands before, during, and after each salon visit. Before turning the call over to Kersten, I want to set the stage on expectations regarding the timing of implementation of these priorities. Given that they are major shifts and foundational in nature, we're currently laying the groundwork and expect to launch these items by the end of fiscal 2022 and early FY2023. I have always been confident in our priorities, but I have even more conviction now that they've been shaped with feedback from our franchisee partners. The measures we have underway combined with our fully franchised business model have the ability to lead to stronger profitability collectively for our franchisees and for Regis going forward. I will now turn the call over to Kersten to provide more detail on our Q2 results.

Thanks, Matt. And good morning. Yesterday, we reported on a consolidated basis third-quarter revenues that reflect our transition to a fully franchised business model and the continuing challenges across both customer traffic and the labor market. Total revenues of $65 million declined from $36 million from the prior year as expected due to 98% of our salons now franchised compared to 87% in the prior year, and the transition away from our product distribution business. These business changes caused revenue to decline by $41 million, offset by $5 million of improved royalty and advertising revenue. Third-quarter royalty revenues were below our expectations and reflected the impact from continued labor shortages and the persistence of the pandemic, including the Omicron variant that impacted our results in the quarter. Same-store sales growth was 9% in the quarter compared to Q3 2021, but still lagging behind pre-COVID-19 levels. As Matt noted, addressing labor issues and engaging customers through digital marketing are our priorities that will address revenue growth. While Matt addressed our headline EBITDA figures earlier, I want to put into context the results in progress compared to last year. On an adjusted basis, the third-quarter consolidated Adjusted EBITDA was essentially break-even compared to a loss of $20 million in the prior year's quarter. Adjusted EBITDA improved due to higher system-wide sales and management's efforts to lower our cost structure. On a year-to-date basis, the adjusted EBITDA loss of $4 million is an improvement of $52 million from a loss of $56 million in the fiscal 2021 nine-month period. Our core franchise business achieved adjusted EBITDA of $3 million, which is a $10 million improvement compared to a loss of $7 million in the prior year. This is the second quarter in a row that our core business has been profitable. This improvement is driven primarily by higher system-wide sales and the right-sizing of our G&A structure over the last year. Compared to the second quarter of fiscal year 2022, franchise adjusted EBITDA declined. But as I mentioned on the last call, there were some one-time benefits in Q2 that did not occur this quarter. Adjusting Q2 for the one-time benefits of $3 million, the third quarter improved by $0.5 million compared to Q2. The company-owned segment recorded an adjusted EBITDA loss of approximately $3 million, including a charge to increase the inventory reserve by approximately $1 million, which is a $10 million improvement in adjusted EBITDA for the same period last year. The improvement is primarily related to having fewer company-owned salons in the current period, and we expect losses associated with the company-owned segment to mitigate as we continue to reduce the number of remaining locations. We reported an operating loss of $25 million during the quarter, which includes two non-cash impairment charges related to goodwill and inventory totaling to $23 million. Excluding these non-cash impairment charges, our reported operating loss was $2 million, a $17 million improvement when compared to an operating loss of $19 million in the prior year. As Matt noted, the transition away from product distribution has taken longer than expected, and the inventory write-down resulted from an accelerated inventory reduction plan initiated during the quarter. We don't expect any future material inventory write-downs as we plan to monetize the remaining inventory in the next four to five months. Additionally, the company-owned segment, with 117 salons remaining, reported operating losses of approximately $4 million, which includes approximately $1 million of inventory reserve noted above. Excluding non-cash impairments, the year-over-year improvement results from an increase in system-wide sales, our G&A savings initiatives, and the wind-down of our company-owned salons. Our adjusted G&A for the quarter was $15 million, which was lower than our expected run rate due to personnel vacancies and the timing of professional fees. On a run-rate basis, we continue to believe our end-state run rate G&A will be in the range of $65 million to $70 million annually, likely at the low end of that range. Turning to liquidity, as of March 31st, we had $128 million of liquidity, including $82 million of available revolver capacity and $26 million of cash. Our net available liquidity as of March 31st was $53 million, which reflects our minimum liquidity covenant requirements and the permitted add-back of the shortfall in certain re-franchising proceeds in accordance with our credit agreement. In the third quarter, we used $10 million of cash from operations, which is a $2 million improvement compared to our cash use in the second quarter, and a $4 million improvement from Q3 of 2021. Adjusting both the second and third fiscal quarters for one-time cash outflows in each quarter, our cash use in operations was approximately $7 million in each quarter. Even at this rate of cash use, we still have ample liquidity, and we expect our cash use in operations to continue to decline as sales and customer traffic improve. As Matt mentioned, we have been working with an outside advisor to find alternative financing arrangements to address our revolving credit facilities’ maturity date of March 2023. Be assured that addressing the revolving credit facility continues to be a top priority. But in the meantime, we have sufficient liquidity to navigate our recovery and operate as a pure asset-light franchisor. This concludes my prepared remarks. I'd like to thank you for your continued support and interest in Regis. And I will turn the call back to Biz, who will lead us through the Q&A.

Thank you, Kersten. As a reminder, please use the raise your hand feature or the Question-and-Answer feature to ask a question. Our first question is from Grace Menk with Jefferies. Please remember to unmute Grace before you ask your question.

Thanks Biz. Hi, good morning and thank you for the question, and congratulations on the appointment Matthew. Starting out, I was just wondering if you could talk about the 9% same-store sales trends that you're seeing. How did those vary by region and concept? And are you still seeing any capacity constraints in any regions?

Hey, Grace this is Matt, I appreciate the congratulations and thank you for the question. In terms of regions, we’ve observed that the areas most impacted by pandemic restrictions are still lagging behind, while those with fewer restrictions are performing better. This trend has been consistent since the pandemic and remains true today. Regarding brands, we have detailed insights on how each brand is doing. Our Supercuts brand appears to be outperforming others, while SmartStyle is slightly behind due to its connection to Walmart, where traffic has decreased. However, we have several initiatives in place to improve that business. That's the overall situation we are experiencing, with things gradually improving as we progress through the year.

Thanks, that's helpful. And then on the capacity constraints in any regions.

No, really, there are no capacity restraints from government or local restrictions impacting our salons at this point.

Great. And then, my next question, I was hoping we could dig a little deeper into the lower customer counts that you're seeing impacted by those longer cycles. It's kind of a three-part question: Is this trend indicative of the new normal that you foresee following the pandemic, or do you expect that it will return to pre-pandemic levels as socialization continues to normalize? Do you see any impact from inflation affecting the frequency of return? And what levers do you have to help mitigate the impact of that on results?

Yeah, absolutely. I appreciate the question. In terms of the trend and foreseeing it normalize, there's speculation as to what's going to happen and if people will move back. What I will say is from survey results that we've seen, there is a desire at some point, when socialization happens and people are back in offices, to return to the salon and have their hair cut by professional trained individuals. So it's probably not so much of an 'if'; I think it's more of a matter of 'when', and to speculate on that timing would be uncertain, but some of the data points to that being the case. In terms of inflation and how it affects frequency of return, regardless of what's going on, there's so much opportunity we have, even if there are longer haircut cycles. There is still good traffic that comes through our salons for one reason or another, and I believe we have a strong opportunity in the short term to do a better job of retaining them. So regardless of a customer lagging a little bit and extending their cycles, we do have folks visiting our salons. Our focus is to mitigate that by giving customers a reason to come back more frequently. That's why initiatives like CRM direct marketing and hiring efforts for stylists are key to ensure service availability. These efforts can impact near and medium-term traffic, helping bridge the gap to eventually seeking new customers. We have a great opportunity from our current operations that will help in the meantime and we can build on that for future growth.

That's really helpful. Thank you! This actually segues into my last question, which is just on the tech platform rollout and what kind of feedback you're receiving from the salons who are adopting it already. Thank you.

Yeah, as I mentioned, this is a significant initiative, and I want to be aware of how we discuss technology given its importance. Currently, we have legacy solutions and new solutions where we need to be. We've spoken a lot about OSP in the past and its capabilities, but I'd rather start discussing it again when we can be clear about its functionalities. As I mentioned, we will continue to work on improving the functionality as appropriate, and I want to come back to this topic in more detail when we are ready to ramp adoption back up, and clarify what that full solution looks like.

Very helpful. Thank you.

Thank you.

Thank you, Grace. We've had a couple of questions about sales come through the chat feature. The first question is regarding January sales, which were impacted by Omicron. How does that compare to more recent months?

Yeah. So January was super impacted. Since then, we have seen sales through the quarter and beyond improve. However, the same issues do continue to hold, which is why I emphasize the urgency of our initiatives, which are critical to address these matters. We are encouraged that these initiatives will prove effective in tackling the challenges we face today, due to the tight labor market and focus on retaining customers. They are also foundational for success in future periods. So we view the steps we are taking as vital not just for the present, but also for sustaining growth long-term, regardless of the market conditions.

Thank you. The next question asks: As a consumer business, please comment on your plans for press releases, social media activity, and initiatives in that area.

Absolutely. I appreciate the question. I will reiterate our opportunities in marketing. We have a significant chance to shift our focus towards digital and social media. A theme you'll hear from me increasingly is the necessity to meet stylists and consumers where they are, especially in this industry given the cycle times. Our audience is increasingly engaged on these platforms. We aim to build our brands at these levels and increase the volume of content output with relevant, authentic materials. Direct marketing efforts, stylist recruitment, and education investments will all play a role in forming our digital strategy. We also want to enhance our presence and connect meaningfully with our audience on these platforms.

Thank you, Matt. That's it for our questions today. Thank you very much for joining the Regis third-quarter earnings call. We appreciate your interest.