William Charters supports Regis Corporation (RGS) for Board's Shareholder-Friendly Resolution and Strategic Initiatives
Key Summary: On January 9, 2024, William Charters, Stephen Salvadore, and Gary Wyetzner (7.6%) criticized the company's mismanagement, requested two board seats, and urged cost-cutting over raising capital. By July 2024, they praised the board and management for adopting their suggestions and resolving their concerns, leading them to dissolve their reporting group holding 8% of the shares and fully support the Company. On Dec 28, 2023, Galloway Capital expressed concern over stock performance, suggested adding board candidates, and emphasized alignment for shareholder value. Believes company undervalued by 5-10x.Market Cap: $51 million | Regis Corporation owns and franchises hair care salons in North America. The company operates through two segments, Franchise Salons and Company-Owned Salons.
William Charters
On January 9, 2024, William Charters together with Stephen Salvadore and Gary Wyetzner (7.6%) issued a letter to the Chairman of the Board expressing concerns about the company's mismanagement and the need for new leadership and governance. They requested two board seats to bring in skills and representation for shareholders. They criticized the company's announcement of evaluating strategic alternatives, suggesting that cost-cutting should be prioritized over raising capital. They believed that cost reductions can significantly improve earnings and that the current board and CEO have overseen a substantial decline in the company's market value. They advocate for board changes to facilitate a successful turnaround.
On July 18, 2024, William Charters together with Stephen Salvadore and Gary Wyetzner congratulated the board and management for their shareholder-friendly resolution regarding the strategic alternatives initiative and expressed satisfaction that their suggestions were reflected in the new strategy. They noted that with a strong balance sheet and focused leadership, the Company was well-positioned to create significant shareholder value. With their financial concerns addressed, they had dissolved their reporting group holding 8% of the shares and expressed full support for the Company and its leadership. Source
Galloway Capital Partners
On December 28, 2023, Galloway Capital Partners (4.9%) delivered a letter to the company's Chairman and CEO expressing disappointment in declining stock performance and offered support to enhance shareholder value. It suggested that the company could increase revenue by offering ancillary services and products similar to its competitor, Hair Cuttery Salons and proposed adding two candidates to the Board with public company experience. Galloway emphasized its alignment with the company's interests and its commitment to improving shareholder value without dilution.
Valuation Insight
"We believe the Company is solidly profitable at $30MM EBITDA and off to a very good start. While management has done a very good job in cutting costs and converting to a franchise system, this is certainly not reflected in the stock price. We believe the Company’s stock is undervalued by 5-10x"