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William Charters

Research Analyst at Sabal Capital Management

William Charters is the Founder and Owner of Sabal Capital Management, specializing in special situations investing with expertise in distressed assets, restructurings, and corporate change events. He has covered companies undergoing strategic shifts, such as CPI Card Group Inc., and focuses on mispriced equities across the capital structure, having managed a portfolio with approximately $150 million in assets. Charters began his investment career as a credit analyst at Bank of America and National City Bank, later becoming Partner and Portfolio Manager at Spring Point Capital Management before establishing Sabal Capital Management in 2010. He holds a CFA charter (since 2004), passed the Certified Insolvency and Restructuring Advisor exams in 2005, and has over twenty years of experience in the investment industry.

William Charters's questions to REGIS (RGS) leadership

William Charters's questions to REGIS (RGS) leadership • Q4 2025

Question

William Charters from Sabal Capital inquired about the specific contributions and future plans of Forum 3 in driving Supercuts' brand transformation and operational improvements, including the financing strategy for the new salon prototype. He also asked about the upside potential and optimal performance timeline for the recently acquired Align salons, and sought clarification on Regis's capital allocation priorities, specifically regarding reinvestment, debt management, and potential strategic acquisitions. Finally, Charters questioned the company's plans for refinancing its debt, considering its maturity, make-whole period, and current interest rate.

Answer

Jim Lain, Interim CEO and President, detailed Forum 3's involvement in modernizing the Supercuts brand through comprehensive research, enhancing omnichannel engagement via loyalty programs and online booking, and improving operational excellence, including the development of a new salon prototype. He noted that prototype financing is under review, with multiple paths possible, and expressed optimism for Align salons' early operational improvements, including a new stylist pay model. Kersten Zupfer, Executive VP and CFO, outlined capital priorities: disciplined debt management, reinvesting in growth, and considering strategic transactions. She also confirmed plans to refinance debt post-make-whole to reduce interest rates, building a stronger financial position.

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William Charters's questions to REGIS (RGS) leadership • Q3 2025

Question

William Charters of Sabal Capital Management asked for clarification on the accounting for the Alline acquisition and its impact on company-owned EBITDA, inquired about the drivers behind the quarterly store count decline, questioned the same-store sales lift from remodels, and sought details on capital allocation priorities for the company's growing cash balance.

Answer

CFO Kersten Zupfer confirmed that the Alline acquisition shifts revenue from franchise royalties to company-owned salon EBITDA. President and CEO Matthew Doctor explained that the modest Q3 Alline contribution was due to integration timing, wage pressures, and weather, with strategic changes implemented at the end of March showing positive April results. He noted store closures are proceeding as expected and will lessen in magnitude, with formal guidance being considered for future quarters. Doctor also mentioned that while remodels have shown a modest 5% lift at SmartStyle, targeted corporate remodels have yielded over 20% sustained price increases, a theory they will explore further. Regarding capital, he prioritized contractually obligated debt paydown, maintaining liquidity, and then funding high-ROI internal growth initiatives, ruling out broad franchisee acquisitions for now.

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William Charters's questions to REGIS (RGS) leadership • Q3 2025

Question

The analyst inquired about the accounting and financial performance of the recent Alline acquisition, the pace of store closures and future guidance, the sales impact of store remodels, and the company's capital allocation strategy for its growing cash balance.

Answer

The executives confirmed the accounting treatment for the Alline acquisition, explaining that lower royalty revenue is offset by higher company-owned salon EBITDA. The modest initial contribution from Alline was attributed to integration timing, seasonal weakness, and wage pressures, with improvements seen after strategic changes were implemented. They reiterated that store closures are proceeding as expected and will slow down, and that formal guidance is being considered for a future quarter. Store remodels have shown a modest lift, with more significant potential being explored. Capital allocation priorities are debt paydown, maintaining liquidity, and reinvesting in strategic initiatives, with no plans for further large-scale acquisitions.

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