Revenues for the first nine months of the year were a $154 million compared to a $178 million in the same period of fiscal year 2023. Similar to the second quarter revenue decline, this decline was expected and relates primarily to a reduction in franchise rental income, advertising revenue, and the wind down of our company owned salons, as well as lower product sales to franchisees. Adjusted EBITDA for the first nine months of the year was $18.5 million, a $2.7 million improvement compared to $15.8 million for the same period in fiscal year 2023. Adjusted EBITDA improved primarily due to our lower G&A and rent, partially offset by the $1.1 million grant from the state of North Carolina related to COVID-19 relief received in 2023. Turning to liquidity.
As of March 31st, we had $36.7 million of liquidity, including $30.9 million of available revolver capacity and $5.9 million of cash. At March 31, 2024, our debt outstanding, excluding deferred financing fees, was a $187.8 million. We are in compliance with our debt covenants currently, and we do not expect to violate any of the covenants during the term of our facility. Additionally, we believe we have adequate liquidity to operate the business. As a reminder, due to accounting standards, our balance sheet shows approximately $313 million of operating lease liabilities related to liabilities associated with subleasing salons to our franchisees over the entire life of their respective leases. These liabilities are serviced by our franchisees and should not be factored in Regis’ debt position so long as the franchisees continue to pay their obligations as they have been.
These liabilities have decreased approximately $230 million over the last three years due to the reduction in salon count and also due to Regis moving off of franchise leases. Having our franchisees sign the leases accounted for approximately $95 million of the reduction. Regis is solely responsible for lease liabilities for our corporate office space and the 20 remaining company owned salons, which amounts to $9.7 million over the life of all the leases. In the nine months of the year, we used $7.1 million of cash from operations, which is a $1.3 million improvement from the prior year. Excluding the $1.1 million grant received from the state of North Carolina related to COVID-19 relief in fiscal year 2023, cash used in operations improved by $2.4 million primarily due to our lower cost structure, partially offset by increased interest rates on our bank debt.
In the three months ended March 31st, we used $280,000 of cash from operations, which is a $1.3 million improvement from the prior year three-month period primarily due to our lower cost structure and partially offset by increased interest expense of approximately $700,000 primarily due to the higher variable interest rates on our bank debt. Management remains committed to continued cash management and returning to cash generation. This concludes my prepared remarks. I would like to thank you for your continued support and interest in Regis. I will turn it back to Biz to wrap up the call.
Biz McShane: Thanks, Kersten, and thank you for joining. This will conclude today’s earnings call. If you have any questions about our financial results, please contact Kersten through our investor relations email at investorrelations@regiscorp.com.
