Regis and Starboard are Mars and Venus

Regis Corp. President Randy Pearce didn't have a whole lot to say about Starboard Value LP during Thursday's conference call to discuss fourth-quarter earnings. The New York-based hedge fund, which recently bought a 4.4 percent stake in Regis, is trying to force the company to cut costs and is nominating three people to Regis' board of directors.

But what Pearce did say suggests Regis and Starboard are galaxies apart on strategy and priorities.

The Edina-based hair care company, which operates more than 12,700 salons under such brands as Supercuts, MasterCuts and Regis, lost $16.4 million, or 29 cents a share, in the fourth quarter compared to a profit of $18.3 million or 30 cents per share a year earlier.

Sales at stores open for at least a year dropped 3.6 percent for the quarter, as total sales inched up less than 1 percent to $592 million. Regis expects same-store sales in 2012 to range from a dip of 1 percent to a gain of 1 percent.

Starboard officials, who monitored the call, declined to comment.

For the year, Regis lost $8.9 million, or 16 cents a share, on sales of $2.3 billion. The shares closed Thursday at $14.05, down 24 cents or 1.68 percent.

Here's the breakdown on what could be a contentious proxy battle between the company and its new minority investor.

What Regis is doing: Although Regis executives say they are committed to reducing costs, Pearce told analysts Thursday that the company's No. 1 priority is to increase customer visits. To do this, Pearce said Regis has experimented with some promising "promotional activities," though he declined to specify them.

"It's all about bringing people to the stores," Pearce told analysts. "We are looking to take share."

In addition, Regis announced it will purchase a new point-of-sale software system for all of its company-owned salons. As a result, the company plans to take a $20 million pretax nonoperational charge in the first half of fiscal 2012.

What Starboard wants: Sell off noncore assets, including Hair Club for Men and Women, 400 international salons, and minority stakes in Provalliance, which owns 2,760 salons in Europe, and Empire Education Group, a chain of cosmetology schools in the United States. Starboard singled out Hair Club, a profitable business that it says has little synergy with Regis, as an attractive acquisition target.

What Regis is doing: Pearce gave no indication that Regis was thinking of selling any of these assets. He did acknowledge its salons in London are struggling. The company said it would close up to 80 underperforming stores in that market.

What Starboard wants: The hedge fund says the board needs to immediately take action.

"We recognize that these changes are not easy and will require tremendous focus and attention by management and the board," Starboard said in a letter to Regis executives.

What Regis is doing: Regis says it needs time for its strategies to work.

"We know we are doing the right things," Pearce said. "It will take a long time to see these benefits realized. Maybe a year or two."