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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED:
SEPTEMBER 30, 1995
-OR-
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File No. 1-5050
ALBERTO-CULVER COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2525 Armitage Avenue
Melrose Park, Illinois 60160
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (708)450-3000
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
Class A Common Stock, par value $.22 per share New York Stock Exchange
Class B Common Stock, par value $.22 per share New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days. YES X NO____
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ ]
The aggregate market value of common stock held by non-affiliates (assuming for
this purpose only that all directors and executive officers are affiliates) on
November 27, 1995 was $259.3 million for Class A Common Stock and $235.5
million for Class B Common Stock.
At November 27, 1995, there were 10,988,506 shares of Class A Common Stock
outstanding and 16,766,240 shares of Class B Common Stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II - Portions of annual report to stockholders for the year
ended September 30, 1995
Part III - Portions of proxy statement and notice of annual meeting
of stockholders on January 25, 1996.
2
PART I
ITEM 1. BUSINESS
BUSINESS SEGMENTS AND GEOGRAPHIC AREA INFORMATION
Alberto-Culver Company and its consolidated subsidiaries (herein referred to
collectively as the "company", unless indicated otherwise) have two principal
business segments. One segment, "Consumer Products" principally includes
developing, manufacturing, distributing and marketing branded consumer products
worldwide and includes the company's Alberto-Culver USA and Alberto-Culver
International business units. This segment also includes products intended for
end use by institutions and industries. The second segment, "Specialty
Distribution - Sally", consists of Sally Beauty Company, a specialty
distributor of professional beauty supplies with 1,494 stores as of September
30, 1995 in the United States, Puerto Rico, the United Kingdom and Japan.
In April 1995, Cederroth International AB, the company's Sweden-based
subsidiary, acquired the Toiletries Division of Molnlycke AB. As a result of
the acquisition, Cederroth has become one of the largest health and beauty care
companies in Scandinavia.
Financial information about business segments and geographic area information
is incorporated herein by reference to the Business Segments and Geographic
Area Information note of "Notes to Consolidated Financial Statements" in the
registrant's annual report to stockholders for the year ended September 30,
1995.
PRODUCTS
The classes of products in the "Consumer Products" business segment include
health and beauty care products and food and household products. Health and
beauty care products accounted for approximately 39%, 39% and 43% of the
company's consolidated net sales for the years ended September 30, 1995, 1994
and 1993, respectively. Food and household products accounted for approximately
10%, 9% and 9% of the company's consolidated net sales for the years ended
September 30, 1995, 1994 and 1993, respectively.
The company's major health and beauty care products in the United States
include the ALBERTO VO5 line of hair care products, TRESemme hair care
products, CONSORT hair sprays, FDS feminine deodorant sprays and the TCB line
of hair care products for the ethnic market.
Food and household products sold in the United States include MRS. DASH
salt-free seasonings, MOLLY McBUTTER dairy sprinkles, SUGARTWIN sugar
substitute, STATIC GUARD anti-static spray, DIAFOODS THICK-IT specialty food
thickener and various institutional food products sold under the MILANI and
SMITHERS trademarks.
The company's consumer products are sold in more than 100 countries. Through
its Cederroth subsidiary, the company manufactures and markets health and
beauty care products throughout Scandanavia and in Spain and Italy. Major
products include SALVEKVICK adhesive bandages, ALBERTO VO5 hair care products,
SAMARIN antacids, SELTIN salt substitute, LACTACYD liquid soap and TOPZ cotton
buds. New products resulting from the Molnlycke acquisition include BLIW liquid
soaps, DATE anti-perspirants and cologne for women, FAMILY FRESH shampoo and
shower products, SUKETTER artificial sweetener, HEMANENT home permanents, HTH
and L300 skin care products and GRUMME TVATTSAPA detergents.
In the United Kingdom, the company markets, among other products, the ALBERTO
VO5 line of hair care products, ALBERTO BALSAM shampoo and conditioner and the
TRESemme line of hair care products. INDOLA professional color bleaches,
shampoos, conditioners and styling products are sold throughout Europe and
other international markets. Other major international markets include Canada,
Mexico, Puerto Rico, Australia, Italy and New Zealand.
- 2 -
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The "Specialty Distribution - Sally" business segment represents the operations
of Sally Beauty Company, Inc. which operates a network of cash-and-carry
professional beauty supply stores. Sally stores provide salon owners,
hairdressers and consumers with an extensive selection of hair care and skin
care products, cosmetics, styling appliances and other beauty items. Sales of
the "Specialty Distribution - Sally" business segment accounted for
approximately 51%, 52% and 48% of the company's consolidated net sales for the
years ended September 30, 1995, 1994 and 1993, respectively.
Many of the company's consumer products are developed in the company's
laboratories. New products introduced by the company are assigned product
managers who guide the products from development to the consumer. The product
managers are responsible for the overall marketing plans for the products and
coordinate advertising, promotion and market research activities.
MARKETING
The company allocates a large portion of its revenues to advertising, promotion
and market research. Net earnings for all periods are materially affected by
advertising, promotion and market research expenditures. These expenditures are
charged to income in the period in which they are incurred. Advertising,
promotion and market research expenditures for the fiscal years ended September
30, 1995, 1994 and 1993 were as follows (in millions):
1995 1994 1993
---- ---- ----
Advertising, promotion and market research $188.0 178.5 172.8
Advertising, promotion, and market research expenditures relating to a new
product will ordinarily constitute a higher percentage of sales than in the
case of a well-established product. There can be no assurance that such
expenditures will result in consumer acceptance and profitability for a
product.
The company regards television as the best medium for its advertising and uses
it to conduct extensive network, spot and cable television advertising
campaigns. The company also advertises through other media such as newspapers,
magazines and radio.
Extensive advertising and promotion are required to build and protect a
product's market position. The company believes there is significant consumer
awareness of its major brands and that such awareness is an important factor in
the company's operating results.
COMPETITION
The markets for the company's branded consumer products are highly competitive
and sensitive to changes in consumer preferences and demands. The company's
competitors range in size from large, highly diversified companies (some of
which have substantially greater financial resources than the company) to
small, specialized producers. The company competes on the basis of product
quality and price and believes that brand loyalty and consumer acceptance are
important factors. The company's markets are characterized by frequent
introductions of competitive products and by the entry of other manufacturers
as new competitors, both typically accompanied by extensive advertising and
promotional campaigns. Such campaigns are often very costly and can
significantly affect sales and earnings of the sponsor and its competitors.
Sally Beauty Company experiences competition from local and regional suppliers,
full service dealers calling directly on salons and retail outlets carrying a
narrow range of professional products.
- 3 -
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DISTRIBUTION IN THE UNITED STATES
Retail health and beauty care products and food and household products are sold
in the United States primarily through the company's sales force of
approximately 80 employees and 70 food brokers calling upon wholesale drug
establishments and retail outlets such as supermarkets, drug stores, mass
merchandisers and variety stores.
Hair care products for the professional trade in the United States are sold by
company sales representatives and brokers to beauty supply outlets and to
beauty distributors who in turn sell to beauty salons, barber shops and beauty
schools.
Specialty food products are sold to institutional users by approximately 105
commissioned sales representatives and 80 food brokers, assisted by 12 regional
managers.
Sally Beauty Company had 1,494 stores located in 46 states, Puerto Rico, the
United Kingdom and Japan at September 30, 1995. Sally's stores are
self-service, cash-and-carry and are primarily located in shopping centers.
Sally operates the world's largest chain of professional beauty supply stores
and as such is a major customer of some of the company's competitors in the
personal care products industry. Sally sells the company's professional hair
care products, but these products represent only a small portion of Sally's
selection of salon brands.
FOREIGN OPERATIONS
Products of the company are sold in more than 100 countries or geographic
regions, primarily through direct sales by subsidiaries, independent
distributors and licensees.
The company's foreign operations are subject to risks inherent in transactions
involving foreign currencies and fluctuating exchange rates.
EMPLOYEES
In its domestic and foreign operations, the company had approximately 9,900
full-time equivalent employees as of September 30, 1995, consisting of 5,700
hourly personnel and 4,200 salaried employees. At September 30, 1994, the
company had approximately 9,300 full-time equivalent employees. The increase
in fiscal year 1995 employees over fiscal year 1994 employees is principally
due to the growth in the number of Sally Beauty Company stores and the
acquisition of Molnlycke Toiletries.
Certain subsidiaries of the company have union contracts covering production,
warehouse, shipping and maintenance personnel. The company considers relations
with its employees to be satisfactory.
REGULATION
The company is subject to the regulations of several federal and state
agencies, including the Federal Food and Drug Administration and the Federal
Trade Commission.
TRADEMARKS AND PATENTS
The company's trademarks, certain of which are material to its business, are
registered or legally protected in the United States, Canada and other
countries throughout the world in which products of the company are sold.
Although the company owns patents and has other patent applications pending,
its business is not materially dependent upon patents or patent protection.
- 4 -
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ITEM 2. PROPERTIES
The company's properties, plants and equipment are maintained in good condition
and are suitable and adequate to support the business. The company's principal
properties and their general characteristics are described in the following
table:
Type of Business
Location Facility Segment
- -------- -------- -------
COMPANY-OWNED PROPERTIES:
- -------------------------
Melrose Park, Illinois
(2525 Armitage Avenue) Executive Offices, Manufacturing, Warehouse (1)
(2150 N. 15th Avenue) Manufacturing, Warehouse (1)
(2100 N. 15th Avenue) Warehouse (1)
(1930 George Street) Office, Warehouse (1)
Atlanta, Georgia Warehouse (1)
Columbus, Ohio Warehouse (2)
Denton, Texas Office, Warehouse (2)
Falun, Sweden Office, Manufacturing, Warehouse (1)
Madrid, Spain Office, Manufacturing, Warehouse (1)
Naguabo, Puerto Rico Manufacturing, Warehouse (1)
Naucalpan de Juarez, Mexico Office, Manufacturing, Warehouse (1)
North Rocks, New South Wales,
Australia Office, Manufacturing, Warehouse (1)
Reno, Nevada Warehouse (2)
Swansea, Wales, England Office, Manufacturing, Warehouse (1)
Tilburg, Holland Office, Manufacturing, Warehouse (1)
Toronto, Ontario, Canada Office, Manufacturing, Warehouse (1)
LEASED PROPERTIES:
- ------------------
Albertslund, Denmark Office, Warehouse (1)
Auckland, New Zealand Office (1)
Basingstoke, Hampshire, England Office (1)
Espoo, Finland Office, Warehouse (1)
Morrow, Georgia Warehouse (2)
Rakkestad, Norway Office, Warehouse (1)
Sparks, Nevada Office, Warehouse (1)
Stockholm, Sweden Office, Manufacturing, Warehouse (1)
Various (1,494 locations in 46 states,
Puerto Rico, the United Kingdom and Japan) Sally Beauty Company Stores (2)
(1) Consumer Products
(2) Specialty Distribution - Sally
- 5 -
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ITEM 3. LEGAL PROCEEDINGS
There are no material legal proceedings pending.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of security holders, through the
solicitation of proxies or otherwise, during the fourth quarter of the year
ended September 30, 1995.
EXECUTIVE OFFICERS
The following table sets forth the names and current positions of the
registrant's executive officers, including their five-year business history and
ages. Executive officers of the company and its subsidiaries are elected
annually.
Current Position and
Name Five-Year Business History Age
- ---- -------------------------- ---
Leonard H. Lavin (1) October, 1994 - Chairman; previously Chairman and 76
Chief Executive Officer for more than five years
Howard B. Bernick (1) October, 1994 - President and Chief Executive Officer; 43
previously President and Chief Operating Officer for
more than five years
Bernice E. Lavin (1) July, 1994 - Vice Chairman, Secretary and Treasurer; 70
previously Vice President, Secretary and Treasurer for
more than five years
Carol L. Bernick (1) October, 1994 - Executive Vice President and Assistant 43
Secretary, Alberto-Culver Company and President,
Alberto-Culver USA, Inc., a subsidiary of registrant;
September, 1992 to October, 1994 - Executive Vice President
and Assistant Secretary; October, 1990 to September, 1992 -
Executive Vice President, Worldwide Marketing and
Assistant Secretary
John T. Boone June, 1994 - Group Vice President, Domestic Consumer 60
Products, Alberto-Culver USA, Inc., a subsidiary of
registrant; August, 1993 to June, 1994 - Vice President,
Operations, Modami Services, Inc.; August, 1991 to
August, 1993 - President, JTB Management, Inc.;
February, 1986 to August, 1991 - Chairman and Chief
Executive Officer, Inovet, Inc.
William J. Cernugel October, 1993 - Senior Vice President, Finance & 53
Controller; April, 1982 to October, 1993 - Vice President,
Finance & Controller
- 6 -
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Current Position and
Name Five-Year Business History Age
- ---- -------------------------- ---
David D. DeTomaso October, 1993 - Senior Vice President, Professional 52
Domestic Division, Alberto-Culver USA, Inc., a
subsidiary of registrant; May, 1983 to October, 1993 -
Vice President, Professional Domestic Division
Raymond W. Gass Vice President and General Counsel 58
John G. Horsman, Jr. January, 1994 - President, Alberto-Culver International, 57
Inc., a subsidiary of registrant; January, 1992 to January,
1994 - Retired; 1978 to January, 1992 - Group Vice
President, American Home Products Corporation
Thomas J. Pallone Vice President, Research and Development 50
Michael H. Renzulli President, Sally Beauty Company, Inc., a subsidiary of 55
registrant
(1) Leonard H. Lavin and Bernice E. Lavin are husband and wife. Carol L.
Bernick is the wife of Howard B. Bernick and the daughter of Mr. and
Mrs. Lavin.
- 7 -
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PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Information required for this Item is incorporated herein by reference to the
section entitled "Market Price of Common Stock and Cash Dividends Per Share"
and note 5 of "Notes to Consolidated Financial Statements" in the registrant's
annual report to stockholders for the year ended September 30, 1995.
ITEM 6. SELECTED FINANCIAL DATA
Information required for this Item is incorporated herein by reference to the
section entitled "Selected Financial Data" in the registrant's annual report to
stockholders for the year ended September 30, 1995.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Information required for this Item is incorporated herein by reference to the
section entitled "Management's Discussion and Analysis of Results of Operations
and Financial Condition" in the registrant's annual report to stockholders for
the year ended September 30, 1995.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Information required for this Item is incorporated herein by reference to the
consolidated financial statements and notes and "Independent Auditors' Report"
of KPMG Peat Marwick LLP in the registrant's annual report to stockholders for
the year ended September 30, 1995.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
- 8 -
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PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Information required for this Item regarding the directors of the company and
regarding delinquent filers pursuant to Item 405 of Regulation S-K is
incorporated herein by reference to the sections entitled "Election of
Directors" and "Compliance under Section 16(a) of the Securities Exchange Act
of 1934", respectively, in the registrant's proxy statement for its annual
meeting of stockholders on January 25, 1996. Information concerning Executive
Officers of the registrant is included in Part I of this report.
ITEM 11. EXECUTIVE COMPENSATION
Information required for this Item is incorporated herein by reference to the
section entitled "Executive Compensation" in the registrant's proxy statement
for its annual meeting of stockholders on January 25, 1996.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Information required for this Item is incorporated herein by reference to the
sections entitled "Share Ownership of Directors and Executive Officers" and
"Principal Stockholders" in the registrant's proxy statement for its annual
meeting of stockholders on January 25, 1996.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None.
- 9 -
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PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) Documents filed as part of this report:
1. Financial statements:
The consolidated financial statements and notes to be
included in Part II, Item 8 are incorporated by reference to
the registrant's annual report to stockholders for the year
ended September 30, 1995, which is filed as an exhibit to this
report.
2. Financial statement schedules:
Description Schedule
----------- --------
Valuation and Qualifying Accounts II
Schedules I, III, IV, and V are omitted as the
information required by these schedules is not applicable.
3. Exhibits:
Exhibit
Number Description
-------- -----------
3(i)(a) Copy of Restated Certificate of Incorporation of Alberto-Culver Company (filed
as Exhibit 3(a) and incorporated herein by reference from the company's Form
10-K Annual Report for the year ended September 30, 1988).
3(i)(b) Copy of the amendment to the Restated Certificate of Incorporation of
Alberto-Culver Company (filed as Exhibit 3(a)(1) and incorporated herein by
reference from the company's Form 10-Q Quarterly Report for the quarter ended
December 31, 1989).
3(ii) Copy of the By-Laws of Alberto-Culver Company, as amended and in effect as
of January 17, 1990 (filed as Exhibit 3(b)(1) and incorporated herein by reference
from the company's Form 10-Q Quarterly Report for the quarter ended December 31, 1989).
4 Certain instruments defining the rights of holders of long-term obligations of
the registrant and certain of its subsidiaries (the total amount of securities
authorized under each of which does not exceed ten percent of the registrant's
consolidated assets) are omitted pursuant to part 4 (iii) (A) of Item 601 (b) of
Regulation S-K. The registrant agrees to furnish copies of any such instruments to
the Securities and Exchange Commission upon request.
- 10 -
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3. Exhibits (continued)
Exhibit
Number Description
------- -----------
4 (a) Copy of the Note Agreement dated November 30, 1988 among Alberto-Culver
Company and Institutional Purchasers (filed as Exhibit 4(2) and
incorporated herein by reference from the company's Form 10-Q Quarterly Report
for the quarter ended March 31, 1989).
4 (b) Copy of Note Agreement dated September 28, 1993 among Alberto-Culver Company
and Institutional Investors (filed as Exhibit 4(f) and incorporated herein by
reference from the company's Form 10-K Annual Report for the year ended
September 30, 1993).
4 (c) Copy of Indenture dated June 30, 1995 by and between Alberto-Culver Company
as Issuer and Bankers Trustee Company Limited as Trustee of 5-1/2% Convertible
Subordinated Debentures due June 30, 2005.
10 (a) Copy of Alberto-Culver Company Management Incentive Plan dated October 27, 1994
*(filed as Exhibit 10(a) and incorporated herein by reference from the company's
Form 10-Q Quarterly Report for the quarter ended March 31, 1995).
10 (b) Copy of Alberto-Culver Company Employee Stock Option Plan of 1988, as amended. *
10 (c) Copy of Alberto-Culver Company 1994 Shareholder Value Incentive Plan *
(filed as Exhibit 10 (c) and incorporated herein by reference from the company's
Form 10-Q Quarterly Report for the quarter ended March 31, 1995).
10 (d) Copy of Alberto-Culver Company 1994 Restricted Stock Plan *(filed as Exhibit 10(d)
and incorporated herein by reference from the company's Form 10-Q Quarterly Report
for the quarter ended March 31, 1995.)
10 (e) Copy of Alberto-Culver Company 1994 Stock Option Plan for Non-Employee Directors
*(filed as Exhibit 10(e) and incorporated herein by reference from the company's Form
10-Q Quarterly Report for the quarter ended March 31, 1995).
10 (f) Copy of Split Dollar Life Insurance Agreement dated September 30, 1993 between
Alberto-Culver company and the trustee of the Lavin Survivorship Insurance Trust
* (filed as Exhibit 10(e) and incorporated herein by reference from the company's
Form 10-K Annual Report for the year ended September 30, 1993).
- 11 -
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3. Exhibits (continued)
Exhibit
Number Description
------- -----------
11 Computation of net earnings per share.
13 Portions of annual report to stockholders for the year ended
September 30, 1995 incorporated herein by reference.
21 Subsidiaries of the Registrant.
23 Consent of KPMG Peat Marwick LLP
27 Financial Data Schedule
* This exhibit is a management contract or compensatory plan or arrangement of
the registrant.
(b) Reports on Form 8-K: None
- 12 -
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized, on the 13th day of
December, 1995.
ALBERTO-CULVER COMPANY
By /s/ Howard B. Bernick
Howard B. Bernick
President and Chief
Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
Signature Title Date
--------- ----- ----
/s/ Leonard H. Lavin Chairman of the Board December 13, 1995
- -----------------------
Leonard H. Lavin and Director
/s/ Howard B. Bernick President, Chief Executive December 13, 1995
- ------------------------
Howard B. Bernick Officer and Director
/s/ Bernice E. Lavin Vice Chairman, Secretary, December 13, 1995
- -----------------------
Bernice E. Lavin Treasurer and Director
/s/ Carol L. Bernick Executive Vice President, December 13, 1995
- -------------------------
Carol L. Bernick Assistant Secretary and Director
/s/ William J. Cernugel Senior Vice President, December 13, 1995
- -------------------------
William J. Cernugel Finance & Controller (Principal
Financial & Accounting Officer)
/s/ Robert Abboud Director December 13, 1995
- --------------------
A. Robert Abboud
Director* December 13, 1995
- -------------------------------
A. G. Atwater
Director December 13, 1995
- -------------------------------
Robert P. Gwinn
/s/ Leander W. Jennings Director December 13, 1995
- -------------------------
Leander W. Jennings
Director* December 13, 1995
- ---------------------------------------
Allan B. Muchin
Director* December 13, 1995
- ----------------------------------------
Robert H. Rock
- 13 -
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Signature Title Date
--------- ----- ----
/s/ Dr. Harold M. Visotsky Director December 13, 1995
- ----------------------------
Dr. Harold M. Visotsky
Director December 13, 1995
- ---------------------------------------------
William W. Wirtz
* Appointed to Board of Directors in October, 1995.
- 14 -
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Independent Auditors' Report
The Board of Directors and Stockholders
Alberto-Culver Company:
Under date of October 30, 1995, we reported on the consolidated balance sheets
of Alberto-Culver Company and subsidiaries as of September 30, 1995 and 1994
and the related consolidated statements of earnings, retained earnings, and
cash flows for each of the years in the three-year period ended September 30,
1995, as contained in the 1995 annual report to stockholders. These
consolidated financial statements and our report thereon are incorporated by
reference in the annual report on Form 10-K for the year 1995. In connection
with our audits of the aforementioned consolidated financial statements, we
also have audited the related financial statement schedule as listed in Item
14(a)2 of the annual report on Form 10-K. This financial statement schedule is
the responsibility of the company's management. Our responsibility is to
express an opinion on this financial statement schedule based on our audits.
In our opinion, such financial statement schedule, when considered in relation
to the basic consolidated financial statements taken as a whole, presents
fairly, in all material respects, the information set forth therein.
/s/ KPMG PEAT MARWICK LLP
KPMG PEAT MARWICK LLP
Chicago, Illinois
October 30, 1995
16
Schedule VIII
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Valuation and Qualifying Accounts
(Thousands)
Year Ended September 30,
-------------------------------
1995 1994 1993
------ ------ ------
Allowance for doubtful accounts:
Balance at beginning of period $5,497 5,493 4,839
Additions (deductions):
Charged to costs and expenses 3,277 3,412 3,296
Uncollectible accounts
written off, net of
recoveries (3,187) (3,588) (2,160)
Allowance for doubtful accounts
of acquired company -- 83 --
Other 76 97 (482)
------ ------ ------
Balance at end of period $5,663 5,497 5,493
====== ====== ======