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8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Sally Beauty Holdings, Inc.a11-11525_18k.htm

Exhibit 99.1

 

Contact:

Karen Fugate

 

 

Investor Relations

 

 

940-297-3877

 

Sally Beauty Holdings, Inc. Delivers Another Quarter of Strong Results

 

·                  2Q11 consolidated net sales of $801.8 million, up 11%

·                  Growth in same store sales of 6.0% compared to 4.8% in 2Q10

·                  Operating margin expansion of 150 bps to reach 13.2%

·                  2Q11 net earnings of $49.3 million up 43% vs. 2Q10 net earnings

·                  2Q11 diluted earnings per share of $0.26

·                  Adjusted EBITDA of $122.9 million, growth of 24%

 

DENTON, Texas, May 5, 2011 — Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”) today announced strong financial results for fiscal 2011 second quarter.  The Company will hold a conference call today at 10:00 a.m. (Central) to discuss these results and its business.

 

“Our financial performance in the second quarter is the result of strong execution across all of our businesses,” stated Gary Winterhalter, President and Chief Executive Officer. “Consolidated sales reached $802 million, surpassing the $800 million mark for the first time in a quarter. Same store sales growth was strong at 6% and gross profit margin expanded 110 basis points.  Adjusted EBITDA grew 24% while net earnings reached $49 million for growth of 43%.  During the quarter, we reduced our total debt balance by $60 million, further deleveraging the balance sheet.  As we head into the second half of the year, we believe we will continue to build on the momentum realized in the first half of fiscal 2011.”

 

FISCAL 2011 SECOND QUARTER FINANCIAL HIGHLIGHTS

 

Net Sales:  For the fiscal 2011 second quarter, consolidated net sales were $801.8 million, an increase of 11.3% from the fiscal 2010 second quarter.  This sales increase is attributed to same store sales growth, acquisitions and the addition of new stores.  The favorable impact from changes in foreign currency exchange rates in the fiscal 2011 second quarter was $4.1 million or 0.6% of sales on a consolidated basis.  Consolidated same store sales growth in the fiscal 2011 second quarter was 6.0%.

 

Gross Profit:  Consolidated gross profit for the fiscal 2011 second quarter was $391.8 million, an increase of 13.8% over the fiscal 2010 second quarter.  Gross profit as a percentage of sales was 48.9%, a 110 basis point improvement from the fiscal 2010 second quarter.

 

Selling, General and Administrative Expenses:  For the fiscal 2011 second quarter, consolidated selling, general and administrative (SG&A) expenses, including unallocated corporate expenses and share-based compensation, were $271.4 million or 33.8% of sales, a 60 basis point improvement from the fiscal 2010 second quarter metrics of 34.4% of sales and total SG&A expenses of $247.5 million.  Fiscal 2011 second quarter SG&A expenses increased $23.9 million primarily due to expenses associated with acquired businesses and the opening of new stores such as rent, occupancy, and payroll expenses.

 

1



 

Note: SG&A expenses include unallocated corporate expenses, as detailed in the Company’s segment information on Schedule B.

 

Interest Expense: Interest expense for the fiscal 2011 second quarter was $27.8 million, down $0.6 million from the fiscal 2010 second quarter of $28.4 million.

 

Provision for Income Taxes:  Income taxes were $28.6 million for the fiscal 2011 second quarter versus $21.4 million in the fiscal 2010 second quarter.  The Company’s effective tax rate in the fiscal 2011 second quarter was 36.7% versus 38.2% in the fiscal 2010 second quarter.  For fiscal year 2011, the Company’s effective tax rate is expected to be in the range of 37.0% to 38.0%.

 

Net Earnings and Diluted Net Earnings per Share (EPS) (2):  Net earnings in the fiscal 2011 second quarter were $49.3 million; growth of 42.6% over net earnings of $34.6 million in the fiscal 2010 second quarter.  Diluted earnings per share in the fiscal 2011 second quarter were $0.26; growth of 36.8% over diluted earnings per share of $0.19 in the fiscal 2010 second quarter.

 

Adjusted (Non-GAAP) EBITDA(2): Adjusted EBITDA for the fiscal 2011 second quarter was $122.9 million, an increase of 23.9% from $99.2 million for the fiscal 2010 second quarter.

 


(1)A detailed table reconciling 2011 and 2010 GAAP net earnings to adjusted net earnings, adjusted EPS and adjusted EBITDA is included in Supplemental Schedule C.

 

Financial Position, Capital Expenditures and Working Capital:  Cash and cash equivalents as of March 31, 2011, were $59.1 million.  The Company’s asset-based loan (ABL) revolving credit facility began the 2011 second quarter with a $43.2 million balance and ended the fiscal 2011 second quarter with a zero balance.  In the fiscal 2011 second quarter, the Company reduced total debt by $60.2 million, including a $17.0 million prepayment of its senior term loan ‘B’ and a $43.2 million reduction of the ABL facility.  Borrowing capacity on the ABL facility was approximately $341.6 million at the end of the fiscal 2011 second quarter.  The Company’s debt, excluding capital leases, totaled $1.5 billion as of March 31, 2011.

 

For the first six months of fiscal year 2011, the Company’s capital expenditures totaled $29.4 million. Capital expenditures for the fiscal year 2011 are projected to be in the range of $50 million to $55 million, excluding acquisitions.

 

Working capital (current assets less current liabilities) increased $31.3 million to $418.5 million at March 31, 2011 compared to $387.1 million at September 30, 2010.  Inventory as of March 31, 2011 was $636.9 million, an increase of $58.0 million or growth of 10.0% from March 31, 2010 inventory.  This increase is primarily due to sales growth from existing stores, and additional inventory from new store openings and acquisitions.

 

2



 

Business Segment Results:

 

Sally Beauty Supply

 

Fiscal 2011 Second Quarter Results for Sally Beauty Supply

 

·                  Sales of $490.8 million, up 8.2% from $453.6 million in the fiscal 2010 second quarter.  The positive impact of favorable foreign currency exchange on net sales was $2.3 million, or 0.5% of sales.

·                  Same store sales growth of 6.2% versus 4.3% in the fiscal 2010 second quarter.

·                  Gross margin of 54.4%, a 130 basis point improvement from 53.1% in the fiscal 2010 second quarter.

·                  Segment earnings of $93.9 million, up 18.1% from $79.5 million in the fiscal 2010 second quarter.

·                  Segment operating margins increased 160 basis points to 19.1% of sales from 17.5% in the fiscal 2010 second quarter.

·                  Net store base increased by 137 or 4.7% over the fiscal 2010 second quarter for total store count of 3,083.  This increase is principally from organic store growth.

 

Sales growth in the fiscal 2011 second quarter was driven by same store sales, new store openings and favorable foreign currency exchange.  Gross profit margin expansion of 130 basis points resulted from a shift in product and customer mix and low-cost sourcing initiatives.  Segment operating earnings and margin were positively impacted by improvement in gross profit and SG&A leverage in the International businesses.

 

Beauty Systems Group

 

Fiscal 2011 Second Quarter Results for Beauty Systems Group

 

·                  Sales of $311.0 million, up 16.5% from $266.8 million in the fiscal 2010 second quarter.  The positive impact of favorable foreign currency exchange on net sales was $1.8 million, or 0.7% of sales.  Growth from acquisition-related revenue was 10.5%.

·                  Same store sales growth of 5.6% versus 6.1% in the fiscal 2010 second quarter.

·                  Gross margin of 40.1%, up 140 basis points from 38.7% in the fiscal 2010 second quarter.

·                  Segment earnings of $33.5 million, up 28.8% from $26.0 million in the fiscal 2010 second quarter.

·                  Segment operating margins increased by 100 basis points to 10.8% of sales from 9.8% in the fiscal 2010 second quarter.

·                  Net store base increased by 117 stores or 11.6% over the fiscal 2010 second quarter.  Total store count for the fiscal 2011 second quarter was 1,124, including 158 franchised locations.

·                  Total BSG distributor sales consultants at the end of the fiscal 2011 second quarter were 1,119 versus 1,106 at the end of the fiscal 2010 second quarter.

 

Sales growth for the Beauty Systems Group was primarily driven by growth in same store sales, acquisitions and new store openings.  Segment earnings growth is primarily due to improvement in gross profit and synergies realized from prior acquisitions.

 

3



 

Conference Call and Where You Can Find Additional Information

 

As previously announced, at approximately 10:00 a.m. (Central) today the Company will hold a conference call and audio webcast to discuss its financial results and its business.  During the conference call, the Company may discuss and answer one or more questions concerning business and financial matters and trends affecting the Company.  The Company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed.  Simultaneous to the conference call, an audio webcast of the call will be available via a link on the Company’s website, investor.sallybeautyholdings.com.  The conference call can be accessed by dialing 800-288-8967 (International:  612-332-0228).  The teleconference will be held in a “listen-only” mode for all participants other than the Company’s current sell-side and buy-side investment professionals.  If you are unable to listen in this conference call, the replay will be available at about 1:00 p.m. (Central) May 5, 2011 through May 14, 2011 at 11:59 p.m. (Central) by dialing 1-800-475-6701 or if international dial 320-365-3844 and reference the conference ID number 201172.  Also, a website replay will be available on investor.sallybeautyholdings.com

 

About Sally Beauty Holdings, Inc.

 

Sally Beauty Holdings, Inc. (NYSE: SBH) is an international specialty retailer and distributor of professional beauty supplies with revenues of more than $2.9 billion annually.  Through the Sally Beauty Supply and Beauty Systems Group businesses, the Company sells and distributes through over 4,000 stores, including approximately 200 franchised units, throughout the United States, the United Kingdom, Belgium, Chile, France, Canada, Puerto Rico, Mexico, Ireland, Spain and Germany.  Sally Beauty Supply stores offer more than 6,000 products for hair, skin, and nails through professional lines such as Clairol, L’Oreal, Wella and Conair, as well as an extensive selection of proprietary merchandise. Beauty Systems Group stores, branded as CosmoProf or Armstrong McCall stores, along with its outside sales consultants, sell up to 9,800 professionally branded products including Paul Mitchell, Wella, Sebastian, Goldwell, and TIGI which are targeted exclusively for professional and salon use and resale to their customers.  For more information about Sally Beauty Holdings, Inc., please visit sallybeautyholdings.com.

 

Cautionary Notice Regarding Forward-Looking Statements

 

Statements in this news release and the schedules hereto which are not purely historical facts or which depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would,” or similar expressions may also identify such forward-looking statements.

 

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made.  Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including, but not limited to, risks and uncertainties related to: the highly competitive nature of, and the increasing consolidation of, the beauty products distribution industry; anticipating changes in consumer preferences and buying trends and managing our product lines and inventory; potential fluctuation in our same store sales and quarterly financial performance; our dependence upon manufacturers who may be unwilling or unable to continue to supply products to us; the possibility of material interruptions in the supply of beauty supply products by our manufacturers;

 

4



 

products sold by us being found to be defective in labeling or content; compliance with laws and regulations or becoming subject to additional or more stringent laws and regulations; product diversion; the operational and financial performance of our franchise business; the success of our Internet-based business; successfully identifying acquisition candidates or successfully completing desirable acquisitions; integrating businesses acquired in the future; opening and operating new stores profitably; the impact of a continued downturn in the economy upon our business; the success of our cost control plans; protecting our intellectual property rights, specifically our trademarks; conducting business outside the United States; disruption in our information technology systems; natural disasters or acts of terrorism; the preparedness of our accounting and other management systems to meet financial reporting and other requirements; being a holding company, with no operations of our own, and depending on our subsidiaries for cash; our substantial indebtedness; the possibility that we may incur substantial additional debt; restrictions and limitations in the agreements and instruments governing our debt; generating the significant amount of cash needed to service all of our debt and refinancing all or a portion of our indebtedness or obtaining additional financing; changes in interest rates increasing the cost of servicing our debt; the potential impact on us if the financial institutions we deal with become impaired; the representativeness of our historical consolidated financial information with respect to our future financial position, results of operations or cash flows; our reliance upon Alberto-Culver for the accuracy of certain historical services and information; the share distribution of Alberto-Culver common stock in our separation from Alberto-Culver not constituting a tax-free distribution; actions taken by certain large shareholders adversely affecting the tax-free nature of the share distribution of Alberto-Culver common stock; the voting power of our largest stockholder discouraging third party acquisitions of us at a premium; and the interests of our largest stockholder differing from the interests of other holders of our common stock.

 

Additional factors that could cause actual events or results to differ materially from the events or results described in the forward-looking statements can be found in our most recent Annual Report on Form 10-K for the fiscal year ended September 30, 2010, as filed with the Securities and Exchange Commission.  Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.  We assume no obligation to publicly update or revise any forward-looking statements.

 

Note Concerning Non-GAAP Measurement Tools

 

We have provided detailed explanations of our non-GAAP financial measures in our Form 8-K filed this morning, which is available on our website.

 

Supplemental Schedules

 

Consolidated Statement of Earnings

 

A

Segment Information

 

B

Non-GAAP Financial Measures Reconciliations

 

C

Store Count and Same Store Sales

 

D

Selected Financial Data and Debt

 

E

 

5



 

Supplemental Schedule A

 

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2011

 

2010

 

% CHG

 

2011

 

2010

 

% CHG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

801,805

 

$

720,467

 

11.3

%

$

1,595,369

 

$

1,425,318

 

11.9

%

Cost of products sold and distribution expenses

 

409,991

 

376,183

 

9.0

%

824,164

 

747,819

 

10.2

%

Gross profit

 

391,814

 

344,284

 

13.8

%

771,205

 

677,499

 

13.8

%

Selling, general and administrative expenses (1)

 

271,381

 

247,496

 

9.7

%

544,289

 

498,268

 

9.2

%

Depreciation and amortization

 

14,777

 

12,430

 

18.9

%

28,888

 

24,320

 

18.8

%

Operating earnings

 

105,656

 

84,358

 

25.2

%

198,028

 

154,911

 

27.8

%

Interest expense (2)

 

27,793

 

28,414

 

-2.2

%

57,316

 

56,894

 

0.7

%

Earnings before provision for income taxes

 

77,863

 

55,944

 

39.2

%

140,712

 

98,017

 

43.6

%

Provision for income taxes

 

28,585

 

21,384

 

33.7

%

50,485

 

37,331

 

35.2

%

Net earnings

 

$

49,278

 

$

34,560

 

42.6

%

$

90,227

 

$

60,686

 

48.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.27

 

$

0.19

 

42.1

%

$

0.49

 

$

0.33

 

48.5

%

Diluted

 

$

0.26

 

$

0.19

 

36.8

%

$

0.48

 

$

0.33

 

45.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

182,831

 

181,942

 

 

 

182,644

 

181,915

 

 

 

Diluted

 

187,724

 

183,975

 

 

 

187,431

 

183,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis Pt
Chg

 

 

 

 

 

Basis Pt
Chg

 

Comparison as a % of Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Sally Beauty Supply Segment Gross Profit Margin

 

54.4

%

53.1

%

130

 

53.8

%

52.8

%

100

 

BSG Segment Gross Profit Margin

 

40.1

%

38.7

%

140

 

39.8

%

38.7

%

110

 

Consolidated Gross Profit Margin

 

48.9

%

47.8

%

110

 

48.3

%

47.5

%

80

 

Selling, general and administrative expenses

 

33.8

%

34.4

%

(60

)

34.1

%

35.0

%

(90

)

Consolidated Operating Profit Margin

 

13.2

%

11.7

%

150

 

12.4

%

10.9

%

150

 

Net Earnings Margin

 

6.1

%

4.8

%

130

 

5.7

%

4.3

%

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

36.7

%

38.2

%

(150

)

35.9

%

38.1

%

(220

)

 


(1)         Selling, general and administrative expenses include share-based compensation of $2.4 million for each of the three months ended March 31, 2011 and 2010; and $10.3 million and $7.4 million for the six months ended March 31, 2011 and 2010, respectively.

 

(2)         Interest expense, net of interest income of $0.2 million and $0.1 million for the six months ended March 31, 2011 and 2010, respectively, includes non-cash income of $2.4 million of marked-to-market adjustments for certain interest rate swaps for the six months ended March 31, 2010. Those interest rate swaps were subject to a marked-to-market adjustments until their expiration in November 2009.

 



 

Supplemental Schedule B

 

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Segment Information

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2011

 

2010

 

% CHG

 

2011

 

2010

 

% CHG

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sally Beauty Supply

 

$

490,845

 

$

453,634

 

8.2

%

$

971,851

 

$

891,949

 

9.0

%

Beauty Systems Group

 

310,960

 

266,833

 

16.5

%

623,518

 

533,369

 

16.9

%

Total net sales

 

$

801,805

 

$

720,467

 

11.3

%

$

1,595,369

 

$

1,425,318

 

11.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sally Beauty Supply

 

$

93,945

 

$

79,520

 

18.1

%

$

177,497

 

$

150,626

 

17.8

%

Beauty Systems Group

 

33,527

 

26,027

 

28.8

%

68,669

 

51,624

 

33.0

%

Segment operating earnings

 

$

127,472

 

$

105,547

 

20.8

%

$

246,166

 

$

202,250

 

21.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate expenses (1)

 

(19,379

)

(18,806

)

3.0

%

(37,863

)

(39,968

)

-5.3

%

Share-based compensation

 

(2,437

)

(2,383

)

2.3

%

(10,275

)

(7,371

)

39.4

%

Interest expense

 

(27,793

)

(28,414

)

-2.2

%

(57,316

)

(56,894

)

0.7

%

Earnings before provision for income taxes

 

$

77,863

 

$

55,944

 

39.2

%

$

140,712

 

$

98,017

 

43.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis Pt Chg

 

 

 

 

 

Basis Pt Chg

 

Segment operating profit margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sally Beauty Supply

 

19.1

%

17.5

%

160

 

18.3

%

16.9

%

140

 

Beauty Systems Group

 

10.8

%

9.8

%

100

 

11.0

%

9.7

%

130

 

Consolidated operating profit margin

 

13.2

%

11.7

%

150

 

12.4

%

10.9

%

150

 

 


(1)           Unallocated expenses consist of corporate and shared costs.

 



 

Supplemental Schedule C

 

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures Reconciliations

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2011

 

2010

 

% CHG

 

2011

 

2010

 

% CHG

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (per GAAP)

 

$

49,278

 

$

34,560

 

42.6

%

$

90,227

 

$

60,686

 

48.7

%

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

14,777

 

12,430

 

18.9

%

28,888

 

24,320

 

18.8

%

Share-based compensation (1)

 

2,437

 

2,383

 

2.3

%

10,275

 

7,371

 

39.4

%

Interest expense (2)

 

27,793

 

28,414

 

-2.2

%

57,316

 

56,894

 

0.7

%

Provision for income taxes

 

28,585

 

21,384

 

33.7

%

50,485

 

37,331

 

35.2

%

Adjusted EBITDA (Non-GAAP)

 

$

122,870

 

$

99,171

 

23.9

%

$

237,191

 

$

186,602

 

27.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (per GAAP)

 

$

49,278

 

$

34,560

 

 

 

$

90,227

 

$

60,686

 

 

 

Add (Less):

 

 

 

 

 

 

 

 

 

 

 

 

 

Marked-to-market adjustment for certain interest rate swaps (2)

 

 

 

 

 

 

(2,356

)

 

 

Tax provisions for the marked-to-market adjustment (3)

 

 

 

 

 

 

919

 

 

 

Adjusted net earnings, excluding the interest rate swaps (Non-GAAP)

 

$

49,278

 

$

34,560

 

42.6

%

$

90,227

 

$

59,249

 

52.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings per share (Non-GAAP):

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.27

 

$

0.19

 

42.1

%

$

0.49

 

$

0.33

 

48.5

%

Diluted

 

$

0.26

 

$

0.19

 

36.8

%

$

0.48

 

$

0.32

 

50.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

182,831

 

181,942

 

 

 

182,644

 

181,915

 

 

 

Diluted

 

187,724

 

183,975

 

 

 

187,431

 

183,885

 

 

 

 


(1)          Share-based compensation for the six months ended March 31, 2011 and 2010 includes $5.0 million and $2.5 million, respectively, of accelerated expense related to certain retirement-eligible employees who are eligible to continue vesting awards upon retirement.

 

(2)          Interest expense includes non-cash income of $2.4 million of marked-to-market adjustments for certain interest rate swaps for the six months ended March 31, 2010. Those interest rate swaps were subject to a marked-to-market adjustments until their expiration in November 2009.

 

(3)          The tax provisions for the marked-to-market adjustments were calculated using an estimated effective tax rate of 39.0% for the six months ended March 31, 2010.

 



 

Supplemental Schedule D

 

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Store Count and Same Store Sales

(Unaudited)

 

 

 

As of March 31,

 

 

 

 

 

2011

 

2010

 

CHG

 

 

 

 

 

 

 

 

 

Number of retail stores (end of period):

 

 

 

 

 

 

 

Sally Beauty Supply:

 

 

 

 

 

 

 

Company-operated stores

 

3,055

 

2,920

 

135

 

Franchise stores

 

28

 

26

 

2

 

Total Sally Beauty Supply

 

3,083

 

2,946

 

137

 

Beauty Systems Group:

 

 

 

 

 

 

 

Company-operated stores (1)

 

966

 

848

 

118

 

Franchise stores

 

158

 

159

 

(1

)

Total Beauty System Group

 

1,124

 

1,007

 

117

 

Total

 

4,207

 

3,953

 

254

 

 

 

 

 

 

 

 

 

BSG distributor sales consultants (end of period) (2)

 

1,119

 

1,106

 

13

 

 

 

 

2011

 

2010

 

Basis Pt Chg

 

Second quarter company-operated same store sales growth (3)

 

 

 

 

 

 

 

Sally Beauty Supply

 

6.2

%

4.3

%

190

 

Beauty Systems Group

 

5.6

%

6.1

%

(50

)

Consolidated

 

6.0

%

4.8

%

120

 

 

 

 

 

 

 

 

Basis Pt Chg

 

Six months ended March 31 company-operated same store sales growth (3)

 

 

 

 

 

 

 

Sally Beauty Supply

 

6.3

%

4.0

%

230

 

Beauty Systems Group

 

6.7

%

5.2

%

150

 

Consolidated

 

6.4

%

4.3

%

210

 

 


(1)          BSG company-operated stores, at March 31, 2011, include 82 stores resulting from the October 1, 2010 acquisition of Aerial Company, Inc.

 

(2)          Includes 395 distributor sales consultants as reported by our franchisees at March 31, 2011 and 2010. Our current period distributor sales consultants include approximately 70 distributor sales consultants related to the October 1, 2010 acquisition of Aerial Company, Inc.

 

(3)          Same stores are defined as company-operated stores that have been open for at least 14 months as of the last day of a month. Our same store sales calculation includes internet-based sales for the periods presented and store expansions, but does not generally include sales of stores relocated.

 



 

Supplemental Schedule E

 

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Selected Financial Data and Debt

(In thousands)

(Unaudited)

 

 

 

March 31, 2011

 

September 30, 2010

 

Financial condition information (at period end):

 

 

 

 

 

Working capital

 

$

418,459

 

$

387,123

 

Cash and cash equivalents

 

59,102

 

59,494

 

Property and equipment, net

 

180,549

 

168,119

 

Total assets

 

1,707,024

 

1,589,412

 

Total debt, including capital leases

 

1,545,329

 

1,562,636

 

Total stockholders’ (deficit) equity

 

$

(341,328

)

$

(461,272

)

 

 

 

As of

 

 

 

 

 

March 31, 2011

 

Interest Rates

 

Debt position excluding capital leases (at period end):

 

 

 

 

 

Revolving ABL Facility

 

$

 

(i) Prime + 1.25-1.75% or
(ii) LIBOR + 2.25-2.75%

 

Senior Term Loan B (1)

 

826,856

 

(i) Prime + 1.25-1.50% or
(ii) LIBOR + 2.25-2.50%

 

Other (2)

 

6,224

 

4.05% to 7.00%

 

Senior Notes

 

430,000

 

9.25%

 

Senior Subordinated Notes

 

275,000

 

10.50%

 

Total debt

 

$

1,538,080

 

 

 

 

Debt maturities excluding capital leases (3)

 

 

 

 

 

FY2011

 

$

2,079

 

 

 

FY2012

 

5,825

 

 

 

FY2013

 

10,061

 

 

 

FY2014

 

814,997

 

 

 

FY2015

 

430,118

 

 

 

Thereafter

 

275,000

 

 

 

Total debt

 

$

1,538,080

 

 

 

 


(1)          The interest rates on $300.0 million of this loan are fixed by interest rate swaps which expire in May 2012.

 

(2)          Represents pre-acquisition debt of Pro-Duo NV and Sinelco Group BVBA.

 

(3)          Amounts shown for specific years do not reflect payments that might be required after fiscal year 2011 as a result of the excess cash-flows test of the term loan.