Sally Beauty Holdings, Inc. Reports Fourth Quarter and Full Year Results
-
Same store sales growth in 4Q15 and FY2015 of 3.5% and 2.9%,
respectively
-
4Q15 net sales up 2.1% to $964 million; FY2015 net sales up 2.2% to
$3.8 billion
-
GAAP and Adjusted 4Q15 net earnings of $56.2 million and $59.2
million, respectively
-
GAAP and Adjusted 4Q15 diluted earnings per share of $0.36 and $0.38,
respectively
-
GAAP and Adjusted FY2015 net earnings of $235 million and $242
million, respectively
-
GAAP and Adjusted FY2015 diluted earnings per share of $1.49 and
$1.53, respectively
-
During fiscal 2015, repurchased $228 million, or 8.1 million shares of
common stock
DENTON, Texas--(BUSINESS WIRE)--
Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”) today announced
financial results for the fourth quarter and fiscal year ended September
30, 2015. The Company will hold a conference call today at 10:00 a.m.
(Central) to discuss these results and its business.
“We finished the year with solid consolidated same store sales growth of
3.5% in the fourth quarter,” stated Chris Brickman, President and Chief
Executive Officer. “In addition, we generated $301 million in operating
cash flow in fiscal 2015 and repurchased approximately $228 million, or
8.1 million shares of our common stock.”
“In the back half of fiscal 2015, we implemented sales and profit
improvement initiatives that we now expect will largely offset
anticipated cost headwinds and allow for steady profit growth for SBH in
fiscal 2016,” Brickman added. “In addition, we are excited about the
pipeline of sales growth initiatives for the coming fiscal year,
including the completion of owned-brand packaging upgrades, the reset of
haircare and hair color categories, as well as the introduction of local
TV and radio advertising. These new investments, combined with all of
the projects and upgrades completed during fiscal 2015, will create
significant points of difference and a modern image for Sally. As a
result, we believe we are well on our way to reframing and repositioning
the Sally brand to be more meaningful to the next generation of
consumers.”
Fiscal 2015 Fourth Quarter and Full Year 2015 Financial Highlights
Net Sales: For the fiscal 2015 fourth quarter, consolidated net
sales were $964.2 million, an increase of 2.1% from the fiscal 2014
fourth quarter. The fiscal 2015 fourth quarter sales increase is
primarily attributed to same store sales growth and the addition of new
stores. The impact from unfavorable changes in foreign currency exchange
rates in the fiscal 2015 fourth quarter was $27.6 million, or 2.9%.
Consolidated same store sales growth in the fiscal 2015 fourth quarter
was 3.5% compared to 2.6% in the fiscal 2014 fourth quarter.
Consolidated net sales for fiscal year 2015 were $3.8 billion, an
increase of 2.2% from fiscal year 2014. Fiscal 2015 sales increased
primarily due to same store sales growth and the addition of new stores.
The impact from unfavorable foreign currency exchange in the 2015 fiscal
year was $87.3 million, or 2.3%. Consolidated same store sales growth in
fiscal year 2015 was 2.9% compared to 2.0% in fiscal year 2014.
GAAP and Adjusted Gross Profit: Consolidated GAAP gross profit
for the fiscal 2015 fourth quarter was $475.3 million, an increase of
1.7% over gross profit of $467.5 million for the fiscal 2014 fourth
quarter. Gross profit, as a percentage of sales (gross profit margin),
was 49.3%, a 20 basis point decline from the fiscal 2014 fourth quarter.
Adjusted consolidated gross profit for the fiscal 2015 fourth quarter,
excluding a $1.4 million impact from the Germany restructuring, was
$476.7 million, an increase of 2.0%. Gross profit as a percentage of
sales was 49.4%, a 10 basis point decline from the fiscal 2014 fourth
quarter.
For fiscal year 2015, consolidated gross profit was $1.9 billion, an
increase of 2.0% over fiscal 2014 gross profit. Adjusted gross profit as
a percentage of sales was 49.5%, down 10 basis points when compared to
fiscal year 2014.
GAAP and Adjusted Selling, General and Administrative Expenses:
For the fiscal 2015 fourth quarter, consolidated GAAP selling, general
and administrative (SG&A) expenses, including unallocated corporate
expenses and share-based compensation, were $330.9 million, or 34.3% of
sales, a 40 basis point increase from the fiscal 2014 fourth quarter
metric of 33.9% of sales and total SG&A expenses of $320.5 million.
Excluding expenses associated with the previously disclosed data
security incidents of $0.6 million, pre-tax, and charges for the Sally
Germany restructure of $2.8 million, pre-tax, adjusted SG&A expenses in
the fiscal 2015 fourth quarter were $327.5 million, or 34.0% of sales.
For fiscal year 2015, GAAP SG&A expenses were $1.31 billion, which
includes $148.2 million of unallocated corporate expenses and
share-based expenses and $9.5 million, pre-tax, of charges from the data
security incidents and the Sally Germany restructure. SG&A expenses as a
percentage of sales was 34.2%, compared to fiscal year 2014 metric of
33.9% of sales and total SG&A expenses of $1.27 billion.
Excluding expenses associated with the data security incidents and Sally
Germany restructure initiative, adjusted SG&A expenses in fiscal year
2015 were $1.30 billion or 34.0% of sales.
Interest Expense: Interest expense, net of interest income, for
the fiscal 2015 fourth quarter was $29.2 million, down $0.1 million from
the fiscal 2014 fourth quarter of $29.3 million.
For fiscal year 2015, interest expense, net of interest income, was
$116.8 million, up $0.5 million from the fiscal year 2014 interest
expense of $116.3 million.
Provision for Income Taxes: For the fiscal 2015 fourth quarter,
income taxes were $33.9 million. The effective tax rate for the fiscal
2015 fourth quarter was 37.6% compared to 36.2% for the fiscal 2014
fourth quarter.
For fiscal year 2015, income taxes were $143.4 million versus $144.7
million in fiscal 2014. The Company’s effective tax rate for fiscal year
2015 was 37.9% compared to 37.0% for fiscal 2014.
In fiscal year 2016, the Company anticipates the effective tax rate to
be in the range of 37.5% to 38.5%.
GAAP and Adjusted Net Earnings and Diluted Net Earnings Per Share
(EPS) (1): GAAP net earnings were $56.2
million in the fiscal 2015 fourth quarter, compared to fiscal 2014
fourth quarter net earnings of $61.8 million, down 9.0%. Excluding
expenses from the Sally Germany restructure of $2.6 million, net of tax,
and the data security incident of $0.4 million, net of tax, adjusted net
earnings for the fiscal 2015 fourth quarter were $59.2 million, down
4.6% from adjusted net earnings of $62.1 in the fiscal 2014 fourth
quarter.
GAAP and Adjusted diluted earnings per share for the fiscal 2015 fourth
quarter were $0.36 and $0.38, respectively, compared to GAAP and
adjusted fiscal 2014 fourth quarter diluted earnings per share of $0.39.
In fiscal year 2015, GAAP net earnings were $235.1 million compared to
fiscal year 2014 net earnings of $246.0 million, down 4.4% from the
prior year. Excluding charges from the Germany restructuring and
expenses from the Company’s data security incidents of $6.8 million, net
of tax, adjusted net earnings in fiscal year 2015 were $241.9 million, a
decrease of 3.1% from the prior year.
GAAP diluted earnings per share in fiscal year 2015 were $1.49 compared
to fiscal year 2014 diluted earnings per share of $1.51, a decrease of
1.3%. Adjusted diluted earnings per share in fiscal 2015 were $1.53,
flat when compared to the prior year.
Fiscal year 2015 adjusted net earnings includes adjustments of $6.8
million, net of tax, and are described in detail on Schedule E.
Adjusted (Non-GAAP) EBITDA(1): Adjusted
EBITDA for the fiscal 2015 fourth quarter was $152.6 million, an
increase of 0.8% from $151.4 million for the fiscal 2014 fourth quarter.
Fiscal year 2015 Adjusted EBITDA was $612.4 million, an increase of 0.2%
from $611.3 million in fiscal 2014.
(1)See Supplemental Schedule C, D and E for a reconciliation
of these non-GAAP financial measures.
Financial Position, Capital Expenditures and Working Capital:
Cash and cash equivalents as of September 30, 2015, were $140.0 million.
The Company ended fiscal year 2015 with no outstanding borrowings on its
asset-based loan (ABL) revolving credit facility. Borrowing capacity on
the ABL facility was approximately $476.9 million at the end of
fiscal year 2015. The Company’s debt, excluding capital leases, totaled
$1.8 billion as of September 30, 2015. Net cash provided by operating
activities for fiscal year 2015 was $300.8 million.
During the fiscal 2015 fourth quarter, the Company repurchased (and
subsequently retired) a total of 5.8 million shares of its common stock
at an aggregate cost of $153.3 million under the Company’s $1 billion
share repurchase program.
For the 2015 fiscal year, the Company repurchased (and subsequently
retired) a total of 8.1 million shares of its common stock at an
aggregate cost of $227.6 million under the Company’s $1 billion share
repurchase program.
For the full year ended September 30, 2015, the Company’s capital
expenditures, excluding acquisitions, totaled $106.5 million.
Working capital (current assets less current liabilities) increased
$54.8 million to $695.4 million at September 30, 2015, compared to
$640.6 million at September 30, 2014. The ratio of current assets to
current liabilities was 2.41 to 1.00 at September 30, 2015, compared to
2.38 to 1.00 at September 30, 2014.
Inventory as of September 30, 2015 was $885.2 million, an increase of
$56.8 million or growth of 6.9% from September 30, 2014 inventory of
$828.4 million. This increase is primarily due to sales growth from new
store openings and the introduction of new brands in the Beauty Systems
Group segment.
Business Segment Results:
Sally Beauty Supply
Fiscal 2015 Fourth Quarter Results for Sally Beauty Supply
-
Sales of $582.3 million, up 0.2% from $581.3 million in the fiscal
2014 fourth quarter. The unfavorable impact of foreign currency
exchange on net sales was $21.7 million, or 3.7% of sales.
-
Same store sales grew 1.8% versus 2.1% growth in the fiscal 2014
fourth quarter.
-
Gross margin of 54.6%, a 20 basis point decline from 54.8% in the
fiscal 2014 fourth quarter. Gross profit includes an unfavorable
charge of $1.4 million, pre-tax, from the Germany restructuring
-
Segment operating earnings of $97.9 million, down 9.3% from $107.9
million in the fiscal 2014 fourth quarter. Segment operating margins
declined 180 basis points to 16.8% of sales from 18.6% of sales in the
fiscal 2014 fourth quarter. Segment operating earnings and margin were
negatively impacted by $4.2 million, pre-tax, of charges associated
with the Germany restructuring.
Sales growth in the fiscal 2015 fourth quarter was driven by new store
openings and same store sales growth. This growth was offset by the
unfavorable impact of foreign currency exchange of $21.7 million, or
3.7% of sales. Gross profit margin declined by 20 basis points due to
the restructuring charge of $1.4 million. Segment operating margin
decline was primarily due to higher SG&A expenses and the Germany
restructuring charge of $4.2 million, pre-tax.
Fiscal 2015 Results for Sally Beauty Supply
-
Sales of $2.3 billion, up 0.9% over fiscal year 2014. The unfavorable
impact of foreign currency exchange was $70.9 million, or 3.1% of
sales.
-
Same store sales grew 1.7% versus 1.3% growth in fiscal year 2014.
-
Sales, on a USD basis, from international locations (Mexico, Canada,
the United Kingdom, Ireland, Belgium, the Netherlands,France,
Germany, Spain, Chile, Peru and Colombia) represented 24% of segment
sales versus 25% in fiscal 2014.
-
Gross margin of 54.8% was flat when compared to fiscal 2014. Gross
profit includes an unfavorable charge of $1.4 million, pre-tax, from
the Germany restructuring.
-
Segment operating earnings of $412.4 million, down 4.5% from $431.7
million in fiscal 2014. Segment operating margins decreased 100 basis
points to 17.7% of sales from 18.7% in fiscal 2014. Segment operating
earnings and margin were negatively impacted by $5.3 million, pre-tax,
of charges associated with the Germany restructuring.
-
Net store base increased by 110 or 3.1% for total store count of
3,673. Store growth in the U.S. business was 2.7% while store growth
in the international business was 4.5%.
Sales growth in fiscal 2015 was driven by new store openings and same
store sales growth. This growth was offset by the impact of unfavorable
foreign currency exchange of $70.9 million, or 3.1% of sales. Gross
profit margin and operating margin were negatively impacted by the
Germany restructure.
Beauty Systems Group
Fiscal 2015 Fourth Quarter Results for Beauty Systems Group
-
Sales of $381.9 million, up 5.2% from $363.0 million in the fiscal
2014 fourth quarter. The impact of unfavorable foreign currency
exchange on net sales was $5.9 million, or 1.6% of sales.
-
Same store sales growth of 7.4% versus 3.8% in the fiscal 2014 fourth
quarter.
-
Gross margin of 41.2%, up 10 basis points when compared to the fiscal
2014 fourth quarter of 41.1%.
-
Segment operating earnings of $57.9 million, up 7.1% from $54.0
million in the fiscal 2014 fourth quarter.
-
Segment operating margins increased by 20 basis points to 15.1% of
sales from 14.9% in the fiscal 2014 fourth quarter.
Sales growth for Beauty Systems Group was driven by growth in same store
sales, the full service business and new store openings. Segment
operating earnings growth is primarily due to sales growth, gross margin
expansion and favorable SG&A leverage.
Fiscal 2015 Results for Beauty Systems Group
-
Sales of $1.5 billion, up 4.2% from $1.4 billion in fiscal 2014. The
unfavorable impact of foreign currency exchange on net sales was $16.5
million, or 1.1% of sales. Sales growth in the store business was 5.5%
and sales growth in the full service business was 1.7%.
-
Same store sales growth of 5.7% versus 3.5% in fiscal 2014.
-
Gross margin of 41.3%, up 20 basis points from 41.1% in fiscal 2014.
-
Segment operating earnings of $231.2 million, up 6.5% from $217.0
million in fiscal 2014.
-
Segment operating margins increased to 15.4% of sales from 15.0% in
fiscal 2014, a 40 basis point improvement.
-
Net store base increased by 29 or 2.3% for total store count of 1,294,
including 157 franchised locations.
-
Total BSG distributor sales consultants at the end of fiscal 2015 were
958 versus 981 at the end of fiscal 2014.
Sales growth in fiscal year 2015 for the Beauty Systems Group was
primarily due to growth in same store sales, the full service business
and new store openings. This growth was partially offset by the
unfavorable impact of foreign currency exchange of $16.5 million.
Segment earnings growth is primarily due to sales growth, gross margin
expansion and favorable SG&A leverage.
Fiscal Year 2016 Outlook
-
Consolidated same store sales growth for fiscal 2016 is expected to be
in the low 3% range. Sequential improvement is expected throughout the
year in Sally with slower growth in BSG than the prior fiscal year as
they anniversary a very strong year.
-
Consolidated gross profit margin expansion is expected to be in the
range of 35 bps to 45 bps.
-
Fiscal year 2016 unallocated corporate expenses, including
approximately $16 million in share-based compensation, are expected to
be in the range of $150 million to $155 million.
-
Consolidated SG&A as a percent to sales, including unallocated
expenses, is expected to be up 10 bps to 20 bps from fiscal 2015 GAAP
metric of 34.2%. SG&A includes approximately $16 million in new
business development including initiatives in South America and Loxa
Beauty.
-
The effective tax rate for fiscal year 2016 is expected to be in the
range of 37.5% to 38.5%.
-
Capital expenditures for fiscal year 2016 are projected to be in the
range of $125 million to $135 million. Capital expenditure projects
include investments in new payment terminals for Sally U.S.,
merchandise resets in the Sally U.S. stores, as well as the
continuation of refreshing stores and upgrades to the U.S.
distribution centers.
-
Consolidated organic store growth is expected to be approximately 3.0%.
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 800-230-1096 (International: (612) 288-0329).
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 to this
conference call, the replay will be available at about 12:00 p.m.
(Central) November 12, 2015 through November 26, 2015 by dialing
800-475-6701 or if international dial 320-365-3844 and reference the
conference ID number 371967. 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 $3.8 billion annually. Through the Sally Beauty Supply and Beauty
Systems Group businesses, the Company sells and distributes through
approximately 5,000 stores, including approximately 175 franchised
units, throughout the United States, the United Kingdom, Belgium, Chile,
Peru, Colombia, France, the Netherlands, Canada, Puerto Rico, Mexico,
Ireland, Spain and Germany. Sally Beauty Supply stores offer up to
10,000 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 10,000 professionally branded products
including Paul Mitchell, Wella, Sebastian, Goldwell, Joico, and Aquage
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 and effectively
responding to changes in consumer preferences and buying trends in a
timely manner; 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 products by our
third-party manufacturers or distributors or increases in the prices of
products we purchase from our third-party manufacturers or distributors;
products sold by us being found to be defective in labeling or content;
compliance with current laws and regulations or becoming subject to
additional or more stringent laws and regulations; the success of our
strategic initiatives including our store refresh program and increased
marketing efforts, to enhance the customer experience, attract new
customers, drive brand awareness and improve customer loyalty; the
success of our e-commerce businesses; product diversion to mass
retailers or other unauthorized resellers; the operational and financial
performance of our franchise-based business; successfully identifying
acquisition candidates and successfully completing desirable
acquisitions; integrating acquired businesses; the success of our
existing stores, and our ability to increase sales at existing stores;
opening and operating new stores profitably; the volume of traffic to
our stores; the impact of the health of the economy upon our business;
the success of our cost control plans; rising labor and rental costs;
protecting our intellectual property rights, particularly our
trademarks; the risk that our products may infringe on the intellectual
property of others or that we may be required to defend our intellectual
property rights; conducting business outside the United States;
successfully updating and integrating our information technology
systems; disruption in our information technology systems; a significant
data security breach, including misappropriation of our customers’, or
employees’ or suppliers’ confidential information, and the potential
costs related thereto; the negative impact on our reputation and loss of
confidence of our customers, suppliers and others arising from a
significant data security breach; the costs and diversion of
management’s attention required to investigate and remediate a data
security breach and to continuously upgrade our information technology
security systems to address evolving cyber security threats; the
ultimate determination of the extent or scope of the potential
liabilities relating to our past data security incidents; our ability to
attract or retain highly skilled management and other personnel; severe
weather, natural disasters or acts of violence or terrorism; the
preparedness of our accounting and other management systems to meet
financial reporting and other requirements and the upgrade of our
existing financial reporting system; being a holding company, with no
operations of our own, and depending on our subsidiaries for cash; our
ability to execute and implement our common stock repurchase program;
our substantial indebtedness; the possibility that we may incur
substantial additional debt, including secured debt, in the future;
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; and the costs and effects of
litigation.
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 filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K for the
year ended September 30, 2015, 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.
Use of Non-GAAP Financial Measures
This news release and the schedules hereto include the following
financial measures that have not been calculated in accordance with
accounting principles generally accepted in the U.S., or GAAP, and are
therefore referred to as non-GAAP financial measures: (1) Adjusted
EBITDA; (2) Adjusted net earnings, earnings per share and diluted
earnings per share; (3) Adjusted Gross Profit and (4) Adjusted SG&A
expenses. We have provided definitions below for these non-GAAP
financial measures and have provided tables in the schedules hereto to
reconcile these non-GAAP financial measures to the comparable GAAP
financial measures.
Adjusted EBITDA - We define the measure Adjusted EBITDA as GAAP
net earnings before depreciation and amortization, interest expense,
income taxes, share-based compensation, costs related to the Company’s
previously disclosed data security incidents, management transition plan
and restructuring of the Sally Germany business.
Adjusted Net Earnings, Earnings Per Share, Diluted Earnings Per Share
and SG&A Expenses – Adjusted net earnings, earnings per share,
diluted earnings per share and SG&A expenses are GAAP net earnings,
earnings per share, diluted earnings per share and SG&A expenses that
exclude costs related to the Company’s previously disclosed management
transition plan, data security incidents and restructuring of the Sally
Germany business for the relevant time periods as indicated in the
accompanying non-GAAP reconciliations to the comparable GAAP financial
measures.
Adjusted Gross Profit – Adjusted gross profit is GAAP gross
profit that excludes costs related to the Company’s restructuring of the
Sally Germany business for the relevant time periods as indicated in the
accompanying non-GAAP reconciliations to the comparable GAAP financial
measures.
We have provided these non-GAAP financial measures as supplemental
information to our GAAP financial measures and believe these non-GAAP
measures provide investors with additional meaningful financial
information regarding our operating performance. Our management and
Board of Directors also use these non-GAAP measures as supplemental
measures in the evaluation of our businesses and believe that these
non-GAAP measures provide a meaningful measure to evaluate our
historical and prospective financial performance. These non-GAAP
measures should not be considered a substitute for or superior to GAAP
results. Furthermore, the non-GAAP measures presented by us may not be
comparable to similarly titled measures of other companies.
|
Supplemental Schedules
|
Consolidated Statements of Earnings
|
|
|
|
|
|
A
|
Segment Information
| | | | | |
B
|
Non-GAAP Financial Measures Reconciliations (Adjusted EBITDA)
| | | | | |
C
|
Non-GAAP Financial Measures Reconciliations (Continued)
| | | | | |
D, E
|
Store Count and Same Store Sales
| | | | | |
F
|
Selected Financial Data and Debt
| | | | | |
G
|
|
|
| |
|
| |
|
| |
|
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | | | |
|
Supplemental Schedule A
|
| |
|
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES |
Consolidated Statements of Earnings
|
(In thousands, except per share data)
|
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
|
| | |
Three Months Ended
| | | |
Twelve Months Ended
|
| | |
September 30,
| | | |
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
% CHG
|
|
|
|
2015
|
|
|
2014
|
|
|
% CHG
|
| | | | | | | | | | | | | | | | | | |
|
Net sales
| | |
$
|
964,230
| | | |
$
|
944,288
| | | |
2.1
|
%
| | | |
$
|
3,834,343
| | | |
$
|
3,753,498
| | | |
2.2
|
%
|
Cost of products sold and distribution expenses (3) |
|
|
|
488,919
|
|
|
|
|
476,748
|
|
|
|
2.6
|
%
|
|
|
|
|
1,936,492
|
|
|
|
|
1,893,326
|
|
|
|
2.3
|
%
|
Gross profit
| | | |
475,311
| | | | |
467,540
| | | |
1.7
|
%
| | | | |
1,897,851
| | | | |
1,860,172
| | | |
2.0
|
%
|
Selling, general and administrative expenses (1)(2)(3) | | | |
330,855
| | | | |
320,496
| | | |
3.2
|
%
| | | | |
1,313,134
| | | | |
1,273,513
| | | |
3.1
|
%
|
Depreciation and amortization
|
|
|
|
25,223
|
|
|
|
|
20,924
|
|
|
|
20.5
|
%
|
|
|
|
|
89,391
|
|
|
|
|
79,663
|
|
|
|
12.2
|
%
|
Operating earnings
| | | |
119,233
| | | | |
126,120
| | | |
-5.5
|
%
| | | | |
495,326
| | | | |
506,996
| | | |
-2.3
|
%
|
Interest expense
|
|
|
|
29,152
|
|
|
|
|
29,263
|
|
|
|
-0.4
|
%
|
|
|
|
|
116,842
|
|
|
|
|
116,317
|
|
|
|
0.5
|
%
|
Earnings before provision for income taxes
| | | |
90,081
| | | | |
96,857
| | | |
-7.0
|
%
| | | | |
378,484
| | | | |
390,679
| | | |
-3.1
|
%
|
Provision for income taxes
|
|
|
|
33,901
|
|
|
|
|
35,107
|
|
|
|
-3.4
|
%
|
|
|
|
|
143,397
|
|
|
|
|
144,686
|
|
|
|
-0.9
|
%
|
Net earnings
|
|
|
$
|
56,180
|
|
|
|
$
|
61,750
|
|
|
|
-9.0
|
%
|
|
|
|
$
|
235,087
|
|
|
|
$
|
245,993
|
|
|
|
-4.4
|
%
|
| | | | | | | | | | | | | | | | | | |
|
Earnings per share:
| | | | | | | | | | | | | | | | | | | |
Basic
| | |
$
|
0.36
| | | |
$
|
0.40
| | | |
-10.0
|
%
| | | |
$
|
1.50
| | | |
$
|
1.54
| | | |
-2.6
|
%
|
Diluted
| | |
$
|
0.36
| | | |
$
|
0.39
| | | |
-7.7
|
%
| | | |
$
|
1.49
| | | |
$
|
1.51
| | | |
-1.3
|
%
|
| | | | | | | | | | | | | | | | | | |
|
Weighted average shares:
| | | | | | | | | | | | | | | | | | | |
Basic
| | | |
154,725
| | | | |
154,690
| | | | | | | | |
156,353
| | | | |
159,933
| | | | |
Diluted
|
|
|
|
156,457
|
|
|
|
|
158,124
|
|
|
|
|
|
|
|
|
158,226
|
|
|
|
|
163,419
|
|
|
|
|
| | | | | | | | | Basis Pt Chg | | | | | | | | | | Basis Pt Chg |
Comparison as a % of Net sales | | | | | | | | | | | | | | | | | | | |
Sally Beauty Supply Segment Gross Profit Margin
| | | |
54.6
|
%
| | | |
54.8
|
%
| | |
(20
|
)
| | | | |
54.8
|
%
| | | |
54.8
|
%
| | |
0
| |
BSG Segment Gross Profit Margin
| | | |
41.2
|
%
| | | |
41.1
|
%
| | |
10
| | | | | |
41.3
|
%
| | | |
41.1
|
%
| | |
20
| |
Consolidated Gross Profit Margin
| | | |
49.3
|
%
| | | |
49.5
|
%
| | |
(20
|
)
| | | | |
49.5
|
%
| | | |
49.6
|
%
| | |
(10
|
)
|
Selling, general and administrative expenses
| | | |
34.3
|
%
| | | |
33.9
|
%
| | |
40
| | | | | |
34.2
|
%
| | | |
33.9
|
%
| | |
30
| |
Consolidated Operating Profit Margin
| | | |
12.4
|
%
| | | |
13.4
|
%
| | |
(100
|
)
| | | | |
12.9
|
%
| | | |
13.5
|
%
| | |
(60
|
)
|
Net Earnings Margin
| | | |
5.8
|
%
| | | |
6.5
|
%
| | |
(70
|
)
| | | | |
6.1
|
%
| | | |
6.6
|
%
| | |
(50
|
)
|
| | | | | | | | | | | | | | | | | | |
|
Effective Tax Rate | | | |
37.6
|
%
| | | |
36.2
|
%
| | |
140
| | | | | |
37.9
|
%
| | | |
37.0
|
%
| | |
90
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) | |
Selling, general and administrative expenses include share-based
compensation expenses of $3.3 million and $3.8 million for the three
months ended September 30, 2015 and 2014, respectively; and $16.8
million and $22.1 million for the twelve months ended September 30,
2015 and 2014, respectively, including, for the twelve months ended
September 30, 2014, expense of $3.5 million in connection with the
executive management transition plan disclosed earlier.
|
| |
|
(2) | |
For the three months ended September 30, 2015 and 2014, selling,
general and administrative expenses include expenses of $0.6 million
(net of related insurance recovery) and $0.5 million, respectively;
and for the twelve months ended September 30, 2015 and 2014,
expenses of $5.6 million (net of related insurance recovery) and
$2.5 million, respectively, incurred in connection with the data
security incidents disclosed earlier.
|
| |
|
(3) | |
Results for the three and twelve months ended September 30, 2015,
reflect $4.2 million and $5.3 million, respectively, in expenses
resulting from a restructuring of the Company's operations in
Germany that was approved by our Board of Directors in June 2015.
These amounts include $1.4 million reported in cost of products sold
and distribution expenses for the three and twelve months ended
September 30, 2015, with the remaining expenses reported in selling,
general and administrative expenses.
|
|
|
| |
|
| |
|
| |
|
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | | | |
|
Supplemental Schedule B
|
| | | | | | | | | | | | | | | | | | |
|
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES |
Segment Information
|
(In thousands)
|
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
|
| | |
Three Months Ended
| | | |
Twelve Months Ended
|
| | |
September 30,
| | | |
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
% CHG
|
|
|
|
2015
|
|
|
2014
|
|
|
% CHG
|
Net sales:
| | | | | | | | | | | | | | | | | | | |
Sally Beauty Supply
| | |
$
|
582,301
| | | |
$
|
581,270
| | | |
0.2
|
%
| | | |
$
|
2,329,523
| | | |
$
|
2,308,743
| | | |
0.9
|
%
|
Beauty Systems Group
|
|
|
|
381,929
|
|
|
|
|
363,018
|
|
|
|
5.2
|
%
|
|
|
|
|
1,504,820
|
|
|
|
|
1,444,755
|
|
|
|
4.2
|
%
|
Total net sales
|
|
|
$
|
964,230
|
|
|
|
$
|
944,288
|
|
|
|
2.1
|
%
|
|
|
|
$
|
3,834,343
|
|
|
|
$
|
3,753,498
|
|
|
|
2.2
|
%
|
| | | | | | | | | | | | | | | | | | |
|
Operating earnings:
| | | | | | | | | | | | | | | | | | | |
Sally Beauty Supply (1) | | |
$
|
97,860
| | | |
$
|
107,865
| | | |
-9.3
|
%
| | | |
$
|
412,393
| | | |
$
|
431,655
| | | |
-4.5
|
%
|
Beauty Systems Group
|
|
|
|
57,862
|
|
|
|
|
54,007
|
|
|
|
7.1
|
%
|
|
|
|
|
231,151
|
|
|
|
|
216,971
|
|
|
|
6.5
|
%
|
Segment operating earnings
|
|
|
|
155,722
|
|
|
|
|
161,872
|
|
|
|
-3.8
|
%
|
|
|
|
|
643,544
|
|
|
|
|
648,626
|
|
|
|
-0.8
|
%
|
| | | | | | | | | | | | | | | | | | |
|
Unallocated expenses (2) | | | |
(33,177
|
)
| | | |
(31,942
|
)
| | |
3.9
|
%
| | | | |
(131,440
|
)
| | | |
(119,523
|
)
| | |
10.0
|
%
|
Share-based compensation (3) | | | |
(3,312
|
)
| | | |
(3,810
|
)
| | |
-13.1
|
%
| | | | |
(16,778
|
)
| | | |
(22,107
|
)
| | |
-24.1
|
%
|
Interest expense
|
|
|
|
(29,152
|
)
|
|
|
|
(29,263
|
)
|
|
|
-0.4
|
%
|
|
|
|
|
(116,842
|
)
|
|
|
|
(116,317
|
)
|
|
|
0.5
|
%
|
Earnings before provision for income taxes
|
|
|
$
|
90,081
|
|
|
|
$
|
96,857
|
|
|
|
-7.0
|
%
|
|
|
|
$
|
378,484
|
|
|
|
$
|
390,679
|
|
|
|
-3.1
|
%
|
| | | | | | | | | | | | | | | | | | |
|
Segment operating profit margin:
| | | | | | | | | Basis Pt Chg | | | | | | | | | | Basis Pt Chg |
Sally Beauty Supply
| | | |
16.8
|
%
| | | |
18.6
|
%
| | |
(180
|
)
| | | | |
17.7
|
%
| | | |
18.7
|
%
| | |
(100
|
)
|
Beauty Systems Group
| | | |
15.1
|
%
| | | |
14.9
|
%
| | |
20
| | | | | |
15.4
|
%
| | | |
15.0
|
%
| | |
40
| |
Consolidated operating profit margin
|
|
|
|
12.4
|
%
|
|
|
|
13.4
|
%
|
|
|
(100
|
)
|
|
|
|
|
12.9
|
%
|
|
|
|
13.5
|
%
|
|
|
(60
|
)
|
|
| |
(1) | |
For the three and twelve months ended September 30, 2015, Sally
Beauty Supply reflects $4.2 million and $5.3 million, respectively,
in expenses resulting from a restructuring of the its operations in
Germany that was approved by our Board of Directors in June 2015.
These amounts include $1.4 million reported in cost of products sold
and distribution expenses for the three and twelve months ended
September 30, 2015, with the remaining expenses reported in selling,
general and administrative expenses.
|
| |
|
(2) | |
Unallocated expenses consist of corporate and shared costs, and are
included in selling, general and administrative expenses. For the
three months ended September 30, 2015 and 2014, unallocated expenses
include $0.6 million (net of related insurance recovery) and $0.5
million, respectively. For the twelve months ended September 30,
2015 and 2014, $5.6 million (net of related insurance recovery) and
$2.5 million, respectively, in expenses incurred in connection with
the data security incidents disclosed earlier.
|
| |
|
(3) | |
For the twelve months ended September 30, 2014, share-based
compensation expense includes $3.5 million in connection with the
executive management transition plan disclosed earlier.
|
|
|
| |
|
| |
|
| |
|
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | | | |
|
Supplemental Schedule C
|
| | | | | | | | | | | | | | | | | | |
|
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES |
Non-GAAP Financial Measures Reconciliations
|
(In thousands)
|
(Unaudited)
|
| | | | | | |
|
| | |
Three Months Ended
| | | |
Twelve Months Ended
|
| | |
September 30,
| | | |
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
% CHG
|
|
|
|
2015
|
|
|
2014
|
|
|
% CHG
|
Adjusted EBITDA:
| | | | | | | | | | | | | | | | | | | |
Net earnings (per GAAP)
| | |
$
|
56,180
| | |
$
|
61,750
| | |
-9.0
|
%
| | | |
$
|
235,087
| | |
$
|
245,993
| | |
-4.4
|
%
|
Add:
| | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
| | | |
25,223
| | | |
20,924
| | |
20.5
|
%
| | | | |
89,391
| | | |
79,663
| | |
12.2
|
%
|
Share-based compensation (1) | | | |
3,312
| | | |
3,810
| | |
-13.1
|
%
| | | | |
16,778
| | | |
22,107
| | |
-24.1
|
%
|
Germany business restructure charges (2) | | | |
4,190
| | | |
-
| | |
100.0
|
%
| | | | |
5,307
| | | |
-
| | |
100.0
|
%
|
Loss from data security incidents (3) | | | |
604
| | | |
529
| | |
14.2
|
%
| | | | |
5,564
| | | |
2,504
| | |
122.2
|
%
|
Interest expense
| | | |
29,152
| | | |
29,263
| | |
-0.4
|
%
| | | | |
116,842
| | | |
116,317
| | |
0.5
|
%
|
Provision for income taxes
|
|
|
|
33,901
|
|
|
|
35,107
|
|
|
-3.4
|
%
|
|
|
|
|
143,397
|
|
|
|
144,686
|
|
|
-0.9
|
%
|
Adjusted EBITDA (Non-GAAP)
|
|
|
$
|
152,562
|
|
|
$
|
151,383
|
|
|
0.8
|
%
|
|
|
|
$
|
612,366
|
|
|
$
|
611,270
|
|
|
0.2
|
%
|
|
| |
(1) | |
For the twelve months ended September 30, 2015 and 2014, share-based
compensation includes $4.8 million and $8.8 million, respectively,
of accelerated expense related to certain retirement-eligible
employees who are eligible to continue vesting awards upon
retirement, including, for the twelve months ended September 30,
2014, expense of $3.5 million in connection with the executive
management transition plan disclosed earlier.
|
| |
|
(2) | |
Results for the three and twelve months ended September 30, 2015,
reflect $4.2 million and $5.3 million, respectively, in pre-tax
expenses resulting from a restructuring of the Company's operations
in Germany that was approved by our Board of Directors in June 2015.
These amounts include $1.4 million reported in cost of products sold
and distribution expenses for the three and twelve months ended
September 30, 2015, with the remaining expenses reported in selling,
general and administrative expenses.
|
| |
|
(3) | |
For the three months ended September 30, 2015 and 2014, selling,
general and administrative expenses include $0.6 million (net of
related insurance recovery) and $0.5 million, respectively; and for
the twelve months ended September 30, 2015 and 2014, $5.6 million
(net of related insurance recovery) and $2.5 million, respectively,
in pre-tax expenses incurred in connection with the data security
incidents disclosed earlier.
|
|
|
| |
|
|
| |
|
| |
|
| |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
Supplemental Schedule D
|
| | | | | | | | | | | | |
|
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES |
Non-GAAP Financial Measures Reconciliations, Continued
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
Three Months Ended September 30, 2015
|
|
|
|
As Reported
|
|
|
|
Charges for Germany Restructure (1) |
|
|
Charges from Data Security Incidents (2) |
|
|
As Adjusted (Non-GAAP)
|
| | | | | | | | | | | | |
|
Consolidated Gross profit (1) | | |
$
|
475,311
| | | | |
$
|
1,404
| | | |
$
|
-
| | | |
$
|
476,715
| |
Consolidated Gross Profit Margin
| | | |
49.3
|
%
| | | | | | | | | | |
49.4
|
%
|
Selling, general and administrative expenses
| | | |
330,855
| | | | | |
(2,786
|
)
| | | |
(604
|
)
| | | |
327,465
| |
SG&A expenses, as a percentage of sales
| | | |
34.3
|
%
| | | | | | | | | | |
34.0
|
%
|
Operating earnings
| | | |
119,233
| | | | | |
4,190
| | | | |
604
| | | | |
124,027
| |
Operating Profit Margin
| | | |
12.4
|
%
| | | | | | | | | | |
12.9
|
%
|
Earnings before provision for income taxes
| | | |
90,081
| | | | | |
4,190
| | | | |
604
| | | | |
94,875
| |
Provision for income taxes (3) |
|
|
|
33,901
|
|
|
|
|
|
1,550
|
|
|
|
|
223
|
|
|
|
|
35,674
|
|
Net earnings
|
|
|
$
|
56,180
|
|
|
|
|
$
|
2,640
|
|
|
|
$
|
381
|
|
|
|
$
|
59,201
|
|
| | | | | | | | | | | | |
|
Earnings per share:
| | | | | | | | | | | | | |
Basic
| | |
$
|
0.36
| | | | |
$
|
0.02
| | | |
$
|
0.00
| | | |
$
|
0.38
| |
Diluted
| | |
$
|
0.36
| | | | |
$
|
0.02
| | | |
$
|
0.00
| | | |
$
|
0.38
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
Three Months Ended September 30, 2014
|
|
|
|
As Reported
|
|
|
|
|
|
|
Charges from Data Security Incidents (2) |
|
|
As Adjusted (Non-GAAP)
|
| | | | | | | | | | | | |
|
Consolidated Gross profit (1) | | |
$
|
467,540
| | | | | | | |
$
|
-
| | | |
$
|
467,540
| |
Consolidated Gross Profit Margin
| | | |
49.5
|
%
| | | | | | | | | | |
49.5
|
%
|
Selling, general and administrative expenses
| | | |
320,496
| | | | | | | | |
(529
|
)
| | | |
319,967
| |
SG&A expenses, as a percentage of sales
| | | |
33.9
|
%
| | | | | | | | | | |
33.9
|
%
|
Operating earnings
| | | |
126,120
| | | | | | | | |
529
| | | | |
126,649
| |
Operating Profit Margin
| | | |
13.4
|
%
| | | | | | | | | | |
13.4
|
%
|
Earnings before provision for income taxes
| | | |
96,857
| | | | | | | | |
529
| | | | |
97,386
| |
Provision for income taxes (3) |
|
|
|
35,107
|
|
|
|
|
|
|
|
|
206
|
|
|
|
|
35,313
|
|
Net earnings
|
|
|
$
|
61,750
|
|
|
|
|
|
|
|
$
|
323
|
|
|
|
$
|
62,073
|
|
| | | | | | | | | | | | |
|
Earnings per share:
| | | | | | | | | | | | | |
Basic
| | |
$
|
0.40
| | | | | | | |
$
|
0.00
| | | |
$
|
0.40
| |
Diluted
| | |
$
|
0.39
| | | | | | | |
$
|
0.00
| | | |
$
|
0.39
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) | |
Results for the three months ended September 30, 2015, reflect $4.2
million in expenses resulting from a restructuring of the Company's
operations in Germany that was approved by our Board of Directors in
June 2015. This amount includes $1.4 million reported in cost of
products sold and distribution expenses, with the remaining expenses
reported in selling, general and administrative expenses.
|
| |
|
(2) | |
For the three months ended September 30, 2015 and 2014, selling,
general and administrative expenses include expenses of $0.6 million
(net of related insurance recovery) and $0.5 million, respectively,
incurred in connection with the data security incidents disclosed
earlier.
|
| |
|
(3) | |
The tax provision for the adjustments to net earnings was calculated
using an effective tax rate of 37.0% and 39.0% for the three months
ended September 30, 2015 and 2014, respectively.
|
|
|
| |
|
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | |
|
Supplemental Schedule E
|
| | | | | | | | | | | | | | | |
|
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES |
Non-GAAP Financial Measures Reconciliations, Continued
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
| | |
Twelve Months Ended September 30, 2015
|
|
|
|
As Reported
|
|
|
|
|
|
|
Charges for Germany Restructure (2) |
|
|
Charges from Data Security Incidents (3) |
|
|
As Adjusted (Non-GAAP)
|
| | | | | | | | | | | | | | | |
|
Consolidated Gross profit (2) | | |
$
|
1,897,851
| | | | | | | |
$
|
1,404
| | | |
$
|
-
| | | |
$
|
1,899,255
| |
Consolidated Gross Profit Margin
| | | |
49.5
|
%
| | | | | | | | | | | | | |
49.5
|
%
|
Selling, general and administrative expenses
| | | |
1,313,134
| | | | | | | | |
(3,903
|
)
| | | |
(5,564
|
)
| | | |
1,303,667
| |
SG&A expenses, as a percentage of sales
| | | |
34.2
|
%
| | | | | | | | | | | | | |
34.0
|
%
|
Operating earnings
| | | |
495,326
| | | | | | | | |
5,307
| | | | |
5,564
| | | | |
506,197
| |
Operating Profit Margin
| | | |
12.9
|
%
| | | | | | | | | | | | | |
13.2
|
%
|
Earnings before provision for income taxes
| | | |
378,484
| | | | | | | | |
5,307
| | | | |
5,564
| | | | |
389,355
| |
Provision for income taxes (4) |
|
|
|
143,397
|
|
|
|
|
|
|
|
|
1,964
|
|
|
|
|
2,059
|
|
|
|
|
147,420
|
|
Net earnings
|
|
|
$
|
235,087
|
|
|
|
|
|
|
|
$
|
3,343
|
|
|
|
$
|
3,505
|
|
|
|
$
|
241,935
|
|
| | | | | | | | | | | | | | | |
|
Earnings per share:
| | | | | | | | | | | | | | | | |
Basic
| | |
$
|
1.504
| | | | | | | |
$
|
0.021
| | | |
$
|
0.022
| | | |
$
|
1.55
| |
Diluted
| | |
$
|
1.486
| | | | | | | |
$
|
0.021
| | | |
$
|
0.022
| | | |
$
|
1.53
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
Twelve Months Ended September 30, 2014
|
|
|
|
As Reported
|
|
|
|
Management Transition Costs (1) |
|
|
|
|
|
Charges from Data Security Incidents (3) |
|
|
As Adjusted (Non-GAAP)
|
| | | | | | | | | | | | | | | |
|
Consolidated Gross profit (2) | | |
$
|
1,860,172
| | | | |
$
|
-
| | | | | | |
$
|
-
| | | |
$
|
1,860,172
| |
Consolidated Gross Profit Margin
| | | |
49.6
|
%
| | | | | | | | | | | | | |
49.6
|
%
|
Selling, general and administrative expenses
| | | |
1,273,513
| | | | | |
(3,500
|
)
| | | | | | |
(2,504
|
)
| | | |
1,267,509
| |
SG&A expenses, as a percentage of sales
| | | |
33.9
|
%
| | | | | | | | | | | | | |
33.8
|
%
|
Operating earnings
| | | |
506,996
| | | | | |
3,500
| | | | | | | |
2,504
| | | | |
513,000
| |
Operating Profit Margin
| | | |
13.5
|
%
| | | | | | | | | | | | | |
13.7
|
%
|
Earnings before provision for income taxes
| | | |
390,679
| | | | | |
3,500
| | | | | | | |
2,504
| | | | |
396,683
| |
Provision for income taxes (4) |
|
|
|
144,686
|
|
|
|
|
|
1,365
|
|
|
|
|
|
|
|
977
|
|
|
|
|
147,028
|
|
Net earnings
|
|
|
$
|
245,993
|
|
|
|
|
$
|
2,135
|
|
|
|
|
|
|
$
|
1,527
|
|
|
|
$
|
249,655
|
|
| | | | | | | | | | | | | | | |
|
Earnings per share:
| | | | | | | | | | | | | | | | |
Basic
| | |
$
|
1.54
| | | | |
$
|
0.01
| | | | | | |
$
|
0.01
| | | |
$
|
1.56
| |
Diluted
| | |
$
|
1.51
| | | | |
$
|
0.01
| | | | | | |
$
|
0.01
| | | |
$
|
1.53
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) | |
For the twelve months ended September 30, 2014, selling, general and
administrative expenses include share-based compensation expense of
$3.5 million in connection with the executive management transition
plan disclosed earlier.
|
| |
|
(2) | |
Results for the twelve months ended September 30, 2015, reflect $5.3
million in expenses resulting from a restructuring of the Company's
operations in Germany that was approved by our Board of Directors in
June 2015. This amount includes $1.4 million reported in cost of
products sold and distribution expenses, with the remaining expenses
reported in selling, general and administrative expenses.
|
| |
|
(3) | |
For the twelve months ended September 30, 2015 and 2014, selling,
general and administrative expenses include expenses of $5.6 million
(net of related insurance recovery) and $2.5 million, respectively,
incurred in connection with the data security incidents disclosed
earlier.
|
| |
|
(4) | |
The tax provision for the adjustments to net earnings was calculated
using an effective tax rate of 37.0% and 39.0% for the twelve months
ended September 30, 2015 and 2014, respectively.
|
|
|
| |
|
| |
|
| |
| | | | | | | | |
|
Supplemental Schedule F
|
| | | | | | | | |
|
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES |
Store Count and Same Store Sales
|
(Unaudited)
|
| | | | | | | | |
|
| | |
As of September 30,
|
|
|
|
| | |
2015
|
|
|
2014
|
|
|
CHG
|
| | | | | | | | |
|
Number of retail stores (end of period):
| | | | | | | | | |
Sally Beauty Supply:
| | | | | | | | | |
Company-operated stores
| | |
3,655
| | | |
3,544
| | | |
111
| |
Franchise stores
| | |
18
|
| |
|
19
|
| | |
(1
|
)
|
Total Sally Beauty Supply
| | |
3,673
| | | |
3,563
| | | |
110
| |
Beauty Systems Group:
| | | | | | | | | |
Company-operated stores
| | |
1,137
| | | |
1,103
| | | |
34
| |
Franchise stores
| | |
157
|
| |
|
162
|
| | |
(5
|
)
|
Total Beauty System Group
| | |
1,294
|
| |
|
1,265
|
| | |
29
|
|
Total
| | |
4,967
|
| | |
4,828
|
| | |
139
|
|
| | | | | | | | |
|
BSG distributor sales consultants (end of period) (1) | | |
958
| | | |
981
| | | |
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
| | |
2015
|
|
|
2014
| | | |
Fourth quarter company-operated same store sales growth (2) | | | | | | | | | Basis Pt Chg |
Sally Beauty Supply
| | |
1.8
|
%
| | |
2.1
|
%
| | |
(30
|
)
|
Beauty Systems Group
| | |
7.4
|
%
| | |
3.8
|
%
| | |
360
| |
Consolidated
| | |
3.5
|
%
| | |
2.6
|
%
| | |
90
| |
| | | | | | | | |
|
Twelve months ended September 30 company-operated same store sales
growth (2) | | | | | | | | | Basis Pt Chg |
Sally Beauty Supply
| | |
1.7
|
%
| | |
1.3
|
%
| | |
40
| |
Beauty Systems Group
| | |
5.7
|
%
| | |
3.5
|
%
| | |
220
| |
Consolidated
| | |
2.9
|
%
| | |
2.0
|
%
| | |
90
| |
|
| |
(1) | |
Includes 318 and 339 distributor sales consultants as reported by
our franchisees at September 30, 2015 and 2014, respectively.
|
| |
|
(2) | |
For the purpose of calculating our same store sales metrics, we
compare the current period sales for stores open for 14 months or
longer as of the last day of a month with the sales for these stores
for the comparable period in the prior fiscal year. Our same store
sales are calculated in constant U.S. dollars and include
internet-based sales and the effect of store expansions, if
applicable, but do not generally include the sales of stores
relocated until 14 months after the relocation. The sales of stores
acquired are excluded from our same store sales calculation until 14
months after the acquisition.
|
|
|
| |
| | |
|
Supplemental Schedule G
|
| | | |
|
| |
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES |
Selected Financial Data and Debt
|
(In thousands)
|
(Unaudited)
|
| | |
|
| | |
As of September 30,
|
| | |
2015
| | |
2014
|
Financial condition information (at period end):
| | | | | | |
Working capital
| | |
$
|
695,403
| | | |
$
|
640,612
| |
Cash and cash equivalents
| | | |
140,038
| | | | |
106,575
| |
Property and equipment, net
| | | |
270,847
| | | | |
238,111
| |
Total assets
| | | |
2,094,351
| | | | |
2,029,973
| |
Total debt, including capital leases (1) | | | |
1,787,594
| | | | |
1,785,987
| |
Total stockholders' (deficit) equity
| | | |
($297,821 |
)
| | | |
($347,053 |
)
|
|
|
|
|
|
|
|
| | | | | |
|
| | |
As of September 30,
| | | |
| | |
2015
| | |
Interest Rates (2) |
Debt position, excluding capital leases:
| | | | | | |
Revolving ABL facility
| | |
$
|
-
| | | |
(i) Prime + 0.50-0.75% or (ii) LIBOR + 1.50-1.75%
|
Senior notes due 2019
| | | |
750,000
| | | | |
6.875
|
%
|
Senior notes due 2022
| | | |
850,000
| | | | |
5.750
|
%
|
Senior notes due 2023
| | | |
200,000
| | | | |
5.500
|
%
|
| | |
| | | |
Total debt, excluding capital leases (3) | | |
$
|
1,800,000
|
| | | |
|
|
|
|
|
|
|
| | | | | |
|
Debt maturities, excluding capital leases:
| | | | | | |
Twelve months ending September 30,
| | | | | | |
2016-2019
| | |
$
|
-
| | | | |
2020
| | | |
750,000
| | | | |
Thereafter
| | |
|
1,050,000
|
| | | |
Total debt, excluding capital leases (3) | | |
$
|
1,800,000
|
| | | |
|
| |
(1) | |
Total debt, including capital leases, is net of unamortized debt
issuance costs of $21.8 million and $25.7 million at September 30,
2015 and 2014, respectively.
|
| |
|
(2) | |
Interest rates represent the coupon or contractual rates related to
each indebtedness shown.
|
| |
|
(3) | |
Amounts do not include capital lease obligations, unamortized
premium of $6.5 million related to senior notes due 2022 in an
aggregate principal amount of $150.0 million, or unamortized debt
issuance costs in the aggregate amount of $21.8 million in
connection with the senior notes due 2019, 2022 and 2023.
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20151112005266/en/
Sally Beauty Holdings, Inc.
Karen Fugate, 940-297-3877
Investor
Relations
Source: Sally Beauty Holdings, Inc.