Sally Beauty Holdings, Inc. Announces $700 Million Share Repurchase Program
DENTON, Texas--(BUSINESS WIRE)--
Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”) today announced
that its Board of Directors has approved a new share repurchase program
authorizing the Company to repurchase up to $700 million of its common
stock. The announcement is the first repurchase authorized by the
Company in 2013, but the third in the last twelve months. In August
2012, the Company announced the approval of a share repurchase program
to repurchase up to $300 million of its common stock and, in May 2012,
the Company repurchased approximately $200 million of its common stock.
As of today, the Company has repurchased $266.4 million of its common
stock under its $300 million repurchase program announced in August
2012. The remaining $33.6 million authorized under that program is
included in the $700 million repurchase program announced today.
“Our strong cash flow allows us to continue the repurchases of our stock
while continuing to invest in growth opportunities and other long-term
initiatives,” said Gary Winterhalter, Chairman, President and CEO. “We
believe our recent stock repurchases have returned value to our
shareholders and this new share repurchase program underscores our
continued commitment to building shareholder value.”
Sally Beauty Holdings, Inc. expects to fund the share repurchase through
a combination of cash on hand, future cash flow from operations and
borrowings. Repurchases will be made in compliance with all Securities
and Exchange Commission rules, including Rule 10b-18, and other legal
requirements and may be made in part under a Rule 10b5-1 plan, which
permits stock repurchases when the Company might otherwise be precluded
from doing so.
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 $3.5 billion annually. Through the Sally Beauty Supply and Beauty
Systems Group businesses, the Company sells and distributes through
4,500 stores, including approximately 200 franchised units, throughout
the United States, the United Kingdom, Belgium, Chile, France, the
Netherlands, 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, 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 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; 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-based business; the success of our
Internet-based business; successfully identifying acquisition candidates
and successfully completing desirable acquisitions; integrating
businesses acquired in the future; opening and operating new stores
profitably; the impact of the health of 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; severe weather, natural disasters or acts of terrorism; the
preparedness of our accounting and other management systems to meet
financial reporting and other requirements and the upgrade of our
financial reporting system; 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 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 representativeness of our historical consolidated financial
information with respect to our future financial position, results of
operations or cash flows.
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 year ended September 30, 2012, 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.
Sally Beauty Holdings, Inc.
Karen Fugate, 940-297-3877
Source: Sally Beauty Holdings, Inc.
