Sally Beauty Holdings, Inc. Announces Fiscal 2013 Second Quarter Results
-- Consolidated net sales of $898.2 million, up 1.0%
-- Same store sales decline of 0.8% vs. growth of 9.1% in 2Q12
-- Gross margin expansion of 40 bps to reach 49.5%
-- 2Q13 net earnings of $64.9 million with earnings per share of $0.36
-- Repurchased $191.4 million, or 7.0 million shares of stock in 2Q13
DENTON, Texas--(BUSINESS WIRE)--
Sally Beauty Holdings, Inc. (NYSE: SBH) (the "Company") today announced
financial results for the fiscal 2013 second quarter. The Company will
hold a conference call today at 10:00 a.m. (Central) to discuss these
results and its business.
"Our fundamental business drivers are solid and we executed well on our
operating initiatives in the second quarter," stated Gary Winterhalter,
Chairman, President and Chief Executive Officer. "Our financial
performance reflects the difficult comparisons against record growth in
certain product categories in the prior year and lower traffic driven in
part by two fewer days compared to the prior year quarter. We are
optimistic that same store sales growth in the second half of fiscal
year 2013 will be 3% to 4%, resulting in full year growth of 2.0% to
2.5%. We are pleased with our capability to drive shareholder value via
our stock buy back initiatives. From May 2012 through March 2013, we
have purchased 19.6 million shares spending over half-a-billion dollars;
as of March 31st, we had $653 million remaining on our
current authorization."
FISCAL 2013 SECOND QUARTER FINANCIAL HIGHLIGHTS
Net Sales: For the fiscal 2013 second quarter, consolidated net
sales were $898.2 million, an increase of 1.0% from the fiscal 2012
second quarter. Fiscal 2013 second quarter sales increase is attributed
to the addition of new stores offset by softness in same store sales.
The impact from changes in foreign currency exchange rates in the fiscal
2013 second quarter was not material. Consolidated same store sales
declined in the fiscal 2013 second quarter by 0.8% compared to record
growth of 9.1% in the fiscal 2012 second quarter. Same store sales
growth was negatively impacted by lower traffic driven in part by two
fewer days in the quarter compared to fiscal 2012 second quarter and
difficult comparisons against strong growth in certain product
categories in the Sally Beauty U.S. business.
Gross Profit: Consolidated gross profit for the fiscal 2013
second quarter was $444.5 million, an increase of 1.8% over gross profit
of $436.8 million for the fiscal 2012 second quarter. Gross profit as a
percentage of sales was 49.5%, a 40 basis point improvement from the
fiscal 2012 second quarter.
Selling, General and Administrative Expenses: For the fiscal 2013
second quarter, consolidated selling, general and administrative (SG&A)
expenses, including unallocated corporate expenses and share-based
compensation, were $299.4 million, or 33.3% of sales, an 80 basis point
increase from the fiscal 2012 second quarter metric of 32.5% of sales
and total SG&A expenses of $289.2 million. Fiscal 2013 second quarter
SG&A expenses increased 3.5% or $10.2 million primarily due to expenses
associated with the opening of new stores, higher advertising expenses
in Sally Beauty Supply, the U.K. warehouse initiative, the Sally Beauty
Supply point-of-sale system conversion and the implementation of our
European ERP system.
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 2013 second
quarter was $26.8 million, up $4.4 million from the fiscal 2012 second
quarter of $22.4 million.
Provision for Income Taxes: Income taxes were $36.2 million for
the fiscal 2013 second quarter versus $41.5 million in the fiscal 2012
second quarter. The Company's effective tax rate in the fiscal 2013
second quarter was 35.8% versus 38.0% in the fiscal 2012 second quarter.
Net Earnings and Diluted Net Earnings per Share (EPS): In the
fiscal 2013 second quarter, net earnings were $64.9 million, a decrease
of 4.3% over fiscal 2012 second quarter net earnings of $67.8 million.
Diluted earnings per share in the fiscal 2013 second quarter were $0.36,
growth of 2.9% when compared to diluted earnings per share of $0.35 in
the fiscal 2012 second quarter.
Adjusted (Non-GAAP) EBITDA(1): Adjusted
EBITDA for the fiscal 2013 second quarter was $148.3 million, a decrease
of 1.5% from $150.5 million in the fiscal 2012 second quarter.
Financial Position, Capital Expenditures and Working Capital:
Cash and cash equivalents as of March 31, 2013, were $62.3 million. The
Company ended the fiscal 2013 second quarter with $22.5 million of loans
outstanding on its asset-based loan (ABL) revolving credit facility. The
Company's debt, excluding capital leases, totaled $1.63 billion as of
March 31, 2013.
For the first six months of fiscal 2013, the Company's capital
expenditures totaled $43.1 million. Capital expenditures for the fiscal
year 2013 are projected to be in the range of $85 million to $90
million, excluding acquisitions.
Working capital (current assets less current liabilities) decreased
$163.1 million to $523.4 million at March 31, 2013 compared to $686.5
million at September 30, 2012. The ratio of current assets to current
liabilities was 2.13 to 1.00 at March 31, 2013 compared to 2.44 to 1.00
at September 30, 2012.
Inventory as of March 31, 2013 was $752.7 million, an increase of $63.4
million or growth of 9.2% from March 31, 2012 inventory. This increase
is primarily due to additional inventory from recent softness in same
store sales for the Sally Beauty U.S. business, the ramp-up of inventory
for the new U.K. warehouse, and net new store openings.
During the three months ended March 31, 2013, the Company repurchased
(and subsequently retired) a total of 7.0 million shares of its common
stock at an aggregate cost of $191.4 million. As of March 31, 2013, the
Company has approximately $653.0 million remaining under the $700
million authorization announced on March 5. 2013.
-- From the period of January 1, 2013 through March 4, 2013, the Company
repurchased 5.4 million shares at an aggregate cost of $144.5 million
under its $300 million repurchase program announced in August 2012.
-- From the period of March 5, 2013 through March 31, 2013, the Company
repurchased 1.6 million shares of its common stock under the new $700
million 2013 Share Repurchase Program at an aggregate cost of $46.9
million.
Business Segment Results:
Sally Beauty Supply
Fiscal 2013 Second Quarter Results for Sally Beauty Supply
-- Sales of $556.0 million, up 0.4% from $554.0 million in the fiscal 2012
second quarter. Sales growth is attributed to net new store openings and
was partially offset by softness in same store sales growth.
-- Same store sales declined by 1.6% when compared to record growth of 9.3%
in the fiscal 2012 second quarter. Same store sales growth in the fiscal
2013 second quarter was negatively impacted by lower traffic driven in
part by two fewer sales days in the quarter compared to fiscal 2012
second quarter and difficult comparisons against record growth in
certain categories in the prior year.
-- Gross margin of 54.5%, a 30 basis point improvement from 54.2% in the
fiscal 2012 second quarter.
-- Segment earnings of $106.0 million, down 4.8% from $111.3 million in the
fiscal 2012 second quarter.
-- Segment operating margins were 19.1% of sales, a decline of 100 bps from
20.1% in the fiscal 2012 second quarter.
-- Net store base increased by 129 over the fiscal 2012 second quarter for
total store count of 3,357.
Sales growth in the fiscal 2013 second quarter is attributed to net new
store openings and was partially offset by softness in same store sales
growth. Same store sales growth in the fiscal 2013 second quarter was
negatively impacted by lower traffic driven in part by two fewer sales
days in the quarter compared to fiscal 2012 second quarter and difficult
comparisons against record growth in certain product categories in the
prior year. Gross profit margin expansion of 30 basis points resulted
from a shift in product and customer mix and low-cost sourcing
initiatives. Segment operating earnings and margin were negatively
impacted by softer sales growth than the prior year quarter.
Beauty Systems Group
Fiscal 2013 Second Quarter Results for Beauty Systems Group
-- Sales of $342.3 million, up 2.1% from $335.3 million in the fiscal 2012
second quarter.
-- Same store sales growth of 1.3% versus record growth of 8.7% in the
fiscal 2012 second quarter. Same store sales growth in the fiscal 2013
second quarter was negatively impacted by lower traffic driven in part
by two fewer sales days in the quarter compared to fiscal 2012 second
quarter.
-- Gross margin of 41.3%, a 50 basis point improvement from 40.8% in the
fiscal 2012 second quarter.
-- Segment earnings of $49.8 million, up 9.3% from $45.6 million in the
fiscal 2012 second quarter.
-- Segment operating margins increased by 100 basis points to 14.6% of
sales from 13.6% in the fiscal 2012 second quarter.
-- Net store count was 1,201, an increase of 37 stores over the fiscal 2012
second quarter.
-- Total BSG distributor sales consultants at the end of the fiscal 2013
second quarter were 994 versus 1,113 at the end of the fiscal 2012
second quarter.
Sales growth in the fiscal 2013 second quarter was driven by same store
sales growth and net new stores, but partially offset by the loss of two
sales days versus the fiscal 2012 second quarter. Segment operating
earnings and margin growth is primarily due to improvement in gross
margin and SG&A leverage.
(1)A detailed table reconciling 2013 and 2012 GAAP net
earnings to adjusted net earnings, adjusted EPS and adjusted EBITDA is
included in Supplemental Schedule C.
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 800-288-8976 (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 12:00 p.m. (Central) May 2,
2013 through May 16, 2013 by dialing 1-800-475-6701 or if international
dial 320-365-3844 and reference the conference ID number 291272. 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 $3.5 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 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; 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.
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
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,
----------------------------------- ---------------------------------------
2013 2012 % CHG 2013 2012 % CHG
------------------------------------------------ - ----------- - ----------- - ------- - ------------- - ------------- - -------
Net sales $ 898,239$ 889,281 1.0 % $ 1,803,680$ 1,754,096 2.8 %
Cost of products sold and distribution expenses 453,785 452,495 0.3 % 914,858 895,453 2.2 %
------------------------------------------------ - - ------- - - - ------- - - ----- - - - --------- - - - --------- - - ----- -
Gross profit 444,454 436,786 1.8 % 888,822 858,643 3.5 %
Selling, general and administrative expenses (1) 299,370 289,189 3.5 % 605,059 582,203 3.9 %
Depreciation and amortization 17,247 15,940 8.2 % 34,055 31,493 8.1 %
------------------------------------------------ - - ------- - - - ------- - - ----- - - - --------- - - - --------- - - ----- -
Operating earnings 127,837 131,657 -2.9 % 249,708 244,947 1.9 %
Interest expense (2) 26,779 22,355 19.8 % 53,503 86,316 -38.0 %
------------------------------------------------ - - ------- - - - ------- - - ----- - - - --------- - - - --------- - - ----- -
Earnings before provision for income taxes 101,058 109,302 -7.5 % 196,205 158,631 23.7 %
Provision for income taxes 36,169 41,489 -12.8 % 72,332 60,684 19.2 %
------------------------------------------------ - - ------- - - - ------- - - ----- - - - --------- - - - --------- - - ----- -
Net earnings $ 64,889$ 67,813 -4.3 % $ 123,873$ 97,947 26.5 %
------------------------------------------------ - - ------- - - - ------- - - ----- - - - --------- - - - --------- - - ----- -
Earnings per share:
Basic $ 0.37$ 0.36 2.8 % $ 0.70$ 0.53 32.1 %
Diluted $ 0.36$ 0.35 2.9 % $ 0.69$ 0.51 35.3 %
Weighted average shares:
Basic 173,461 186,335 175,930 185,514
Diluted 178,389 191,684 180,743 190,662
------------------------------------------------ - - ------- - - - ------- - - ------- - - --------- - - - --------- - - -------
Basis Basis
Pt Pt
Chg Chg
Comparison as a % of Net sales
Sally Beauty Supply Segment Gross Profit Margin 54.5 % 54.2 % 30 54.5 % 54.0 % 50
BSG Segment Gross Profit Margin 41.3 % 40.8 % 50 40.9 % 40.6 % 30
Consolidated Gross Profit Margin 49.5 % 49.1 % 40 49.3 % 49.0 % 30
Selling, general and administrative expenses 33.3 % 32.5 % 80 33.5 % 33.2 % 30
Consolidated Operating Profit Margin 14.2 % 14.8 % (60 ) 13.8 % 14.0 % (20 )
Net Earnings Margin 7.2 % 7.6 % (40 ) 6.9 % 5.6 % 130
Effective Tax Rate 35.8 % 38.0 % (220 ) 36.9 % 38.3 % (140 )
------------------------------------------------ - ----------- - ----------- - ------- - ------------- - ------------- - -------
(1 ) Selling, general and administrative expenses include share-based
compensation of $3.3 million and $2.9 million for the three months ended
March 31, 2013 and 2012; and $12.3 million and $11.0 million for the six
months ended March 31, 2013 and 2012, respectively.
(2 ) For the six months ended March 31, 2012, interest expense includes a loss
on extinguishment of debt of $34.6 million in connection with the
Company's December 2011 redemption of its senior notes due 2014 and
senior subordinated notes due 2016 with the proceeds of the Company's
senior notes due 2019 issued in November 2011.
Supplemental Schedule B
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Segment Information
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
---------------------------------- ---------------------------------------
2013 2012 % CHG 2013 2012 % CHG
------------------------------------------ - ----------- - ----------- - ------ - ------------- - ------------- - -------
Net sales:
Sally Beauty Supply $ 555,977$ 553,973 0.4 % $ 1,114,793$ 1,090,331 2.2 %
Beauty Systems Group 342,262 335,308 2.1 % 688,887 663,765 3.8 %
------------------------------------------ - - ------- - - - ------- - - ---- - - - --------- - - - --------- - - ----- -
Total net sales $ 898,239$ 889,281 1.0 % $ 1,803,680$ 1,754,096 2.8 %
------------------------------------------ - - ------- - - - ------- - - ---- - - - --------- - - - --------- - - ----- -
Operating earnings:
Sally Beauty Supply $ 105,956$ 111,334 -4.8 % $ 212,043$ 212,400 -0.2 %
Beauty Systems Group 49,821 45,597 9.3 % 98,573 88,924 10.9 %
------------------------------------------ - - ------- - - - ------- - - ---- - - - --------- - - - --------- - - ----- -
Segment operating earnings $ 155,777$ 156,931 -0.7 % $ 310,616$ 301,324 3.1 %
------------------------------------------ - - ------- - - - ------- - - ---- - - - --------- - - - --------- - - ----- -
Unallocated corporate expenses (1) (24,678 ) (22,329 ) 10.5 % (48,595 ) (45,401 ) 7.0 %
Share-based compensation (3,262 ) (2,945 ) 10.8 % (12,313 ) (10,976 ) 12.2 %
Interest expense(2) (26,779 ) (22,355 ) 19.8 % (53,503 ) (86,316 ) -38.0 %
------------------------------------------ - - ------- - - - ------- - - ---- - - - --------- - - - --------- - - ----- -
Earnings before provision for income taxes $ 101,058$ 109,302 -7.5 % $ 196,205$ 158,631 23.7 %
------------------------------------------ - - ------- - - - ------- - - ---- - - - --------- - - - --------- - - ----- -
Segment operating profit margin: Basis Basis
Pt Chg Pt Chg
Sally Beauty Supply 19.1 % 20.1 % (100 ) 19.0 % 19.5 % (50 )
Beauty Systems Group 14.6 % 13.6 % 100 14.3 % 13.4 % 90
Consolidated operating profit margin 14.2 % 14.8 % (60 ) 13.8 % 14.0 % (20 )
------------------------------------------ - - ------- - - - ------- - - ---- - - - --------- - - - --------- - - ----- -
(1 ) Unallocated expenses consist of corporate and shared costs.
(2 ) For the six months ended March 31, 2012, interest expense includes a loss
on extinguishment of debt of $34.6 million in connection with the
Company's December 2011 redemption of its senior notes due 2014 and
senior subordinated notes due 2016 with the proceeds of the Company's
senior notes due 2019 issued in November 2011.
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,
------------------------------- ---------------------------------
2013 2012 % CHG 2013 2012 % CHG
--------------------------------------------------------------- - --------- - --------- - ------- - --------- - ----------- - -------
Adjusted EBITDA:
Net earnings (per GAAP) $ 64,889$ 67,813 -4.3 % $ 123,873$ 97,947 26.5 %
Add:
Depreciation and amortization 17,247 15,940 8.2 % 34,055 31,493 8.1 %
Share-based compensation (1) 3,262 2,945 10.8 % 12,313 10,976 12.2 %
Interest expense (2)(3) 26,779 22,355 19.8 % 53,503 86,316 -38.0 %
Provision for income taxes 36,169 41,489 -12.8 % 72,332 60,684 19.2 %
--------------------------------------------------------------- - - ------- - - ------- - ----- - - - ------- - - ------- - - ----- -
Adjusted EBITDA (Non-GAAP) $ 148,346$ 150,542 -1.5 % $ 296,076$ 287,416 3.0 %
--------------------------------------------------------------- - - ------- - - ------- - ----- - - - ------- - - ------- - - ----- -
Net earnings (per GAAP) $ 64,889$ 67,813$ 123,873$ 97,947
Add (Less):
Loss on extinguishment of debt (2) - - - 34,558
Interest expense on redeemed debt (3) - - - 5,149
Amortization of deferred financing costs - - - 229
Tax provision for the adjustments to net earnings (4) - - - (14,377 )
--------------------------------------------------------------- - - ------- - - ------- - ------- - - ------- - - ------- - - -------
Adjusted net earnings, excluding non-recurring items (Non-GAAP) $ 64,889$ 67,813 -4.3 % $ 123,873$ 123,506 0.3 %
--------------------------------------------------------------- - - ------- - - ------- - ----- - - - ------- - - ------- - - ----- -
Adjusted earnings per share (Non-GAAP):
Basic $ 0.37$ 0.36 2.8 % $ 0.70$ 0.67 4.5 %
Diluted $ 0.36$ 0.35 2.9 % $ 0.69$ 0.65 6.2 %
Weighted average shares:
Basic 173,461 186,335 175,930 185,514
Diluted 178,389 191,684 180,743 190,662
(1 ) Share-based compensation for the six months ended March 31, 2013 and 2012
includes $5.9 million and $5.3 million, respectively, of accelerated
expense related to certain retirement-eligible employees who are eligible
to continue vesting awards upon retirement.
(2 ) For the six months ended March 31, 2012, interest expense includes $34.6
million in connection with the Company's December 2011 redemption of its
senior notes due 2014 and senior subordinated notes due 2016, with the
proceeds of the Company's senior notes due 2019 issued on November 8,
2011. This amount includes a premium paid to redeem the senior notes and
the senior subordinated notes, as well as unamortized deferred financing
costs expensed in connection with the redeemed notes.
(3 ) For the six months ended March 31, 2012, interest expense includes
interest on the senior notes and senior subordinated notes after November
8, 2011 and until their redemption of $5.1 million, as well as interest
on the Company's senior notes due 2019 issued on that date. This
pro-forma adjustment assumes the senior notes and senior subordinated
notes were redeemed on November 8, 2011.
(4 ) The tax provision for the adjustments to net earnings were calculated
using an estimated effective tax rate of 36.0%.
Supplemental
Schedule D
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Store Count and Same Store Sales
(Unaudited)
As of March 31,
----------------- - --------
2013 2012 CHG
------- - ------- - --------
Number of retail stores (end of period):
Sally Beauty Supply:
Company-operated stores 3,331 3,204 127
Franchise stores 26 24 2
----- - ----- - ------ -
Total Sally Beauty Supply 3,357 3,228 129
Beauty Systems Group:
Company-operated stores 1,042 1,006 36
Franchise stores 159 158 1
----- - ----- - ------ -
Total Beauty System Group 1,201 1,164 37
----- - ----- - ------ -
Total 4,558 4,392 166
----- - ----- - ------ -
BSG distributor sales consultants (end of period) (1) 994 1,113 (119 )
- ---------------------------------------------------------------------- - ------- - ------- - --------
2013 2012
------- - -------
Second quarter company-operated same store sales growth (decline) (2) Basis Pt
Chg
Sally Beauty Supply -1.6 % 9.3 % (1,090 )
Beauty Systems Group 1.3 % 8.7 % (740 )
Consolidated -0.8 % 9.1 % (990 )
Six months ended March 31 company-operated same store sales growth (2) Basis Pt
Chg
Sally Beauty Supply 0.0 % 8.7 % (870 )
Beauty Systems Group 3.4 % 6.9 % (350 )
Consolidated 1.0 % 8.1 % (710 )
(1 ) Includes 320 and 414 distributor sales consultants as reported by our
franchisees at March 31, 2013 and 2012, respectively.
(2 ) Same stores are defined as company-operated stores that have been open
for 14 months or longer as of the last day of a month. Our same store
sales calculation includes internet-based sales for the periods presented
and the impact of store expansions, but does 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 E
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Selected Financial Data and Debt
(In thousands)
(Unaudited)
March 31, September
2013 30, 2012
------------ ------------
Financial condition information (at period end):
Working capital $ 523,401$ 686,519
Cash and cash equivalents 62,256 240,220
Property and equipment, net 216,903 202,661
Total assets 1,892,069 2,065,800
Total debt, including capital leases 1,638,368 1,617,230
Total stockholders' (deficit) equity ($280,509) ($115,085)
------------------------------------------------------- - ------------ - ------------
As of
March 31, Interest
2013 Rates
------------ ------------
Debt position excluding capital leases (at period end):
(i) Prime +
1.25-1.75%
or
(ii) LIBOR +
Revolving ABL facility $ 22,500 2.25-2.75%
Senior notes due 2019 750,000 6.875%
Senior notes due 2022 (1) 858,845 5.750%
4.93% to
Other (2) 1,886 5.79%
- ----------
Total debt $ 1,633,231
- ----------
------------------------------------------------------- - ------------ - ------------
Debt maturities, excluding capital leases
Twelve months ending March 31,
2014 $ 23,713
2015 643
2016 30
2017-2019 -
Thereafter (1) 1,608,845
- ----------
Total debt $ 1,633,231
- ----------
(1 ) Amount, at March 31, 2013, includes unamortized premium of $8.8 million
related to notes in an aggregate principal amount of $150.0 million
issued in September 2012. The 5.75% interest rate relates to notes in an
aggregate principal amount of $850.0 million.
(2 ) Represents pre-acquisition debt of businesses acquired.
Source: Sally Beauty Holdings, Inc.
