Sally Beauty Supply 2011 Annual Report Download - page 62

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Key Operating Metrics
The following table sets forth, for the periods indicated, information concerning key measures we rely on
to gauge our operating performance (dollars in thousands):
Fiscal Year Ended September 30,
2011 2010 2009
Net sales:
Sally Beauty Supply ......................... $2,012,407 $1,834,631 $1,695,652
BSG.................................... 1,256,724 1,081,459 940,948
$3,269,131 $2,916,090 $2,636,600
Gross Profit ................................ $1,594,605 $1,404,374 $1,243,317
Gross profit margin .......................... 48.8% 48.2% 47.2%
Selling, general and administrative expenses ......... $1,086,414 $1,012,321 $ 899,415
Depreciation and amortization .................. $ 59,722 $ 51,123 $ 47,066
Earnings before provision for income taxes:
Segment operating profit:
Sally Beauty Supply ....................... $ 380,963 $ 320,456 $ 283,872
BSG(a) ................................ 164,660 112,495 91,604
Segment operating profit ................... 545,623 432,951 375,476
Unallocated expenses(a)(b) ..................... (81,594) (79,203) (70,022)
Share-based compensation expense ............... (15,560) (12,818) (8,618)
Operating earnings ......................... 448,469 340,930 296,836
Interest expense ............................. (112,530) (112,982) (132,022)
Earnings before provision for income taxes ........ $ 335,939 $ 227,948 $ 164,814
Segment operating profit margin:
Sally Beauty Supply ......................... 18.9% 17.5% 16.7%
BSG.................................... 13.1% 10.4% 9.7%
Consolidated operating profit margin .............. 13.7% 11.7% 11.3%
Number of stores at end-of-period (including
franchises):
Sally Beauty Supply ......................... 3,158 3,032 2,923
BSG.................................... 1,151 1,027 991
4,309 4,059 3,914
Same store sales growth(c)
Sally Beauty Supply ......................... 6.3% 4.1% 2.1%
BSG.................................... 5.5% 6.2% 1.0%
Consolidated ............................... 6.1% 4.6% 1.8%
(a) For the fiscal year 2011, consolidated operating earnings reflect a net favorable impact of
$21.3 million, including a $27.0 million credit from a litigation settlement and certain
non-recurring charges of $5.7 million. This net benefit of $21.3 million is reflected in the BSG
segment and in unallocated expenses in the amount of $19.0 million and $2.3 million,
respectively.
(b) Unallocated expenses consist of corporate and shared costs.
(c) 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 are calculated in constant dollars and include
internet-based sales and the effect of store expansions, if applicable, but do not generally include
the sales from stores relocated until at least 14 months after the relocation. The sales from stores
acquired are excluded from our same store sales calculation until at least 14 months after the
acquisition.
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