Sally Beauty Supply 2006 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2006 Sally Beauty Supply annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 135

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135

Table of Contents
SALLY HOLDINGS, INC. AND SUBSIDIARIES
(A Wholly-Owned Subsidiary of Alberto-Culver Company)
Consolidated Statements of Cash Flows
Years ended September 30, 2006, 2005, and 2004
(In thousands)
2006 2005 2004
Cash Flows from Operating Activities:
Net earnings $ 110,193 $ 116,461 $ 105,310
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization 38,032 33,906 24,619
Non-cash charge related to Alberto-Culver’ s conversion to
one class of common stock (net of deferred tax benefit of
$1,418 in 2005)
—
2,633 17,573
Stock option expense (net of deferred tax benefit of $1,815
in 2006) 3,371
—
—
Net loss on disposal of leaseholds and other property 1,615 1,686 772
Deferred income taxes 2,360 9,706 7,121
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable (2,324 ) 8 145
Other receivables (1,468 ) (4,992 ) 200
Inventories (40,859 ) (23,123 ) (33,016 )
Prepaid expenses 1,237 (92 ) (1,709 )
Other assets (242 ) (1,039 ) (646 )
Accounts payable and accrued expenses 38,443 (13,674 ) 29,054
Due from Alberto-Culver 13,017 (7,477 ) 11,125
Other liabilities (6,654 ) 1,452 (1,320 )
Net cash provided by operating activities 156,721 115,455 159,228
Cash Flows from Investing Activities:
Proceeds from sales of short-term investments
—
44,600 116,345
Payments for purchases of short-term investments
—
(22,050 ) (81,395 )
Capital expenditures (30,342 ) (52,236 ) (51,963 )
Proceeds from sale of property and equipment 596 559 830
Acquisitions, net of cash acquired (22,412 ) (96,918 ) (123,736 )
Net cash used by investing activities (52,158 ) (126,045 ) (139,919 )
Cash Flows from Financing Activities:
Change in book cash overdraft (10,269 ) 15,386 932
Proceeds from issuance of long-term debt 571 40,228 655
Repayments of long-term debt (826 ) (40,269 ) (178 )
Proceeds related to notes with affiliated companies 15,230 52,281 39,554
Payments related to notes with affiliated companies (31,880 ) (52,053 ) (35,064 )
Distributions to Alberto-Culver (5,661 ) (11,836 ) (39,899 )
Excess tax benefit from exercises of Alberto-Culver stock
options 630
—
—
Net cash (used) provided by financing activities (32,205 ) 3,737 (34,000 )
Effect of foreign exchange rate changes on cash and cash
equivalents (3,399 ) 12 (570 )
Net increase (decrease) in cash and cash equivalents 68,959 (6,841 ) (15,261 )
Cash and cash equivalents, beginning of year 38,612 45,453 60,714
Cash and cash equivalents, end of year $ 107,571 $ 38,612 $ 45,453
Supplemental Cash Flow Information:
Cash paid for:
Interest $ 2,339 $ 4,109 $ 3,434
Income taxes $ 63,922 $ 55,986 $ 57,307
See accompanying notes to the consolidated financial statements.
58