Sally Beauty Supply 2011 Annual Report Download - page 49

ITEM 6. SELECTED FINANCIAL DATA
Sally Beauty was formed in June of 2006 and became the accounting successor to Sally Holdings, Inc.
(which was, until November 2006, a wholly-owned subsidiary of Alberto-Culver) upon completion of the
Separation Transactions. On November 17, 2006, the Company commenced regular-way trading on the
NYSE as an independent company under the symbol ‘‘SBH.’’ The following table presents selected
financial data of Sally Beauty for the each of the years in the five-year period ended September 30, 2011
(dollars in thousands, except per share data):
Fiscal Year Ended September 30,
2011 2010 2009 2008 2007
Results of operations information:
Net sales ........................... $3,269,131 $2,916,090 $2,636,600 $2,648,191 $2,513,772
Cost of products sold and distribution expenses . 1,674,526 1,511,716 1,393,283 1,413,597 1,360,025
Gross profit ......................... 1,594,605 1,404,374 1,243,317 1,234,594 1,153,747
Selling, general and administrative expenses(a) . 1,086,414 1,012,321 899,415 903,146 857,276
Depreciation and amortization ............. 59,722 51,123 47,066 48,533 42,605
Sales-based service fee charged by Alberto-
Culver ........................... ————3,779
Transaction expenses(b) ................. ————21,502
Operating earnings .................... 448,469 340,930 296,836 282,915 228,585
Interest expense(c) .................... 112,530 112,982 132,022 159,116 145,972
Earnings before provision for income taxes .... 335,939 227,948 164,814 123,799 82,613
Provision for income taxes ............... 122,214 84,120 65,697 46,222 38,121
Net earnings ......................... $ 213,725 $ 143,828 $ 99,117 $ 77,577 $ 44,492
Earnings per share(d)
Basic ............................ $ 1.17 $ 0.79 $ 0.55 $ 0.43 $ 0.25
Diluted ........................... $ 1.14 $ 0.78 $ 0.54 $ 0.42 $ 0.24
Weighted average shares, basic ............ 183,020 181,985 181,691 181,189 180,392
Weighted average shares, diluted ........... 188,093 184,088 183,306 182,704 182,375
Operating data:
Number of stores (at end of period):
Sally Beauty Supply .................. 3,158 3,032 2,923 2,844 2,694
Beauty Systems Group ................ 1,151 1,027 991 929 874
Consolidated ..................... 4,309 4,059 3,914 3,773 3,568
Professional distributor sales consultants (at end
of period) ......................... 1,116 1,051 1,022 984 1,002
Same store sales growth(e):
Sally Beauty Supply .................. 6.3% 4.1% 2.1% 1.2% 2.7%
Beauty Systems Group ................ 5.5% 6.2% 1.0% 6.9% 10.1%
Consolidated ..................... 6.1% 4.6% 1.8% 2.6% 4.5%
Financial condition information (at end of
period):
Working capital ....................... $ 419,142 $ 387,123 $ 341,733 $ 367,198 $ 354,185
Cash, cash equivalents and short-term
investments ........................ 63,481 59,494 54,447 99,788 38,272
Property, plant and equipment, net ......... 182,489 168,119 151,252 156,260 154,068
Total assets .......................... 1,728,600 1,589,412 1,490,732 1,527,023 1,404,503
Long-term debt, excluding current maturities(c) . 1,410,111 1,559,591 1,653,013 1,724,684 1,758,594
Stockholders’ deficit .................... $(218,982) $ (461,272) $ (615,451) $ (702,960) $ (767,710)
(a) Selling, general and administrative expenses for the fiscal years 2011, 2010, 2009, 2008 and 2007 include share-
based compensation expenses of $15.6 million, $12.8 million, $8.6 million, $10.2 million and $13.1 million,
respectively. In the fiscal year 2011, selling, general and administrative expenses reflect a one-time net favorable
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