Sally Beauty Supply 2013 Annual Report Download - page 64

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,
2013 2012 2011
Net sales:
Sally Beauty Supply ......................... $2,230,028 $2,198,468 $2,012,407
BSG .................................... 1,392,188 1,325,176 1,256,724
Consolidated ............................ $3,622,216 $3,523,644 $3,269,131
Gross profit ................................ $1,795,263 $1,743,259 $1,594,605
Gross profit margin ........................... 49.6% 49.5% 48.8%
Selling, general and administrative expenses .......... $1,202,709 $1,179,206 $1,086,414
Depreciation and amortization ................... $ 72,192 $ 64,698 $ 59,722
Earnings before provision for income taxes:
Segment operating profit:
Sally Beauty Supply(a) ...................... $ 437,018 $ 429,520 $ 380,963
BSG(a) ................................ 200,492 182,699 164,660
Segment operating profit .................... 637,510 612,219 545,623
Unallocated expenses(a)(b) ...................... (97,947) (96,012) (81,594)
Share-based compensation expense ................ (19,201) (16,852) (15,560)
Operating earnings .......................... 520,362 499,355 448,469
Interest expense(c) ............................ (107,695) (138,412) (112,530)
Earnings before provision for income taxes ......... $ 412,667 $ 360,943 $ 335,939
Segment operating profit margin:
Sally Beauty Supply ......................... 19.6% 19.5% 18.9%
BSG .................................... 14.4% 13.8% 13.1%
Consolidated operating profit margin ............... 14.4% 14.2% 13.7%
Number of stores at end-of-period (including franchises):
Sally Beauty Supply ......................... 3,424 3,309 3,158
BSG .................................... 1,245 1,190 1,151
Consolidated ............................ 4,669 4,499 4,309
Same store sales growth (decline)(d)
Sally Beauty Supply ......................... (0.6)% 6.5% 6.3%
BSG .................................... 4.2% 6.1% 5.5%
Consolidated ................................ 0.8% 6.4% 6.1%
(a) For the fiscal year 2012, Sally Beauty Supply’s operating profit reflects a $10.2 million charge
resulting from a loss contingency. 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) For the fiscal year 2012, interest expense reflects non-recurring charges of $37.8 million in
connection with the Company’s redemption of outstanding notes and repayment of a term loan.
(d) For the purpose of calculating our same store sales metrics, we compare the current period sales for
stores open for 14 months or longer as of the last day of a month with the sales for these stores for
the comparable period in the prior fiscal year. 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 14 months after the relocation. The sales
from stores acquired are excluded from our same store sales calculation until 14 months after the
acquisition.
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