Sally Beauty Supply 2013 Annual Report Download - page 70

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fiscal year ended September 30, 2013 (including the senior notes due 2019 and senior notes due 2022),
compared to our debt outstanding during the fiscal year ended September 30, 2012. Please see Note 14 of
the Notes to Consolidated Financial Statements in Item 8—‘‘Financial Statements and Supplementary
Data’’ contained elsewhere in this Annual Report for additional information about the Company’s interest
rate swaps and ‘‘Liquidity and Capital Resources’’ below for additional information about our credit
facilities.
Provision for Income Taxes
The provision for income taxes was $151.5 million and $127.9 million and the annual effective tax rate was
36.7% and 35.4% for the fiscal years ended September 30, 2013 and 2012, respectively. The lower fiscal
year 2012 annual effective tax rate, compared to our average historical effective tax rate of approximately
37.0%, was primarily due to tax benefits (approximately $10.3 million) resulting from a limited
restructuring, for U.S. income tax purposes, completed in the fiscal year 2012.
Net Earnings
As a result of the foregoing, consolidated net earnings increased by $28.1 million, or 12.1%, to
$261.2 million for the fiscal year ended September 30, 2013, compared to $233.1 million for the fiscal year
ended September 30, 2012. Net earnings, as a percentage of net sales, were 7.2% for the fiscal year ended
September 30, 2013, compared to 6.6% for the fiscal year ended September 30, 2012.
The Fiscal Year Ended September 30, 2012 compared to the Fiscal Year Ended September 30, 2011
The table below presents net sales, gross profit and gross profit margin data for each reportable segment
(dollars in thousands).
Fiscal Year Ended September 30,
2012 2011 Increase
Net sales:
Sally Beauty Supply ................... $2,198,468 $2,012,407 $186,061 9.2%
BSG .............................. 1,325,176 1,256,724 68,452 5.4%
Consolidated net sales ................. $3,523,644 $3,269,131 $254,513 7.8%
Gross profit:
Sally Beauty Supply ................... $1,199,342 $1,087,698 $111,644 10.3%
BSG .............................. 543,917 506,907 37,010 7.3%
Consolidated gross profit ............... $1,743,259 $1,594,605 $148,654 9.3%
Gross profit margin:
Sally Beauty Supply ................... 54.6% 54.0% 0.6%
BSG .............................. 41.0% 40.3% 0.7%
Consolidated gross profit margin .......... 49.5% 48.8% 0.7%
Net Sales
Consolidated net sales increased by $254.5 million, or 7.8%, for the fiscal year ended September 30, 2012,
compared to the fiscal year ended September 30, 2011, primarily as a result of increases in unit volume,
including increases in sales at existing stores and the incremental sales from 187 company-operated stores
opened or acquired during the last twelve months. Company-operated Sally Beauty Supply and BSG stores
that have been open for at least 14 months contributed an increase of approximately $286.4 million, or
8.8%, and sales through our BSG distributor sales consultants contributed an increase of approximately
$41.3 million, or 1.3%. In addition, our Sally Beauty Supply non-store sales channels contributed an
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