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Table of Contents
Item 6. Selected Financial Data
Beginning with the period ended December 31, 2008 the operations of Trade Secret concept within the North American reportable segment
were accounted for as a discontinued operation. All periods presented will reflect Trade Secret as a discontinued operation. The following
discussion of results of operations will reflect results from continuing operations. Discontinued operations will be discussed at the end of this
section.
The following table sets forth, in thousands (except per share data), for the periods indicated, selected financial data derived from the
Company's Consolidated Financial Statements in Part II, Item 8.
a)
2009
2008
2007
2006
2005
Revenues(a)
$
2,429,787
$
2,481,391
$
2,373,338
$
2,168,002
$
1,941,360
Operating income(b)
109,073
173,340
141,506
179,147
101,613
Income from continuing operations(c)
6,970
83,901
67,739
92,903
41,791
Income from continuing operations per diluted share(c)
0.16
1.92
1.48
2.00
0.90
Total assets
1,892,486
2,235,871
2,132,114
1,985,324
1,725,976
Long
-
term debt, including current portion
634,307
764,747
709,231
622,269
568,776
Dividends declared
$
0.16
$
0.16
$
0.16
$
0.16
$
0.16
Revenues from salons, schools or hair restorations centers acquired each year were $82.1, $110.0, $105.1, $158.3, and $172.5 million
during fiscal years 2009, 2008, 2007, 2006, and 2005, respectively. Revenues from the 51 accredited cosmetology schools contributed to
Empire Education Group, Inc. on August 1, 2007 were $5.6, $68.5, $48.2 and $18.2 million in fiscal years 2008, 2007, 2006 and 2005,
respectively. Revenues from the deconsolidated European franchise salon operations were $36.2, $57.0, $52.7 and $55.1 million in fiscal
years 2008, 2007, 2006 and 2005, respectively.
b) The following significant items affected operating income:
• Operating (loss) income from the 51 accredited cosmetology schools contributed to Empire Education Group, Inc. on August 1,
2007 was ($0.3), ($18.6), $2.3 and $2.5 million in fiscal years 2008, 2007, 2006 and 2005, respectively. Operating (loss) income
from the deconsolidated European franchise salon operations was $5.1, $7.5, $4.8 and ($31.0) million in fiscal years 2008, 2007,
2006 and 2005, respectively.
•
An impairment charge of $41.7 million associated with the Company's United Kingdom salon division, was recorded in fiscal
year 2009. An impairment charge of $23.0 million associated with the Company's accredited cosmetology schools was recorded
in fiscal year 2007. An impairment charge of $38.3 million related to goodwill associated with the Company's European business
was recorded in fiscal year 2005.
• A net settlement gain of $33.7 million was recognized during fiscal year 2006 stemming from a termination fee collected from
Alberto-Culver Company due to the terminated merger agreement for Sally Beauty Company. The termination fee gain is net of
direct transaction-related expenses associated with the terminated merger agreement.
• Adjustments were recorded in fiscal years 2009, 2008, 2007, 2006 and 2005 related to a change in estimate of the Company's self-
insurance accruals, primarily prior years' workers' compensation claims reserves, due to the continued improvement of our safety
and return-to-work programs over the recent years as well as changes in state laws. Site operating expenses decreased by $9.9,
$6.9, and $10.0 million in fiscal years 2009, 2008, and 2007,
29