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Sally Beauty Holdings Inc. Reports Operating Results (10-Q)

February 03, 2011 | About:

10qk

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Sally Beauty Holdings Inc. (SBH) filed Quarterly Report for the period ended 2010-12-31.

Sally Beauty Co has a market cap of $2.31 billion; its shares were traded at around $12.63 with a P/E ratio of 16.2 and P/S ratio of 0.8. Sally Beauty Co had an annual average earning growth of 12% over the past 5 years.Hedge Fund Gurus that owns SBH: Kenneth Fisher of Fisher Asset Management, LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns SBH: John Keeley of Keeley Fund Management, Mario Gabelli of GAMCO Investors, Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

· Our consolidated net sales for the three months ended December 31, 2010, increased by $88.7 million, or 12.6%, to $793.6 million compared to $704.9 million for the three months ended December 31, 2009;

· Our consolidated gross profit for the three months ended December 31, 2010, increased by $46.2 million, or 13.9%, to $379.4 million compared to $333.2 million for the three months ended December 31, 2009. As a percentage of net sales, gross profit increased by 50 basis points to 47.8% for the three months ended December 31, 2010 compared to 47.3% for the three months ended December 31, 2009;

· Our consolidated operating earnings for the three months ended December 31, 2010, increased by $21.8 million, or 30.9%, to $92.4 million compared to $70.6 million for the three months ended December 31, 2009. As a percentage of net sales, operating earnings increased by 160 basis points to 11.6% for the three months ended December 31, 2010 compared to 10.0% for the three months ended December 31, 2009;

· Net earnings increased by $14.8 million, or 56.7%, to $40.9 million for the three months ended December 31, 2010 compared to $26.1 million for the three months ended December 31, 2009. As a percentage of net sales, net earnings increased by 150 basis points to 5.2% for the three months ended December 31, 2010 compared to 3.7% for the three months ended December 31, 2009;

· Cash provided by operations increased by $8.5 million to $28.3 million for the three months ended December 31, 2010 compared to $19.8 million for the three months ended December 31, 2009; and

On October 1, 2010, we acquired Aerial, an 82-store professional-only distributor of beauty products operating in 11 states in the midwestern United States, for approximately $79.0 million, subject to certain adjustments. The acquisition was accounted for using the purchase method of accounting and the results of operations of Aerial are included in the Companys consolidated financial statements subsequent to the acquisition date. The assets acquired and liabilities assumed were recorded at their respective fair values at the acquisition date. Goodwill of $25.0 million (which is expected to be deductible for tax purposes) and intangible assets subject to amortization of $34.4 million were recorded as a result of this acquisition based on their preliminary estimated fair values. The acquisition was funded with borrowings in the amount of $78.0 million under our ABL facility and with cash from operations. Please see Note 2 of the Notes to Consolidated Financial Statements in Item 8 - Financial Statements and Supplementary Data contained in the Companys Annual Report on Form 10-K for the fiscal year ended September 30, 2010 for additional information about the Companys accounting policies in connection with business combinations.

Read the The complete Report

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