GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

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

February 04, 2010 | About:
10qk

10qk

18 followers
Sally Beauty Holdings Inc. (SBH) filed Quarterly Report for the period ended 2009-12-31.

Sally Beauty Holdings Inc. has a market cap of $1.53 billion; its shares were traded at around $8.38 with a P/E ratio of 15.8 and P/S ratio of 0.6. SBH is in the portfolios of John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates.

Highlight of Business Operations:

· Our consolidated net sales for the three months ended December 31, 2009, increased by $59.3 million, or 9.2%, to $704.9 million compared to $645.6 million for the three months ended December 31, 2008;

· Our consolidated gross profit for the three months ended December 31, 2009, increased $29.7 million, or 9.8%, to $333.2 million compared to $303.5 million for the three months ended December 31, 2008. As a percentage of net sales, gross profit increased 30 basis points to 47.3% for the three months ended December 31, 2009 compared to 47.0% for the three months ended December 31, 2008;

· Our consolidated operating earnings for the three months ended December 31, 2009, increased $4.3 million, or 6.5%, to $70.6 million compared to $66.3 million for the three months ended December 31, 2008;

· Net earnings increased $10.1 million, or 62.7%, to $26.1 million for the three months ended December 31, 2009 compared to $16.1 million for the three months ended December 31, 2008;

· Cash provided by operations decreased by $11.2 million to $19.8 million for the three months ended December 31, 2009 compared to $31.0 million for the three months ended December 31, 2008; and

· Controlling expenses. Another important aspect of our business is our ability to control costs, especially in our BSG business segment, by right-sizing the business and maximizing the efficiency of our structure. In late fiscal year 2009, we completed implementation of an approximately $22.0 million capital spending program to consolidate warehouses and reduce administrative expenses related to BSGs distribution network optimization program. This program resulted in cost savings of approximately $8.0 million in the fiscal year 2009 and we believe that annualized cost savings from this program could approximate $10.0 million beginning in fiscal year 2010. Please see Risk Factors We are not certain that our ongoing cost control plans will continue to be successful in Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2009.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.0/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK