Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”) today announced strong financial results for fiscal 2012 third quarter. The Company will hold a conference call today at 10:00 a.m. (Central) to discuss these results and its business.
“We are pleased with our third quarter results with growth in sales and adjusted EBITDA of 6% and 17%, respectively,” stated Gary Winterhalter, President and Chief Executive Officer. “We continue to realize consistent performance in the countries in which we operate despite an unpredictable global economy. With one quarter remaining in the fiscal year, we believe we will have another outstanding year at Sally Beauty Holdings.”
FISCAL 2012 THIRD QUARTER FINANCIAL HIGHLIGHTS
For the fiscal 2012 third quarter, consolidated net sales were $887.0 million, an increase of 6.0% from the fiscal 2011 third quarter. This fiscal 2012 third quarter sales increase is attributed to same store sales growth, the addition of new stores and acquisitions. The negative impact from changes in foreign currency exchange rates was $11.0 million or 132 basis points in the fiscal 2012 third quarter. Consolidated same store sales growth in the fiscal 2012 third quarter was 5.2% compared to 5.9% in the fiscal 2011 third quarter. Key drivers of same store sales growth included increased customer traffic and higher average ticket in both business segments.
Consolidated gross profit for the fiscal 2012 third quarter was $444.4 million, an increase of 8.2% over gross profit of $410.5 million for the fiscal 2011 third quarter. Gross profit as a percentage of sales was 50.1%, a 100 basis point improvement from the fiscal 2011 third quarter.
Selling, General and Administrative Expenses:
For the fiscal 2012 third quarter, consolidated selling, general and administrative (SG&A) expenses, including unallocated corporate expenses and share-based compensation, were $291.5 million, or 32.9% of sales, a 190 basis point increase from the fiscal 2011 third quarter metric of 31.0% of sales and total SG&A expenses of $259.0 million. Fiscal 2011 third quarter consolidated SG&A expenses include a $21.3 million credit from a litigation settlement, net of non-recurring expenses; $19.0 million of the credit, net of non-recurring expenses, is reflected in the BSG segment and $2.3 million of the credit is reflected in unallocated corporate expenses.
Note: SG&A expenses include unallocated corporate expenses, as detailed in the Company’s segment information on Schedule B.