Company Quick10K Filing
Sally Beauty
Price15.16 EPS2
Shares120 P/E7
MCap1,823 P/FCF6
Net Debt1,538 EBIT471
TEV3,361 TEV/EBIT7
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-31
10-Q 2020-03-31 Filed 2020-05-07
10-Q 2019-12-31 Filed 2020-02-06
10-K 2019-09-30 Filed 2019-11-25
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-01
10-Q 2018-12-31 Filed 2019-02-05
10-K 2018-09-30 Filed 2018-11-14
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-03
10-Q 2017-12-31 Filed 2018-02-08
10-K 2017-09-30 Filed 2017-11-15
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-04
10-Q 2016-12-31 Filed 2017-02-02
10-K 2016-09-30 Filed 2016-11-15
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-05
10-Q 2015-12-31 Filed 2016-02-04
10-K 2015-09-30 Filed 2015-11-12
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-05
10-Q 2014-12-31 Filed 2015-02-05
10-K 2014-09-30 Filed 2014-11-13
10-Q 2014-06-30 Filed 2014-07-31
10-Q 2014-03-31 Filed 2014-05-01
10-Q 2013-12-31 Filed 2014-02-06
10-K 2013-09-30 Filed 2013-11-14
10-Q 2013-06-30 Filed 2013-08-01
10-Q 2013-03-31 Filed 2013-05-02
10-Q 2012-12-31 Filed 2013-02-07
10-K 2012-09-30 Filed 2012-11-15
10-Q 2012-06-30 Filed 2012-08-02
10-Q 2012-03-31 Filed 2012-05-03
10-Q 2011-12-31 Filed 2012-02-02
10-K 2011-09-30 Filed 2011-11-16
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-05-05
10-Q 2010-12-31 Filed 2011-02-03
10-K 2010-09-30 Filed 2010-11-18
10-Q 2010-06-30 Filed 2010-08-04
10-Q 2010-03-31 Filed 2010-05-04
10-Q 2009-12-31 Filed 2010-02-04
8-K 2020-09-02 Regulation FD, Exhibits
8-K 2020-07-30 Earnings, Regulation FD, Exhibits
8-K 2020-07-06 Regulation FD, Exhibits
8-K 2020-06-02
8-K 2020-05-06
8-K 2020-04-24
8-K 2020-04-20
8-K 2020-04-15
8-K 2020-03-31
8-K 2020-03-23
8-K 2020-02-06
8-K 2020-01-30
8-K 2020-01-30
8-K 2019-12-02
8-K 2019-11-07
8-K 2019-10-03
8-K 2019-09-16
8-K 2019-09-03
8-K 2019-07-31
8-K 2019-05-01
8-K 2019-04-03
8-K 2019-03-19
8-K 2019-03-05
8-K 2019-02-19
8-K 2019-02-05
8-K 2019-01-31
8-K 2019-01-31
8-K 2019-01-31
8-K 2018-11-08
8-K 2018-10-12
8-K 2018-08-29
8-K 2018-08-02
8-K 2018-05-23
8-K 2018-05-03
8-K 2018-04-30
8-K 2018-04-03
8-K 2018-02-08
8-K 2018-02-01
8-K 2018-01-25

SBH 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-31.1 sbh-ex311_8.htm
EX-31.2 sbh-ex312_6.htm
EX-32.1 sbh-ex321_9.htm
EX-32.2 sbh-ex322_7.htm

Sally Beauty Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
2.92.21.60.90.3-0.42012201420172020
Assets, Equity
1.00.80.60.40.20.02012201420172020
Rev, G Profit, Net Income
0.30.20.0-0.1-0.3-0.42012201420172020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

FOR THE QUARTERLY PERIOD ENDED: JUNE 30, 2020

-OR-

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File No. 1-33145

 

SALLY BEAUTY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware

 

36-2257936

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

3001 Colorado Boulevard

 

 

Denton, Texas

 

76210

(Address of principal executive offices)

 

(Zip Code)

 

(940) 898-7500

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report): N/A

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of each exchange on which registered

Common Stock, $0.01 par valueSBHThe New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes    No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)  Yes      No 

As of July 24, 2020, there were 112,852,369 shares of the issuer’s common stock outstanding.

 

 

 

 


TABLE OF CONTENTS

 

 

Page

PART I — FINANCIAL INFORMATION

 

 

 

Item 1. Financial Statements

5

Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations

29

Item 3. Quantitative And Qualitative Disclosures About Market Risk

36

Item 4. Controls And Procedures

36

 

 

PART II — OTHER INFORMATION

 

 

 

Item 1. Legal Proceedings

38

Item 1A. Risk Factors

38

Item 6. Exhibits

38

 

 


2


In this Quarterly Report, references to “the Company,” “Sally Beauty,” “our company,” “we,” “our,” “ours” and “us” refer to Sally Beauty Holdings, Inc. and its consolidated subsidiaries unless otherwise indicated or the context otherwise requires.

cautionary notice regarding forward-looking statements

Statements in this Quarterly Report on Form 10-Q and in the documents incorporated by reference herein which are not purely historical facts or which depend upon future events may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” or similar expressions may also identify such forward-looking statements. Forward-looking statements may relate to, among other things, the impact on our business, operations and financial results of the novel coronavirus (“COVID-19”) pandemic.

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. The most important factors which could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors in Item 1A contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, and in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, which should be read in conjunction with the forward-looking statements in this report. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement.

The events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. As a result, our actual results may differ materially from the results contemplated by these forward-looking statements.

 

3


WHERE YOU CAN FIND MORE INFORMATION

Our quarterly financial results and other important information are available by calling our Investor Relations Department at (940) 297-3877.

We maintain a website at www.sallybeautyholdings.com where investors and other interested parties may obtain, free of charge, press releases and other information as well as gain access to our periodic filings with the Securities and Exchange Commission (“SEC”). The information contained on this website should not be considered to be a part of this or any other report filed with or furnished to the SEC.

 

4


PART I — FINANCIAL INFORMATION

Item 1.  Financial Statements.

The following condensed consolidated balance sheets as of June 30, 2020, and September 30, 2019, the condensed consolidated statements of earnings (loss), condensed consolidated statements of comprehensive income (loss) and the condensed statements of stockholders’ deficit for the three and nine months ended June 30, 2020 and 2019, and the condensed consolidated statements of cash flows for the nine months ended June 30, 2020 and 2019, are those of Sally Beauty Holdings, Inc. and its subsidiaries.

5


SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except par value data)

 

 

 

 

June 30,

2020

 

 

September 30,

2019

 

 

 

(Unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

838,811

 

 

$

71,495

 

Trade accounts receivable, net

 

 

42,818

 

 

 

43,136

 

Accounts receivable, other

 

 

17,485

 

 

 

61,403

 

Inventory

 

 

815,632

 

 

 

952,907

 

Other current assets

 

 

48,596

 

 

 

34,612

 

Total current assets

 

 

1,763,342

 

 

 

1,163,553

 

Property and equipment, net of accumulated depreciation of $688,798 at

   June 30, 2020, and $659,285 at September 30, 2019

 

 

311,063

 

 

 

319,628

 

Operating lease assets

 

 

514,415

 

 

 

 

Goodwill

 

 

530,681

 

 

 

530,786

 

Intangible assets, excluding goodwill, net of accumulated amortization of

   $65,791 at June 30, 2020, and $64,615 at September 30, 2019

 

 

56,859

 

 

 

62,051

 

Other assets

 

 

21,734

 

 

 

22,428

 

Total assets

 

$

3,198,094

 

 

$

2,098,446

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

395,673

 

 

$

1

 

Accounts payable

 

 

239,905

 

 

 

278,688

 

Accrued liabilities

 

 

148,197

 

 

 

169,054

 

Current operating lease liabilities

 

 

152,650

 

 

 

 

Income taxes payable

 

 

1,307

 

 

 

8,336

 

Total current liabilities

 

 

937,732

 

 

 

456,079

 

Long-term debt

 

 

1,845,594

 

 

 

1,594,542

 

Long-term operating lease liabilities

 

 

377,930

 

 

 

 

Other liabilities

 

 

26,433

 

 

 

27,757

 

Deferred income tax liabilities, net

 

 

79,538

 

 

 

80,391

 

Total liabilities

 

 

3,267,227

 

 

 

2,158,769

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value. Authorized 500,000 shares; 112,848 and

   116,986 shares issued and 112,280 and 116,725 shares outstanding at

   June 30, 2020, and September 30, 2019, respectively

 

 

1,123

 

 

 

1,167

 

Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued

 

 

 

 

 

 

Additional paid-in capital

 

 

2,513

 

 

 

 

Accumulated earnings

 

 

46,399

 

 

 

55,797

 

Accumulated other comprehensive loss, net of tax

 

 

(119,168

)

 

 

(117,287

)

Total stockholders’ deficit

 

 

(69,133

)

 

 

(60,323

)

Total liabilities and stockholders’ deficit

 

$

3,198,094

 

 

$

2,098,446

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

6


SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Loss)

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net sales

 

$

705,287

 

 

$

975,169

 

 

$

2,556,518

 

 

$

2,910,474

 

Cost of goods sold

 

 

383,441

 

 

 

492,947

 

 

 

1,330,067

 

 

 

1,479,222

 

Gross profit

 

 

321,846

 

 

 

482,222

 

 

 

1,226,451

 

 

 

1,431,252

 

Selling, general and administrative expenses

 

 

314,599

 

 

 

360,183

 

 

 

1,075,827

 

 

 

1,088,797

 

Restructuring

 

 

5,816

 

 

 

1,908

 

 

 

11,541

 

 

 

74

 

Operating earnings

 

 

1,431

 

 

 

120,131

 

 

 

139,083

 

 

 

342,381

 

Interest expense

 

 

27,298

 

 

 

25,781

 

 

 

70,483

 

 

 

74,092

 

Earnings (loss) before provision for income taxes

 

 

(25,867

)

 

 

94,350

 

 

 

68,600

 

 

 

268,289

 

Provision (benefit) for income taxes

 

 

(2,341

)

 

 

23,186

 

 

 

25,543

 

 

 

65,673

 

Net earnings (loss)

 

$

(23,526

)

 

$

71,164

 

 

$

43,057

 

 

$

202,616

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.21

)

 

$

0.59

 

 

$

0.38

 

 

$

1.69

 

Diluted

 

$

(0.21

)

 

$

0.59

 

 

$

0.37

 

 

$

1.68

 

Weighted-average shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

112,271

 

 

 

120,119

 

 

 

114,413

 

 

 

120,062

 

Diluted

 

 

112,271

 

 

 

120,977

 

 

 

115,370

 

 

 

120,928

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

7


SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net earnings (loss)

 

$

(23,526

)

 

$

71,164

 

 

$

43,057

 

 

$

202,616

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

5,116

 

 

 

834

 

 

 

(3,707

)

 

 

(9,591

)

Interest rate caps, net of tax

 

 

245

 

 

 

586

 

 

 

274

 

 

 

(4,384

)

Foreign exchange contracts, net of tax

 

 

(286

)

 

 

103

 

 

 

1,552

 

 

 

(65

)

Other comprehensive income (loss), net of tax

 

 

5,075

 

 

 

1,523

 

 

 

(1,881

)

 

 

(14,040

)

Total comprehensive income (loss)

 

$

(18,451

)

 

$

72,687

 

 

$

41,176

 

 

$

188,576

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

8


SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended June 30,

 

 

 

2020

 

 

2019

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net earnings

 

$

43,057

 

 

$

202,616

 

Adjustments to reconcile net earnings to net cash provided by operating

   activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

80,829

 

 

 

80,425

 

Share-based compensation expense

 

 

9,094

 

 

 

7,728

 

Amortization of deferred financing costs

 

 

2,965

 

 

 

2,894

 

Loss (gain) on early extinguishment of debt

 

 

(357

)

 

 

951

 

Loss (gain) on disposal of equipment and other property

 

 

2,910

 

 

 

(6,557

)

Deferred income taxes

 

 

600

 

 

 

12,095

 

Changes in (exclusive of effects of acquisitions):

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

495

 

 

 

3,361

 

Accounts receivable, other

 

 

45,888

 

 

 

(10,641

)

Inventory

 

 

134,824

 

 

 

(28,283

)

Other current assets

 

 

(15,840

)

 

 

4,687

 

Other assets

 

 

(691

)

 

 

(1,195

)

Accounts payable and accrued liabilities

 

 

(35,572

)

 

 

(59,105

)

Income taxes payable

 

 

(7,154

)

 

 

(926

)

Other liabilities

 

 

13,336

 

 

 

(4,227

)

Net cash provided by operating activities

 

 

274,384

 

 

 

203,823

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Payments for property and equipment

 

 

(89,740

)

 

 

(66,763

)

Proceeds from sale of property and equipment

 

 

38

 

 

 

12,021

 

Acquisitions, net of cash acquired

 

 

(1,944

)

 

 

(2,763

)

Net cash used by investing activities

 

 

(91,646

)

 

 

(57,505

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

 

1,087,504

 

 

 

394,004

 

Repayments of long-term debt

 

 

(437,391

)

 

 

(561,162

)

Debt issuance costs

 

 

(6,257

)

 

 

 

Payments for common stock repurchased

 

 

(61,357

)

 

 

 

Proceeds from exercises of stock options

 

 

2,722

 

 

 

1,787

 

Net cash provided (used) by financing activities

 

 

585,221

 

 

 

(165,371

)

Effect of foreign exchange rate changes on cash and cash equivalents

 

 

(643

)

 

 

(387

)

Net increase (decrease) in cash and cash equivalents

 

 

767,316

 

 

 

(19,440

)

Cash and cash equivalents, beginning of period

 

 

71,495

 

 

 

77,295

 

Cash and cash equivalents, end of period

 

$

838,811

 

 

$

57,855

 

Supplemental Cash Flow Information:

 

 

 

 

 

 

 

 

Interest paid

 

$

74,046

 

 

$

82,903

 

Income taxes paid

 

$

45,292

 

 

$

62,852

 

Capital expenditures incurred but not paid

 

$

4,469

 

 

$

3,116

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 


 

9


SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Deficit

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Total

 

 

Common Stock

Paid-in

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders’

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Equity (Deficit)

 

Balance at September 30, 2019

 

116,725

 

 

$

1,167

 

 

$

 

 

$

55,797

 

 

$

(117,287

)

 

$

(60,323

)

Cumulative effect of ASC 842 adoption

 

 

 

 

 

 

 

 

 

 

(445

)

 

 

 

 

 

(445

)

Net earnings

 

 

 

 

 

 

 

 

 

 

53,215

 

 

 

 

 

 

53,215

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

14,870

 

 

 

14,870

 

Repurchases and cancellations of

   common stock

 

(766

)

 

 

(7

)

 

 

(6,237

)

 

 

(5,113

)

 

 

 

 

 

(11,357

)

Share-based compensation

 

 

 

 

 

 

 

3,473

 

 

 

 

 

 

 

 

 

3,473

 

Stock issued for stock options

 

206

 

 

 

2

 

 

 

2,764