Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.) · NYSE:SBH
Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.) — Sally Beauty Holdings — Investor Presentation (December 2014)
20 slides from Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.)'s investor presentation, December 2014
Slide 1: As of September 2014, fiscal year-end
As of September 2014, fiscal year-end
Slide 2: Company Highlights
Company Highlights Sally Beauty Holdings is a leading international specialty retailer and distributor of professional beauty products Annual consolidated sales of over $3.8 billion Strong cash flow generation Approximately 4,828 stores located in 12 countries (1) Industry leading position w
Slide 3: Company Highlights: Consolidated Fiscal 2014 Results
Company Highlights Consolidated Fiscal 2014 Results Net Sales Gross Margin Segments • Retail consumers • Stores – Chair/suite rentals • 75% of sales • 65% of sales Customers • Professional stylists, small salons, • Full Service Sales - small to medium chair/suite rentals sized salons • 25% of sales
Slide 4: Company Highlights
Company Highlights Open-Line Retail Exclusive / Full-Service Distribution: 3,563 stores 1,265 stores 981 consultants Customers: Professional stylists Salons ` $ Value Retail Consumers $$$ High-end SBH plays an important role in the supply chain (1) Store count as of September 30, 2014, fiscal year-e
Slide 5: Industry Growth
Industry Growth U.S. Salon Industry Product Sales Growth (at wholesale $’s) of 2.7% $5.0 Recession Resistant $4.5 $4.6 $4.5 $4.2 Industry $4.0 $4.0 $3.7 $3.8 $3.8 $3.3 $3.4 $3.5 $3.5 $3.1 $2.9 $2.9 $3.0 ($ in billions) $3.0 $2.6 $2.7 $2.5 $2.2 $2.3 $2.4 $2.0 $2.1 $2.0 $1.8 $1.6 $1.7 $1.5 $1.0 $0.5 $
Slide 6: Business Segment Overview
Business Segment Overview SALLYBEAUTY HOLDINGS, INC.
Slide 7: Sally Beauty Supply: Overview
Sally Beauty Supply: Overview Sally Beauty Supply global footprint 3,563(1) stores worldwide 2,793 stores in U.S. (including Puerto Rico) 770 stores in Canada, the UK, Ireland, Belgium, Netherlands, France, Germany, Spain, Chile, Peru & Mexico Average store size 1,700 sq. ft., 90% selling
Slide 8: Sally Beauty Supply: Historical Sales
Sally Beauty Supply: Historical Sales Sally Beauty Supply Net Sales Growth of 3.5% $2,800 $2,199 $2,230 $2,309 $2,400 $2,012 $2,000 $1,835 $1,673 $1,696 $1,567 $1,600 $1,359 $1,419 $1,208 $1,296 $1,200 $800 $400 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sally Beauty Supply Same
Slide 9: Sally Beauty Supply: Merchandise Offering
Sally Beauty Supply: Merchandise Offering Other Beauty Items Ethnic Products 7% Hair Care 8% 22% We offer a diversified Brushes, 45% of Cutlery and Sales from mix of beauty Accessories 14% Hair Care & Color products 23% Electrical 10% Appliances Hair Color 17% Skin and Nail Care
Slide 10: Sally Beauty Supply Growth Initiatives
Sally Beauty Supply Growth Initiatives Growth Initiatives Worldwide Sally Beauty Supply Stores Expand store base organically and 4,000 3,309 3,424 3,563 3,158 through acquisitions; domestic and 2,844 2,923 3,032 3,000 2,511 2,694 international 2,000 Plan to grow store base 3 to 4 percent in 1,00
Slide 11: Sally Beauty Supply: International Opportunity
Sally Beauty Supply: International Opportunity Existing International Platform Long-Term Store Growth Potential (1) 770 Sally Beauty stores located in 11 countries Current Potential 100 ~250 Stores located in Canada, the UK, Ireland, (Canada) Belgium, France, the Netherlands, Germany, Spain, Chi
Slide 12: Beauty Systems Group: Overview
Beauty Systems Group: Overview Beauty Systems Group – 1,265(1) (professional stores & 981 professional distributor sales consultants 1,104 company-operated / 161 franchised stores (Armstrong McCall) 981 professional distributor sales consultants Average store size 2,700 sq. ft. Sells to sa
Slide 13: BSG: Strong, Consistent Financial Track Record
BSG: Strong, Consistent Financial Track Record BSG Net Sales Growth of 3.8% $1,600 $1,445 $1,392 $1,325 $1,400 $1,257 $1,200 $1,081 $954 $945 $975 $941 $1,000 $895 $802 $800 $616 $600 $400 $200 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 BSG Same Store Sales Growth 12.0% 10.1% 8.5
Slide 14: BSG: Merchandise Offering
BSG: Merchandise Offering Other Beauty Items Electrical Hair Care Appliances 7% 6% Skin and Nail Care 10% 35% We offer a diversified mix of beauty products not carried in Sally stores or mass retail Promotional 12% Items 31% Hair Color
Slide 15: BSG: Industry Growth and Growth Initiatives
BSG: Industry Growth Growth Initiatives Store Growth Store Growth 1,151 1,190 1,245 1,265 1,200 991 1,027 929 Expand store base organically 828 874 800 Further penetrate existing geographies 400 Enter new territories 0 Expand gross margins as sales shift Organic 2006 2007 46 2008 2009 2010 2
Slide 16: Consolidated Results
Consolidated Results SALLYBEAUTY HOLDINGS, INC.
Slide 17: Solid Balance Sheet
Solid Balance Sheet No near-term maturities Long-term debt (as of 9/30/14) In November 2011, refinanced Sr. and Sr. Sub Amount % of Notes for $750mm of 6.875% Senior Notes due ($mm) Total Debt 2019 Revolving ABL facility $0.0 0.0% 5.750% Senior Notes (FY2022) $857.4 47.4% In May 2012, refinanc
Slide 18: Sales and EPS Growth for total Company
Sales and EPS Growth for total Company Sales EPS (adjusted) $3,524 $3,622 $3,754 $3,500 $3,269 $1.60 $1.53 $1.48 $1.42 $3,000 $2,916 $1.40 $2,648 $2,637 $2,514 $2,500 $1.20 $1.07 2.0% 3.6% YoY YoY $1.00 $2,000 $0.77 $0.80 $1,500 $0.60 $0.52 $0.44 $1,000 $0.40 $0.32 $0.20 $500 $0.00 2007 2008 2009 20
Slide 19: Addendum: Reconciliations
Addendum: Reconciliations
Slide 20: Addendum: Adjusted EBITDA Reconciliation
Addendum: Adjusted EBITDA Reconciliation Adjusted EBITDA FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY2014 Net Earnings (GAAP) $ 110.2 $ 44.5 $ 77.7 $ 99.1 $ 143.8 $ 213.7 $ 233.1 $ 261.2 $ 246.0 Interest expense, net of interest income 0.1 146.0 159.1 132.0 113.0 112.5 $ 138.4 $ 107.7 $ 116.3 Provisio
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