Sally Beauty(SBH) - 2025 Q1 - Quarterly Report

Financial Performance - Consolidated net sales for the three months ended December 31, 2024, increased by $6.6 million, or 0.7%, to$ 937.9 million compared to the same period in 2023[60] - Consolidated comparable sales increased by 1.6% for the three months ended December 31, 2024, reflecting growth in both SBS and BSG segments[60] - Consolidated gross profit for the three months ended December 31, 2024, increased by $9.7 million, or 2.1%, to$ 476.8 million, with a gross margin improvement of 60 basis points to 50.8%[60] - Consolidated operating earnings for the three months ended December 31, 2024, increased by $31.2 million, or 45.1%, to$ 100.3 million, with an operating margin increase of 330 basis points to 10.7%[60] - Consolidated net earnings for the three months ended December 31, 2024, increased by $22.6 million, or 58.9%, to$ 61.0 million compared to the same period in 2023[60] - The company reported net sales of $751.8 million and a gross profit of$ 388.2 million for the three months ended December 31, 2024[85] Cash Flow and Liquidity - Cash provided by operations was $33.5 million for the three months ended December 31, 2024, down from$ 51.0 million in the same period in 2023[60] - At December 31, 2024, the company had $588.2 million of available liquidity, including$ 482.7 million available for borrowing under its ABL facility[74] - The company anticipates that existing cash balances and cash expected to be generated by operations will be sufficient to fund working capital and capital expenditure requirements over the next twelve months[76] - Cash and cash equivalents decreased from $32.8 million on September 30, 2024, to$ 30.8 million on December 31, 2024[85] Debt and Liabilities - As of December 31, 2024, the company had $942.2 million in outstanding debt principal, consisting of$ 600.0 million in 2032 Senior Notes and $353.0 million remaining on Term Loan B[81] - Total liabilities decreased from$ 1,951.9 million on September 30, 2024, to $1,865.5 million on December 31, 2024, a reduction of about 4.4%[85] - Current liabilities decreased from$ 479.1 million on September 30, 2024, to $451.5 million on December 31, 2024, a decline of approximately 5.8%[85] - The company is currently in compliance with all agreements and instruments governing its debt, including financial covenants[83] Tax and Market Risks - The effective tax rate for the three months ended December 31, 2024, was 26.4%, up from 25.9% in the same period in 2023[72] - There have been no material changes to the company's market risks since September 30, 2024[91] Share Repurchase - The company repurchased 0.8 million shares of common stock for$ 10.0 million during the three months ended December 31, 2024, compared to 1.9 million shares for $20.0 million in the same period of 2023[86] Asset Management - Current assets decreased from$ 914.7 million on September 30, 2024, to $897.4 million on December 31, 2024, reflecting a decline of approximately 1.5%[85] - The weighted average interest rate on borrowings under the ABL facility was 7.0% during the three months ended December 31, 2024[83] - The company sold its corporate headquarters for$ 45.5 million, recognizing a gain of $26.6 million included in selling, general and administrative expenses[60]