Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”) today announced
that its Board of Directors has approved a new share repurchase program
authorizing the Company to repurchase up to $1.0 billion of its common
stock during the period from August 20, 2014 through September 30, 2017.
This share repurchase program is the fourth repurchase authorized by the
Company and terminates the Company’s prior $700 million share repurchase
program under which the Company had repurchased $546 million of its
common stock as of June 30, 2014.
“This new share repurchase program underscores our continued commitment
to building shareholder value and reflects the Board’s confidence in our
business and on-going cash flow,” said Gary Winterhalter, Chairman and
CEO. “We will continue to prioritize investments in Company growth and
other long-term initiatives while using our remaining cash flow to
repurchase shares. Since May 2012, we’ve repurchased over $1.0 billion
of our stock.”
The Company expects to fund the share repurchases through a combination
of cash on hand, future cash flow from operations and borrowings.
Repurchases may be made at management’s discretion from time to time on
the open market, in privately negotiated transactions or otherwise, in
each case subject to compliance with all Securities and Exchange
Commission rules and other legal requirements.
About Sally Beauty Holdings, Inc.
Sally Beauty Holdings, Inc. (NYSE: SBH) is an international specialty
retailer and distributor of professional beauty supplies with revenues
of $3.6 billion annually. Through the Sally Beauty Supply and Beauty
Systems Group businesses, the Company sells and distributes through
4,700 stores, including approximately 200 franchised units, throughout
the United States, the United Kingdom, Belgium, Chile, Peru, France, the
Netherlands, Canada, Puerto Rico, Mexico, Ireland, Spain and Germany.
Sally Beauty Supply stores offer up to 10,000 products for hair, skin,
and nails through professional lines such as Clairol, L’Oreal, Wella and
Conair, as well as an extensive selection of proprietary merchandise.
Beauty Systems Group stores, branded as CosmoProf or Armstrong McCall
stores, along with its outside sales consultants, sell up to 10,000
professionally branded products including Paul Mitchell, Wella,
Sebastian, Goldwell, Joico, and Aquage which are targeted exclusively
for professional and salon use and resale to their customers. For more
information about Sally Beauty Holdings, Inc., please visit
sallybeautyholdings.com.
Cautionary Notice Regarding Forward-Looking Statements
Statements in this news release which are not purely historical facts or
which depend upon future events may be 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.
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.
Readers are cautioned not to place undue reliance on forward-looking
statements as such statements speak only as of the date they were made.
Any forward-looking statements 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,
including, but not limited to, risks and uncertainties related to: our
ability to successfully execute on the share repurchase program; the
highly competitive nature of, and the increasing consolidation of, the
beauty products distribution industry; anticipating changes in consumer
preferences and buying trends and managing our product lines and
inventory; potential fluctuation in our same store sales and quarterly
financial performance; our dependence upon manufacturers who may be
unwilling or unable to continue to supply products to us; the
possibility of material interruptions in the supply of beauty supply
products by our manufacturers or third-party distributors; products sold
by us being found to be defective in labeling or content; compliance
with laws and regulations or becoming subject to additional or more
stringent laws and regulations; product diversion; the operational and
financial performance of our franchise-based business; the success of
our e-commerce business; successfully identifying acquisition candidates
and successfully completing desirable acquisitions; integrating acquired
businesses; opening and operating new stores profitably; the impact of
the health of the economy upon our business; the success of our cost
control plans; protecting our intellectual property rights, particularly
our trademarks; the risk that our products may infringe on the
intellectual property of others; conducting business outside the United
States; disruption in our information technology systems; a significant
data security breach, including misappropriation of our customers’ or
employees’ personal information, and the potential costs related
thereto; the negative impact on our reputation and loss of confidence of
our customers, suppliers and others arising from a significant data
security breach; the costs and diversion of management attention
required to investigate and remediate a data security breach; the
ultimate determination of the extent or scope of the potential
liabilities relating to our recent data security incident; severe
weather, natural disasters or acts of violence or terrorism; the
preparedness of our accounting and other management systems to meet
financial reporting and other requirements and the upgrade of our
financial reporting system; being a holding company, with no operations
of our own, and depending on our subsidiaries for cash; our substantial
indebtedness; the possibility that we may incur substantial additional
debt, including secured debt, in the future; restrictions and
limitations in the agreements and instruments governing our debt;
generating the significant amount of cash needed to service all of our
debt and refinancing all or a portion of our indebtedness or obtaining
additional financing; changes in interest rates increasing the cost of
servicing our debt; the potential impact on us if the financial
institutions we deal with become impaired; and the costs and effects of
litigation.
Additional factors that could cause actual events or results to differ
materially from the events or results described in the forward-looking
statements can be found in our filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K for the
year ended September 30, 2013 and our Quarterly Report on Form 10-Q for
the fiscal quarter ended June 30, 2014, in each case as filed with the
Securities and Exchange Commission. Consequently, all forward-looking
statements in this release are qualified by the factors, risks and
uncertainties contained therein. We assume no obligation to publicly
update or revise any forward-looking statements.
Copyright Business Wire 2014