[ACCESSWIRE]
Upcoming AWS Coverage on KAR Auction Services Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 23, 2016 / Active Wall St. announces its post-earnings coverage on Sally Beauty Holdings Inc. (NYSE: SBH). The company released its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on November 15, 2016. The Denton, Texas-based company reported quarterly net sales growth of 1.3% y-o-y and adjusted net earnings growth of 2.2% y-o-y for Q4 FY16. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Sally Beauty Holdings' competitors within the Specialty Retail, Other space, KAR Auction Services, Inc. (NYSE: KAR), reported on November 03, 2016, its Q3 financial results for the period ended September 30, 2016. AWS will be initiating a research report on KAR Auction Services in the coming days.
Today, AWS is promoting its earnings coverage on SBH; touching on KAR. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=SBH
http://www.activewallst.com/registration-3/?symbol=KAR
Earnings Reviewed
During Q4 FY16, Sally Beauty Holdings' net sales rose to $976.36 million from $964.23 million recorded at the end of Q4 FY15. However, net sales numbers for the reported quarter fell short of market consensus expectations of $993.9 million. The reported quarter sales growth is primarily attributed to same store sales growth and the addition of new stores. Moreover, consolidated same store sales growth, during Q4 FY16, was 1.2% compared to 3.5% in the year ago period.
The specialty retailer of professional beauty supplies reported GAAP net earnings of $52.62 million, or $0.36 diluted per share, during Q4 FY16 compared to $56.18 million, or $0.36 per share in the year ago quarter. Meanwhile, non-GAAP net earnings improved to $60.48 million, or $0.41 per diluted share, in Q4 FY16 from $59.20 million, or $0.38 per diluted share, in the previous year's quarter. However, the quarterly non-GAAP net earnings marginally missed market expectations of $0.42 per diluted share.
For FY16, the company's net sales were $3.95 billion, up 3.1% y-o-y from $3.83 billion in the year ago same period. In FY16, GAAP net earnings came in at $222.94 million, or $1.50 per diluted share, compared to $235.09 million, or $1.49 per diluted share, in FY15. Furthermore, the company reported non-GAAP net earnings of $255.57 million, or $1.72 per diluted share, compared to $241.94 million, or $1.53 per diluted share, in FY15.
Operating Metrics
For the three months ended on September 30, 2016, the company reported gross profit of $483.44 million, or 49.5% of net sales, versus $475.31 million, or 49.3% of net sales, in Q4 FY15. During the reported quarter, operating earnings came in at $110.82 million, 11.4% of net sales, compared to $119.23 million, or 12.4% of net sales, in the prior year's quarter. Furthermore, adjusted EBITDA for Q4 FY16 was $153.20 million, up 0.4% from $152.56 million in the past year's comparable quarter.
Segment Performance
During Q4 FY16, Sally Beauty Supply's net sales were $583.86 million, up 0.3% from $582.30 million in Q4 FY15. The segment reported same store sales growth of 0.8% in Q4 FY16 versus 1.8% in Q4 FY15. Gross margin improved 40 basis point during Q4 FY16 to 55.0% from 54.6% in the year ago quarter. Additionally, segment operating margin for Q4 FY16 came in at $96.94 million, or 16.6% of segment net sales, compared to $97.86 million, or 16.8% of segment net sales, in the prior year's quarter.
Beauty Systems Group contributed $392.50 million to total net sales, during Q4 FY16, up 2.8% from $381.93 million in the last year comparable period. The segment's same store sales growth was 1.9% for Q4 FY16 versus 7.4% in the previous year's quarter. Gross margin for the reported period stood at 41.3%, up 10 basis points from 41.2% in Q4 FY15. The segment reported operating earnings of $61.89 million, or 15.8% of segment net sales, in Q4 FY16 compared to $57.86 million, or 15.1% of segment in the year ago quarter.
Cash Flow and Balance Sheet
In FY16, Sally Beauty Holdings' cash flow from operations totaled $351 million. As of September 30, 2016, the company had cash and cash equivalents balance of $86.62 million compared to $140.04 million at the close of books on September 30, 2015. Additionally, the company recorded total debt, including capital leases, of $1.78 billion as on September 30, 2015, compared to $1.79 billion at September 30, 2015.
Share Repurchases
During Q4 FY16, the company repurchased approximately 1.7 million shares for $44.9 million, under its $1 billion share repurchase program. Furthermore, in FY16, it had bought back 7.8 million shares of its stock for $207.3 million.
Outlook
For full year FY17, Sally Beauty Holdings anticipates same store sales growth of approximately 3%. Additionally, gross profit margin growth is expected to be in the range of 30 bps to 40 bps.
Stock Performance
Sally Beauty Holdings' share price finished yesterday's trading session at $26.75, climbing 1.17%. A total volume of 1.86 million shares exchanged hands. The stock has advanced 1.21% and 2.92% in the last month and past twelve months, respectively. The stock is trading at a PE ratio of 17.82 and currently has a market cap of $4.01 billion.
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