Alberto-Culver's Continuing Strong Performance Produces Record Fiscal 2001 Second Quarter, First Half

Apr 26, 2001, 01:00 ET from The Alberto-Culver Company

    MELROSE PARK, Ill., April 26 /PRNewswire/ -- The Alberto-Culver Company
 (NYSE:   ACVA, ACV) today reported record sales and record earnings for its
 fiscal 2001 second quarter and half-year ended March 31, 2001.   Howard B.
 Bernick, President and Chief Executive Officer, said that "improving growth
 performances by each of the company's three operating units -- North American
 and International beauty care brands and Sally Beauty Company -- drove the
 performance."
     Sales for the second quarter increased 12.4 percent to $622.6 million from
 $553.8 million in the second quarter of fiscal year 2000.  Net earnings
 increased 13.8 percent to $25.9 million from $22.8 million in the prior year.
 This produced basic and diluted earnings per share of 46 cents and 45 cents
 respectively, up from 41 cents and 40 cents in the prior year's second
 quarter.
     For the first half, sales increased 12.6 percent to $1.216 billion from
 $1.080 billion in the first half of fiscal 2000.  Net earnings for the half-
 year were up 13.6 percent to $49.5 million compared to net earnings of
 $43.6 million before a non-recurring gain in the comparable half the year
 before.  Basic earnings per share for the half were 88 cents versus 78 cents
 and diluted earnings per share were 86 cents versus 77 cents in fiscal 2000
 before the non-recurring gain.  In the first quarter of fiscal 2000, the
 Company realized a non-recurring gain on the sale of a trademark that added
 $6 million to net earnings and 11 cents to basic and diluted earnings per
 share.
     Mr. Bernick said that the strong growth in North American beauty products
 was primarily fueled by fine performances from the company's core brands --
 Alberto VO5, St. Ives and TRESemme.  He said the launch of the company's new
 TRESemme Hydrology shampoos and conditioners was somewhat ahead of target.
 Mr. Bernick noted that while local currency sales in the company's
 international consumer products unit were up a solid 7.5 percent, weaker
 overseas currencies were still having a significant negative impact upon
 translation.  Mr. Bernick added that both Alberto-Culver North America and
 Alberto-Culver International achieved strong double-digit profit growth rates
 in the second quarter and half-year periods.
     The company's Sally Beauty unit and its Beauty Systems Group had strong
 sales and profit growth rates in excess of 15 percent for the second quarter
 and for the half-year.  Sally, the largest marketer of professional beauty
 care products in the world, ended the quarter with 2,350 stores in the U.S.,
 Canada, Great Britain, Germany and Japan and a field force of over 550 Beauty
 Systems Group professional salon sales consultants.
     Mr. Bernick commented, "Those following our segments know that the
 businesses we are in remain very competitive and that maintaining growth rates
 is a challenge every day, every month and every quarter.  However, through
 better teaming with our trade partners, through better marketing and through
 improved prioritization, focus and execution on fewer and bigger initiatives
 faster, we are proud to have produced another quarter of double-digit sales
 and profit gains.  This maintains our momentum, keeping us on track to achieve
 our tenth consecutive year of record sales and record earnings in fiscal
 2001."
     Mr. Bernick noted that Fortune magazine had recently cited the company as
 number one in its segment for return to shareholders in the year 2000.  "As we
 continue our record performances, I hope we will be able to repeat with that
 designation as well," he concluded.
     Mr. Bernick said the company would discuss the quarter and half-year
 results with investors in a conference call to be held today at 2:30pm EDT.
 The dial-in number for the call is 800-952-4707.  The number for the replay --
 available for seven days -- is 888-266-2086, passcode 5102195.  The call will
 also be available on the internet at http://www.alberto.com .
     Also today, the company's Board of Directors approved the payment of the
 company's regular cash dividend of 8 1/4 cents per share on both the company's
 ACV and ACVA shares.  The dividend will be paid on May 21, 2001 to
 stockholders of record on May 7, 2001.
 
     This press release contains forward-looking statements.  These statements
 are based on Alberto-Culver management's current assessment of its markets and
 businesses.  There are risks and uncertainties that could have an impact on
 these statements in the future.  Some of the factors that could cause actual
 results to differ from these current projections include: the pattern of brand
 sales, competitive activity in each of our markets, risks inherent in
 acquisitions, changes in costs, the direction of international currency
 markets and changes in political, economic or other external factors over
 which the company has no control.  The company has no obligation to update any
 forward-looking statement in this release.
 
 
           Consolidated Condensed Statements of Earnings (Unaudited)
 
     Three Months Ended March 31                     2001           2000
 
     Net sales                                   $622,558,000    553,813,000
     Cost of products sold                        299,270,000    271,520,000
     Gross profit                                 323,288,000    282,293,000
     Advertising, promotion, selling and
      administrative                              277,853,000    244,069,000
     Operating earnings                            45,435,000     38,224,000
     Net interest expense                           5,670,000      4,259,000
     Earnings before income taxes                  39,765,000     33,965,000
     Provision for income taxes                    13,873,000     11,208,000
     Net earnings                                 $25,892,000     22,757,000
     Earnings per share:
     Basic                                              $0.46           0.41
     Diluted                                            $0.45           0.40
     Weighted average shares outstanding:
     Basic                                         56,134,000     55,743,000
     Diluted                                       57,897,000     56,405,000
 
 
     Six Months Ended March 31                       2001            2000
 
     Net sales                                 $1,216,118,000  1,079,612,000
     Cost of products sold                        591,453,000    528,890,000
     Gross profit                                 624,665,000    550,722,000
     Advertising, promotion, selling and
      administrative                              538,215,000    478,002,000
     Operating earnings                            86,450,000     72,720,000
     Net interest expense                          11,422,000      7,686,000
     Earnings before income taxes
      and non-recurring gain*                      75,028,000     65,034,000
     Provision for income taxes*                   25,510,000     21,461,000
     Net earnings before non-recurring gain*       49,518,000     43,573,000
     Non-recurring gain, net of income taxes*               0      6,017,000
     Net earnings*                                $49,518,000     49,590,000
     Earnings per share:
     Before non-recurring gain:*
     Basic                                               $.88            .78
     Diluted                                             $.86            .77
     Including non-recurring gain:*
     Basic                                               $.88            .89
     Diluted                                             $.86            .88
     Weighted average shares outstanding:
     Basic                                         55,978,000     55,725,000
     Diluted                                       57,592,000     56,415,000
 
     *The sale of a trademark for $10 million resulted in a non-recurring net
 gain of $6.0 million or 11 cents per share after deducting income taxes of
 $3.2 million.
 
 
               Consolidated Condensed Balance Sheets (Unaudited)
 
                                                           March 31
     Assets                                           2001           2000
     Cash, cash equivalents and short-term
      investments                                $141,451,000     59,197,000
     Accounts receivable, net                     158,227,000    155,629,000
     Inventories                                  474,810,000    456,943,000
     Other current assets                          26,848,000     25,024,000
     Total current assets                         801,336,000    696,793,000
     Property, plant and equipment, net           232,047,000    244,108,000
     Goodwill and trade names, net                344,539,000    330,062,000
     Other assets, net                             57,650,000     54,339,000
     Total assets                              $1,435,572,000  1,325,302,000
 
 
     Liabilities and Stockholders' Equity
     Short-term borrowings and current
      maturities of
     Long-term debt                                $5,746,000      6,656,000
     Accounts payable, accrued expenses and
      income taxes                                350,033,000    334,554,000
     Total current liabilities                    355,779,000    341,210,000
     Long-term debt                               332,305,000    317,989,000
     Other liabilities and deferred taxes          68,989,000     67,596,000
     Stockholders' equity                         678,499,000    598,507,000
     Total liabilities and stockholders'
      equity                                   $1,435,572,000  1,325,302,000
 
 
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SOURCE The Alberto-Culver Company
    MELROSE PARK, Ill., April 26 /PRNewswire/ -- The Alberto-Culver Company
 (NYSE:   ACVA, ACV) today reported record sales and record earnings for its
 fiscal 2001 second quarter and half-year ended March 31, 2001.   Howard B.
 Bernick, President and Chief Executive Officer, said that "improving growth
 performances by each of the company's three operating units -- North American
 and International beauty care brands and Sally Beauty Company -- drove the
 performance."
     Sales for the second quarter increased 12.4 percent to $622.6 million from
 $553.8 million in the second quarter of fiscal year 2000.  Net earnings
 increased 13.8 percent to $25.9 million from $22.8 million in the prior year.
 This produced basic and diluted earnings per share of 46 cents and 45 cents
 respectively, up from 41 cents and 40 cents in the prior year's second
 quarter.
     For the first half, sales increased 12.6 percent to $1.216 billion from
 $1.080 billion in the first half of fiscal 2000.  Net earnings for the half-
 year were up 13.6 percent to $49.5 million compared to net earnings of
 $43.6 million before a non-recurring gain in the comparable half the year
 before.  Basic earnings per share for the half were 88 cents versus 78 cents
 and diluted earnings per share were 86 cents versus 77 cents in fiscal 2000
 before the non-recurring gain.  In the first quarter of fiscal 2000, the
 Company realized a non-recurring gain on the sale of a trademark that added
 $6 million to net earnings and 11 cents to basic and diluted earnings per
 share.
     Mr. Bernick said that the strong growth in North American beauty products
 was primarily fueled by fine performances from the company's core brands --
 Alberto VO5, St. Ives and TRESemme.  He said the launch of the company's new
 TRESemme Hydrology shampoos and conditioners was somewhat ahead of target.
 Mr. Bernick noted that while local currency sales in the company's
 international consumer products unit were up a solid 7.5 percent, weaker
 overseas currencies were still having a significant negative impact upon
 translation.  Mr. Bernick added that both Alberto-Culver North America and
 Alberto-Culver International achieved strong double-digit profit growth rates
 in the second quarter and half-year periods.
     The company's Sally Beauty unit and its Beauty Systems Group had strong
 sales and profit growth rates in excess of 15 percent for the second quarter
 and for the half-year.  Sally, the largest marketer of professional beauty
 care products in the world, ended the quarter with 2,350 stores in the U.S.,
 Canada, Great Britain, Germany and Japan and a field force of over 550 Beauty
 Systems Group professional salon sales consultants.
     Mr. Bernick commented, "Those following our segments know that the
 businesses we are in remain very competitive and that maintaining growth rates
 is a challenge every day, every month and every quarter.  However, through
 better teaming with our trade partners, through better marketing and through
 improved prioritization, focus and execution on fewer and bigger initiatives
 faster, we are proud to have produced another quarter of double-digit sales
 and profit gains.  This maintains our momentum, keeping us on track to achieve
 our tenth consecutive year of record sales and record earnings in fiscal
 2001."
     Mr. Bernick noted that Fortune magazine had recently cited the company as
 number one in its segment for return to shareholders in the year 2000.  "As we
 continue our record performances, I hope we will be able to repeat with that
 designation as well," he concluded.
     Mr. Bernick said the company would discuss the quarter and half-year
 results with investors in a conference call to be held today at 2:30pm EDT.
 The dial-in number for the call is 800-952-4707.  The number for the replay --
 available for seven days -- is 888-266-2086, passcode 5102195.  The call will
 also be available on the internet at http://www.alberto.com .
     Also today, the company's Board of Directors approved the payment of the
 company's regular cash dividend of 8 1/4 cents per share on both the company's
 ACV and ACVA shares.  The dividend will be paid on May 21, 2001 to
 stockholders of record on May 7, 2001.
 
     This press release contains forward-looking statements.  These statements
 are based on Alberto-Culver management's current assessment of its markets and
 businesses.  There are risks and uncertainties that could have an impact on
 these statements in the future.  Some of the factors that could cause actual
 results to differ from these current projections include: the pattern of brand
 sales, competitive activity in each of our markets, risks inherent in
 acquisitions, changes in costs, the direction of international currency
 markets and changes in political, economic or other external factors over
 which the company has no control.  The company has no obligation to update any
 forward-looking statement in this release.
 
 
           Consolidated Condensed Statements of Earnings (Unaudited)
 
     Three Months Ended March 31                     2001           2000
 
     Net sales                                   $622,558,000    553,813,000
     Cost of products sold                        299,270,000    271,520,000
     Gross profit                                 323,288,000    282,293,000
     Advertising, promotion, selling and
      administrative                              277,853,000    244,069,000
     Operating earnings                            45,435,000     38,224,000
     Net interest expense                           5,670,000      4,259,000
     Earnings before income taxes                  39,765,000     33,965,000
     Provision for income taxes                    13,873,000     11,208,000
     Net earnings                                 $25,892,000     22,757,000
     Earnings per share:
     Basic                                              $0.46           0.41
     Diluted                                            $0.45           0.40
     Weighted average shares outstanding:
     Basic                                         56,134,000     55,743,000
     Diluted                                       57,897,000     56,405,000
 
 
     Six Months Ended March 31                       2001            2000
 
     Net sales                                 $1,216,118,000  1,079,612,000
     Cost of products sold                        591,453,000    528,890,000
     Gross profit                                 624,665,000    550,722,000
     Advertising, promotion, selling and
      administrative                              538,215,000    478,002,000
     Operating earnings                            86,450,000     72,720,000
     Net interest expense                          11,422,000      7,686,000
     Earnings before income taxes
      and non-recurring gain*                      75,028,000     65,034,000
     Provision for income taxes*                   25,510,000     21,461,000
     Net earnings before non-recurring gain*       49,518,000     43,573,000
     Non-recurring gain, net of income taxes*               0      6,017,000
     Net earnings*                                $49,518,000     49,590,000
     Earnings per share:
     Before non-recurring gain:*
     Basic                                               $.88            .78
     Diluted                                             $.86            .77
     Including non-recurring gain:*
     Basic                                               $.88            .89
     Diluted                                             $.86            .88
     Weighted average shares outstanding:
     Basic                                         55,978,000     55,725,000
     Diluted                                       57,592,000     56,415,000
 
     *The sale of a trademark for $10 million resulted in a non-recurring net
 gain of $6.0 million or 11 cents per share after deducting income taxes of
 $3.2 million.
 
 
               Consolidated Condensed Balance Sheets (Unaudited)
 
                                                           March 31
     Assets                                           2001           2000
     Cash, cash equivalents and short-term
      investments                                $141,451,000     59,197,000
     Accounts receivable, net                     158,227,000    155,629,000
     Inventories                                  474,810,000    456,943,000
     Other current assets                          26,848,000     25,024,000
     Total current assets                         801,336,000    696,793,000
     Property, plant and equipment, net           232,047,000    244,108,000
     Goodwill and trade names, net                344,539,000    330,062,000
     Other assets, net                             57,650,000     54,339,000
     Total assets                              $1,435,572,000  1,325,302,000
 
 
     Liabilities and Stockholders' Equity
     Short-term borrowings and current
      maturities of
     Long-term debt                                $5,746,000      6,656,000
     Accounts payable, accrued expenses and
      income taxes                                350,033,000    334,554,000
     Total current liabilities                    355,779,000    341,210,000
     Long-term debt                               332,305,000    317,989,000
     Other liabilities and deferred taxes          68,989,000     67,596,000
     Stockholders' equity                         678,499,000    598,507,000
     Total liabilities and stockholders'
      equity                                   $1,435,572,000  1,325,302,000
 
 
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                http://tbutton.prnewswire.com/prn/11690X84402257
 
 SOURCE  The Alberto-Culver Company