In a bid to boost shareholder's value,
Sally Beauty Holdings Inc.
), a leading distributor and retailer of professional beauty
products, declared a new share repurchase program worth $300
million of its common stock starting from October 18, 2012.
The share repurchase program is spread over 18-month period. The
program not only enhances shareholders' value but also elevates the
market value of the company's outstanding shares.
Sally Beauty Holdings plans to fund the share repurchase program
through a combination of cash in hand, future cash flow from
operations and borrowings under its revolving credit facility.
Previously, in May 7, 2012, it announced a share repurchase program
worth of $200 million.
SBH's continuous announcements of share buyback programs reflect
its stable cash position and its ability to generate healthy cash
flow. Moreover, management affirms that the company uses its excess
cash to return value to shareholders' as well as to invest in
Sally Beauty Holdings recently posted third-quarter 2012
financial results with quarterly earnings of 38 cents per share,
reflecting 26.7% year-over-year increase from 30 cents posted in
the comparable prior-year quarter. This also came ahead of the
Zacks Consensus Estimate by a penny. Net consolidated revenue
increased 6% to $887.0 million mainly due 5.2% rise in comparable
store sales; however, it missed the Zacks Consensus Estimate of
At the end of the third-quarter 2012, cash and cash equivalents
came in at $54.0 million and working capital increased to $449.5
million. Capital expenditures for the period of nine months totaled
$44.3 million and are projected to be in the range of $65 - $70
million for the fiscal 2012.
Currently Sally Beauty Holdings which competes with Walgreen Co.
) carries a Zacks #3 Rank for the next 1-3 months implying
short-term Hold rating.
SALLY BEAUTY CO (SBH): Free Stock Analysis
WALGREEN CO (WAG): Free Stock Analysis Report
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