<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED:
June 30, 1999
-OR-
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File No. 1-5050
ALBERTO-CULVER COMPANY
--------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-2257936
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2525 Armitage Avenue
Melrose Park, Illinois 60160
--------------------------------------- ----------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (708) 450-3000
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
--- ---
At June 30, 1999, there were 22,831,297 shares of Class A common stock
outstanding and 32,957,471 shares of Class B common stock outstanding.
<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS
- ----------------------------
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Consolidated Statements of Earnings
Three Months Ended June 30, 1999 and 1998
(dollar amounts in thousands, except per share figures)
<TABLE>
<CAPTION>
(Unaudited)
-------------------
1999 1998
-------- -------
<S> <C> <C>
Net sales $500,432 467,480
Costs and expenses:
Cost of products sold 247,786 227,104
Advertising, promotion, selling and administrative 215,572 204,475
Interest expense, net of interest income of $652
in 1999 and $921 in 1998 3,110 2,189
-------- -------
Total costs and expenses 466,468 433,768
-------- -------
Earnings before provision for income taxes 33,964 33,712
Provision for income taxes 11,293 12,557
-------- -------
Net earnings (Note 3) $ 22,671 21,155
======== ======
Net earnings per share (Note 2)
Basic $ .40 .38
======== ======
Diluted $ .40 .35
======== ======
Cash dividends paid per share $ .065 .06
======== ======
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Consolidated Statements of Earnings
Nine Months Ended June 30, 1999 and 1998
(dollar amounts in thousands, except per share figures)
<TABLE>
<CAPTION>
(Unaudited)
----------------------
1999 1998
---------- ---------
<S> <C> <C>
Net sales $1,452,379 1,368,075
Costs and expenses:
Cost of products sold 714,344 670,914
Advertising, promotion, selling and administrative 634,379 594,426
Interest expense, net of interest income of $2,088
in 1999 and $2,303 in 1998 8,553 6,433
---------- ---------
Total costs and expenses 1,357,276 1,271,773
---------- ---------
Earnings before provision for income taxes 95,103 96,302
Provision for income taxes 33,762 35,872
---------- ---------
Net earnings (Note 3) $ 61,341 60,430
========== =========
Net earnings per share (Note 2)
Basic $ 1.08 1.07
========== =========
Diluted $ 1.07 .99
========== =========
Cash dividends paid per share $ .19 .17
========== =========
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 1999 and September 30, 1998
(dollar amounts in thousands, except per share data)
<TABLE>
<CAPTION>
(Unaudited)
June 30, September 30,
1999 1998
----------- -------------
<S> <C> <C>
ASSETS
- ------
Current assets:
Cash and cash equivalents $ 51,121 72,395
Short-term investments 1,271 910
Receivables, less allowance for doubtful
accounts ($8,936 at 6/30/99 and $10,868 at 9/30/98) 130,480 129,063
Inventories (Note 4) 408,841 369,204
Other current assets 19,568 19,993
---------- ---------
Total current assets 611,281 591,565
---------- ---------
Property, plant and equipment at cost, less accumulated
depreciation ($191,753 at 6/30/99 and $184,932 at 9/30/98) 233,188 223,476
Goodwill, net 164,723 137,599
Trade names and other intangible assets, net 72,375 67,158
Other assets 54,035 48,386
---------- ---------
Total assets $1,135,602 1,068,184
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Current maturities of long-term debt and short-term borrowings $ 3,684 3,238
Accounts payable 194,897 177,564
Accrued expenses 105,252 112,015
Income taxes 20,584 20,808
---------- ---------
Total current liabilities 324,417 313,625
---------- ---------
Long-term debt 218,497 171,760
Deferred income taxes 27,772 28,260
Other liabilities 20,807 20,548
Stockholders' equity (Note 2):
Common stock, par value $.22 per share:
Class A authorized 75,000,000 shares; issued 30,612,798 shares 6,735 6,735
Class B authorized 75,000,000 shares; issued 37,710,655 shares 8,296 8,296
Additional paid-in capital 190,696 192,610
Retained earnings 579,307 528,733
Accumulated other comprehensive income-
foreign currency translation (Note 3) (35,407) (28,131)
---------- ---------
749,627 708,243
Less treasury stock at cost (Class A common shares: 7,781,501
at 6/30/99 and 6,549,947 at 9/30/98; Class B common shares:
4,753,184 at 6/30/99 and 4,563,184 at 9/30/98) (205,518) (174,252)
---------- ---------
Total stockholders' equity 544,109 533,991
---------- ---------
Total liabilities and stockholders' equity $1,135,602 1,068,184
========== =========
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Nine Months Ended June 30, 1999 and 1998
(dollar amounts in thousands)
<TABLE>
<CAPTION>
(Unaudited)
--------------
1999 1998
---- ----
Cash Flows from Operating Activities:
- ------------------------------------
<S> <C> <C>
Net earnings $ 61,341 60,430
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 30,992 29,398
Other, net 2,993 (1,437)
Cash effects of changes in (exclusive
of acquisitions):
Receivables, net (3,209) (571)
Inventories (32,629) (5,777)
Other current assets (2,705) 191
Accounts payable and accrued expenses 5,330 (27,266)
Income taxes 1,584 13,556
-------- -------
Net cash provided by operating activities 63,697 68,524
-------- -------
Cash Flows from Investing Activities:
- ------------------------------------
Short-term investments 216 10,651
Capital expenditures (33,712) (37,007)
Payments for purchased businesses, net of
acquired companies' cash (52,693) (18,671)
Other, net (4,138) (2,556)
------- -------
Net cash used by investing activities (90,327) (47,583)
------- -------
Cash Flows from Financing Activities:
- -------------------------------------
Short-term borrowings 861 (721)
Proceeds from long-term debt 50,135 120,000
Repayments of long-term debt (2,474) (3,850)
Debt issuance costs -- (2,385)
Net proceeds from sale of receivables 3,653 --
Cash dividends paid (10,767) (9,566)
Cash proceeds from exercise of stock options 2,695 10,844
Stock purchased for treasury (36,878) (58,294)
-------- -------
Net cash provided by financing activities 7,225 56,028
-------- -------
Effect of foreign exchange rate changes on cash (1,869) (744)
-------- -------
Net increase (decrease) in cash and cash
equivalents (21,274) 76,225
Cash and cash equivalents at beginning of period 72,395 76,040
-------- -------
Cash and cash equivalents at end of period $ 51,121 152,265
======== =======
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(l) The consolidated financial statements contained in this report have not
been audited by independent public accountants, except for balance sheet
information presented at September 30, 1998. However, in the opinion of the
company, the consolidated financial statements reflect all adjustments,
which include only normal adjustments, necessary to present fairly the data
contained therein. The results of operations for the periods covered are
not necessarily indicative of results for a full year.
(2) Basic earnings per share is calculated using the weighted average of actual
shares outstanding of 56,113,000 and 55,741,000 for the three months ended
June 30, 1999 and 1998, respectively, and 56,673,000 and 56,346,000 for the
nine months ended June 30, 1999 and 1998, respectively.
Diluted earnings per share is determined by dividing net earnings before
interest expense (net of tax benefit) on the convertible subordinated
debentures by the weighted average shares outstanding, including common
stock equivalents, after giving effect to common shares to be issued
assuming conversion of the convertible subordinated debentures to Class A
common stock. The convertible subordinated debentures were converted in
July, 1998. Diluted weighted average shares outstanding were 56,924,000 and
63,034,000 for the three months ended June 30, 1999 and 1998, respectively,
and 57,511,000 and 63,590,000 for the nine months ended June 30, 1999 and
1998, respectively.
The following table provides a reconciliation of diluted net earnings and
diluted weighted average shares outstanding (in thousands):
<TABLE>
<CAPTION>
Three Months Nine Months
Ended June 30 Ended June 30
--------------- --------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net earnings $22,671 21,155 61,341 60,430
Interest expense on convertible subordinated
debentures, net of tax benefit -- 909 -- 2,727
------- ------ ------ ------
Diluted net earnings $22,671 22,064 61,341 63,157
======= ====== ====== ======
Weighted average shares
outstanding--basic 56,113 55,741 56,673 56,346
Effect of dilutive securities:
Assumed conversion of
subordinated debentures -- 6,178 -- 6,178
Assumed exercise of
stock options 736 1,090 763 1,066
Other 75 25 75 --
------- ------ ------ ------
Weighted average shares
outstanding--diluted 56,924 63,034 57,511 63,590
======= ====== ====== ======
</TABLE>
6
<PAGE>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
(3) Effective the first quarter of fiscal year 1999, the company adopted
Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting
Comprehensive Income", which establishes rules for the reporting of
comprehensive income and its components. Comprehensive income consists of
net earnings and foreign currency translation adjustments as follows (in
thousands):
<TABLE>
<CAPTION>
Three Months Nine Months
Ended June 30 Ended June 30
--------------- ---------------
1999 1998 1999 1998
------- ------ ------ ------
<S> <C> <C> <C> <C>
Net earnings $22,671 21,155 61,341 60,430
Other comprehensive income
adjustments-
foreign currency translation (2,241) (3,936) (7,276) (8,964)
------- ------ ------ ------
Comprehensive income $20,430 17,219 54,065 51,466
======= ====== ====== ======
</TABLE>
(4) Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
June 30, September 30,
1999 1998
-------- -------------
<S> <C> <C>
Finished goods $363,831 325,769
Work-in-process 5,642 6,119
Raw materials 39,368 37,316
-------- -------
$408,841 369,204
======== =======
</TABLE>
(5) During fiscal 1998, the Board of Directors authorized the company to
purchase up to 6.0 million shares of its Class A common stock. This
authorization was increased to 9.0 million shares in October, 1998. As of
June 30, 1999, the company had purchased 7,047,500 Class A common shares
under this program at a total cost of $158.0 million. In addition, the
Board of Directors authorized the purchase of 190,000 Class B common shares
from a related party in January, 1999, at a total cost of $5.0 million,
which was equal to fair market value on the date of purchase.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RESULTS OF OPERATIONS
Third Quarter and Nine Months Ended June 30, 1999 versus Third Quarter and Nine
Months Ended June 30, 1998
The company achieved record third quarter net sales of $500.4 million in fiscal
year 1999, up $32.9 million or 7.0% over the comparable period of fiscal year
1998. For the nine month period ending June 30, 1999, net sales reached a new
high of $1.45 billion, representing a 6.2% increase compared to last year's nine
month period.
Net earnings for the three months ended June 30, 1999 were a record $22.7
million or 7.2% higher than the same period of the prior year. Basic earnings
per share were 40 cents in 1999 compared to 38 cents in 1998. Diluted earnings
per share increased 14.3% to 40 cents from 35 cents in 1998.
Net earnings for the nine months ended June 30, 1999 were $61.3 million or 1.5%
higher than 1998. Basic earnings per share were $1.08 in 1999 and $1.07 in 1998.
Diluted earnings per share increased 8.1% to $1.07 for the first nine months of
1999 from 99 cents in 1998.
Diluted earnings per share for both the third quarter and first nine months were
favorably affected by a decrease in diluted weighted average shares outstanding,
primarily due to the company's common stock purchases described in Note 5.
The following table presents net sales information by business segment for the
third quarter and first nine months of fiscal years 1999 and 1998 (dollars in
millions):
<TABLE>
<CAPTION>
THIRD QUARTER
Fiscal Year
----------------- Dollar Percent
Net sales: 1999 1998 Change Change
- ---------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Alberto-Culver North America $107.7 110.0 (2.3) (2.1)%
Alberto-Culver International 113.7 111.0 2.7 2.4
Specialty distribution - Sally 284.4 250.4 34.0 13.6
Eliminations (5.4) (3.9) (1.5) (38.5)
------ ----- -----
$500.4 467.5 32.9 7.0%
====== ===== =====
NINE MONTHS
Fiscal Year
--------------- Dollar Percent
Net sales: 1999 1998 Change Change
- ---------- ---- ---- ------ -------
Alberto-Culver North America $ 330.0 341.8 (11.8) (3.4)%
Alberto-Culver International 323.4 315.3 8.1 2.6
Specialty distribution - Sally 812.8 722.8 90.0 12.5
Eliminations (13.8) (11.8) (2.0) (16.9)
-------- ------- -----
$1,452.4 1,368.1 84.3 6.2%
======== ======= =====
</TABLE>
Compared to the same periods of the prior year, sales for Alberto-Culver North
America ("North America") decreased 2.1% and 3.4% for the third quarter and
first nine months of fiscal year 1999, respectively. The decreases were
primarily due to sales declines for the Cortexx and VO Fine hair care lines
which were new products introduced in fiscal years 1997 and 1998, respectively.
Fiscal year 1999 nine month sales also decreased due to lower sales for custom
label filling operations.
Sales of Alberto-Culver International ("International") increased 2.4% in the
third quarter and 2.6% in the first nine months of fiscal 1999 compared to last
year. The fiscal year 1999 results were negatively impacted by the effect of
foreign exchange rates. Had foreign exchange rates this year been the same as
the third quarter and first nine months of fiscal 1998, Alberto-Culver
International sales would have increased 6.5% for the third quarter and 5.5% for
the first nine months. The growth was principally due to acquisitions in Latin
America.
8
<PAGE>
The "Specialty distribution-Sally" business segment achieved sales increases of
$34.0 million or 13.6% for the third quarter and $90.0 million or 12.5% for the
first nine months of fiscal year 1999. The gains were attributable to higher
sales for established Sally Beauty Company outlets, the opening of new stores
during the year and the expansion of Sally's full service and foreign
operations. At June 30, 1999, Sally Beauty Company had 2,145 stores offering a
full range of professional beauty supplies.
Cost of products sold as a percentage of net sales for the third quarter was
49.5% as compared to 48.6% for the prior year and 49.2% for the first nine
months versus 49.0% for the first nine months of 1998. The third quarter
increase was primarily due to the negative impact of foreign exchange rates,
higher raw material costs and the growth of Sally Beauty Company, which has a
higher cost of goods sold as a percentage of sales.
Compared to the prior year, advertising, promotion, selling and administrative
expenses rose $11.1 million or 5.4% for the third quarter and $40.0 million or
6.7% for the first nine months. The increases resulted primarily from higher
selling and administrative costs associated with the increase in the number of
Sally Beauty Company stores.
Advertising, promotion and market research expenditures totaled $64.1 million
for the third quarter of 1999, a decrease of 14.2% versus the prior year. For
the first nine months of fiscal year 1999, advertising, promotion and market
research expenditures were $194.8 million, a decrease of 2.6% over last year.
The decreases were primarily due to lower advertising and promotion for North
America due to lower spending on the Cortexx and VO Fine hair care lines which
were new products introduced in fiscal years 1997 and 1998, respectively.
Net interest expense increased $921,000 for the third quarter and $2.1 million
for the first nine months compared to the same periods of the prior year. The
increases were primarily attributable to the $120 million of 6.375% debentures
issued in June, 1998, partially offset by the elimination of interest expense on
the $100 million of 5.5% convertible subordinated debentures which were
converted into Class A common shares in July, 1998. Interest expense was also
higher due to borrowings under the company's revolving credit facility during
fiscal year 1999, primarily to fund acquisitions.
The provision for income taxes as a percentage of earnings before income taxes
was 33.25% for the third quarter and 35.50% for the first nine months of fiscal
year 1999 and 37.25% for the same periods in the prior year. The lower tax rates
in 1999 were primarily due to an adjustment made in the third quarter to lower
the year-to-date tax rate to 35.50%, mainly due to the favorable closing of
certain tax years.
FINANCIAL CONDITION
- -------------------
June 30, 1999 versus September 30, 1998
- ---------------------------------------
The ratio of current assets to current liabilities was 1.88 to 1.00 at June 30,
1999 and 1.89 to 1.00 at September 30, 1998. Working capital of $286.9 million
was $9.0 million higher than the September 30, 1998 balance of $277.9 million.
Total borrowings increased $47.2 million during the first nine months of fiscal
year 1999 to $222.2 million. The borrowings were principally made under the
company's revolving credit facility primarily to fund the acquisitions of La
Farmaco, an Argentina-based manufacturer and marketer of branded personal care
products, and two full-service distributers by Sally Beauty. At June 30, 1999,
the company had $154 million available under its revolving credit facility.
YEAR 2000 READINESS DISCLOSURES
- -------------------------------
Many computer systems use only two digits to represent the year and they may be
unable to accurately process information that contains dates before, during or
after the year 2000. As a result, organizations that depend on computers are at
risk for possible date-based computation errors which could result in erroneous
information or system failures that may disrupt their business operations. This
is commonly known as the Year 2000 ("Y2K") problem.
Most of the software purchased by the company within the last five years is
either Y2K compliant or the vendor has certified that Y2K compliant upgrades
will be available sufficiently in advance of December 31, 1999. In late 1995,
the company inventoried and assessed key financial and operational information
systems and prepared a prioritized plan for Y2K systems modifications or
replacements. The plan is revised periodically and progress against the plan is
monitored and periodically reported to management and the Audit Committee of the
Board of Directors. Implementation of required changes to the company's critical
systems is currently scheduled to be completed by November, 1999. Certification
of critical systems, which includes testing by technicians and key users, is
expected to be completed before December 31, 1999. The company's
9
<PAGE>
assessment of non-information technology systems (e.g., manufacturing equipment)
is expected to be completed by August, 1999, and an action plan will be prepared
based on the results.
The company is developing a contingency plan to be followed in the event of a
Y2K-related failure of a business-critical system. This plan should be complete
by September, 1999 and is expected to include, for example, identification of
alternate suppliers and possible increases in inventory levels, including raw
materials and packaging. Once developed, contingency plans and related cost
estimates will be refined as additional information becomes available.
Incremental costs, which include contractor costs to modify existing systems,
and costs of internal resources dedicated to achieving Y2K compliance are
charged to expense as incurred. The incremental costs are currently expected to
total approximately $2.7 million, of which approximately 72% has been spent to
date. Incremental costs are presently being funded through operating cash flow.
The amounts do not include any costs associated with the implementation of
contingency plans, which are in the process of being developed, as discussed
above. The costs associated with replacement of computerized systems, hardware
and related equipment (currently estimated to be approximately $8.8 million),
substantially all of which will be capitalized, are not included in the above
estimates.
The company's Y2K readiness program is an evolving and ongoing process.
Accordingly, current conclusions as to what constitutes areas of the company's
greatest Y2K exposure and the estimates of costs and completion dates, as
described above, are subject to change. The Y2K problem has many aspects and
potential consequences, some of which are not reasonably foreseeable, and there
can be no assurance that unforeseen consequences will not arise.
FORWARD - LOOKING STATEMENTS
- ----------------------------
This Quarterly Report on Form 10-Q and the documents incorporated by reference
herein, if any, may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Security Exchange Act of 1934, as amended. Such statements are based on
management's current expectations and assessments of risks and uncertainties and
reflect various assumptions concerning anticipated results, which may or may not
prove to be correct. Some of the factors that could cause actual results to
differ materially from estimates or projections contained in such forward-
looking statements include the pattern of brand sales, including variations in
sales volume within periods; competition within the relevant product markets,
including pricing, promotional activities, continuing customer acceptance of
existing products and the ability to develop and successfully introduce new
products; risks inherent in acquisitions and strategic alliances; changes in
costs including changes in labor costs, raw material prices or promotional
expenses; the costs and effects of unanticipated legal or administrative
proceedings; variations in political, economic or other factors such as currency
exchange rates, inflation rates, recessionary or expansive trends, tax changes,
legal and regulatory changes or other external factors over which the company
has no control. The company disclaims any obligation to update any forward-
looking statement in this Quarterly Report on Form 10-Q or any document
incorporated herein by reference.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- ------------------------------------------------------------------
There have been no material changes in the company's market risk during the nine
months ended June 30, 1999.
10
<PAGE>
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- ----------------------------------------
(a) Exhibits:
10(j) Form of Amendment to Severance Agreement between Alberto-Culver
Company and certain executive officers.*
27 Financial Data Schedule
* This exhibit is a management contract or compensatory plan or
arrangement of the registrant.
(b) Reports on Form 8-K:
No report on Form 8-K was filed by the registrant during the quarter ended
June 30, 1999.
11
<PAGE>
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ALBERTO-CULVER COMPANY
(Registrant)
By: /s/ William J. Cernugel
----------------------------------------
William J. Cernugel
Senior Vice President, Finance
(Principal Financial Officer)
August 11, 1999
12
<PAGE>
EXHIBIT 10(j)
AMENDMENT TO
SEVERANCE AGREEMENT
-------------------
THIS AGREEMENT, dated as of ______________________________, to the Severance
Agreement, dated as of ______________________________, 19______ (the "Severance
Agreement"), is entered into between Alberto-Culver Company, a Delaware
corporation (the "Company"), and ______________________________ (the
"Executive").
WHEREAS, the Company and the Executive desire to amend the Severance Agreement
as set forth herein.
NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein, the Company and the Executive hereby agree that the Severance
Agreement shall be amended as set forth below:
1. Section 3(a)(2) of the Severance Agreement is hereby amended to read in its
entirety as follows:
"(2) a lump-sum cash amount which, when added to any other payments that
must be taken into account for purposes of any computation relating to the
Executive under Section 280G(b)(2)(A)(ii) of the Internal Revenue Code of 1986,
as amended (the "Code"), equals, in the aggregate, ____ times the Executive's
"base amount," as such term is defined in Section 280G(b)(3) of the Code;
provided, that any amount paid pursuant to this Section 3(a)(2) shall be paid in
lieu of any other amount of severance relating to salary or bonus continuation
to be received by the Executive upon termination of employment of the Executive
under any severance plan, policy or arrangement of the Company.
2. Section 4 of the Severance Agreement is hereby amended by deleting the
words "Internal Revenue Code of 1986, as amended (the "Code")" and substituting
therefor the word "Code".
IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by a
duly authorized officer of the Company and the Executive has executed this
Amendment as of the day and year first above written.
ALBERTO-CULVER COMPANY
By
---------------------------------
EXECUTIVE:
------------------------------------
Subscribed and Sworn to before me
this day of
------ ------------------------
- -------------------------------------------
Notary Public
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from
the consolidated balance sheet as of June 30, 1999 and the consolidated
statement of earnings for the nine months ended June 30, 1999 and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> JUN-30-1999
<CASH> 51,121
<SECURITIES> 1,271
<RECEIVABLES> 139,416
<ALLOWANCES> 8,936
<INVENTORY> 408,841
<CURRENT-ASSETS> 611,281
<PP&E> 424,941
<DEPRECIATION> 191,753
<TOTAL-ASSETS> 1,135,602
<CURRENT-LIABILITIES> 324,417
<BONDS> 218,497
0
0
<COMMON> 15,031
<OTHER-SE> 529,078
<TOTAL-LIABILITY-AND-EQUITY> 1,135,602
<SALES> 1,452,379
<TOTAL-REVENUES> 1,452,379
<CGS> 714,344
<TOTAL-COSTS> 714,344
<OTHER-EXPENSES> 634,379
<LOSS-PROVISION> 2,716
<INTEREST-EXPENSE> 10,641
<INCOME-PRETAX> 95,103
<INCOME-TAX> 33,762
<INCOME-CONTINUING> 61,341
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 61,341
<EPS-BASIC> 1.08
<EPS-DILUTED> 1.07
</TABLE>
