Earnings from continuing operations (net of tax) were, according to a press release, break even after deducting $20.3 million (net of tax) for restructuring and other expenses. Diluted earnings per share from continuing operations were zero after deducting 21 cents for restructuring and other expenses. Excluding restructuring and other expenses, diluted earnings per share from continuing operations increased 31.3% to 21 cents versus 16 cents in the prior year.
The company expects that some of the cost saving benefits related to the restructuring charges will be seen in each of the remaining quarters of the year, which should partially offset the corporate and overhead costs that were either previously absorbed by Sally prior to the separation or were not previously allocated to Consumer Products or Sally. At the same time, the company expects its year-on-year comparisons for the second quarter will be distorted by last year’s very successful Nexxus brand launch into retail channels.
"The amount of work involved at all levels of the company in completing the Sally transaction and the wide variety of steps we have taken to reorganize our consumer products business could have been an enormous distraction in the quarter and one that could have negatively impacted our results," said Carol L. Bernick, executive chairman, Alberto-Culver. "It is a credit to our entire team that they were able to undertake all of this while still producing very strong results, and I am extremely proud of their efforts. This is both a challenging and exciting time in what is now a new chapter for Alberto-Culver, but also a time that offers tremendous opportunity. As we move forward, shareholders should expect to see the same energy and passion from our employees and board members that we have shown in the past as our commitment to creating shareholder value continues unabated."
"Alberto-Culver has, for many years, had a strong tradition of dividend payouts and dividend growth," said Bernick. "Going forward, we will continue to keep the interests of shareholders at the forefront of our thinking."