The Company ended the quarter with 2,465 Sally stores in the U.S., Canada, Mexico, Puerto Rico, the U.K., Ireland, Germany and Japan and our Beauty Systems Group had 825 stores and 1,181 professional distributor sales consultants at March 31, 2006.
Mr. Bernick added, "In reflecting on the April 5th Alberto-Culver Board of Directors' announcement withdrawing its recommendation to approve the proposed Sally/BSG spin/merge with Regis Corporation, I believe terminating the merger agreement due to the circumstances which occurred was the right course of action for Alberto-Culver and its shareholders. We will record in the fiscal third quarter ending June 30 the previously disclosed $50 million break up fee that will result in an after-tax charge of $31.3 million or 34 cents per share. Looking forward, it is important to note that each of our businesses remains strong. We are on track for fiscal 2006 to be our fifteenth consecutive record sales and record earnings year. Furthermore, Alberto- Culver will continue to build its businesses and explore acquisitions and other strategic alternatives as we remain focused and committed to operating the Company in the interest of building shareholder value over the long-term."
Alberto-Culver manufactures, distributes and markets leading personal care products including Alberto VO5, St. Ives, TRESemme and Nexxus in the United States and internationally. Several of its household/grocery products such as Mrs. Dash and Static Guard are niche category leaders in the U.S. Its Pro-Line International unit is the second largest producer in the world of products for the ethnic hair care market with leading brands including Motions and Soft & Beautiful.
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