NEW YORK — Noncash charges stemming from a move to one class of common stock continued to hamper earnings for the Alberto-Culver Co. during the second quarter, taking the sheen out of double-digit sales growth for the quarter and six month period.
For the three months ended March 31, earnings increased 7.2 percent to $40.6 million, or 44 cents a diluted share, below Wall Street’s consensus estimate of 49 cents a share. Comparatively, the company reported earnings of $37.9 million, or 42 cents a share, in the year-ago quarter.
Sales for the quarter improved 15.9 percent to $819.3 million from $707 million.
Hindering results was an $8.1 million non-cash charge related to the company’s decision to convert to one class of common stock, a move initiated in November 2003.
The conversion weighed more heavily on results for the first half of the year, as earnings plunged 42.7 percent to $42.3 million, or 46 cents a diluted share, during the first six months. Comparatively, the company reported earnings of $73.9 million, or 82 cents a share, in the corresponding period a year ago.
Charges related to the conversion totaled $71.3 million for the period. Going forward, the company will face a $15.5 million charge related to the conversion during the second half of the year.
However, sales rose 12.8 percent to $1.58 billion for the half from $1.40 billion.
— Ross Tucker