Exhibit 12.1
Sally Beauty Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands, except ratios)
| Fiscal Year Ended September 30, | Six Months Ended March 31, | |||||||||||||||||||||||
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Income before provision for income taxes(a) | $ | 412,667 | $ | 390,679 | $ | 378,484 | $ | 389,504 | $ | 396,358 | $ | 184,802 | ||||||||||||
Add: Total fixed charges (see details below) | 176,431 | 188,960 | 191,234 | 185,789 | 185,562 | 89,991 | ||||||||||||||||||
Less: Capitalized interest | — | — | — | — | — | — | ||||||||||||||||||
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Total income before provision for income taxes, plus fixed charges, less capitalized interest | $ | 589,098 | $ | 579,639 | $ | 569,718 | $ | 575,293 | $ | 581,920 | $ | 274,793 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense(b) | $ | 107,695 | $ | 116,317 | $ | 116,842 | $ | 108,793 | $ | 104,918 | $ | 48,401 | ||||||||||||
Capitalized interest | — | — | — | — | — | — | ||||||||||||||||||
Estimate of interest included in rental expense(c) | 68,736 | 72,643 | 74,392 | 76,996 | 80,644 | 41,590 | ||||||||||||||||||
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Total fixed charges | $ | 176,431 | $ | 188,960 | $ | 191,234 | $ | 185,789 | $ | 185,562 | $ | 89,991 | ||||||||||||
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Ratio of earnings to fixed charges | 3.34x | 3.07x | 2.98x | 3.10x | 3.14x | 3.05x | ||||||||||||||||||
| (a) | For the fiscal years ended September 30, 2016 and 2017, income before provision for income taxes excludes $35.4 million and $28.0 million, respectively, in charges related to our redemption of certain senior notes. For the fiscal year ended September 30, 2017, income before provision for income taxes exclude restructuring charges of $22.7 million. For the six months ended March 31, 2018, income before provision for income taxes excludes restructuring charges of $12.0 million and a charge of $0.9 million related to debt modification. |
| (b) | Interest expense includes interest associated with debt and the amortization of debt-issuance costs, and is net of interest income. For the fiscal years ended September 30, 2016 and 2017, interest expense excludes $35.4 million and $28.0 million, respectively, in charges related to our redemption of certain senior notes. For the six months ended March 31, 2018, interest expense excludes a charge of $0.9 million related to debt modification. |
| (c) | Fixed charges include an estimate of interest included in rental payments—one third of rent expense under our operating leases. |