Exhibit 12.1
Sally Beauty Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands, except ratios)
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| Fiscal Year Ended September 30, |
| Six Months |
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| 2007 |
| 2008 |
| 2009 |
| 2010 |
| 2011 |
| 2012 |
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Income before provision for income taxes |
| $ | 82,613 |
| $ | 123,799 |
| $ | 164,814 |
| $ | 227,948 |
| $ | 335,939 |
| $ | 193,189 |
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Add: Total fixed charges (see details below) |
| 195,079 |
| 213,683 |
| 187,456 |
| 172,466 |
| 176,715 |
| 83,783 |
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Less: Capitalized interest |
| — |
| — |
| — |
| — |
| — |
| — |
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Total income before provision for income taxes, plus fixed charges, less capitalized interest |
| $ | 277,692 |
| $ | 337,482 |
| $ | 352,270 |
| $ | 400,414 |
| $ | 512,654 |
| $ | 276,972 |
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Fixed Charges: |
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Interest expense(a) |
| $ | 145,972 |
| $ | 159,116 |
| $ | 132,022 |
| $ | 112,982 |
| $ | 112,530 |
| $ | 51,758 |
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Capitalized interest |
| — |
| — |
| — |
| — |
| — |
| — |
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Estimate of interest included in rental expense(b) |
| 49,107 |
| 54,567 |
| 55,434 |
| 59,484 |
| 64,185 |
| 32,025 |
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Total fixed charges |
| $ | 195,079 |
| $ | 213,683 |
| $ | 187,456 |
| $ | 172,466 |
| $ | 176,715 |
| $ | 83,783 |
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Ratio of earnings to fixed charges |
| 1.42 | x | 1.58 | x | 1.88 | x | 2.32 | x | 2.90 | x | 3.31 | x | ||||||
(a) |
| Interest expense includes interest associated with debt, marked-to-market interest expense (income) from interest rate swaps not designated as hedges, and the amortization of debt-issuance costs. For the six months ended March 31, 2012, interest expense excludes a $34.6 million charge related to our December 2011 redemption of our senior notes due 2014 and senior subordinated notes due 2016. |
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(b) |
| Fixed charges include an estimate of interest included in rental payments — one third of rent expense under operating leases. |