Alberto Culver Reports Third Quarter Growth in Organic Revenue and Diluted Earnings per Share From Continuing Operations, Exclud

MELROSE PARK, Ill., July 27  /PRNewswire-FirstCall/ -- Alberto Culver Company (NYSE:ACV), a leading manufacturer and marketer of personal care products including TRESemme, Alberto VO5, Nexxus, St. Ives and Noxzema today announced growth in organic revenue and diluted earnings per share from continuing operations, excluding restructuring and discrete items.

  Third Quarter:
  --  Net sales for the third quarter decreased 3.6% to $351.6 million from
      $364.9 million in the prior year quarter.  Reported net sales were
      reduced 7.9% by foreign currency fluctuations.  Excluding the effect
      of foreign currency fluctuations and the acquisition of Noxzema,
      organic sales increased 2.0% in the third quarter.
  --  Pre-tax earnings from continuing operations, which includes
      restructuring and discrete expenses of $7.7 million in the current
      quarter and restructuring expense of $2.7 million and discrete income
      of $3.9 million in the prior year quarter, decreased 11.1% to $37.9
      million from $42.7 million in the prior year quarter.  Excluding
      restructuring and discrete items, pre-tax earnings from continuing
      operations increased 9.9% to $45.6 million compared to $41.5 million
      in the prior year quarter.
  --  Diluted earnings per share from continuing operations were 28 cents in
      the current quarter compared to 29 cents in the prior year quarter. 
      Excluding restructuring and discrete items (see detail in bullets
      below), diluted earnings per share from continuing operations
      increased 11.1% to 30 cents compared to 27 cents in the prior year. 
      The reported diluted earnings per share from continuing operations
      includes the following items:
      --  The current and prior year quarters include approximately 3 cents
          and 2 cents per share, respectively, of restructuring expense.
      --  The current year quarter includes approximately 2 cents per share
          of expenses related to a dispute with a supplier while the prior
          year quarter includes approximately 3 cents per share of benefit
          from the reversal of a contingent liability.

      --  The current and prior year quarters include approximately 3 cents
          and 1 cent per share, respectively, of discrete tax benefits,
          primarily due to changes in certain estimates related to the
          previous years' tax returns and the favorable resolution of
          certain open tax items.


  Nine Months:
  --  Net sales for the nine month period decreased 0.8% to $1.05 billion
      from $1.06 billion in the prior year.  Reported net sales were reduced
      9.1% by foreign currency fluctuations.  Excluding the effect of
      foreign currency fluctuations and the acquisition of Noxzema, organic
      sales increased 5.8% in the nine month period.
  --  Pre-tax earnings from continuing operations, which includes
      restructuring and discrete items of $8.0 million in the current year
      and $5.7 million in the prior year, increased 12.6% to $141.1 million
      from $125.4 million in the prior year.  Excluding restructuring and
      discrete items, pre-tax earnings from continuing operations increased
      13.8% to $149.1 million compared to $131.1 million in the prior year.
  --  Diluted earnings per share from continuing operations were 87 cents
      compared to 85 cents in the prior year.  Excluding restructuring and
      discrete items (see detail in bullets below), diluted earnings per
      share from continuing operations increased 13.8% to 99 cents compared
      to 87 cents in the prior year.  The reported diluted earnings per
      share from continuing operations includes the following  items:
      --  The current year and prior year include approximately 3 cents and
          6 cents per share, respectively, of restructuring expense.
      --  The current year includes approximately 2 cents per share of
          expenses related to a dispute with a supplier while the prior year
          includes approximately 3 cents per share of benefit from the
          reversal of a contingent liability.

      --  The current year includes approximately 7 cents per share of
          discrete tax expense, primarily related to taxes on a local
          currency gain on U.S. dollar denominated cash held in Sweden
          following the Cederroth sale.  The prior year includes
          approximately 1 cent per share of discrete tax benefit.




Commenting on the results, Alberto Culver President and Chief Executive Officer V. James Marino said, "Despite a prolonged softness in hair care, we continue to outpace the category and capture record shares for Alberto Culver. Our business and brands remain healthy as evidenced by our hair care consumption trends.  We generated strong cash flow during the quarter and are very pleased with our results and the momentum that many of our brands have in the marketplace."

The third quarter organic sales growth rate of 2.0% was driven mainly from U.S. and international growth in TRESemme and international growth in St. Ives and Alberto VO5.  This growth was significantly offset by lower sales in Spain due to the prior year introduction of TRESemme, and lower multicultural and custom label manufacturing sales, whose specialty retail and direct selling customer base has been significantly impacted from the soft economy.  These items lowered consolidated organic sales growth by approximately 300 basis points.

The Company's gross profit margin was 50.8% in the third quarter compared to 53.0% in the prior year quarter, mainly due to higher raw material costs.  Mr. Marino commented, "As we discussed after the March quarter, oil derived raw material costs have begun decreasing and as a result our gross margin improved versus the second quarter.  While other non-oil based costs including tin plate and certain chemicals remain elevated, we expect cost trends to continue to become more favorable into the September quarter and believe that we are well positioned to continue to improve gross margin."  For the first nine months of fiscal year 2009, gross profit margin was 50.9% compared to 52.7% in the prior year period.

Advertising and other marketing investments were similar to second quarter levels, but decreased 20.3% to $56.3 million compared to the prior year quarter.  The decrease resulted from foreign currency fluctuations (which accounted for 6.5% of the decrease), lower St. Ives advertising in the U.S. due to significant prior year investments to support the launch of Elements, lower media rates in many of our markets and a mix shift to trade promotion.  Mr. Marino added, "We significantly increased our advertising investments in the U.S. behind TRESemme and Nexxus to continue to support our brand positioning and to drive brand equity.  We also invested behind our Nexxus introduction into Canada.  Similar to the prior quarter, we shifted a portion of our marketing spending on other brands to trade promotion to better align our mix with consumer behavior in this soft economy."  For the first nine months of fiscal year 2009, advertising and other marketing investments decreased 16.1% (7.4% due to foreign currency fluctuations) to $163.3 million from $194.6 million in the prior year.

Selling and administrative expenses as a percentage of net sales increased 100 basis points to 22.6% compared to 21.6% in the prior year quarter.  The current year quarter includes approximately $2.7 million of discrete expenses related to a supplier dispute while the prior year quarter includes approximately $3.9 million of discrete income related to the reversal of a contingent liability.  Together these items accounted for a 170 basis point increase in selling and administrative expenses as a percentage of net sales.  In the current quarter, selling and administrative expenses were helped by cost savings initiatives and lower selling and freight expenses, partially offset by higher depreciation expense related to the ongoing SAP implementation and increased stock option expense.  For the nine month period, selling and administrative expenses as a percentage of net sales decreased 60 basis points to 21.6% compared to 22.2% in the prior year.  The discrete items from above accounted for a 70 basis point increase in selling and administrative expenses as a percentage of net sales in the first nine months of fiscal year 2009.

Carol Lavin Bernick, Executive Chairman of the Company, said, "These results are further evidence of our exceptional people and our terrific brands.  With so much negative economic news being reported, we continue to find ways to build share and grow our business.  As an organization we believe that we are well positioned to continue to find ways to grow, to overcome challenges and to build value for our shareholders."

Mrs. Bernick also announced the Company's board of directors approved the regular 7.5 cents quarterly cash dividend.  The dividend will be paid on August 20, 2009 to shareholders of record on August 6, 2009.

On July 31, 2008, the Company sold its Cederroth International subsidiary to a company owned by two funds controlled by CapMan, a Nordic based private equity firm, for 159.5 million Euros.  As a result of the transaction, the results of operations of Cederroth are reported as discontinued operations.

On November 16, 2006, the Company closed a transaction that separated its consumer products business from its beauty supply distribution business and resulted in the formation of two separate and independent publicly-traded companies:  new Alberto Culver and Sally Beauty Holdings, Inc.  As a result of the transaction, the results of operations of the beauty supply distribution business are reported as discontinued operations.

The Company reported earnings from discontinued operations of $658,000 (net of tax) in the third quarter of fiscal 2009 compared to a loss of $8.6 million (net of tax) during the third quarter of fiscal 2008.  The diluted earnings per share from discontinued operations were zero this quarter versus an 8 cent loss per share in the prior year quarter.  Including continuing and discontinued operations, the Company reported net earnings of $28.0 million or 28 cents per share on a fully diluted basis this quarter, compared to net earnings of $21.1 million or 21 cents per fully diluted share in the third quarter of fiscal 2008.  For the first nine months of fiscal year 2009, earnings from discontinued operations were $1.3 million (net of tax) compared to a loss of $4.8 million in the prior year.  The diluted earnings per share from discontinued operations in the first nine months of fiscal year 2009 were two cents compared to a loss of five cents in the prior year.  Including continuing and discontinued operations, the Company reported net earnings of $87.7 million or 89 cents per share on a fully diluted basis during the first nine months of fiscal year 2009 compared to net earnings of $81.1 million or 80 cents per fully diluted share during the first nine months of the prior year.

Due to the disclosure of organic sales growth, and financial results excluding restructuring and discrete  items, this press release contains certain non-GAAP financial measures as defined by Regulation G of the Securities and Exchange Commission.  A description of the Company's restructuring activities and discrete items, as well as a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures, is included as a schedule to this release and can also be found on the Company's web site at http://www.alberto.com/.

The Company will discuss its third quarter and nine month fiscal year 2009 results with investors in a call to be held later today (Monday, July 27) at 11 a.m. Eastern Time.  The dial-in numbers for the call are 866-742-2281 or 660-422-4763 and the conference ID is 18402521.  The numbers for a replay of the conference call are 800-642-1687 or 706-645-9291 and will be available through Thursday, August 27, 2009.  The conference ID is 18402521.  The call and a replay will also be available on the internet for 30 days at http://www.alberto.com/ in the Investing Section, and at http://www.earnings.com/.

Alberto Culver Company manufactures, distributes and markets leading beauty care and other personal care products including TRESemme, Alberto VO5, Nexxus, St. Ives and Noxzema in the United States and internationally. It is also the second largest producer in the U.S. of products for the ethnic hair care market with leading brands including Motions and Soft & Beautiful.  Several of its household/grocery products such as Mrs. Dash and Static Guard are niche category leaders in the U.S.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements are based on management's current expectations and assessments of risks and uncertainties and reflect various assumptions concerning anticipated results, which may or may not prove to be correct.  Some of the factors that could cause actual results to differ materially from estimates or projections contained in such forward-looking statements include: the pattern of brand sales; competition within the relevant product markets; loss of one or more key customers; unavailability of raw materials or finished products; loss of one or more key employees; inability of efficiency initiatives to improve the company's margins; inability of the company to protect its intellectual property; risks inherent in expanding in existing geographic locations and entering new geographic locations; loss of one or more key suppliers or copackers; risks inherent in acquisitions, divestitures and strategic alliances; adverse changes in currency exchange rates; the effects of a prolonged United States or global economic downturn or recession; increases in costs of raw materials and inflation rates; events that negatively affect the intended tax free nature of the distribution of shares of Alberto Culver Company in connection with the separation (Separation) of the consumer products business from the beauty supply distribution business on November 16, 2006; changes in costs; the unanticipated costs and effects of legal or administrative proceedings; the disruption of normal business activities due to the company's implementation of a new worldwide ERP system; the risk that the expected cost savings related to the reorganizations and restructurings may not be realized; health epidemics; adverse weather conditions; loss of distributorship rights; sales by unauthorized distributors in the company's exclusive markets; and variations in political, economic or other factors such as interest rates, availability of credit, tax changes, legal and regulatory changes or other external factors over which the company has no control.  These forward-looking statements speak only as of the date of this press release, and there is no undertaking to update or revise them as more information becomes available.  Additional factors that could cause Alberto Culver's results to differ materially from those described in the forward-looking statements can be found in the Company's 2008 Annual Report on Form 10-K filed on November 25, 2008 with the SEC and available at the SEC's internet site (http://www.sec.gov/).

  Consolidated Condensed Statements of Earnings (Unaudited)

  (in thousands, except per share data)

  Three Months Ended June 30, 2009 and 2008      2009           2008
                                                 ----           ----

  Net sales                                    $351,623       364,913
  Cost of products sold                         173,143       171,651
                                                -------       -------
    Gross profit                                178,480       193,262
  Advertising, marketing, selling and
   administrative                               135,887       149,331
  Restructuring and other (1)                     5,041         2,726
                                                  -----         -----
    Operating earnings                           37,552        41,205
  Interest income, net                             (377)       (1,460)
                                                  -----       -------
  Earnings from continuing
   operations before
   income taxes                                  37,929        42,665
  Provision for income taxes (2)                 10,608        12,980
                                                 ------        ------
  Earnings from continuing operations            27,321        29,685
  Discontinued operations,
   net of income taxes (3)                          658        (8,552)
  Net earnings                                      ---       -------
                                                $27,979        21,133
                                                =======        ======

  Basic earnings (loss) per share:
    Continuing operations                          $.28           .30
    Discontinued operations                         .01          (.09)
                                                    ---         -----
    Total                                          $.29           .21
                                                   ====           ===
  Diluted earnings (loss) per share:
    Continuing operations (1) (2)                  $.28           .29
    Discontinued operations                          --          (.08)
                                                    ---          ----
    Total                                          $.28           .21
                                                   ====           ===
  Weighted average shares outstanding:
    Basic                                        97,668        98,719
    Diluted                                      99,047       100,717



  (1) Restructuring and other primarily includes severance and other costs
      incurred related to the Company's plan to downsize its manufacturing
      facility and consolidate its warehouse and office facilities in
      Chatsworth, California which was announced in June 2009, the Company's
      plan to close its manufacturing facility, reduce its headcount and
      relocate to a smaller commercial office in Puerto Rico which was
      announced in May 2008 and the Company's plan to close its
      manufacturing facility in Toronto, Canada which was announced in
      October 2007. During the third quarter of fiscal year 2009,
      restructuring and other decreased earnings from continuing operations
      (net of tax) by $3,170 and diluted earnings per share from continuing
      operations by 3 cents. During the third quarter of fiscal year 2008,
      restructuring and other reduced earnings from continuing operations
      (net of tax) by $1,499 and diluted earnings per share from continuing
      operations by 2 cents.
  (2) The provision for income taxes in the third quarter of fiscal year
      2009 includes $2,141 of discrete tax benefit, which increased diluted
      earnings per share from continuing operations by 3 cents. The
      provision for income taxes in the third quarter of fiscal year 2008
      includes $1,404 of discrete tax benefit, which increased diluted
      earnings per share from continuing operations by 1 cent.
  (3) Discontinued operations in both periods includes activity related to
      the sale of Cederroth.  The third quarter of fiscal year 2008 also
      includes the earnings of the Cederroth business, as well as favorable
      adjustments to self-insurance reserves for pre-separation Sally claims
      retained by Alberto Culver.



  Consolidated Condensed Statements of Earnings (Unaudited)

  (in thousands, except per share data)

  Nine Months Ended June 30, 2009 and 2008           2009         2008
                                                     ----         ----
  Net sales                                      $1,048,789    1,057,469
  Cost of products sold                             514,933      499,680
                                                    -------      -------
    Gross profit                                    533,856      557,789
  Advertising, marketing, selling and
   administrative                                   389,728      429,305
  Restructuring and other (1)                         5,312        9,585
                                                      -----        -----
    Operating earnings                              138,816      118,899
  Interest income, net                               (2,328)      (6,476)
                                                    -------      -------
  Earnings from continuing operations before
   income taxes                                     141,144      125,375
  Provision for income taxes (2)                     54,696       39,511
                                                     ------       ------
  Earnings from continuing operations                86,448       85,864
  Discontinued operations, net of income taxes (3)    1,263       (4,797)
  Net earnings                                        -----      -------
                                                    $87,711       81,067
                                                    =======       ======

  Basic earnings (loss) per share:
    Continuing operations                              $.89          .87
    Discontinued operations                             .01         (.05)
                                                        ---        -----
    Total                                              $.90          .82
                                                       ====          ===
  Diluted earnings (loss) per share:
    Continuing operations (1) (2)
    Discontinued operations                            $.87          .85
    Total                                               .02         (.05)
                                                        ---        -----
  Weighted average shares outstanding:                 $.89          .80
                                                       ====          ===

    Basic                                            97,611       98,807
    Diluted                                          99,004      101,127

  (1) Restructuring and other includes severance and other costs incurred
      related to the Company's plan to downsize its manufacturing facility
      and consolidate its warehouse and office facilities in Chatsworth,
      California which was announced in June 2009, the Company's plan to
      close its manufacturing facility, reduce its headcount and relocate to
      a smaller commercial office in Puerto Rico which was announced in May
      2008 and the Company's plan to close its manufacturing facility in
      Toronto, Canada which was announced in October 2007. In addition,
      restructuring and other includes severance and other costs incurred
      related to the Company's reorganization plan announced following the
      separation of the consumer products business from the beauty supply
      distribution business. During the first nine months of fiscal year
      2009, restructuring and other reduced earnings from continuing
      operations (net of tax) by $3,291 and diluted earnings per share from
      continuing operations by 3 cents. During the first nine months of
      fiscal year 2008, restructuring and other reduced earnings from
      continuing operations (net of tax) by $6,096 and diluted earnings per
      share from continuing operations by 6 cents.
  (2) The provision for income taxes in the first nine months of fiscal year
      2009 includes $6,525 of discrete tax expense, primarily related to
      taxes on a local currency gain on U.S. dollar denominated cash held in
      Sweden following the Cederroth sale, which reduced diluted earnings
      per share from continuing operations by 7 cents. The provision for
      income taxes in the first nine months of fiscal year 2008 includes
      $1,461 of discrete tax benefit, which increased diluted earnings per
      share from continuing operations by 1 cent.
  (3) Discontinued operations in both periods includes activity related to
      the sale of Cederroth, as well as favorable adjustments to self-
      insurance reserves for pre-separation Sally claims retained by Alberto
      Culver.  The first nine months of fiscal year 2008 also includes the
      earnings of the Cederroth business.



  Consolidated Condensed Balance Sheets (Unaudited)

  (in thousands)                              June 30,      September 30,
  Assets                                       2009             2008
                                               ----             ----
  Cash, cash equivalents and short-term
   investments                                $404,514        453,730
  Accounts receivable, net                     217,688        244,316
  Inventories                                  119,073        149,512
  Other current assets                          35,797         32,822
                                                ------         ------
    Total current assets                       777,072        880,380
  Property, plant and equipment, net           245,970        221,667
  Goodwill and trade names                     317,611        234,015
  Long-term investments                         57,820         57,443
  Other assets                                  71,562         70,685
                                                ------         ------
    Total assets                            $1,470,035      1,464,190
                                            ==========      =========



  Liabilities and Stockholders' Equity
  Current portion of long-term debt               $176            184
  Accounts payable, accrued
   expenses and income taxes                   222,476        281,816
                                               -------        -------
    Total current liabilities                  222,652        282,000
  Long-term debt                                   488            683
  Other liabilities and income taxes            68,301         65,176
    Total liabilities                           ------         ------
  Stock options subject to redemption          291,441        347,859
                                                 5,286          5,725
  Stockholders' equity                       1,173,308      1,110,606
                                             ---------      ---------
    Total liabilities and
     stockholders' equity                   $1,470,035      1,464,190
                                            ==========      =========



                            Segment Data (Unaudited)
  (in thousands)

  Three Months Ended June 30, 2009 and 2008       2009         2008
                                                  ----         ----
  Net Sales:
  United States                                 $220,625      213,131
  International (1)                              130,998      151,782
                                                 -------      -------
                                                $351,623      364,913
                                                ========      =======

  Earnings From Continuing
   Operations Before Income Taxes:
  United States                                  $34,166       32,886
  International                                    9,902       11,877
                                                   -----       ------
  Segment operating profit                        44,068       44,763
  Stock option expense                            (1,475)        (832)
  Restructuring and other (2)                     (5,041)      (2,726)
  Interest income, net                               377        1,460
                                                     ---        -----
                                                 $37,929       42,665
                                                 =======       ======



  Nine Months Ended June 30, 2009 and 2008        2009          2008
                                                  ----          ----
  Net Sales:
  United States                                 $674,733      639,212
  International (1)                              374,056      418,257
                                                 -------      -------
                                              $1,048,789    1,057,469
                                              ==========    =========

  Earnings From Continuing Operations
   Before Income Taxes:
  United States                                 $114,195       89,809
  International                                   35,949       42,478
                                                  ------       ------
  Segment operating profit                       150,144      132,287
  Stock option expense                            (6,016)      (3,803)
  Restructuring and other (2)                     (5,312)      (9,585)
  Interest income, net                             2,328        6,476
                                                   -----        -----
                                                $141,144      125,375
                                                ========      =======

  (1)  International sales were negatively impacted by $29.0 million and
       $96.6 million from foreign currency fluctuations during the third
       quarter and first nine months of fiscal 2009, respectively.
  (2)  Restructuring and other includes severance and other costs incurred
       related to the Company's plan to downsize its manufacturing facility
       and consolidate its warehouse and office facilities in Chatsworth,
       California which was announced in June 2009, the Company's plan to
       close its manufacturing facility, reduce its headcount and relocate
       to a smaller commercial office in Puerto Rico which was announced in
       May 2008 and the Company's plan to close its manufacturing facility
       in Toronto, Canada which was announced in October 2007. In addition,
       restructuring and other includes severance and other costs incurred
       related to the Company's reorganization plan announced following the
       separation of the consumer products business from the beauty supply
       distribution business.


  Schedule - Reconciliation of Non-GAAP Financial Measures



The Company's press release announcing results of operations for the three and nine months ended June 30, 2009 includes references to certain of the following "non-GAAP financial measures" as defined by Regulation G of the Securities and Exchange Commission:

  --  Pre-tax earnings from continuing operations excluding restructuring
      and discrete items
  --  Earnings from continuing operations excluding restructuring and
      discrete items
  --  Diluted earnings per share from continuing operations excluding
      restructuring and discrete items

  --  Organic sales growth




On December 1, 2006, the Company committed to a plan to terminate employees as part of a reorganization following the completion of the Separation. All costs incurred related to this plan and the Company's other restructuring plans described below are classified as "restructuring and other" on the statements of earnings. During fiscal year 2008, the Company recorded restructuring costs of $2.7 million ($2.4 million in the first nine months and $99,000 in the third quarter). During the first nine months of fiscal year 2009, the Company recorded a restructuring benefit related to this plan of $7,000 ($116,000 of charges in the third quarter).

On October 29, 2007, the Company committed to a plan primarily related to the closure of its manufacturing facility in Toronto, Canada. During fiscal year 2008, the Company recorded restructuring costs related to this plan of $4.0 million ($4.0 million in the first nine months and a $586,000 benefit in the third quarter). During the first nine months of fiscal year 2009, the Company recorded a restructuring benefit related to this plan of $16,000 ($32,000 in the third quarter).

On May 29, 2008, the Company announced that it expects to close its manufacturing facility, reduce its headcount and relocate to a smaller commercial office in Puerto Rico. During fiscal year 2008, the Company recorded restructuring costs related to this plan of $4.5 million ($3.2 million in the third quarter). During the first nine months of fiscal year 2009, the Company recorded additional restructuring costs related to this plan of $425,000 ($47,000 in the third quarter), primarily related to preparing the manufacturing facility for sale and transferring equipment to the United States.

On June 17, 2009, the Company committed to a plan primarily related to the downsizing of its manufacturing facility and the consolidation of its warehouse and office facilities in Chatsworth, California.  During the third quarter of fiscal year 2009, the Company recorded restructuring costs related to this plan of $4.9 million, primarily related to fixed asset write-offs and charges ($2.6 million) and severance ($2.1 million).

In total, the Company recorded restructuring and other costs during the first nine months of fiscal year 2009 of $5.3 million ($3.3 million after taxes or 3 cents per diluted share from continuing operations) with $5.0 million in the third quarter ($3.2 million after taxes or 3 cents per diluted share from continuing operations).  In fiscal year 2008, the Company recorded total restructuring and other costs of $11.2 million ($7.2 million after taxes) with $9.6 million in the first nine months ($6.1 million after taxes or 6 cents per diluted share from continuing operations) and $2.7 million in the third quarter ($1.5 million after taxes or 2 cents per diluted share from continuing operations).

During the third quarter of fiscal year 2009, the Company incurred costs related to a dispute with a supplier of $2.7 million ($1.7 million after taxes or 2 cents per diluted share from continuing operations).

In the third quarter of fiscal year 2008, the Company benefited from the reversal of a $3.9 million contingent liability that was favorably settled ($2.6 million after taxes or 3 cents per diluted share from continuing operations).

The Company's provision for income taxes in the first nine months of fiscal year 2009 included net discrete tax expense of $6.5 million (7 cents per diluted share from continuing operations), primarily related to taxes on a local currency gain on U.S. dollar denominated cash held in Sweden following the Cederroth sale. The provision for income taxes in the third quarter of fiscal year 2009 included net discrete tax benefit of $2.1 million (3 cents per diluted share from continuing operations), primarily due to changes in certain estimates related to fiscal year 2008 tax returns and the favorable resolution of open tax items.  The Company's provision for income taxes in the first nine months of fiscal year 2008 included net discrete tax benefit of $1.5 million (1 cent per diluted share from continuing operations), with $1.4 million (1 cent per diluted share from continuing operations) in the third quarter.

Reconciliations of these non-GAAP financial measures to their most directly comparable financial measures under GAAP for the three and nine months ended June 30, 2009 and 2008 are as follows (in thousands, except per share data):

                                   Three Months Ended    Nine Months Ended
                                        June 30               June 30
                                    2009         2008      2009       2008
                                    ----         ----      ----       ----
  Pre-tax earnings from
   continuing operations,
   as reported                    $37,929       42,665   $141,144   125,375
  Restructuring and other           5,041        2,726      5,312     9,585
  Dispute with a supplier           2,655           --      2,655        --
  Reversal of contingent liability     --       (3,880)        --    (3,880)
  Pre-tax earnings from continuing
   operations, excluding
   restructuring and discrete
   items                          $45,625       41,511   $149,111   131,080

  Earnings from continuing
   operations (net of income
   taxes), as reported            $27,321       29,685    $86,448    85,864
  Restructuring and other, net
   of income taxes                  3,170        1,499      3,291     6,096
  Discrete tax items               (2,141)      (1,404)     6,525    (1,461)
  Dispute with a supplier, net
   of income taxes                  1,744           --      1,744        --
  Reversal of contingent
   liability, net of income taxes      --       (2,588)        --    (2,588)
  Earnings from continuing operations
   (net of income taxes),
   excluding restructuring and
   discrete items                 $30,094       27,192    $98,008    87,911

  Diluted earnings per share
   from continuing operations,
   as reported                       $.28          .29       $.87       .85
  Restructuring and other, net
   of income taxes                    .03          .02        .03       .06
  Discrete tax items                 (.03)        (.01)       .07      (.01)
  Dispute with a supplier,
   net of income taxes                .02           --        .02        --
  Reversal of contingent liability,
   net of income taxes                 --         (.03)        --      (.03)
  Diluted earnings per share
   from continuing operations,
   excluding restructuring
   and discrete items                $.30          .27       $.99       .87


                                   Three Months Ended     Nine Months Ended
                                       June 30                 June 30
                                    2009       2008        2009       2008
                                    ----       ----        ----       ----
  Net sales growth (decline),
   as reported                     (3.6)%     12.3%       (0.8)%      10.6%
  Effect of foreign currency
   fluctuations                     7.9       (1.0)        9.1        (1.9)
  Effect of acquisition            (2.3)        --        (2.5)         --
  Organic sales growth              2.0%      11.3%        5.8%        8.7%

  Management uses these non-GAAP financial measures to evaluate the
  performance of the Company and believes the presentation of these
  amounts provides the reader with information necessary to analyze the
  Company's normal operations for the periods compared.


  CONTACT:
  Doug Crany
  708-450-3117
  Alberto Culver


DATASOURCE: Alberto Culver



CONTACT:  Doug Crany, [phone], for Alberto Culver



Web Site:  http://www.alberto.com/ 

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