The separation of the company into a consumer products company, Alberto-Culver Company (NYSE: ACV), and a beauty supply distribution company, Sally Beauty Holdings Inc. (NYSE: SBH), is complete. Most of its restructuring costs are behind it. The company has closed excess production facilities, instituted a more efficient inventory management system, and introduced a more favorable product mix favoring higher-profit margin items. As a result, the revamped Alberto-Culver Company returned to profitability in 1Q2008.

Net sales increased 14% to $400 million. Earnings from continuing operations increased a whopping 60% to $48.3 million. 1Q2008 net earnings were $30.9 million, much better than 1Q2007 net loss of $5.9 million. Most importantly, there were actually EPS of $0.29, a far cry from zero EPS in 1Q2007. Given the good 1Q2008 results, Alberto-Culver upped its dividend payout 18% to $0.065 per share. The stock closed recently at $26.76, up $0.86 or 3.32%.

Patient value investors may want to take a look at Sally Beauty Holdings Inc., the spin off company. The stock has struggled recently. It currently trades at just over $8 per share but has a lot of room for growth potential.