Herbalife Ltd. (NYSE:HLF) today reported first quarter net sales of
$964.2 million, a 21 percent increase driven by a 24 percent increase in
volume points compared to the prior year period. For the same period,
the company reported net income of $108.2 million, or $0.88 per diluted
share, reflecting an increase of 22 percent and 24 percent respectively
compared to the adjusted first quarter 2011 net income of $88.7 million
and $0.71 per diluted share.
"Our business momentum has continued into 2012, with strong sales
performance from each of our six regions," said Michael O. Johnson, the
company's chairman and CEO. "The financial strength of our business
model is once again reflected in our cash flow generation in the
For the quarter ended March 31, 2012, the company generated cash flow
from operations of $120.4 million, an increase of 11 percent compared to
the prior year period, paid dividends of $35.2 million, invested $24.9
million in capital expenditures and repurchased $50.0 million in common
shares outstanding under our share repurchase program.
First Quarter Regional Key Metrics2,3
Regional Volume Point and Average Active Sales Leader Metrics
Updated 2012 Guidance
Guidance for fully diluted 2012 EPS is based on the average daily
exchange rates of the first two weeks of April 2012.
Based on current business trends the company's second quarter fiscal
2012 and fiscal 2012 guidance is provided below.
June 30, 2012
December 31, 2012
Announces Quarterly Dividend
The company reported today that its board of directors has approved a
dividend of $0.30 per share to shareholders of record effective May 15,
2012, payable on May 30, 2012.
First Quarter Earnings Conference Call
Herbalife senior management will host an investor conference call to
discuss its recent financial results and provide an update on current
business trends on Tuesday, May 1, 2012 at 8 a.m. PST (11 a.m. EST).
The dial-in number for this conference call for domestic callers is
(877) 317-1296 and (706) 634-5671 for international callers (conference
ID 66116502). Live audio of the conference call will be simultaneously
webcast in the investor relations section of the company's website at http://ir.herbalife.com.
An audio replay will be available following the completion of the
conference call in MP3 format or by dialing (855) 859-2056 for
domestic callers or (404) 537-3406 for international callers (conference
ID 66116502). The webcast of the teleconference will be archived and
available on Herbalife's website.
About Herbalife Ltd.
Ltd. (NYSE:HLF) is a global nutrition company that sells
weight-management, nutrition, and personal care products intended to
support a healthy lifestyle. Herbalife products are sold in 81 countries
through a network of independent distributors. The company supports the Herbalife
Family Foundation and its Casa Herbalife program to help bring good
nutrition to children. Herbalife's website contains information about
Herbalife, including financial and other information for investors at http://ir.Herbalife.com.
The company encourages investors to visit its website from time to time,
as information is updated and new information is posted.
This document contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
are "forward-looking statements" for purposes of federal and
state securities laws, including any projections of earnings, revenue
or other financial items; any statements of the plans, strategies and
objectives of management for future operations; any statements
concerning proposed new services or developments; any statements
regarding future economic conditions or performance; any
statements of belief; and any statements of assumptions
underlying any of the foregoing. Forward-looking statements may include
the words "may," "will," "estimate," "intend," "continue," "believe,"
"expect" or "anticipate" and any other similar words.
Although we believe that the expectations reflected in any of our forward-looking
statements are reasonable, actual results could differ materially
from those projected or assumed in any of our forward-looking statements.
Our future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and to inherent
risks and uncertainties, such as those disclosed or incorporated
by reference in our filings with the Securities and Exchange
Commission. Important factors that could cause our actual
results, performance and achievements, or industry results to
differ materially from estimates or projections contained in our forward-looking
statements include, among others, the following:
• any collateral impact resulting from the ongoing worldwide
financial "crisis," including the availability of liquidity to us, our
customers and our suppliers or the willingness of our customers to
purchase products in a difficult economic environment;
• our relationship with, and our ability to influence the actions of,
• improper action by our employees or distributors in violation of
• adverse publicity associated with our products or network marketing
• changing consumer preferences and demands;
• our reliance upon, or the loss or departure of any member of, our
senior management team which could negatively impact our distributor
relations and operating results;
• the competitive nature of our business;
• regulatory matters governing our products, including potential
governmental or regulatory actions concerning the safety or efficacy of
our products and network marketing program, including the direct selling
market in which we operate;
• legal challenges to our network marketing program;
• risks associated with operating internationally and the effect of
economic factors, including foreign exchange, inflation, disruptions or
conflicts with our third party importers, pricing and currency
devaluation risks, especially in countries such as Venezuela;
• uncertainties relating to the application of transfer pricing, duties,
value added taxes, and other tax regulations, and changes thereto;
• uncertainties relating to interpretation and enforcement of
legislation in China governing direct selling;
• our inability to obtain the necessary licenses to expand our direct
selling business in China;
• adverse changes in the Chinese economy, Chinese legal system or
Chinese governmental policies;
• our dependence on increased penetration of existing markets;
• contractual limitations on our ability to expand our business;
• our reliance on our information technology infrastructure and outside
• the sufficiency of trademarks and other intellectual property rights;
• product concentration;
• changes in tax laws, treaties or regulations, or their interpretation;
• taxation relating to our distributors;
• product liability claims; and
• whether we will purchase any of our shares in the open markets or
We do not undertake any obligation to update or release any revisions
to any forward-looking statements or to report any events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law.
1 See Schedule A - "Reconciliation of Non-GAAP Financial
Measures" for more detail.
2 Supplemental tables that include additional business
metrics can be found at http://www.ir.herbalife.com.
3 Worldwide Average Active Sales Leaders may not equal the
sum of the Average Active Sales Leaders in each region due to the
calculation being an average of Sales Leaders active in a period, not a
summation, and the fact that some sales leaders are active in more than
one region but are counted only once in the worldwide amount.
RESULTS OF OPERATIONS:
SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited), (Dollars in Thousand, Except Per Share Data)
In addition to its reported results, the Company has included in the
tables below adjusted results that the Securities and Exchange
Commission defines as "non-GAAP financial measures." Management
believes that such non-GAAP financial measures, when read in conjunction
with the Company's reported results, can provide useful supplemental
information for investors in analyzing period to period comparisons of
the Company's results. However, non-GAAP financial measures should not
be considered substitute for, nor superior to, financial results and
measures determined or calculated in accordance with GAAP.
The following is a reconciliation of total long-term debt to net debt:
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