Full Press Release Details
AS PART OF HERBALIFE NUTRITION S SELF-TENDER OFFER, THE COMPANY UPDATES
GUIDANCE FOR THIRD QUARTER 2017 EARNINGS
LOS ANGELES, CA (October 2, 2017) Herbalife Ltd. (NYSE: HLF) ( Herbalife or Company ), today announced updated guidance for the
Company s third quarter 2017 financial results in order to provide shareholders with the most current information.
On August 21, 2017, the
Company announced it had commenced a modified Dutch auction self-tender offer to purchase for cash up to an aggregate of $600 million of shares of its common stock, at a per share price not less than $60.00 nor
greater than $68.00. Additionally, for each share tendered, shareholders will also receive a non-transferable contractual contingent value right ( CVR ) allowing participants in the tender offer
to receive a contingent cash payment should Herbalife be acquired in a going-private transaction within two years of the commencement of the tender offer.
The tender offer is currently scheduled to expire at 5:00 p.m. New York City time on Thursday, October 5, 2017. In order to assist shareholders in
determining whether to participate in the tender offer, and if so, how many shares they may wish to tender at prices between $60.00 and $68.00 per share, the Company is providing updated financial guidance in this release as well as updated risk
factors and other information in a Form 8-K filed today. This updated guidance is appropriate in light of the self-tender offer.
Updated Third Quarter 2017 Guidance
information, updated third quarter 2017 guidance is reflected in the following chart:
| Three Months Ended September 30, 2017 | ||||
| Low | High | |||
| Volume Point Growth vs 2016 | (6.0%) | (4.8%) | ||
| Net Sales Growth vs 2016 | (3.4%) | (1.9%) | ||
| Diluted EPS | $0.63 | $0.73 | ||
| Adjusted (a) Diluted EPS | $0.80 | $0.90 | ||
| Cap Ex ($ millions) | $18.0 | $28.0 | ||
| Effective Tax Rate | 22.5% | 24.5% | ||
| Adjusted Effective Tax Rate (a) | 20.0% | 22.0% | ||
| Currency Adjusted Net Sales Growth vs 2016 | (3.1%) | (1.6%) | ||
| Currency Adjusted Diluted EPS | $0.84 | $0.94 |
The following is a reconciliation of diluted earnings per share guidance, presented in accordance with U.S.
generally accepted accounting principles, to adjusted diluted earnings per share guidance for certain items.
| Three Months Ended September 30, 2017 | ||
| Diluted EPS Guidance | $0.63 - $0.73 | |
| Expenses incurred responding to attacks on the company s business model (1) | 0.02 | |
| Non-cash interest expense and amortization of non-cash issuance costs (2) | 0.14 | |
| FTC Consent Order Implementation (3) | 0.03 | |
| Expenses related to regulatory inquiries (4) | 0.03 | |
| China grant income (5) | (0.04) | |
| Income tax adjustments for above items (6) | (0.02) | |
| Adjusted diluted EPS guidance (7) | $0.80 - $0.90 |
The Company is currently in the process of compiling, analyzing and
finalizing the results for the third quarter and the Company s independent registered public accounting firm has not yet completed its review of the third quarter results. As such, there can be no assurance that the final adjusted or GAAP
earnings per diluted share will be within the ranges specified. Herbalife expects to report its final results for the third quarter of 2017 on November 2, 2017.
Herbalife Nutrition is a global
nutrition company whose purpose is to make the world healthier and happier. The Company has been on a mission for nutrition changing people s lives with great nutrition products & programs since 1980. Together with our
Herbalife Nutrition independent distributors, we are committed to providing solutions to the worldwide problems of poor nutrition and obesity, an aging population, sky-rocketing public healthcare costs and a
rise in entrepreneurs of all ages. We offer high-quality, science-backed products, most of which are produced in Company-operated facilities, one-on-one
coaching with an Herbalife Nutrition independent distributor, and a supportive community approach that inspires customers to embrace a healthier, more active lifestyle.
Our targeted nutrition, weight-management, energy and fitness and personal care products are available exclusively to and through dedicated Herbalife
Nutrition distributors in more than 90 countries.
Through its corporate social responsibility efforts, Herbalife Nutrition supports the Herbalife
Family Foundation (HFF) and its Casa Herbalife programs to help bring good nutrition to children in need. The Company is also proud to sponsor more than 190 world-class athletes, teams and events around the globe,
including Cristiano Ronaldo, the LA Galaxy, and numerous Olympic teams.
The company has over 8,000 employees worldwide, and its shares are
traded on the New York Stock Exchange (NYSE: HLF) with net sales of approximately $4.5 billion in 2016. To learn more, visit Herbalife.com or IAmHerbalife.com.
The company also encourages investors to visit its investor relations website at ir.herbalife.com as
financial and other information is updated and new information is posted.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the anticipated financial results for the third quarter 2017, the anticipated expiration date and consummation of the tender offer, satisfaction of the
tender offer conditions described the Offer to Purchase, as may be amended from time to time, and the Company s expectations, hopes or intentions regarding the future. No assurances can be given that the tender offer will be consummated, or
that the Company will engage in any discussions or negotiations with any party regarding a possible going private transaction or that any going private transaction with respect to the Company will be consummated. 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:
We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events, except as required by law.
Media: Jennifer Butler
Investor Relations: Eric Monroe