Full Press Release Details
Ltd. Announces First Quarter 2016 Results and Raises Full Year Adjusted
quarter 2016 adjusted1
EPS of $1.36 per diluted share increased 5% compared to $1.29 per
diluted share for the comparable prior year quarter. Reported EPS
increased 22% to $1.12 per diluted share compared to $0.92 per diluted
share for the comparable prior year quarter.
quarter 2016 reported net sales of $1.1 billion increased 1% and 11%,
on an as reported and constant currency basis, respectively, compared
to the prior year period.
points increased 4% in the first quarter 2016 compared to the first
FY '16 adjusted diluted EPS guidance to a range of $4.40 to $4.75; up
from the previous range of $4.05 to $4.50.
LOS ANGELES--(BUSINESS WIRE)--May 5, 2016--Herbalife Ltd. (NYSE: HLF)
reported first quarter net sales of $1.1 billion, reflecting an increase
of 1% compared to the prior year period. First quarter 2016 net sales,
excluding the impact of currency, grew by 11%. Adjusted1 earnings
for the quarter grew 5% to $1.36 per diluted share, compared to $1.29
per diluted share for the first quarter in 2015. On a reported basis,
first quarter net income of $95.8 million or $1.12 per diluted share
increased by 23% and 22% respectively, compared to $78.2 million or
$0.92 per diluted share for the comparable quarter in 2015. Due to
currency fluctuations, first quarter 2016 net income and diluted EPS
were negatively impacted by $27.5 million2 and $0.322
Michael O. Johnson, chairman and CEO of Herbalife, stated, "We've
started the year by exceeding EPS guidance on both the top and bottom
line and by returning to reported net sales growth, year over year, the
first time in 5 quarters. Our updated guidance reflects the confidence
that we have for the remainder of the year as we continue to hold the
line on expenses while investing prudently towards the future."
Johnson continued, "Our Members, through their growing and sustainable
businesses, continue to engage with their customers on a much more
personal level and are perfectly situated to be a leading part of the
solution for many global health challenges facing the world today."
"First Quarter and 2016 Key Metrics3,4
Regional Volume Point and Average Active Sales Leader Metrics
| Volume Points (Mil) | Average Active Sales Leaders | ||||||||
| Region | 1Q'16 | Yr/Yr % Chg | 1Q'16 | Yr/Yr % Chg | |||||
| North America | 319.5 | 7 | % | 74,631 | -4 | % | |||
| Asia Pacific | 249.5 | -6 | % | 71,301 | -5 | % | |||
| EMEA | 260.7 | 14 | % | 77,380 | 12 | % | |||
| Mexico | 215.9 | 6 | % | 63,492 | -3 | % | |||
| South & Central America | 177.8 | -16 | % | 56,851 | -10 | % | |||
| China | 155.2 | 36 | % | 28,291 | 40 | % | |||
| Worldwide Total | 1,378.6 | 4 | % | 358,742 | 0 | % |
Regional Net Sales and Foreign Exchange ("FX") Impact
| Region | Reported Net Sales 1Q '16 (mil) | Growth/Decline including FX | Growth/Decline excluding FX | |||||
| North America | $ | 246.0 | 9 | % | 9 | % | ||
| Asia Pacific | $ | 221.1 | -9 | % | -2 | % | ||
| EMEA | $ | 198.4 | 6 | % | 17 | % | ||
| Mexico | $ | 109.7 | -11 | % | 7 | % | ||
| South & Central America | $ | 127.0 | -21 | % | 2 | % | ||
| China | $ | 217.4 | 32 | % | 39 | % | ||
| Worldwide Total | $ | 1,119.6 | 1 | % | 11 | % |
Guidance for the second quarter 2016 includes an unfavorable impact from
currency exchange rates of approximately $0.20 per diluted share versus
the second quarter of 2015.
Full year 2016 guidance includes a currency headwind of approximately
$0.70 per diluted share, compared to 2015, which is a $0.10 improvement
over the guidance the company provided a quarter ago.
Based on current business trends the company's second quarter 2016 and
full year 2016 guidance is as follows:
| Three Months Ending | Twelve Months Ending | |||||
| June 30, 2016 | December 31, 2016 | |||||
| Low | High | Low | High | |||
| Volume Point Growth vs 2015 | 1.5% | 4.5% | 2.0% | 5.0% | ||
| Net Sales Growth vs 2015 | 0.0% | 3.0% | 1.5% | 4.5% | ||
| Adjusted Diluted EPS | $1.10 | $1.20 | $4.40 | $4.75 | ||
| Cap Ex ($ millions) | $65.0 | $75.0 | $145.0 | $175.0 | ||
| Effective Tax Rate | 28.0% | 30.0% | 28.0% | 30.0% | ||
| Currency Adjusted (a) Net Sales Growth vs 2015 | 5.5% | 8.5% | 6.0% | 9.0% | ||
| Currency Adjusted (a) EPS | $1.30 | $1.40 | $5.10 | $5.45 | ||
| (a) Excludes the impact of Venezuela price increases tied to FX rate movements. |
Guidance excludes the impact of legal and advisory services and expenses
relating to challenges to the company's business model and regulatory
inquiries, any impact from a possible settlement or litigation with the
FTC, the impact of non-cash interest costs associated with the company's
convertible notes and the expenses incurred related to the effort to
recover costs related to the re-audits that occurred in 2013. Forward
guidance is based on the average daily exchange rates of the first two
weeks of April. With respect to Venezuela, the guidance assumes a SIMADI
rate of 270 to 1 for the remaining full-year 2016 guidance.
First Quarter 2016 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 Thursday, May 5, 2016, at 2:30 p.m. PT (5:30 p.m. ET).
The dial-in number for this conference call for domestic callers is
(877) 317-1296, and (706) 634-5671 for international callers (conference
ID 84070531). 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
84070531). The webcast of the teleconference will be archived and
available on Herbalife's website.
About Herbalife Ltd.
Herbalife is a global nutrition company that has been changing people's
lives with great products since 1980. Our nutrition, weight-management,
energy and fitness and personal care products are available exclusively
to and through dedicated Independent Herbalife Members in more than 90
countries. We are committed to fighting the worldwide problems of poor
nutrition and obesity by offering high-quality products, one-on-one
coaching with an Herbalife member and a community that inspires
customers to live a healthy, active life.
We support the Herbalife Family Foundation (HFF) and its Casa Herbalife
programs to help bring good nutrition to children in need.
Herbalife's website contains a significant amount of financial and other
information about the company 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. To learn more
visit Herbalife.com or IAmHerbalife.com.
FORWARD-LOOKING STATEMENTS
This earnings release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. 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: