Herbalife Ltd. Announces Fourth Quarter and Full Year 2015 Results Fourth quarter adjusted 1 EPS of $1.19 per diluted share and reported EPS of $0.98 per diluted share Fourth quarter volume points grew 5% compared to pri

Ltd. Announces Fourth Quarter and Full Year 2015 Results

EPS of $1.19 per diluted share and reported EPS of $0.98 per diluted

quarter volume points grew 5% compared to prior year

quarter reported net sales of $1.1 billion, increased 9.7% in local

currency and declined 3.1% on a reported basis compared to the prior

year period due to the unfavorable impact of currency exchange rates

flow from operations during the quarter was $135.5 million and for the

full year was $628.7 million

sales leader retention of approximately 54.2% percent

the continued adverse impact from currency exchange rates, full year

2016 adjusted diluted EPS guidance is now expected to be in a range of

$4.05 to $4.50, which reflects an $0.80 currency headwind compared to

LOS ANGELES--(BUSINESS WIRE)--February 25, 2016--Herbalife Ltd. (NYSE:

HLF) reported fourth quarter net sales of $1.1 billion. Net sales,

excluding currency impact, grew by 9.7%, while reported net sales

declined 3.1% primarily due to the continuing unfavorable impact of

currency exchange rates. Adjusted1 earnings for the quarter

were $1.19 per diluted share compared to $1.41 per diluted share for the

same period in 2014. On a reported basis, fourth quarter net income was

$84.5 million, or $0.98 per diluted share, compared to $103.3 million,

or $1.21 per diluted share for the same period in 2014. Fourth quarter

2015 net income and diluted EPS were negatively impacted by $26.0 million2

and $0.302 per diluted share respectively, due to currency

For the quarter ended December 31, 2015, the company generated $135.5

million in net operating cash flow, and invested $30.4 million in

capital expenditures.

For the year ended December 31, 2015, the company reported net sales of

$4.5 billion, a 9.9% decrease compared to 2014, primarily due to the

continuing unfavorable impact of currency exchange rates. Local currency

net sales increased 4.7%, compared to 2014. Adjusted1 earnings

for the year were $5.00 per diluted share compared to $5.93 per diluted

share for the full year 2014. On a reported basis, full year net income

grew 9.8% to $339 million, or $3.97 per diluted share, compared to $309

million, or $3.40 per diluted share for full year 2014. Full year 2015

net income and diluted EPS were negatively impacted $137.8 million3

or $1.573 per diluted share respectively, due to currency

For the year ended December 31, 2015, the company generated cash flow

from operations of $628.7 million and invested $79.1 million in capital

For the full year 2016, the company is updating its adjusted EPS

guidance, solely to reflect current FX rates, to a range of $4.05 to

$4.50 per diluted share, from the previous range of $4.35 to $4.75 per

diluted share. Guidance includes a currency headwind of approximately

$0.80 per diluted share, compared to 2015, which includes an additional

$0.30 negative impact from currency compared to initial guidance

provided a quarter ago. Full year 2016 currency adjusted EPS guidance is

in a range of $4.85 to $5.30.

Michael O. Johnson, chairman and CEO, Herbalife, stated, "2015 was a

significant year for Herbalife, as we completed the rollout of bold and

important changes to the marketing plan that will enhance the long-term

and sustainable growth of our business. We successfully navigated the

associated short-term challenges, believing that we were making the

right changes at the right time, and despite ongoing currency and

macroeconomic challenges, we finished the year returning to growth."

Johnson continued, "Across the globe, we see more and more

health-conscious consumers looking to take their nutrition and health

more seriously. We believe Herbalife is well positioned to meet these

consumers' needs through our extensive product range and the

personalized approach of our members."

Fourth Quarter and Fiscal 2015 Key Metrics4,5

Regional Volume Point and Average Active Sales Leader Metrics

Regional Net Sales and Foreign Exchange ("FX") Impact

Guidance for the first quarter 2016 includes an unfavorable impact from

currency exchange rates of approximately $0.27 per diluted share versus

the first quarter of 2015.

Full year 2016 guidance includes a currency headwind of approximately

$0.80 per diluted share, compared to 2015, which includes an additional

$0.30 negative impact from currency compared to initial guidance

provided a quarter ago.

Full year 2016 volume point guidance remains unchanged from previous

guidance on an absolute value basis, which translates to a growth rate

in the expected range 1.5% to 4.5% compared to 2015.

Based on current business trends the company's first quarter 2016 and

full year 2016 guidance is as follows:

Guidance excludes the impact of legal and advisory services and expenses

relating to challenges to the company's business model, including

expenses related to regulatory inquiries, 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 three weeks of January. With

respect to Venezuela, the guidance assumes a SIMADI rate of 198 to 1 for

full-year 2016 and excludes the potential impact of the recent and any

future devaluation of the Venezuelan Bolivar and future repatriation, if

any, of existing cash balances in Venezuela.

Fourth Quarter 2015 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, February 25, 2016 at 2:30 p.m. PT (5:30

The dial-in number for this conference call for domestic callers is

(877) 317-1296, and (706) 634-5671 for international callers (conference

ID 24808282). 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