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Herbalife Announces Preliminary Fourth Quarter and Full-Year 2012 Financial Results
- Volume Points for full-year and fourth quarter 2012 are expected to increase approximately 20.4% and 18.4%, compared to the prior year periods, respectively.
All six of the company's regions expect double-digit
Volume Pointgrowth during the fourth quarter.
- Net sales for full-year and fourth quarter 2012 are expected to increase approximately 17.9% and 19.9%, compared to the prior year periods, respectively.
Fourth quarter EPS is expected to be in a range of
$1.02 to $1.05, compared to prior year reported EPS of $0.86.
Fully-diluted EPS for the full-year 2012 is expected to be in a range
$4.02 to $4.05, compared to prior year reported EPS of $3.30.
- The company's fourth quarter effective tax rate is expected to be between 24.2% and 25.2%.
The company expects to report full-year, audited results on
February 19, 2013.
2013 Volume Pointguidance remains unchanged, but there is the likelihood of a temporary increase in expenses, associated with recent events.
The company expects to begin repurchasing shares of
Herbalifestock, pursuant to its existing share repurchase authorization.
"Herbalife is a financially strong and successful company, having created significant opportunities for distributors and positively impacted the lives and health of our consumers over our long history."
Johnson continued, "Over the twelve months ended
1 See Schedule A - "Reconciliation of Non-GAAP Financial Measures" for more detail.
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
- 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 recessionary economic environment;
- our relationship with, and our ability to influence the actions of, our distributors;
- improper action by our employees or distributors in violation of applicable law;
- adverse publicity associated with our products or network marketing organization;
- 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
- 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
Chinagoverning direct selling;
our inability to obtain the necessary licenses to expand our direct
selling business in
- 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 manufacturers;
- 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 otherwise.
Forward-looking statements speak only as of the date hereof. 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.
|SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES|
In addition to its anticipated results, the company has included in
this release additional information regarding EBITDA that the
The following is a reconciliation of net income, presented and reported in accordance with U.S. generally accepted accounting principles, to EBITDA:
|UNAUDITED NON-GAAP RECONCILIATION|
For the twelve
For the nine
For the three
|($ in thousands)||($ in thousands)||($ in thousands)|
|Depreciation & Amortization||$||72,815||$||55,402||$||17,413|
|Interest expense, net||$||6,731||$||8,088||$||(1,357||)|
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