- Third quarter 2017 reported diluted
EPS of $0.66 and adjusted1 diluted EPS of
$0.82
- Third quarter 2017 reported net
sales of $1.1 billion declined 3.3% on an as reported basis
compared to the third quarter 2016
- Third quarter 2017 volume points of
1.3 billion declined 5.6% compared to the third quarter
2016
- FY ’17 reported and
adjusted1 diluted EPS guidance narrowed to ranges of
$3.90 to $4.10 and $4.42 to $4.62, respectively, from the previous
ranges of $3.80 to $4.20 and $4.30 to $4.70, respectively
- Initial full year 2018 volume point
guidance range of 2% to 6% growth and initial full year 2018 GAAP
diluted and adjusted1 diluted EPS guidance ranges of
$3.82 to $4.22 and $4.60 to $5.00, respectively
- Since February 2017, the Company has
repurchased a total of approximately $757 million of common stock
and has approximately $743 million remaining under the current
repurchase authorization
Herbalife Ltd. (NYSE: HLF) reports results for the third quarter
ended September 30, 2017.
“During this year of transition, we believe our performance has
now stabilized and we are seeing improvements in trends,” said Rich
Goudis, CEO of Herbalife. “By continuing to implement our strategic
plan, we expect to build on the improving trends and return to
growth in 2018.”
For the third quarter 2017, the company reported net sales of
$1.1 billion, which represents a decline of 3.3% and 4.0% on an as
reported and constant currency basis, respectively, compared to the
third quarter 2016.
Third quarter 2017 volume points of 1.3 billion declined 5.6%
compared to the prior year period.
On a reported basis, third quarter 2017 net income was $54.5
million, or $0.66 per diluted share, compared to third quarter 2016
net income of $87.7 million, or $1.01 per diluted share.
Adjusted1 earnings for the third quarter 2017 was $0.82 per
diluted share compared to $1.21 per diluted share for the third
quarter of 2016.
For the full year 2017, the company is narrowing its 2017
reported and adjusted1 diluted EPS guidance to ranges of $3.90 to
$4.10 and $4.42 to $4.62, respectively, from the previous ranges of
$3.80 to $4.20 and $4.30 to $4.70, respectively.
For the full year 2018, the company is providing initial volume
guidance in the range of 2% to 6% growth and initial full year 2018
GAAP diluted and adjusted1 diluted EPS guidance in the range
of $3.82 to $4.22 and $4.60 to $5.00, respectively.
Third Quarter 2017 Key
Metrics2
Regional Volume Point Metrics
Volume Points (Mil) Region 3Q
'17 Yr/Yr % Chg North America 261.5 -16.1 % Asia
Pacific 278.7 1.0 % EMEA 258.9 2.7 % Mexico 213.3 -9.0 % South
& Central America 150.2 -6.8 % China 147.8 -3.5 %
Worldwide Total 1,310.4 -5.6 %
Regional Net Sales and Foreign Exchange (“FX”) Impact
Reported
Net Sales Growth/Decline Growth/Decline Region
3Q '17 (mil) including FX excluding FX North America
$ 199.8 -17.1 % -17.2 % Asia Pacific $ 230.9 -0.2 % -0.5 % EMEA $
213.9 6.1 % 2.0 % Mexico $ 114.3 1.3 % -3.6 % South & Central
America $ 116.7 -3.6 % 1.5 % China $ 209.8 -2.1 %
-2.0 % Worldwide Total $ 1,085.4 -3.3 %
-4.0 %
Outlook
Based on current business trends the company’s fourth quarter
2017, full year 2017, and full year 2018 guidance are as
follows:
Three Months Ending Twelve Months Ending December 31,
2017 December 31, 2017
Low High
Low High Volume Point Growth vs
2016 (4.0 %) 1.0 % (4.2 %) (2.9 %) Net Sales Growth vs 2016 2.3 %
7.3 % (1.9 %) (0.6 %) Diluted EPS (a) $ 0.64 $ 0.84 $ 3.90 $ 4.10
Adjusted Diluted EPS (a) (b) $ 0.84 $ 1.04 $ 4.42 $ 4.62 Cap Ex ($
millions) $ 20.0 $ 40.0 $ 88.0 $ 108.0 Effective Tax Rate (a) 30.0
% 36.0 % 24.4 % 25.9 % Adjusted Effective Tax Rate (a) (b) 27.0 %
33.0 % 22.1 % 23.6 % Currency Adjusted Net Sales Growth vs 2016
(0.7 %) 4.3 % (2.1 %) (0.8 %) Currency Adjusted Diluted EPS $ 0.80
$ 1.00 $ 4.62 $ 4.82 Twelve Months Ending December 31, 2018
Low High Volume Point Growth vs 2017 2.0
% 6.0 % Net Sales Growth vs 2017 5.5 % 9.5 % Diluted EPS (a) $ 3.82
$ 4.22 Adjusted Diluted EPS (a) (b) $ 4.60 $ 5.00 Cap Ex ($
millions) $ 115.0 $ 155.0 Effective Tax Rate (a) 29.0 % 33.0 %
Adjusted Effective Tax Rate (a) (b) 26.0 % 30.0 % Currency Adjusted
Net Sales Growth vs 2017 4.3 % 8.3 % Currency Adjusted Diluted EPS
$ 4.50 $ 4.90 (a) Excludes any future potential ongoing tax
effects from the exercise of equity awards that could impact the
company's tax rate due to the updated stock compensation accounting
standard. (b) Adjusted diluted EPS and adjusted effective
tax rate, for the purposes of guidance, excludes the impact of
expenses relating to challenges to the company’s business model,
the impact of non-cash interest costs associated with the company’s
convertible notes, benefits from future potential China grants, FTC
settlement implementation and expenses related to regulatory
inquiries, as applicable and detailed in Schedule A. See Schedule A
– “Reconciliation of Non-GAAP Financial Measures” for a detailed
reconciliation of adjusted diluted EPS to diluted EPS calculated in
accordance with GAAP and a discussion of why the company believe
these non-GAAP measures are useful.
With respect to guidance, the company cannot accurately predict
the impact to its share base from any future repurchases in 2017
and 2018 that may be made under its share repurchase program and
therefore the guidance table above excludes any impact thereof to
EPS. Guidance includes the impact of the recently completed tender
offer.
Guidance is based on the average daily exchange rates during the
first two weeks of October.
Adjusted1 diluted EPS guidance for the fourth quarter 2017
includes a projected currency benefit of approximately $0.04 per
diluted share versus the fourth quarter of 2016.
Full year 2017 adjusted1 diluted EPS guidance includes a
projected currency headwind of approximately $0.20 per diluted
share, compared to 2016, which is consistent with the headwind
included in the updated guidance the company provided on August 1,
2017.
Full year 2018 adjusted1 diluted EPS guidance includes a
projected currency benefit of approximately $0.10 per diluted
share, compared to 2017.
Third Quarter 2017 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, November 2, 2017, 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 (262) 320-2006 for international callers
(conference ID 34074913). 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 34074913). 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 Herbalife
Independent 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. We also sponsor more than 190 world-class
athletes, teams and events around the globe,
including Cristiano Ronaldo, the LA Galaxy and
champions in many other sports.
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 Herbalife Investor Relations website at
http://ir.herbalife.com contains a significant amount of financial
and other information about the company. The company encourages
investors to visit its website from time to time, as information is
updated and new information is posted.
______________________________________________________
1 Adjusted net income and adjusted diluted EPS are both non-GAAP
measures and, for the purposes of reported results and guidance,
exclude the impact of: expenses relating to challenges to the
company’s business model, recovery of re-audit expenses, the impact
of non-cash interest costs associated with the company’s
convertible notes, expenses relating to FTC settlement
implementation, China grant income, regulatory settlements and
expenses related to regulatory inquiries, as applicable and
detailed in Schedule A. See Schedule A – “Reconciliation of
Non-GAAP Financial Measures” for a detailed reconciliation of
adjusted net income to net income calculated in accordance with
GAAP and a reconciliation of adjusted diluted EPS to diluted EPS
calculated in accordance with GAAP and a discussion of why we
believe these non-GAAP measures are useful.
2 Supplemental tables that include Average Active Sales Leader
and additional business metrics can be found at
http://www.ir.herbalife.com.
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. 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:
- our relationship with, and our ability
to influence the actions of, our Members;
- improper action by our employees or
Members in violation of applicable law;
- adverse publicity associated with our
products or network marketing organization, including our ability
to comfort the marketplace and regulators regarding our compliance
with applicable laws;
- changing consumer preferences and
demands;
- 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 markets in which we
operate;
- legal challenges to our network
marketing program;
- the consent order entered into with the
FTC, the effects thereof and any failure to comply therewith;
- 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
interpretation and enforcement of legislation in China governing
direct selling and anti-pyramiding;
- our inability to obtain the necessary
licenses to expand our direct selling business in China;
- adverse changes in the Chinese
economy;
- our dependence on increased penetration
of existing markets;
- any material disruption to our business
caused by natural disasters, other catastrophic events, acts of war
or terrorism, or cyber-security incidents;
- 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;
- our reliance upon, or the loss or
departure of any member of, our senior management team which could
negatively impact our Member relations and operating results;
- U.S. and foreign laws and regulations
applicable to our international operations;
- uncertainties relating to the United
Kingdom’s vote to exit from the European Union;
- restrictions imposed by covenants in
our credit facility;
- uncertainties relating to the
application of transfer pricing, duties, value added taxes, and
other tax regulations, and changes thereto;
- changes in tax laws, treaties or
regulations, or their interpretation;
- taxation relating to our Members;
- product liability claims;
- our incorporation under the laws of the
Cayman Islands;
- whether we will purchase any of our
shares in the open markets or otherwise; and
- share price volatility related to,
among other things, speculative trading and certain traders
shorting our common shares.
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.
RESULTS OF OPERATIONS:
Herbalife Ltd. and Subsidiaries Condensed Consolidated
Statements of Income (In millions, except per share amounts)
(Unaudited) Three Months Ended Nine
Months Ended
9/30/2017 9/30/2016
9/30/2017 9/30/2016 North
America $ 199.8 $ 241.0 $ 648.0 $ 753.5 Mexico 114.3 112.8 334.7
341.8 South and Central America 116.7 121.0 349.1 367.9 EMEA 213.9
201.6 648.4 619.0 Asia Pacific 230.9 231.4 686.2 687.1 China
209.8 214.2 668.0 674.1
Worldwide Net Sales 1,085.4 1,122.0 3,334.4 3,443.4 Cost of
Sales 215.4 209.1 638.8
658.5 Gross Profit 870.0 912.9 2,695.6 2,784.9
Royalty Overrides 310.1 320.3 944.1 968.9 Selling, General and
Administrative Expenses (1) 445.2 441.3 1,327.0 1,545.2 Other
Operating Income (2) (4.6 ) (0.2 ) (43.5 )
(29.1 ) Operating Income 119.3 151.5 468.0 299.9 Interest
Expense, net 38.4 22.1 106.5
70.1 Income Before Income Taxes 80.9 129.4
361.5 229.8 Income Taxes (3) 26.4 41.7
84.2 69.2 Net Income $ 54.5 $
87.7 $ 277.3 $ 160.6 Weighted Average
Shares Outstanding: Basic 79.6 83.1 81.4 83.0 Diluted 83.0 86.4
85.0 86.1 Earnings Per Share: Basic $ 0.69 $ 1.06
$ 3.41 $ 1.94 Diluted $ 0.66 $ 1.01
$ 3.26 $ 1.87
(1) Selling, General and Administrative
Expenses includes $203 million related to regulatory settlements
for the nine months ended September 30, 2016.
(2) Other Operating Income relates to certain China grant income.
(3) Includes the impact of excess tax
benefit recognized under ASU 2016-09 of $0.6 million and $26.4
million for the three months and nine months ended September 30,
2017, respectively.
Herbalife Ltd. and Subsidiaries Condensed
Consolidated Balance Sheets (In millions) (Unaudited)
Sep 30, Dec 31,
2017 2016
ASSETS Current Assets: Cash and cash equivalents $ 1,636.3 $ 844.0
Receivables, net 95.2 70.3 Inventories 354.2 371.3 Prepaid expenses
and other current assets 188.4 176.9
Total Current Assets 2,274.1 1,462.5 Property, plant and
equipment, net 375.1 378.0 Marketing related intangibles and other
intangible assets, net 310.1 310.1 Goodwill 95.8 89.9 Other assets
367.4 324.9 Total Assets $ 3,422.5
$ 2,565.4 LIABILITIES AND SHAREHOLDERS'
EQUITY Current Liabilities: Accounts payable $ 60.6 $ 66.0 Royalty
overrides 266.7 261.2 Current portion of long-term debt 104.1 9.5
Other current liabilities 427.4 454.8
Total Current Liabilities 858.8 791.5 Non-current
liabilities Long-term debt, net of current portion 2,176.6 1,438.4
Other non-current liabilities 168.1 139.2
Total Liabilities 3,203.5 2,369.1 Contingencies
Shareholders' equity: Common shares 0.1 0.1 Paid-in capital
in excess of par value 452.0 467.6 Accumulated other comprehensive
loss (174.6 ) (205.1 ) Retained earnings (accumulated deficit)
240.7 (66.3 ) Treasury stock (299.2 ) - Total
Shareholders' Equity 219.0 196.3
Total Liabilities and Shareholders' Equity $ 3,422.5
$ 2,565.4 Herbalife Ltd. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (In millions)
(Unaudited)
Nine Months Ended
9/30/2017
9/30/2016 CASH FLOWS FROM OPERATING ACTIVITIES Net
income $ 277.3 $ 160.6 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization 73.8 72.6 Share-based compensation expenses 32.6 30.3
Non-cash interest expense 44.8 42.0 Deferred income taxes (4.1 )
(38.4 ) Inventory write-downs 17.7 16.7 Foreign exchange
transaction loss (gain) 4.0 (1.4 ) Other (1.1 ) (3.8 ) Changes in
operating assets and liabilities: Receivables (22.5 ) (14.6 )
Inventories 29.2 (56.7 ) Prepaid expenses and other current assets
(3.6 ) (14.9 ) Accounts payable (8.2 ) 17.5 Royalty overrides (6.7
) 14.1 Other current liabilities (45.0 ) 24.3 Other 16.2
1.6 NET CASH PROVIDED BY OPERATING ACTIVITIES
404.4 249.9 CASH FLOWS FROM INVESTING
ACTIVITIES Purchases of property, plant and equipment (67.9 )
(111.9 ) Other (2.8 ) 4.4 NET CASH USED IN
INVESTING ACTIVITIES (70.7 ) (107.5 ) CASH FLOWS FROM
FINANCING ACTIVITIES Borrowings from senior secured credit
facility, net of discount 1,274.0 - Principal payments on senior
secured credit facility and other debt (468.2 ) (233.0 ) Debt
issuance costs (22.6 ) - Share repurchases (346.2 ) (12.5 ) Other
1.6 4.2 NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES 438.6 (241.3 ) EFFECT OF
EXCHANGE RATE CHANGES ON CASH 20.0 (2.6 ) NET
CHANGE IN CASH AND CASH EQUIVALENTS 792.3 (101.5 ) CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD 844.0 889.8
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,636.3 $
788.3
SUPPLEMENTAL INFORMATION
SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited and unreviewed), (All tables provide Dollars in
millions, except per Share Data)
In addition to its reported results and guidance calculated in
accordance with GAAP, the company has included in this release
adjusted net income and adjusted diluted EPS, performance measures
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 or forecasted results, in each case calculated in
accordance with GAAP, can provide useful supplemental information
for investors because they facilitate a period to period
comparative assessment of the company’s operating performance
relative to its performance based on reported or forecasted results
under GAAP, while isolating the effects of some items that vary
from period to period without any correlation to core operating
performance and eliminate certain charges that management believes
do not reflect the company’s operations and underlying operational
performance. The company’s definition of adjusted net income and
adjusted diluted earnings per share may not be comparable to
similarly titled measures used by other companies because other
companies may not calculate them in the same manner as the company
does and should not be viewed in isolation from nor as alternatives
to net income or diluted EPS calculated in accordance with
GAAP.
The following is a reconciliation of net income, presented and
reported in accordance with U.S. generally accepted accounting
principles, to net income adjusted for certain items:
Three Months Ended
Nine Months Ended
9/30/2017 9/30/2016 9/30/2017 9/30/2016
(in millions)
Net income, as reported $ 54.5 $ 87.7 $ 277.3 $ 160.6
Expenses incurred responding to attacks on the company's business
model (1) (2) 1.1 3.1 4.2 10.7 Expenses related to regulatory
inquiries (1) (2) 3.3 3.8 10.0 13.9 Expenses incurred for the
recovery of re-audit expenses (1) (2) - 0.2 - 3.5 Non-cash interest
expense and amortization of non-cash issuance costs (1) (2) (3)
12.0 11.3 35.4 33.6 China grant income (1) (2) (4.6 ) (0.2 ) (43.5
) (29.1 ) FTC Consent Order implementation (1) (2) (4) 3.0 5.3 16.7
5.3 Regulatory settlements (1) (2) - - - 203.0 Income tax
adjustments for above items (1) (2) (1.6 ) (6.5 )
3.9 (69.9 ) Net income, as adjusted (5) $ 67.7
$ 104.7 $ 304.0 $ 331.5
The following is a reconciliation of diluted earnings per share,
presented and reported in accordance with U.S. generally accepted
accounting principles, to diluted earnings per share adjusted for
certain items.
Three Months Ended
Nine Months Ended
9/30/2017 9/30/2016 9/30/2017 9/30/2016 (per share)
Diluted earnings per share, as reported $ 0.66 $ 1.01 $ 3.26
$ 1.87 Expenses incurred responding to attacks on the company's
business model (1) (2) 0.01 0.04 0.05 0.12 Expenses related to
regulatory inquiries (1) (2) 0.04 0.04 0.12 0.16 Expenses incurred
for the recovery of re-audit expenses (1) (2) - - - 0.04 Non-cash
interest expense and amortization of non-cash issuance costs (1)
(2) (3) 0.14 0.13 0.42 0.39 China grant income (1) (2) (0.06 ) -
(0.51 ) (0.34 ) FTC Consent Order implementation (1) (2) (4) 0.04
0.06 0.20 0.06 Regulatory settlements (1) (2) - - - 2.36 Income tax
adjustments for above items (1) (2) (0.02 ) (0.07 )
0.04 (0.81 ) Diluted earnings per share, as
adjusted (5) $ 0.82 $ 1.21 $ 3.58 $ 3.85
(1) Based on interim income tax reporting
rules, these expenses are not considered discrete items. As a
result, the company's full year effective tax rate is impacted by
these items. When applying the full year effective tax rate to
year-to-date income, the company's year-to-date tax provision
recorded with respect to these non-GAAP adjustments is different
from the forecasted full-year tax provision impact of these items.
As a consequence, adjustments to the year-to-date and quarterly tax
impacts will be recorded as the adjusted full year effective tax
rate is applied to income in subsequent periods. Additionally,
adjustments to items unrelated to these non-GAAP adjustments may
have an effect on the income tax impact of these non-GAAP
adjustments in subsequent periods. The company plans to update the
income tax impact of these items in subsequent interim reporting
periods.
(2) Excludes tax (benefit)/expense as follows:
Three Months Ended
Nine Months Ended
9/30/2017 9/30/2016 9/30/2017 9/30/2016 (in millions)
Expenses incurred responding to attacks on the company's
business model $ (0.2 ) $ (1.0 ) $ (1.0 ) $ (2.9 ) Expenses related
to regulatory inquiries (1.1 ) (1.6 ) (3.4 ) (5.3 ) Expenses
incurred for the recovery of re-audit expenses - - - (1.0 )
Non-cash interest expense and amortization of non-cash issuance
costs (0.7 ) 0.5 1.2 1.8 China grant income 1.5 - 12.7 8.4 FTC
Consent Order Implementation (1.1 ) (2.2 ) (5.6 ) (2.2 ) Regulatory
settlements - (2.2 ) -
(68.7 ) Total income tax adjustments (5) $ (1.6 ) $ (6.5 ) $ 3.9
$ (69.9 ) Three Months Ended
Nine Months Ended
9/30/2017 9/30/2016 9/30/2017 9/30/2016 (per share) Expenses
incurred responding to attacks on the company's business model $ -
$ (0.01 ) $ (0.01 ) $ (0.03 ) Expenses related to regulatory
inquiries (0.01 ) (0.02 ) (0.04 ) (0.06 ) Expenses incurred for the
recovery of re-audit expenses - - - (0.01 ) Non-cash interest
expense and amortization of non-cash issuance costs (0.01 ) 0.01
0.01 0.02 China grant income 0.02 - 0.15 0.10 FTC Consent Order
Implementation (0.01 ) (0.03 ) (0.07 ) (0.03 ) Regulatory
settlements - (0.03 ) -
(0.80 ) Total income tax adjustments (5) $ (0.02 ) $ (0.07 ) $ 0.04
$ (0.81 ) (3) Relates to non-cash expense on our
convertible notes and prepaid forward share repurchase contract.
(4) Includes $3.0 million of product discounts related to preferred
member conversions for the nine months ended September 30, 2017.
(5) Amounts may not total due to rounding.
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 Ending Twelve Months Ending December 31,
2017 December 31, 2017 Diluted EPS Guidance (1) $0.64
- $0.84 $3.90 - $4.10 Expenses incurred responding to attacks on
the company's business model (2) 0.02 0.07 Non-cash interest
expense and amortization of non-cash issuance costs (3) 0.16 0.58
FTC Consent Order Implementation (4) (5) - 0.20 Expenses related to
regulatory inquiries (6) 0.04 0.16 China grant income (7) - (0.51)
Income tax adjustments for above items (8) (0.02) 0.02 Adjusted
diluted EPS guidance (9) $0.84 - $1.04 $4.42 - $4.62
(1) Excludes any impact of ongoing tax
effects from exercise of equity awards and share repurchases that
may take place after October 31, 2017.
(2) Excludes tax impact of $0.4 million and $1.5 million for the
three months and twelve months ending December 31, 2017,
respectively. (3) Relates to non-cash expense on our convertible
notes and prepaid forward share repurchase contract. (4) Excludes
tax impact of $5.6 million for the twelve months ending December
31, 2017. (5) Includes $3.0 million of product discounts related to
preferred member conversions for the twelve months ending December
31, 2017. (6) Excludes tax impact of $0.8 million and $4.2 million
for the three and twelve months ending December 31, 2017,
respectively. (7) Excludes tax impact of $12.7 million for the
twelve months ending December 31, 2017. (8) Aggregates the
individual tax impacts of each item as described in greater detail
in footnotes 2, 4, 6 and 7 above. (9) Amounts may not total due to
rounding.
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.
Twelve Months Ending December 31, 2018
Diluted EPS Guidance (1)
$3.82 - $4.22
Expenses incurred responding to attacks on
the company's business model (2)
0.03
Non-cash interest expense and amortization
of non-cash issuance costs (3)
0.66
Expenses related to regulatory inquiries
(4)
0.13
Income tax adjustments for above items
(5)
(0.04)
Adjusted diluted EPS guidance (6)
$4.60 - $5.00
(1) Excludes any impact of ongoing tax
effects from exercise of equity awards and share repurchases that
may take place after October 31, 2017.
(2) Excludes tax impact of $0.6 million
for the twelve months ending December 31, 2018.
(3) Relates to non-cash expense on our
convertible notes and prepaid forward share repurchase
contract.
(4) Excludes tax impact of $2.8 million
for the twelve months ending December 31, 2018.
(5) Aggregates the individual tax impacts
of each item as described in greater detail in footnotes 2 and 4
above.
(6) Amounts may not total due to
rounding.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171102006642/en/
Herbalife Ltd.Media Contact:Jennifer ButlerVP, Media
Relations213.745.0420orInvestor Contact:Eric MonroeDirector,
Investor Relations213.745.0449
Herbalife (NYSE:HLF)
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