Herbalife – Q1 2012 Revenue up 21% to $964 Million
Herbalife Ltd. (NYSE:HLF) today reported first quarter net sales of $964.2 million, a 21 percent increase driven by a 24 percent increase in volume points compared to the prior year period. For the same period, the company reported net income of $108.2 million, or $0.88 per diluted share, reflecting an increase of 22 percent and 24 percent respectively compared to the adjusted first quarter 2011 net income of $88.7 million and $0.71 per diluted share.
Our business momentum has continued into 2012, with strong sales performance from each of our six regions, said Michael O. Johnson, the company's chairman and CEO. The financial strength of our business model is once again reflected in our cash flow generation in the quarter.
For the quarter ended March 31, 2012, the company generated cash flow from operations of $120.4 million, an increase of 11 percent compared to the prior year period, paid dividends of $35.2 million, invested $24.9 million in capital expenditures and repurchased $50.0 million in common shares outstanding under our share repurchase program.
First Quarter Regional Key Metrics
Regional Volume Point and Average Active Sales Leader Metrics
| Volume Points (Mil) | Average Active Sales Leaders | ||||||||
| Region | 1Q'12 | Yr/Yr % Chg | 1Q'12 | Yr/Yr % Chg | |||||
| North America | 298.4 | 23 | % | 62,532 | 19 | % | |||
| Asia Pacific | 273.8 | 38 | % | 55,706 | 38 | % | |||
| EMEA | 145.9 | 6 | % | 41,332 | 15 | % | |||
| Mexico | 191.4 | 16 | % | 52,674 | 24 | % | |||
| South & Central America | 164.7 | 32 | % | 40,614 | 31 | % | |||
| China | 40.9 | 25 | % | 9,531 | 31 | % | |||
| Worldwide Total | 1,115.1 | 24 | % | 252,321 | 23 | % | |||
RESULTS OF OPERATIONS:
| Herbalife Ltd. | ||||||
| Condensed Consolidated Statements of Income | ||||||
| (In thousands, except per share amounts) | ||||||
| (Unaudited) | ||||||
| Quarter Ended | ||||||
| 3/31/2012 | 3/31/2011 | |||||
| North America | $ | 210,710 | $ | 167,000 | ||
| Mexico | 117,109 | 103,877 | ||||
| South and Central America | 165,470 | 125,277 | ||||
| EMEA | 153,993 | 153,937 | ||||
| Asia Pacific | 259,948 | 199,303 | ||||
| China | 56,945 | 45,702 | ||||
| Worldwide net sales | 964,175 | 795,096 | ||||
| Cost of Sales | 196,144 | 162,793 | ||||
| Gross Profit | 768,031 | 632,303 | ||||
| Royalty Overrides | 317,533 | 264,377 | ||||
| SGA | 296,393 | 244,526 | ||||
| Operating Income | 154,105 | 123,400 | ||||
| Interest Expense – net | 1,373 | 2,648 | ||||
| Income before income taxes | 152,732 | 120,752 | ||||
| Income Taxes | 44,570 | 32,733 | ||||
| Net Income | 108,162 | 88,019 | ||||
| Basic Shares | 116,191 | 118,206 | ||||
| Diluted Shares | 122,373 | 125,625 | ||||
| Basic EPS | $ | 0.93 | $ | 0.74 | ||
| Diluted EPS | $ | 0.88 | $ | 0.70 | ||
| Dividends declared per share | $ | 0.30 | $ | 0.13 | ||
