Currently viewing and reading

Herbalife Ltd. Announces Record Fourth Quarter Revenue and EPS and Raises FY’10 EPS Guidance

Posted by Dana in February 24th 2010

* Fourth quarter adjusted EPS increased 42.0 percent to $0.98 compared to the prior year, driven by 15.8 percent local currency sales growth.
* FY’09 cash from operations increased 4.4 percent to $285.1 million compared to prior year.
* Repurchased 1.0 million shares during the fourth quarter and 2.0 million shares in fiscal 2009.

Herbalife Ltd. (NYSE:HLF) reported fourth quarter net sales increased 23.0 percent to $630.9 million and local currency net sales increased 15.8 percent compared to the same period in 2008. For the quarter ended December 31, 2009, the company reported net income of $55.7 million, or $0.88 per diluted share compared to $33.7 million or $0.53 per diluted share in the fourth quarter of 2008, reflecting local currency sales growth, operating margin expansion, a lower effective tax rate and accretion from the share repurchase program.

Excluding the Venezuela currency impact and other adjusting items in the fourth quarter 2009 and 2008 1, fourth quarter adjusted net income was $61.7 million, or $0.98 in adjusted diluted earnings per share, reflecting an increase of 42.3 percent and 42.0 percent, respectively, compared to the same period in 2008.

For the twelve months ended December 31, 2009, the company reported net sales of $2.3 billion, a 1.5 percent decline primarily due to the negative impact of foreign currency fluctuations whereas in local currency net sales for fiscal 2009 increased 5.1 percent compared to fiscal 2008. For the year ended December 31, 2009, the company reported net income of $203.3 million, or $3.22 per diluted share, compared to $221.2 million, or $3.36 per diluted share for the year ended December 31, 2008. Excluding the impact from adjusting items in both periods 1, adjusted net income was $207.1 million, or $3.28 in adjusted diluted earnings per share, a decrease of 10.8 percent and 7.1 percent respectively, compared to 2008 primarily due to the negative impact of foreign currency fluctuations and a higher effective tax rate in 2008.

For the twelve months ended December 31, 2009, the company generated cash flow from operations of $285.1 million, an increase of 4.4 percent compared to 2008, paid dividends of $48.7 million, invested $60.1 million in capital expenditures, repurchased $74.6 million in common stock and paid approximately $10.0 million for certain acquired manufacturing assets. The company’s net debt balance at the end of the fourth quarter was $99.5 million, reflecting an improvement of $101.3 million from December 2008.