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Herbalife Ltd HLF
Q4 2011 Earnings Call Transcript

Transcript Call Date 02/22/2012

Operator: Good morning, and thank you for joining the Fourth Quarter and Full Year 2011 Earnings Conference Call for Herbalife Ltd. On the call today is Michael Johnson, the Company's Chairman and CEO; the Company’s President, Des Walsh; John DeSimone, the Company's CFO; and Brett Chapman, the Company's General Counsel.

I would now like to turn the call over to Brett Chapman to read the Company's Safe Harbor language.

Brett R. Chapman - General Counsel: Before we begin, as a reminder, during this conference call, comments may be made that include some forward-looking statements. These statements involve risk and uncertainty, and as you know, actual results may differ materially from those discussed or anticipated. We encourage you to refer to yesterday's earnings release, and our SEC filings for a complete discussion of risks associated with these forward-looking statements and our business.

In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles, referred to by the Securities and Exchange Commission as non-GAAP financial measures.

We believe these non-GAAP financial measures assist management and investors in evaluating and comparing period-to-period results of operations in a more meaningful and consistent manner. Please refer to the Investor Relations section of our website herbalife.com to find our press release for this quarter, which contains a reconciliation of these measures. Additionally, when management makes reference to volume during this conference call, they are referring to volume points.

I'll now turn the call over to Michael.

Michael O. Johnson - Chairman and CEO: Thanks, Brett and good morning everyone and welcome to our fourth quarter and full year 2011 earnings call. As you read in our press release yesterday, we've just had a very strong fourth quarter and a best year in the Company's history. Fourth quarter sales were up 20% and EPS grew 25%. For the year, sales grew 26% and EPS increased 37%. We now had seven consecutive quarters of double-digit growth in volume points and distributor engagement, as well as two consecutive years of record sales leader retention. In 2011, we achieved a milestone that's very important to all of us on team Herbalife.

Early in Herbalife's history, Herbalife Founder Mark Hughes had an aspirational goal of $5 billion in retail sales and this has been an inspiration and motivation for everyone. In 2011, we reached that goal and we exceeded it. So, let me take a moment to congratulate everybody on team Herbalife. Our distributors whose tireless efforts and commitment are making it easier than ever for consumers to access Herbalife's nutrition products and to our employees who understand the priority of supporting our distributors in building a world-class infrastructure.

While you can see the strength of our business in the financials we reported yesterday, record sales, volume and cash flow the underlying fundamentals in our business are equally exciting and support our confidence and our belief in the future. These fundamentals are broad based volume point growth. For the quarter, we saw double digit growth in all six regions and for the full year five of our six regions volume grew in excess of 10%.

Read our Earnings Call Transcript disclaimer.
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