http://www.morningstar.com/earnings/44736297-herbalife-ltd-hlf-q3-2012.aspx

Herbalife, Ltd. HLF
Q3 2012 Earnings Call Transcript

Transcript Call Date 10/30/2012

Operator: Good morning and thank you for joining the Third Quarter 2012 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. Good morning everyone and welcome to our third quarter 2012 earnings conference call. We had another record quarter with net sales up 14% to $1 billion. Volume points of 1.2 billion increased by 17% over the prior year' third quarter and EPS as $1.04, a 20% increase. Our growth continues to be very broad-based.

Each of our six regions experienced strong double-digit volume point growth in the quarter. Four of our regions Asia, Mexico, China and South and Central America exceeded 15% volume point growth. North America had a 14% increase in volume point and EMEA experienced 10% volume point growth in the quarter and our average active sales leaders increased 22% in the quarter. Des will provide more color around these regional results in just a minute. The consistency of our growth and financial results reflect the dedication and hard work of everyone on team Herbalife.

So, thank you, to our independent distributors and employees around the world for another record performance. For more than 32 years, Herbalife products independent distributors and employees have been helping millions of people achieve their weight management and daily nutrition goals.

This has always been the culture at Herbalife and the need for good nutrition has never been more important than it is right now. A fundamental change in our business began 10 years ago with the development of Nutrition Clubs in Mexico. This increased our addressable audience by making our products more affordable to more consumers.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.