Herbalife Ltd HLF
Q4 2012 Earnings Call Transcript

Transcript Call Date 02/20/2013

Operator: Good morning and thank you for joining the Fourth 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 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 fourth quarter 2012 earnings conference call. Today I am going to focus our commentary on four key areas. First, our record financial performance, for the fourth quarter as well as for the full year 2012; second, our positive momentum that has continued into the first quarter as evidenced by our increased 2013 guidance; third, our commitment to continuous improvement at Herbalife. The goal of our 6,500 employees is to build it better every single day. Fourth, we are simplifying and better communicating our business model and metrics so that industries and the public can better appreciate what a truly great Company Herbalife is.

As we reported yesterday, Herbalife enjoyed broad based strength around the world. More specifically in 2012 we achieved the following record financial results. A record $4.1 billion in net sales, a record $4.7 billion in volume points, a record $736 million of EBITDA, a record $477 million in net income and a record $4.05 of EPS.

For the fourth quarter, we also achieved record results. A record $1.1 billion in net sales up 20% year-over-year, a record 1.2 billion volume points up 18% year-over-year, a record of $178.8 million of EBITDA up 18% year-over-year, a record of $117.8 million of net income up 12% year-over-year and a record $1.05 of EPS, up 22% year-over-year.

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