Herbalife Q1 2014 Earnings Report and Conference Call Highlights

Herbalife HLF on Tuesday held its 1Q 2014 earnings conference call. Listed below are some highlights from that call. Q1 Earnings

$1.3 Billion net sales, 12 percent increase year-over-year
Adjusted net income $151.1 million/ $1.50 per diluted share
GAAP net income $74.6 million/ $0.74 per diluted share compared to $118.9 million/$1.10 per diluted share last year. This decline is primarily attributed to foreign exchange loss from the Venezuela market.
Cash flow from operations of 190.6 million, a 39 percent increase year-over-year
Approximately $255 million spent in April on share repurchases

Regional

Production at North Carolina facility is expected to ramp up beginning at the end of May
March has historically been the largest month for sales in the U.S.

U.S.-Venezuelan exchange rate affected GAAP Results by $89.3 million before taxes

Herbalife holds licenses in 26 provinces in China and is showing strong growth in the region. Based on this growth the company will need more capacity in the near-term future. Executive Comments

CEO Michael Johnson notes return rate on company products has declined, despite recent attention
Johnson says he's confident in the company's compliance with all laws and believes management is taking disclosure obligations seriously.
Johnson, "We continue to achieve record earnings, strong sales growth and enhanced profitability."

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