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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