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Herbalife Announces Preliminary Fourth Quarter and Full-Year 2012 Financial Results

  Herbalife Announces Preliminary Fourth Quarter and Full-Year 2012 Financial
  Results

Business Wire

LOS ANGELES -- January 17, 2013

Herbalife Ltd. (NYSE: HLF) today provided an update on anticipated results for
fiscal year ended December 31, 2012. The company reported preliminary,
unaudited results that include the following:

  *Volume Points for full-year and fourth quarter 2012 are expected to
    increase approximately 20.4% and 18.4%, compared to the prior year
    periods, respectively.
  *All six of the company’s regions expect double-digit Volume Point growth
    during the fourth quarter.
  *Net sales for full-year and fourth quarter 2012 are expected to increase
    approximately 17.9% and 19.9%, compared to the prior year periods,
    respectively.
  *Fourth quarter EPS is expected to be in a range of $1.02 to $1.05,
    compared to prior year reported EPS of $0.86.
  *Fully-diluted EPS for the full-year 2012 is expected to be in a range of
    $4.02 to $4.05, compared to prior year reported EPS of $3.30.
  *The company’s fourth quarter effective tax rate is expected to be between
    24.2% and 25.2%.

Herbalife also announced the following:

  *The company expects to report full-year, audited results on February 19,
    2013.
  *The company’s 2013 Volume Point guidance remains unchanged, but there is
    the likelihood of a temporary increase in expenses, associated with recent
    events.
  *The company expects to begin repurchasing shares of Herbalife stock,
    pursuant to its existing share repurchase authorization.

“Since 1980, Herbalife has helped people pursue an active, healthy lifestyle
and today is a global nutrition company that utilizes a direct selling network
of independent distributors focused on creating loyal customers,” said Michael
O. Johnson, Herbalife’s Chairman and CEO.

“Herbalife is a financially strong and successful company, having created
significant opportunities for distributors and positively impacted the lives
and health of our consumers over our long history.”

Johnson continued, “Over the twelve months ended September 30, 2012, Herbalife
has generated more than $700 million in EBITDA^1 – which does not yet include
fourth quarter results – has returned approximately $1.9 billion in capital to
shareholders since 2007, and has a strong balance sheet. We are as confident
as ever in the future of Herbalife and remain fully committed to complete
transparency and defending our successful business model and track record for
the benefit of all stakeholders.”

About Herbalife Ltd.

Herbalife Ltd. (NYSE:HLF) is a global nutrition company that sells
weight-management, nutrition and personal care products intended to support a
healthy lifestyle. Herbalife products are sold in more than 80 countries to
and through a network of independent distributors. The company supports the
Herbalife Family Foundation and its Casa Herbalife program to help bring good
nutrition to children. Herbalife's website contains information about
Herbalife, including financial and other information for investors at
http://ir.Herbalife.com. The company encourages investors to visit its website
from time to time, as information is updated and new information is posted.

^1 See Schedule A - "Reconciliation of Non-GAAP Financial Measures" for more
detail.

FORWARD-LOOKING STATEMENTS

This document contains “forward-looking statements” within the meaning of
Section27A of the Securities Act of 1933, as amended, and Section21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical fact are “forward-looking statements” for purposes of
federal and state securities laws, including any projections of earnings,
revenue or other financial items; any statements of the plans, strategies and
objectives of management for future operations; any statements concerning
proposed new services or developments; any statements regarding future
economic conditions or performance; any statements of belief; and any
statements of assumptions underlying any of the foregoing. Forward-looking
statements may include the words “may,” “will,” “estimate,” “intend,”
“continue,” “believe,” “expect” or “anticipate” and any other similar words.

Although we believe that the expectations reflected in any of our
forward-looking statements are reasonable, actual results could differ
materially from those projected or assumed in any of our forward-looking
statements. Our future financial condition and results of operations, as well
as any forward-looking statements, are subject to change and to inherent risks
and uncertainties, such as those disclosed or incorporated by reference in our
filings with the Securities and Exchange Commission. Important factors that
could cause our actual results, performance and achievements, or industry
results to differ materially from estimates or projections contained in our
forward-looking statements include, among others, the following:

  *any collateral impact resulting from the ongoing worldwide financial
    “crisis,” including the availability of liquidity to us, our customers and
    our suppliers or the willingness of our customers to purchase products in
    a recessionary economic environment;
  *our relationship with, and our ability to influence the actions of, our
    distributors;
  *improper action by our employees or distributors in violation of
    applicable law;
  *adverse publicity associated with our products or network marketing
    organization;
  *changing consumer preferences and demands;
  *our reliance upon, or the loss or departure of any member of, our senior
    management team which could negatively impact our distributor relations
    and operating results;
  *the competitive nature of our business;
  *regulatory matters governing our products, including potential
    governmental or regulatory actions concerning the safety or efficacy of
    our products and network marketing program, including the direct selling
    market in which we operate;
  *legal challenges to our network marketing program;
  *risks associated with operating internationally and the effect of economic
    factors, including foreign exchange, inflation, disruptions or conflicts
    with our third party importers, pricing and currency devaluation risks,
    especially in countries such as Venezuela;
  *uncertainties relating to the application of transfer pricing, duties,
    value added taxes, and other tax regulations, and changes thereto;
  *uncertainties relating to interpretation and enforcement of legislation in
    China governing direct selling;
  *our inability to obtain the necessary licenses to expand our direct
    selling business in China;
  *adverse changes in the Chinese economy, Chinese legal system or Chinese
    governmental policies;
  *our dependence on increased penetration of existing markets;
  *contractual limitations on our ability to expand our business;
  *our reliance on our information technology infrastructure and outside
    manufacturers;
  *the sufficiency of trademarks and other intellectual property rights;
  *product concentration;
  *changes in tax laws, treaties or regulations, or their interpretation;
  *taxation relating to our distributors;
  *product liability claims; and
  *whether we will purchase any of our shares in the open markets or
    otherwise.

Forward-looking statements speak only as of the date hereof. We do not
undertake any obligation to update or release any revisions to any
forward-looking statements or to report any events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events, except as
required by law.

                                                    
SUPPLEMENTAL INFORMATION
                                                                   
SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                                                   
In addition to its anticipated results, the company has included in this
release additional information regarding EBITDA that the Securities and
Exchange Commission defines as a "non-GAAP financial measure." Management
believes that this non-GAAP financial measure, when read in conjunction with
the Company's reported results, can provide useful supplemental information
for investors. However, non-GAAP financial measures such as EBITDA should not
be considered a substitute for, nor superior to, financial results and
measures determined or calculated in accordance with GAAP.
                
The following is a reconciliation of net income, presented and reported in
accordance with U.S. generally accepted accounting principles, to EBITDA:
                                                                   
                       UNAUDITED NON-GAAP RECONCILIATION
                       For the                For the              For the
                       twelve                 nine                 three

                       months ended           months               months
                                              ended                ended
                       September
                       30, 2012               September            December
                                              30, 2012             31, 2011
                       ($ in                  ($ in                ($ in
                       thousands)             thousands)           thousands)
                                                                   
Net Income             $   464,666            $  359,309           $ 105,357
                                                                   
Add:
Depreciation &         $   72,815             $  55,402            $ 17,413
Amortization
Interest               $   6,731              $  8,088             $ (1,357  )
expense, net
Income taxes           $   164,606            $  134,257           $ 30,349
                                                                 
EBITDA                 $   708,818            $  557,056           $ 151,762 
                                                                             

Contact:

Herbalife Ltd.
Barbara Henderson, SVP, Worldwide Corp. Communications
213-745-0517
or
Amy Greene, VP, Investor Relations
213-745-0474
 
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