Herbalife Ltd. Announces Record Fourth Quarter 2012 and Record Full Year Results, and Raises 2013 Earnings Guidance

  Herbalife Ltd. Announces Record Fourth Quarter 2012 and Record Full Year
  Results, and Raises 2013 Earnings Guidance

  *Fourth quarter worldwide volume growth of 18 percent with double-digit
    increases in each of its six regions compared to the prior year period.
  *Fourth quarter EPS of $1.05 increased 22 percent compared to the prior
    year.
  *Raising FY’13 EPS guidance to a range of $4.45 to $4.65.
  *Annual sales leader retention of approximately 51.8 percent.
  *Repurchased 4.0 million shares of stock since December 31, 2012.
  *Board of directors approved a $0.30 per share quarterly dividend.

Business Wire

LOS ANGELES -- February 19, 2013

Herbalife Ltd. (NYSE: HLF) today reported fourth quarter net sales of $1.1
billion, reflecting an increase of 20 percent compared to the same time period
in 2011 on volume point growth of 18 percent. Net income for the quarter of
$117.8 million, or $1.05 per diluted share, compares to 2011 fourth quarter
net income of $105.4 million and EPS of $0.86, respectively.

For the twelve months ended December 31, 2012, the company reported record net
sales of $4.1 billion, an 18 percent increase on 20 percent growth in volume
compared to 2011. For the same period, the company reported net income of
$477.2 million, or $4.05 per diluted share, reflecting an increase of 16
percent and 23 percent, respectively, compared to the 2011 results of $412.6
million and $3.30 per diluted share.

“Herbalife continues to deliver record results in sales and profitability as
our independent distributors go deeper into existing markets, developing more
and more customers using our nutrition products every day,” said Michael O.
Johnson, Herbalife’s chairman and CEO. “Obesity and poor nutrition are global
public health problems. Our distributors are proud to be part of the
solution.”

For the year ended December 31, 2012 the company generated cash flow from
operations of $567.8 million, an increase of 11 percent compared to 2011; paid
dividends of $135.1 million; invested $122.8 million in capital expenditures;
and repurchased $527.8 million in common shares outstanding under our share
repurchase program.

Fourth Quarter and Fiscal 2012 Regional Key Metrics^1,2

Regional Volume Point and Average Active Sales Leader Metrics

                        Volume Points (Mil)    Average Active Sales Leaders
Region                  4Q'12    Yr/Yr % Chg  4Q'12         Yr/Yr % Chg
North America           267.0    15%           68,029        14%
Asia Pacific            304.6     18%           69,553         26%
EMEA                    156.6     14%           47,226         14%
Mexico                  208.9     13%           61,836         19%
South & Central America 222.5     34%           50,874         28%
China                   50.5     17%          12,560        25%
Worldwide Total         1,210.1  18%          300,521       20%

                        Volume Points (Mil)    Average Active Sales Leaders
Region                  FY'12    Yr/Yr % Chg  FY'12         Yr/Yr % Chg
North America           1,157.8  17%           66,054        16%
Asia Pacific            1,197.8   25%           63,255         31%
EMEA                    602.5     11%           44,098         14%
Mexico                  815.4     16%           57,651         21%
South & Central America 740.4     30%           44,980         29%
China                   206.5    34%          11,683        33%
Worldwide Total         4,720.4  20%          277,803       22%

2012 Annual Sales Leader Requalification

By the end of January of each year, sales leaders are required to re-qualify
to retain their sales leader status. A record number of sales leaders were
retained in 2012. The overall pool of sales leaders needing to re-qualify
increased by approximately 21% compared to the prior year and we retained 20%
more of them than in the prior year. While size of the group needing to
re-qualify increased for the year, our overall retention rate remained fairly
constant at 51.8%.

________________________________________
^1Supplemental tables that include additional business metrics can be found at
http://www.ir.herbalife.com.

^2Worldwide Average Active Sales Leaders may not equal the sum of the Average
Active Sales Leaders in each region due to the calculation being an average of
Sales Leaders active in a period, not a summation, and the fact that some
sales leaders are active in more than one region but are counted only once in
the worldwide amount.

Updated 2013 Guidance

Guidance for fully diluted 2013 EPS is based on the average daily exchange
rates of January 2013, which in aggregate are not materially different from
the foreign currency exchange rates assumed in our prior guidance. Our 2013
guidance continues to assume a Venezuelan exchange rate of 10 to 1. The
guidance does not include the one-time impact associated with the revaluation
of our bolivar denominated monetary assets and monetary liabilities, which
includes our bolivar denominated cash, due to the recent devaluation of the
Venezuelan bolivar, or any potential one-time impact from a future devaluation
or the repatriation of existing cash balances. Guidance for the year also
excludes one-time costs of $10 million to $20 million, mostly legal and
advisory services, relating to the Company’s response to information put into
the marketplace by ashort seller which information the Company believes to be
inaccurate and misleading.

Based on current business trends the company’s first quarter fiscal 2013 and
fiscal 2013 guidance is provided below.

                            Three Months Ending  Twelve Months Ending
                            March 31, 2013        December 31, 2013
                            Low        High      Low         High
Volume Point Growth vs 2012 11.5%       13.5%     8.5%         10.5%
Net Sales Growth vs 2012    15.0%       17.0%     12.0%        14.0%
Diluted EPS                 $1.03       $1.07     $4.45        $4.65
Cap Ex ($ millions)         $20.0       $30.0     $165.0       $185.0
Effective Tax Rate          28.5%       30.5%     27.5%        29.5%

Announces Quarterly Dividend

The company reported today that its board of directors has approved a dividend
of $0.30 per share to shareholders of record March 5, 2013, payable on March
19, 2013.

Share Repurchase Program Update

Subsequent to December 31, 2012, the company has repurchased 4.0 million
shares at an average cost of $40.61. There is currently $787.6 million
remaining on the existing $1 billion share repurchase authorization.

Fourth Quarter and Fiscal 2012 Earnings Conference Call

Herbalife senior management will host an investor conference call to discuss
its recent financial results and provide an update on current business trends
on Wednesday, February 20, 2013 at 8 a.m. PST (11 a.m. EST).

The dial-in number for this conference call for domestic callers is (877)
317-1296 and (706) 634-5671 for international callers (conference ID
90082326). Live audio of the conference call will be simultaneously webcast in
the investor relations section of the company's website at
http://ir.herbalife.com.

An audio replay will be available following the completion of the conference
call in MP3 format or by dialing  (855) 859-2056 for domestic callers or (404)
537-3406 for international callers (conference ID 90082326). The webcast of
the teleconference will be archived and available on Herbalife's website.

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.Herbalifeproducts are sold in over 80 countries through and
to a network of independent distributors. The company supports theHerbalife
Family Foundationand its Casa Herbalife program to help bring good nutrition
to children.Herbalife'swebsite contains a significant amount of information
aboutHerbalife, including financial and other information for investors
athttp://ir.Herbalife.com. The company encourages investors to visit its
website from time to time, as information is updated and new information is
posted.

FORWARD-LOOKING STATEMENTS

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
environment including the availability of liquidity to us, our customers and
our suppliers or the willingness of our customers to purchase products in a
difficult 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, including our ability to comfort the marketplace and regulators
regarding our compliance with applicable laws;

• 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;

• whether we will purchase any of our shares in the open markets or otherwise;
and

• share price volatility related to, among other things, speculative trading
and certain traders shorting our common shares.

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

RESULTS OF OPERATIONS:

Herbalife Ltd.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
                                                            
                   Three Months Ended              Twelve Months Ended
                    12/31/2012   12/31/2011     12/31/2012   12/31/2011
                                                                  
North America      $ 197,052      $ 165,737        $ 841,243      $ 698,631
Mexico               132,070        106,192          496,101        436,930
South and Central    203,252        155,373          688,799        554,439
America
EMEA                 164,684        151,556          627,801        615,180
Asia Pacific         295,166        247,015          1,139,867      938,590
China               67,096        58,696         278,519       210,767
Worldwide net        1,059,320      884,569          4,072,330      3,454,537
sales
Cost of Sales       211,105       170,960        812,583       680,084
Gross Profit         848,215        713,609          3,259,747      2,774,453
Royalty Overrides    355,658        293,109          1,338,633      1,137,560
SGA                 332,764       286,151        1,259,667     1,074,623
Operating Income     159,793        134,349          661,447        562,270
Interest Expense -  2,453         (1,357     )    10,541        2,491
net
Income before        157,340        135,706          650,906        559,779
income taxes
Income Taxes        39,459        30,349         173,716       147,201
Net Income          117,881       105,357        477,190       412,578
                                                                  
Basic Shares         107,444        115,989          112,359        117,540
Diluted Shares       112,230        122,640          117,856        124,846
                                                                  
Basic EPS          $ 1.10         $ 0.91          $ 4.25         $ 3.51
Diluted EPS        $ 1.05         $ 0.86          $ 4.05         $ 3.30
                                                                  
Dividends declared $ 0.30         $ 0.20          $ 1.20         $ 0.73
per share
                                                                  

Herbalife Ltd.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
                                                 Dec 31,        Dec 31,
                                                  2012          2011      
                                                                 
ASSETS
Current Assets:
Cash & cash equivalents                          $ 333,534       $ 258,775
Receivables, net                                   116,139         89,660
Inventories                                        339,411         247,696
Prepaid expenses and other current assets          125,425         117,073
Deferred income taxes                             49,339        55,615    
Total Current Assets                               963,848         768,819
                                                                 
Property, plant and equipment, net                 242,886         193,703
Deferred compensation plan assets                  24,267          20,511
Other assets                                       48,805          41,125
Deferred financing cost, net                       7,462           4,797
Marketing related intangibles and other            311,186         311,764
intangible assets, net
Goodwill                                          105,490       105,490   
Total Assets                                     $ 1,703,944    $ 1,446,209 
                                                                 
                                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable                                 $ 75,209        $ 57,095
Royalty overrides                                  243,351         197,756
Accrued compensation                               95,220          76,435
Accrued expenses                                   181,523         152,744
Current portion of long term debt                  56,302          1,542
Advance sales deposits                             49,432          31,702
Income taxes payable                              15,854        31,415    
Total Current Liabilities                          716,891         548,689
                                                                 
Non-current liabilities
Long-term debt, net of current portion             431,305         202,079
Deferred compensation plan liability               29,454          23,702
Deferred income taxes                              62,982          72,348
Other non-current liabilities                     42,557        39,203    
Total Liabilities                                  1,283,189       886,021
                                                                 
Commitments and Contingencies
                                                                 
Shareholders' equity:
Common shares                                      107             116
Paid-in capital in excess of par value             303,975         291,950
Accumulated other comprehensive loss               (31,695   )     (37,809   )
Retained earnings                                 148,368       305,931   
Total Shareholders' Equity                        420,755       560,188   
                                                                
Total Liabilities and Shareholders' Equity       $ 1,703,944    $ 1,446,209 
                                                                             

Herbalife Ltd.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                                              
                                                 Twelve Months Ended
                                                 12/31/2012      12/31/2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                       $ 477,190        $ 412,578
Adjustments to reconcile net income to net
cash provided by
operating activities:
Depreciation and amortization                      74,384           71,853
Excess tax benefits from share-based payment       (29,684    )     (27,450  )
arrangements
Share based compensation expenses                  27,906           24,133
Amortization of discount and deferred              1,797            1,007
financing costs
Deferred income taxes                              (9,050     )     (12,984  )
Unrealized foreign exchange transaction loss       2,121            9,403
(gain)
Write-off of deferred financing costs              -                914
Other                                              532              2,206
Changes in operating assets and liabilities:
Receivables                                        (28,186    )     (9,687   )
Inventories                                        (82,177    )     (84,880  )
Prepaid expenses and other current assets          249              3,229
Other assets                                       (5,288     )     (13,864  )
Accounts payable                                   17,034           15,427
Royalty overrides                                  41,868           44,041
Accrued expenses and accrued compensation          39,440           28,749
Advance sales deposits                             17,790           (1,538   )
Income taxes                                       16,106           42,659
Deferred compensation plan liability              5,752          3,535    
NET CASH PROVIDED BY OPERATING ACTIVITIES         567,784        509,331  
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment         (121,524   )     (90,408  )
Proceeds from sale of property, plant and          280              297
equipment
Deferred compensation plan assets                 (3,756     )    (1,975   )
NET CASH USED IN INVESTING ACTIVITIES             (125,000   )    (92,086  )
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid                                     (135,091   )     (85,489  )
Borrowings from long-term debt                     1,430,560        914,200
Principal payments on long-term debt               (1,146,580 )     (888,865 )
Deferred financing costs                           (4,460     )     (5,718   )
Share repurchases                                  (556,727   )     (321,639 )
Excess tax benefits from share-based payment       29,684           27,450
arrangements
Proceeds from exercise of stock options and
sale of stock under
employee stock purchase plan                      11,373         22,262   
NET CASH USED IN FINANCING ACTIVITIES             (371,241   )    (337,799 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH           3,216          (11,221  )
NET CHANGE IN CASH AND CASH EQUIVALENTS            74,759           68,225
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR      258,775        190,550  
CASH AND CASH EQUIVALENTS, END OF YEAR            333,534        258,775  
CASH PAID DURING THE YEAR
Interest paid                                    $ 14,268        $ 8,800    
Income taxes paid                                $ 169,725       $ 118,906  

SUPPLEMENTAL INFORMATION

SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited), (Dollars in Thousand, Except Per Share Data)

In addition to its reported results, the Company has included in the tables
below adjusted results that the Securities and Exchange Commission defines as
“non-GAAP financial measures.” Management believes that such non-GAAP
financial measures, when read in conjunction with the Company’s reported
results, can provide useful supplemental information for investor in analyzing
period to period comparisons of the Company’s results.

The following is a reconciliation of net income and diluted earnings per
share, presented and reported in accordance with U.S. generally accepted
accounting principles, to net income adjusted for certain items:

                            Three Months Ended       Twelve Months Ended
                             12/31/2012  12/31/2011   12/31/2012  12/31/2011
                                                                    
Net income, as reported      $ 117,881    $ 105,357    $ 477,190    $ 412,578
Write-off of unamortized
deferred financing cost
from debt refinancing (net   -            -            -            700
of $214 tax benefit)
Net income, as adjusted      $ 117,881    $ 105,357    $ 477,190    $ 413,278

The following is a reconciliation of diluted earnings per share, presented and
reported in accordance with U.S. generally accepted accounting principles, to
diluted earnings per share adjusted for certain items:

                            Three Months Ended       Twelve Months Ended
                             12/31/2012  12/31/2011   12/31/2012  12/31/2011
                                                                    
Diluted earnings per         $ 1.05       $ 0.86       $ 4.05       $ 3.30
share, as reported
Write-off of unamortized
deferred financing cost
from debt refinancing        -            -            -            0.01
Diluted earnings per         $ 1.05       $ 0.86       $ 4.05       $ 3.31
share, as adjusted

The following is a reconciliation of total long-term debt to net debt:

                                                  12/31/2012    12/31/2011
                                                                
Total long-term debt (current and long-term      $ 487,607      $ 203,621
portion)
Less: Cash and cash equivalents                   333,534       258,775    
Net debt                                        $ 154,073     $ (55,154    )

Contact:

Media Contact:
Barbara Henderson
SVP, Worldwide Corp. Comm.
213.745.0517
or
Investor Contact:
Amy Greene
VP, Investor Relations
213.745.0474
 
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